Updated: Dec 20, 2019
The first cryptocurrency originating from Japan in 2013, Monacoin is a Litecoin hard fork and a blockchain-based cryptocurrency. The basis of Monacoin is a popular internet meme named Mona, which is an ASCII art character cat and very popular in Japan.
The native cryptocurrency of the Monacoin platform is called MONA. This is an open-source decentralized peer-to-peer (P2P) digital currency and has a supply of 105 million coins in entirety.
This guide will talk about the reason Monacoin was designed, the makers behind it, the way it works and its uses and applications.
What Is Monacoin Designed For?
Monacoin is a decentralized cryptocurrency intended to be used only as digital cash. It is a fully distributed payment system facilitated by all the people using its client application. It is designed to have minimal interference from its core team and its development has been solely on the community’s initiative and enthusiasm.
Cryptocurrencies are treated as speculative ventures by the majority of masses. Monacoin has been able to overcome this by allowing its user base to focus on its management. Apart from this, multiple cryptocurrency exchanges have already listed Monacoin with them. Its connection with the ASCII mascot has made Mona a very popular cryptocurrency with the Japanese traders.
Monacoin was developed to provide Japan with its first digitally decentralized cryptocurrency. In this regard, it has been accepted legally by the Japanese government and is widely used both for physical and online transactions.
Who Is the Team Behind Monacoin?
Monacoin was launched by an anonymous developer called Mr. Watanabe in January 2014. Watanabe is a common Japanese surname. The pseudonym is widely assumed to be an homage to Satoshi Nakamoto, the founder of Bitcoin.
Apart from this, the entire team of Monacoin is surrounded by obscurity. The community has just one way of keeping up with the latest developments - Monacoin’s Github.
How Does Monacoin Work?
Monacoin is essentially a digital currency platform, which has empowered the community with its development. The first Japanese founded cryptocurrency has even been legalized by the government and popularly accepted by Japanese traders.
Since the launch of the project, its developers have not set aside any of its coins (MONA). This process of pre-mining was not inculcated within the launch, and all the users had to meet the same conditions for acquiring the coins from the very start as per the blockchain algorithm. Further, the developers have made it clear that they neither issue nor manage any of the Monacoin currency (MONA), which currently stands at $105 million.
The processing speed of new blocks is 1.5 minutes as compared to Litecoin’s 2.5 and Bitcoin’s 10 minutes. This competent block speed enables efficient movement between the cryptocurrency and Japanese Yen between the exchanges when on-ramping. It further lowers the transaction costs making it more economical. Also, the mining complexity is attuned in every block, with both CPU and GPU mining is possible. The reward halving is undertaken every three years.
The coin has a very strong community base which ensures that the crypto stays pertinent to the ever-changing marketplace dynamics. It is ASICS resistant but can still be mined individually using a CPU. A variety of platforms support the Monacoin Core Wallet, and Mona can be stored in both Electrum Mona and Coinomi wallets. Bitbank is the major cryptocurrency exchange on which Mona trading happens. Apart from this Upbit, Livecoin, CryptoBridge, and Bittrex are other exchange platforms supporting the Monacoin.
What are Current and Future Applications of Monacoin?
The trading volume of Monacoin is smaller than both Ethereum and Bitcoin. The reason for this is that Monacoin was developed specifically for the Japanese people, and incorporates the Japanese culture right from the adoption of the popular meme Mona to the country-specific language and proof of work. Because of this Monacoin has faced difficulty in finding a wider global user base.
Its primary function is that of digital currency and in this, it has been very successful with the Japanese traders, merchants, and buyers. It’s most popular and frequent use is in third party mobile applications for affording guidelines, especially in the online gaming platform.
Monacoin users have developed various web applications and services like Monage. This is a word game and involves the player to ‘tip’ each other using the Monacoin blockchain. Apart from this users have erected shrines in Japan for Monacoin. It is used in everyday transactions by merchants in brick and mortar market including retail outlets and restaurants and is true to its basic functionality of being a form of real-world currency.
A notable example of Mona being used in the real world is when it was the mode of payment for purchasing a plot of land in 2014. Monacoin is hence used in a lot of new and innovative ways by the Japanese people.
In conclusion, despite Monacoin’s evident success in Japanese markets, it will never be able to carve a niche for itself in the west cryptocurrency network. Nevertheless, the developers have already managed to help Mona attain the notable position of being the first and most dominant cryptocurrency in Japan.