Up until now, Monero has basically functioned as the top privacy-based cryptocurrency. They have managed to develop a fantastic coin that has a devoted community. They have avoided any hacks and have consistently put out a high-end product. They have their ideals and they stick to them. For example, when Bitmain announced that they had developed an ASIC miner for XMR, the developers were quick to respond. As this was against the ideals held by the Monero community, they immediately changed their algorithm to render the ASIC miners obsolete, and maintain decentralization through GPU mining. With this being said, the coin has always functioned as simply a currency. Due to its best-in-industry privacy features and community/development decentralization, it has done quite well. Monero is truly a community project more than any other cryptocurrency, as there is no set core team. The project has incorporated contributions to the protocol from over 150 people in the last year alone.
Use cases for Monero have just greatly expanded beyond simply that of a currency. Lead developers from the Monero team have just announced the beginning of a second-layer protocol. They have named this protocol ‘Tari’. It is intended that Tari will function as a sidechain to the main network. It will function as its own entity. This means that the protocol will have its own tokens, and function much like a token would on the ETH network. In doing so, Tari plans to aim its efforts towards being able to assign digital ownership. This ownership could apply to a variety of industries ranging from gaming, to real estate, and even scalpers. The team at Tari indicates that this is the first project to date purpose built for the transfer of digital assets. Other projects have done this, but were not built specifically for this.
Planning for growth, the team knows that the network must be able to handle a significant amount of transactions per second. They are building it to compete – and beat – current credit card standards right from the start. The first step to attain this goal is through utilization of the lightning network, which the team has stated will happen. You can learn more about the lightning network HERE.
To support a healthy, decentralized group of miners, the Tari token will be attainable through traditional mining of the Monero algorithm. Tari is being developed to make use of merged-mining, which allows for two coins to be mined simultaneously. Any miner will be able to switch back and forth between mining either just Monero, or a split between Monero and Tari. This potential sharing of mining power will create a robust network for both coins.
It is likely that a product will not be seen for a couple of years, as the project is in its initial stages of development. Despite some exchanges cracking down on privacy based coins, the future seems to be bright for Monero. By diversifying and creating projects such as this, they will surely see continued acceptance, and their potential use cases will greatly increase beyond desired anonymity.