The world of cryptocurrencies is a fast paced one, which despite having over 1100 variants is still majorly dominated by Bitcoin and Ethereum. There are however lesser known cryptocurrencies with unique features that makes them possible future competitors of the big two once the industry begins to take notice of them.
One of those unique cryptocurrencies is Monero, which has a unique characteristic known as fungibility. Fungibility is loosely defined as the degree of changeability of a good or asset with other good or asset of the same kind. A simple example is if your friend were to borrow you a single Twenty Euro note, they would not mind accepting 2 Ten Euro notes or even 4 Five Euro notes when you are paying them back, thus making the Euro a highly fungible asset. While if you were to borrow a friend’s red colored bike but then while returning bring a green colored bike of the same make and model, they will almost certainly not accept it, which makes it not fungible.
The unique thing about Monero is that unlike Bitcoin whose ledger is quite open those transactions can be traced through the blockchain, Monero’s is completely opaque and only the owner can see where their money is going to. Ability of users to trace the Bitcoin transaction history brings about the concept of “tainted” Bitcoins. These are Bitcoins which in the past have been used to buy drugs for example and some buyers either don’t accept them or only exchange them with clean Bitcoins at a reduced rate than the global market price.
Monero’s opaque transaction history means that no one accepting it from you can trace where it has been before you gave them, giving it a completely clean bill of health, making it one of most highly fungible cryptocurrencies more than Bitcoin itself. This gives us the classic example that though the entire rave is about Bitcoin and Ethereum, there are other less known cryptocurrencies with unique features that users could take advantage to use for tailored needs