Monero is a digital currency built using blockchain technology. Like Bitcoin, Monero can also be used to send or receive payments. So, how is it different from Bitcoin and other cryptocurrencies?
Monero wasn’t built using Bitcoin’s technology. Monero was founded in 2014, with a focus to improve on the lack of privacy in Bitcoin.
When you send Bitcoin to someone, everyone can see who the sender and the receiver is, and how much the transaction is worth.
Outside users cannot see the names of the two users, however, everyone can see the public address of the user’s Bitcoin wallet. And in the world of Bitcoin, your public address is your identity.
Not only that, but everyone can see all the previous transactions in which a particular Bitcoin was used. So, if a Bitcoin that you hold was used in an illegal trade in the past, someone can refuse to accept it from you.
This is different to how Monero transactions work. When a Monero transaction takes place, the identity of the sender and receiver remains private. Also, Monero transactions cannot be linked to each other. Every Monero transaction is private, unlinkable and untraceable, just like physical cash.
If someone pays you using a $100 bill, do you have any idea of where it has been used before? Or who the past owners of the $100 bill were? No!
This is what Monero brings to the cryptocurrency transactions — it offers you privacy. If you make a payment using Monero, no one can see what you’re spending your money on. Which has proven to be an attractive feature for some!