- Monero and Bitcoin are both digital currencies used for trading.
- Ethereum is a decentralized blockchain platform that securely initiates and verifies application code, that is smart contracts.
Monero use cases concern leveraging it as a digital asset for seamless and secure payments. It is a privacy-focused cryptocurrency and is not developed on smart contracts. Also, the currency scales with enhanced adaptation and offers a high-level opaqueness to the transactions. Stealth Addresses and Ring Signatures played a major part in solving privacy problems that make XMP different from other cryptocurrencies.
What are Monero, Bitcoin, and Ethereum?
Monero is a digital asset that offers a high level of opaqueness for users and their transactions. It is a peer-to-peer cryptocurrency termed private digital cash and uses blockchain with privacy-upsurging technologies.
Bitcoin, on the other hand, is a cryptocurrency that uses cryptography for anti-counterfeiting and security measures. The currency is mainly used for trading goods and services with vendors that accept Bitcoin as payment.
ETH is a decentralized blockchain platform that develops a peer-to-peer network that safely initiates and validates the smart contract. ETH tokens are used for trading cryptocurrencies, storing Non-Fungible Tokens (NFTs), earning interest, and making transactions.
XMR vs. BTC
Unlike BTC transactions, payments in Monero are difficult to trace, which makes the currency more private and secure. Also, the XMR blockchain, in comparison to Bitcoin, is more scalable and agile and all credit goes to the effective features of Monero including Stealth Addresses, Ring Signatures, etc. Many of the features were adopted to reroute around the restrictions of the Bitcoin blockchain. BTC offers limited security as Bitcoin transactions and addresses are recorded on the blockchain, opening them to a public approach. Monero on the other side is a non-traceable transaction history, offering individuals a much safer network.
XMR vs. ETH
ETH is a decentralized platform that uses ETH tokens for making transactions, trading, and earning interest. ETH tokens are used in Decentralized Applications (DAaps) and smart contract environments for developing Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi) applications, and more, instead of a private payment enabler. ETH is a platform to run smart contracts whereas XMR is more secure and fungible.
Monero can be a good investment if an individual is interested in cryptocurrency. The value of XMR hiked more than 231% between August 2020 and August 2021. Also, there is no need for a huge cost to initiate and it does not require special hardware to operate. One of the additional features that makes Monero unique from other digital currencies is its compatibility with most of the operating systems as one can use the CPU of its computer system for mining.
There are more than 20,000 digital assets that collect the attention of traders and Monero is one of the most effective currencies which is unique and somehow different from BTH and ETH. Monero is a privacy-focused cryptocurrency whereas BTC emphasizes Pseudo-anonymous digital assets. ETH on the other hand offers a decentralized platform for trading and supports advanced smart contracts. Features like Stealth Addresses and Ring Signatures made XMR more secure, opaque, and unique from other cryptos.