The Case for Monero being used as cash


Privacy in an open society requires anonymous transaction systems. Until now, cash has been the primary such system. An anonymous transaction system is not a secret transaction system. An anonymous system empowers individuals to reveal their identity when desired and only when desired; this is the essence of privacy. Eric Hughes, A Cypherpunk’s Manifesto, 1993

I. Privacy is a fundamental Human Right

Privacy is a fundamental human right recognised in the UN Declaration of Human Rights of 1948, the International Convenant on Civil and Political Rights of 1966 and in many other international and regional treaties.

  • why is privacy important on public permissionless distributed ledgers (blockchains)?
  • how do public permissionless blockchains evade privacy by default/design? and
  • how does Monero attempt to fix this major flaw.

Why do we need privacy?

Privacy underpins human dignity and key values such as the freedom of association and the freedom of speech. It has become one of the most important human rights issues of the modern age.

Why do we need privacy on Blockchains and how do public permissionless blockchains evade our privacy?

Misconceptions about our right to privacy: There are various misconceptions about our fundamental right to privacy, some times (perhaps) due to a lack of understanding how fundamental a value it is to human societies. Some claim that since they have got nothing to hide, they are OK with surrendering their privacy rights to AI, big data companies or the government. Some claim that protecting our privacy on each device we interact with, is impossible. Others go on to claim that encryption gives wrong-doers or terrorists an invisibility cloak.

How does Monero fix the flaws inherent in Bitcoin and Ethereum?

II. Why do we need a Peer to Peer Electronic Cash system that actually works? Why Monero?

How Bitcoin (SO FAR) fails to be a peer to peer electronic cash system

How does Monero fix all of the above?
  1. Purchase — After adding up the customers purchase in local fiat and applying sales tax if needed, you simply need to calculate the corresponding amount in XMR.
  2. Payment — The customer scans your QR code to pay you in XMR. The Monero transaction fee is paid by the sender and calculated as the time of transaction.
  3. Transaction Pool — Within a second, the transaction is announced to the Monero network and placed in the transaction pool, also called the mempool. You can check for the existence of your transaction in the mempool, an example mempool can be seen here:
  4. Confirmation — Within 4 minutes, the transaction will usually be in a block on the blockchain and you can have confidence that it is valid. The payment will now appear in your wallet as locked funds. Your transaction will be confirmed by 9 more blocks before being unlocked and virtually impossible to reverse.

III. More About Monero

The above are not the only reasons why Monero is by some users preferred to Bitcoin. The following two infographics give an idea:

IV. The Challenges for Monero

V. Closing Remarks

VI. Resources/Bibliography



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