Monero-Classic (XMC) Cryptocurrency Market Data and Information

What is Monero-Classic (XMC)?

Monero-Classic (XMC) is a hard fork of the original Monero (XMR) blockchain that emerged following a disagreement within the Monero community regarding the use of ASIC (Application-Specific Integrated Circuit) miners. In early 2018, the Monero development team implemented a hard fork to introduce ASIC resistance, aiming to maintain decentralization by preventing large mining farms with specialized hardware from dominating the network. This decision sparked controversy, leading to the creation of several forks, including Monero-Classic, which chose to retain the original CryptoNight algorithm and allow ASIC mining.

The core philosophy behind Monero-Classic is rooted in the belief that the emergence of specialized mining hardware is a natural evolution in the cryptocurrency space, bringing benefits like increased network security through higher computational power. Supporters of XMC argue that attempting to perpetually resist ASIC miners is a futile effort, as any valuable algorithm will eventually attract specialized hardware development. They also contend that the presence of ASICs can deter botnet attacks and contribute to a more robust network. According to PZ, a self-proclaimed “early Bitcoin evangelist and blockchain eco builder” and a figure associated with Monero-Classic, the goal is to provide an alternative for those who believe in embracing ASIC mining and allowing the free market to determine the most efficient mining solutions.

Monero-Classic aims to maintain the original vision of Monero before the introduction of ASIC resistance, preserving the initial blockchain and providing a platform for miners who prefer to use specialized hardware. This divergence from the main Monero chain represents a fundamental difference in ideology regarding the long-term development and sustainability of the cryptocurrency.

How Does Monero-Classic (XMC) Work?

Monero-Classic, being a fork of Monero, shares many of its underlying principles and functionalities, but with a crucial difference: it maintains the original CryptoNight proof-of-work (PoW) algorithm, which allows for ASIC mining. This core distinction dictates how the network operates and validates transactions.

Like Monero, Monero-Classic utilizes a decentralized, permissionless blockchain where transactions are recorded and secured through cryptography. Miners compete to solve complex mathematical problems to add new blocks to the chain. The first miner to solve the problem gets to add the next block and is rewarded with newly minted XMC coins and transaction fees. Because XMC retains the original CryptoNight algorithm, ASIC miners, which are significantly more efficient at this specific calculation than CPUs or GPUs, can participate in the mining process. This encourages the development and deployment of specialized mining hardware optimized for the XMC network.

The continued use of the original CryptoNight algorithm directly impacts the network’s dynamics. It potentially leads to greater centralization of mining power as ASIC farms become dominant players. However, proponents argue this increased concentration also strengthens network security by significantly raising the cost of a 51% attack. Transactions on the Monero-Classic blockchain are also processed and verified using similar cryptographic techniques to Monero, ensuring the integrity and immutability of the ledger. Users can send and receive XMC coins through a wallet interface, and these transactions are publicly recorded on the blockchain, though, like Monero, it uses techniques to obfuscate the sender, receiver, and amount transacted.

The network also functions by maintaining a distributed consensus mechanism. This ensures that all nodes in the network agree on the validity of the blockchain’s current state. This consensus is achieved through the mining process. The longest and most computationally intensive chain is considered the valid chain. This makes it incredibly difficult for malicious actors to tamper with the blockchain’s history, providing a high level of security.

Monero-Classic (XMC) Key Features and Technology

Monero-Classic inherits many of the privacy-focused features of Monero while retaining its original mining algorithm. This combination results in a unique set of characteristics that distinguish it from other cryptocurrencies.

Key Features:

• ASIC Mining Support: The defining feature of Monero-Classic is its continued support for ASIC miners. This allows for greater mining efficiency and potentially increased network security, but also raises concerns about centralization.
• Privacy-Focused: Similar to Monero, XMC implements privacy technologies to obscure transaction details. While the extent of these privacy features compared to Monero’s current implementation may vary, the intention is to provide users with a level of anonymity.
• Decentralized: Monero-Classic operates as a decentralized, permissionless blockchain, meaning no single entity controls the network. Transactions are validated by miners distributed across the globe.
• Immutable Ledger: The blockchain technology underpinning Monero-Classic ensures that all transactions are permanently recorded and cannot be altered, providing a high level of data integrity.
• Forked from Monero: As a hard fork, Monero-Classic shares its genesis block and early transaction history with Monero, creating a shared lineage.

Technology:

• CryptoNight Algorithm: Monero-Classic utilizes the original CryptoNight proof-of-work algorithm, which is designed to be memory-hard, meaning it requires significant amounts of memory to compute, initially aiming to deter ASIC mining (though ASICs were eventually developed).
• Blockchain Technology: Like all cryptocurrencies, Monero-Classic relies on blockchain technology, a distributed, immutable ledger that records all transactions in a chronological and secure manner.
• Cryptography: Cryptographic techniques are used to secure transactions, verify identities, and ensure the integrity of the blockchain.
• Decentralized Network: The Monero-Classic network consists of a distributed network of nodes that collectively maintain and validate the blockchain.

The decision to retain the original CryptoNight algorithm is the most significant technological differentiator for Monero-Classic. While this allows for ASIC participation, it also presents ongoing challenges related to potential centralization and the cost of maintaining a competitive mining environment.

What is Monero-Classic (XMC) used for?

Monero-Classic, like its parent chain Monero, is primarily intended as a privacy-focused cryptocurrency for conducting secure and anonymous transactions. However, its adoption and use cases are influenced by its divergence from the main Monero chain and its stance on ASIC mining.

Here are the main intended and potential uses for Monero-Classic:

• Private Transactions: The core purpose of XMC is to facilitate private transactions. Although specific privacy features may vary compared to the current Monero (XMR) implementation, the goal remains to obfuscate transaction details and protect user anonymity.
• Mining with ASICs: Monero-Classic provides a platform for miners who prefer to use ASIC hardware. This allows for potentially greater mining efficiency and profitability for those invested in ASIC technology.
• Alternative Cryptocurrency: XMC serves as an alternative cryptocurrency for individuals who disagree with Monero’s decision to resist ASIC mining and prefer a chain that embraces specialized hardware.
• Speculative Investment: Like many cryptocurrencies, XMC can be used as a speculative investment, with individuals buying and holding the coin with the expectation that its value will increase over time.
• Supporting a Different Vision: Using XMC supports a different philosophy and vision for the cryptocurrency’s future, one that accepts and embraces the role of ASIC miners in the network.

It’s important to note that the adoption and real-world use of Monero-Classic are limited compared to Monero. Its value proposition primarily revolves around offering an alternative for those who prefer the original CryptoNight algorithm and the inclusion of ASIC mining. However, the limited resources behind development and the lack of wide acceptance mean the utility of XMC is significantly smaller than that of XMR.

How Do You Buy Monero-Classic (XMC)?

Purchasing Monero-Classic can be more challenging than acquiring more mainstream cryptocurrencies due to its limited availability on major exchanges. The process generally involves several steps:

1. Research Exchanges: Identify cryptocurrency exchanges that list Monero-Classic (XMC). Due to its relatively low market capitalization and limited adoption, XMC is not typically available on major exchanges like Coinbase, Binance or Kraken. You may need to look at smaller, less-known exchanges. CoinGecko, CoinMarketCap and similar sites can help identify potential exchanges that list XMC.
2. Create an Account: Once you’ve identified an exchange, you’ll need to create an account. This typically involves providing personal information, verifying your email address, and completing any required KYC (Know Your Customer) procedures.
3. Deposit Funds: After creating an account, you’ll need to deposit funds. Most exchanges accept deposits in the form of other cryptocurrencies, such as Bitcoin (BTC) or Ethereum (ETH). Some exchanges may also allow deposits via fiat currencies (USD, EUR, etc.) through bank transfers or credit/debit cards.
4. Trade for XMC: Once your funds are deposited, you can trade them for XMC. This usually involves navigating to the exchange’s trading interface, selecting the XMC trading pair (e.g., XMC/BTC), and placing an order to buy XMC.
5. Withdraw to Your Wallet: After purchasing XMC, it’s recommended to withdraw your coins to a personal wallet for safekeeping. This gives you full control over your private keys and reduces the risk of losing your funds due to exchange hacks or other security breaches.

Possible Exchanges: As previously mentioned, XMC is less commonly listed, and listing can change over time. It’s crucial to check the most up-to-date information on cryptocurrency listing sites. Smaller, less regulated exchanges should be approached with caution due to security risks.

Important Considerations: Trading cryptocurrencies involves risk, and it’s essential to do your own research before investing in any coin. Be aware of the exchange’s trading fees, withdrawal fees, and security measures before committing to a purchase. Ensure the exchange has a good reputation and takes adequate steps to protect user funds. Consider implementing two-factor authentication (2FA) on your exchange account to enhance security.

How Do You Store Monero-Classic (XMC)?

Storing Monero-Classic securely is crucial to protecting your investment. The best storage method depends on your individual needs and risk tolerance. Here’s an overview of the different storage options available:

• Desktop Wallets:

  Desktop wallets are software programs that you install on your computer. They offer a balance between security and convenience. Official XMC GUI wallet is available and linked on the official website.

• Hardware Wallets:

  Hardware wallets are physical devices that store your private keys offline, providing the highest level of security. They are generally considered the safest option for storing large amounts of cryptocurrency. The wallet should support Monero Classic for it to be a valid storage option.

• Mobile Wallets:

  Mobile wallets are smartphone apps that allow you to send and receive XMC on the go. They are convenient for everyday use but generally considered less secure than hardware or desktop wallets. Check the App store on android or IPhone for any XMC wallets but always be cautious and check for any possible security risks.

• Exchange Wallets:

  Storing your XMC on an exchange wallet is the least secure option. While it offers convenience for trading, it leaves your funds vulnerable to exchange hacks and other security breaches. It is generally not recommended for long-term storage.

Recommendations:

• For large amounts of XMC, a hardware wallet is the most secure option.
• If you need to access your XMC frequently, a desktop wallet may be a good balance of security and convenience.
• Use strong, unique passwords for all your wallets and enable two-factor authentication (2FA) where available.
• Always keep your private keys safe and never share them with anyone.
• Back up your wallet regularly to prevent loss of funds due to computer failure or other unforeseen events.

Future Outlook and Analysis for Monero-Classic (XMC)

The future outlook for Monero-Classic is complex and heavily dependent on several factors, including its community support, development activity, and overall market trends. Unlike Monero (XMR), which enjoys significant developer resources and widespread adoption, Monero-Classic faces challenges in gaining traction and establishing a strong presence in the cryptocurrency space.

Several factors could influence the future of XMC:

• Community and Development: A strong and active community is essential for the long-term success of any cryptocurrency. Monero-Classic needs to attract and retain developers who can contribute to its codebase and improve its functionality. Increased development activity will lead to wider acceptance in time.
• Market Trends: The overall cryptocurrency market trends will undoubtedly impact Monero-Classic. A bull market could drive up its price and attract new investors, while a bear market could have the opposite effect.
• Privacy Concerns: As privacy becomes an increasingly important issue, cryptocurrencies with strong privacy features could see increased demand. Monero-Classic may benefit from this trend, but it will need to ensure its privacy features remain competitive with other privacy coins.
• Competition: Monero-Classic faces competition from other privacy-focused cryptocurrencies, including Monero (XMR), Zcash (ZEC), and others. To succeed, it will need to differentiate itself and offer unique value propositions.
• ASIC Mining Debate: The ongoing debate about ASIC mining could also influence the future of XMC. If ASIC mining becomes more widely accepted, it could benefit Monero-Classic. However, if ASIC resistance remains a priority for many cryptocurrency enthusiasts, it could hinder its growth.

Overall Assessment:

Monero-Classic is a niche cryptocurrency with a limited adoption base. Its future is uncertain and heavily dependent on its ability to attract community support, maintain development activity, and differentiate itself from other privacy coins. Investors should exercise caution and conduct thorough research before investing in XMC, as it carries a higher level of risk compared to more established cryptocurrencies.

References

• CoinGecko: https://www.coingecko.com
• CoinDesk: https://www.coindesk.com