Monero vs Bitcoin: Full Comparison
Once there was Satoshi Nakamoto and then Bitcoin came to life. By doing this, Satoshi created an open-source digital currency that allows people to make anonymous money transactions almost instantly and through a public ledger we now call Blockchain where transactions are recorded as a hash.
This is the way one can describe Bitcoin, on a basic level. The problem is in the inconsistency of these two concepts; how can Bitcoin be anonymous when every transaction is recorded on the blockchain, including sender, receiver and amount?
Why are we sure in Bitcoin anonymity? An argument is the fact that wallet addresses are not connected to our passports nor our names. They’re justseveral random hashes that mean nothing, but our names are hashed in the same way, thus in Bitcoin we give ourselves nicknames, making Bitcoin pseudonymous instead of fully anonymous.
Wallet holders or wallet addresses can be easily tracked directly back to the user, through the IP checking, the history of transactions and so on.
Accordingly, we see that Satoshi Nakamoto’s original vision is not fully implemented in Bitcoin.
Here I should note some interesting Nakamoto’s quotes:
“we can win a major battle in the arms race and gain a new territory of freedom for several years”.
“Governments are good at cutting off the heads of centrally controlled networks, but pure P2P networks like Gnutella and Tor seem to be holding their own”
No one knows what Satoshi is up to, but one of the last emails he sent to a software developer, dated April 23, 2011, said “I’ve moved on to other things. It’s [Bitcoin] in good hands with Gavin and everyone.”
Some thought Satoshi moved on on the road called Anonymity and had a hand in a Monero creating.
Monero was launched in 2014 and its appearance was the answer on a rising problem of anonymity.
Monero uses a ring signature system to provide anonymous transactions. In this ring signature setting, a group of users has a bunch of keys that can confirm a transaction without proper user identification.
Users can set an infinite amount of the “mixins” for their money transaction, which makes it easier or harder to track. The term mixin used in Monero means that new transactions “mix” with older transactions on the blockchain. The problem of this technique is that the majority of transactions mix only one time, thereby the mixed transactions can still be tracked. Monero developers aiming at providing greater privacy are planning to upgrade the privacy technique to a minimum two mixin solution.
Short Comparison Review
Crypto geeks say the most critical defect of Bitcoin is the lack of privacy. If somebody has your Bitcoin wallet address for whatever reason, since that moment, you immediately compromise your privacy. Moreover, it works both ways. So now and in perpetuity, both the recipient and the sender can see how much money does the other party have in their Bitcoin wallet.
Monero solves these privacy issues by automatically applying privacy techniques like mixing to every transaction.
The Bitcoin algorithm runs noticeably faster on special made mining chips, known as ASICs, than on PCs and laptops.
In contrast, the Monero mining algorithm was specifically designed such that it runs almost the same on ASICs and on ordinary computers owned by the average man.
Monero blocks are produced on average every 2 minutes, and Bitcoin blocks are produced on average every 10 minutes.
Bitcoin is aimed at the public sector and Monero at the private sector.
In fact, Monero follows Satoshi’s vision much more closely than today Bitcoin.
Bitcoin & Monero Similarities
- Both coins use the proof-of-work consensus.
- Both coins are sought-after; Monero is the anonymity champion while Bitcoin is used in a less dark sphere and both coins have loyal fans.
Bitcoin vs Monero: Key Differences
- Total supply; The max Bitcoin supply is set to 21 million Bitcoins, while Monero does not have any set coins cap.
- Hash algorithm; Monero is based on the CryptoNight proof-of-work hash algorithm, which comes from the CryptoNote protocol. Bitcoin uses Secure Hash Algorithm SHA-256.
- Privacy; Monero is anonymous and Bitcoin is pseudonymous for several reasons we pointed at earlier.
- Average block time; for Monero the block time is about 2 minutes, in opposite we see Bitcoin transaction confirmation which can last up to 10 minutes