Monero Animated Series Final Review
Further the u/savandra's recent post (https://www.reddit.com/r/Monero/comments/10e7pvv/new_monero_animated_videos_update/?utm_source=share&utm_medium=web2x&context=3) on initiating the CCS-funded video series (https://ccs.getmonero.org/proposals/savandra-videos-for-monero.html) after a long delay, I am posting the existing video voiceover script drafts for final community review. Please take the time to read over and comment on any errors or parts that are unclear/confusing. Anyone can have blind spots, so its best to get as many eyes on it before the animation work starts, which will be costly to amend.
The scripts are posted below so you can read without leaving reddit, but the repository is here, where you can raise issues and keep track of them if you prefer that: https://gitlab.com/monero-videos/monero-adoption-animated-videos/. There you will also see the video description notes, where we will place linked resources for viewers. Suggestions here would be especially helpful!
We look forward to finally pushing these out for you to share with your local and online businesses to help onboard them! (Merchant adoption is the focus of the series)
Monero is a payment network that anyone can use for free. In this video, we will explain why your business might benefit from using Monero to facilitate payments, and provide simple guides on how to adopt Monero for your business. For more detailed explanations of the internal mechanics of Monero, please refer to our technical explanatory video series linked in the description. This educational content was anonymously funded by donors who have themselves benefited from the Monero project. They believe that businesses can benefit from using Monero, and want to help others learn more about it.
In its essence, Monero is a free open source software protocol for economic coordination, through payment processing. Being free and open, there are therefore no subscription fees, no corporate signups or registrations and, most importantly, no middleman between payer and payee when using Monero. Monero operates as a network of equal participants, called 'peers', where each peer must follow a common set of rules to participate, and they all help enforce these rules. Monero is different from other payment networks like PayPal, AMEX, or Visa, because it doesn't require a central authority, like a bank or payment processor. This means that businesses can use Monero to facilitate transactions without added fees or intermediaries. Where centralised intermediaries commonly take 0.5% to 1.5%, Monero operates with fixed fees under 1c, regardless of amount transacted. These fees go to network contributors, of which anyone may join.
One key feature of the Monero network is the emphasis on transaction confidentiality. Using encryption and verification techniques, which have been develop and consistently improved since 2014, Monero effectively preserves the confidentiality of transaction details and account balances, for which it has earned its reputation as a financial privacy tool. These features ensure that only individual transaction participants are privy to their own records. Despite the privacy protections, participants are nevertheless able to issue and validate publicly auditable receipts, to resolve any potential disputes.
Monero uses its own internal currency, also called "monero", to preserve independence from sovereign states and allow for unrestricted international participation. This currency is highly analogous to traditional currencies that you are used to, like the dollar, but there is no central issuing authority and no printing facility. Instead, the currency is entirely virtual and network peers individually keep track of the total supply of monetary units. Its decentralized nature makes it resistant to censorship and tampering, and its open-source code allows for transparency and community-driven development.
Why use Monero for commerce?
Monero is a payment option that allows businesses to facilitate transactions without added fees or intermediaries. It combines the strengths of cash and card payments, while avoiding many of their drawbacks. Like physical cash, using Monero is free for both businesses and customers and offers benefits like strong privacy, low transaction costs, no transactional intermediaries, and no downtime for maintenance.
Monero also includes many of the benefits of electronic payment systems, including ease of use, security against theft, and no physical units to count or store. In addition, Monero payments are uniquely borderless and international, more secure from theft or seizure, and more resistant to fraud. Additionally, transactions are irreversibly settled after a few minutes, unlike traditional payments that can take days to clear, not counting weekends. After rapid settlement, only the recipient has the power to issue a refund.
Finally, using Monero can provide novel benefits for your business, like offering a permissionless and ungoverned form of payment, and generating spending demand from consumers who want to spend currency they already possess. In the next video, we will show you how to set up a Monero wallet or account, which is free and only takes a few minutes.
What is a Monero Wallet?
Hello and welcome to part 2 of this educational animated video series on Monero. Today, we're going to be discussing what a Monero wallet is, how it works, and how to set one up.
First, let's define what a wallet is. In the context of Monero, a wallet is software that allows you to securely store, send, and receive Monero. Your Monero wallet holds your private keys, which function as your network password.
Imagine your Monero wallet as a kind of password manager that you use to access your Monero funds. Just like a password, your private keys are unique to you and should be kept secret at all times. Your wallet software uses these private keys to sign off on outgoing transactions and to discover incoming transactions on the Monero network.
The relationship between the Monero transaction database, your wallet, and your private keys is important to understand. The Monero transaction database, or ledger, is a shared, decentralized record of all Monero transactions. Your wallet is the interface that you use to interact with the Monero ledger, and your private keys are what allow you to authorize spending and decrypt incoming transactions. Decryption is necessary, because transaction data is protected by strong encryption exactly because it is not hidden behind a central authority, but a matter of public record. Your wallet is the tool that allows you to access and manage your personal accounts on the network, which is inaccessible to anyone else.
In order to make it easier to manage your private keys, your Monero wallet software allows you to package them into mnemonic seeds. These are a series of words that you can use to regenerate your private keys in case you lose access to your wallet. It's important to keep your mnemonic seed safe and secure, as it is the only way to recover your Monero funds in case of device loss or theft.
Now that we've discussed what a Monero wallet is and how it works, let's talk about how to set one up. There are a few different ways to create a Monero wallet, but the most common method is to use wallet software to generate fresh private keys. This can be done using a variety of tools and options, depending on the wallet software that you choose.
Another option for setting up a Monero wallet is to use a purpose-built hardware device, such as a Ledger or Trezor. These devices allow you to securely generate and store your private keys, and they have the added advantage of being portable and extremely resistant to hacking.
There are several good wallet software options available on different platforms, each with its own pros and cons. Some popular options include Monero GUI and Featherwallet for desktop, and Monero.com or Monerujo for mobile. It's important to choose a wallet software that meets your needs and that you feel comfortable using.
Once you have chosen your wallet software, you will need to configure it according to your preferences. This typically involves setting up a spend wallet and a view-only wallet, each with its own set of private keys. The view-only wallet allows you to view your Monero balance and transaction history, while the spend wallet allows you to authorize outgoing transactions in addition to viewing them. You may prefer to keep just a view-only wallet on premises for a physical store, since funds cannot be stolen from it, even under threat.
In conclusion, a Monero wallet is a piece of software that allows you to securely store, send, and receive Monero. Your wallet holds your private keys, which are used to authorize spending and discover incoming transactions on the Monero network. There are several good wallet software options available, and you can choose to set up your wallet using software on an exiting device such as a laptop, tablet or phone, or a on a purpose-built hardware device. Once your wallet is set up, you can configure it according to your preferences and start using it to manage your Monero funds. Thank you for watching this educational animated video on Monero wallets and stay tuned for the next video where we will explain how to receive Monero payments.
How to receive Monero payments?
Welcome to part 3 of educational animated video series on accepting Monero payments for your business. Today, we're going to be discussing the technical details of how to set up Monero payment processing for your goods and services.
In order to accept Monero payments, you'll need a Monero wallet that is capable of receiving Monero funds. We discussed this process in the previous video, so go check it out if you haven't already!
Monero wallets have support for multiple accounts, which allow you to organize your funds and keep track of your transactions. Another useful feature of Monero wallets is the ability to generate subaddresses. These are additional payment addresses that you can use to identify specific customers or transactions. For example, you can generate a unique subaddress for each of your customers, and use it as a payment identifier when they make a purchase.
In order to receive a Monero payment, you'll need to generate an invoice. This can be done using your Monero wallet software, and it typically involves generating something as simple as a QR code for scanning or a string of text for manual copy-and-paste entry. The invoice will minimally contain your payment address (or subaddress) and the amount of Monero that the customer needs to send. A single catch-all static address with no amount specified is also suitable for accepting donations, if required.
When relying on Monero for payments, it's important to note that the market value of Monero can fluctuate, so you may want to include a reference to your local fiat currency in the invoice. This will allow the customer to see the equivalent amount in the dominant national currency where they live, and it will help prevent confusion or disputes over the expected payment amount. Most software solutions include such currency reference functionality.
Once a customer has sent a Monero payment to your payment address (or subaddress), your Monero wallet will automatically discover the incoming transaction and show it in your transaction history. This typically happens within a few seconds, so you can be confident that the payment has been received and is being processed on the Monero network.
However, it's important to note that Monero transactions require discrete batch confirmations in order to be considered finalised. This means that there is a small risk of a transaction being reversed if it has not yet received one or more network confirmations. For this reason, it's generally not recommended to accept 0-confirmation transactions for large, irreversible purchases. Formal network confirmations are processed every 2 minutes on average, with some variability.
Now that we've discussed the basics of accepting Monero payments, let's talk about some software options that are suitable for setting up a point-of-sale system for your business. Some popular options include Bitrequest, Hotshop, Feather, and Monerujo. Each of these options has its own pros and cons, so it's important to choose the one that meets your business needs and that you feel comfortable using.
In addition to point-of-sale systems, there are also several options for accepting Monero payments on your web store. For example, if you use a popular e-commerce platform like WooCommerce, you can install a Monero plugin that will allow you to accept Monero payments directly on your website. Such plugins exist for most notable e-commerce platforms, so take a look at the links in the description.
Alternatively, you can use a manual invoicing system to receive Monero payments. This involves generating an invoice as we discussed earlier, and then sending it to the customer via email or another communication channel. The customer can then use their Monero wallet to send the payment to your payment address (or subaddress) as specified in the invoice, without requiring any further action on your part. This is a simple option that might be suitable for someone who performs low-volume or customised services that don't require instant payments or automated systems.
One final option to consider is using a 3rd party solution that allows for automatic conversion of Monero payments into your local currency. For example, Nowpayments is a service that allows you to receive Monero payments and automatically convert them into your local fiat currency. This can save you the time and effort of using a Monero exchange service to manually convert your Monero funds, if indeed you have the need to do so.
In conclusion, there are several options available for accepting Monero payments for your business. Whether you use a point-of-sale system, a web store, or a manual invoicing system, you can easily set up Monero payment processing and start accepting Monero payments from your customers. Thank you for watching this educational animated video on accepting Monero payments for your business, and stay tuned for the next video on how to keep track of your Monero cashflow.
How to keep track of your Monero cashflow?
Welcome to part 4 of this educational animated video series on keeping track of your Monero cashflow for your business. Today, we're going to be discussing how to manage and monitor your Monero transactions in order to better understand and control your Monero cashflow.
First, let's talk about the importance of keeping track of your Monero cashflow. As a business owner, you want to make sure that you are able to maintain a clear and accurate picture of your Monero finances. This will help you avoid potential problems or misunderstandings, particularly when the management of finances are shared among two or more individuals.
Recall from the first video that one of the key benefits of using Monero for your business is that it provides a verifiable and unchangeable record of all transactions on the Monero distributed database. This means that you can easily track and monitor your Monero transactions from anywhere in the world, and you can have confidence in the accuracy and security of your financial data particularly when you maintain your own local copy of the transaction database. This can be done from any device that has access to the internet, at any time, using only the wallet keys that were introduced in video 2 of this series. Refer to our technical explanatory video series, linked below, for an explanation on why the network is more robust than centralised payment solutions that may go offline or otherwise become inaccessible.
When accepting payments, it's worth mentioning that Monero payments can be recorded in the same manner as cash payments, and they can be treated as such for tax purposes. This means that you might need to record the local fiat value of each Monero payment that you receive, in order to comply with your tax obligations that would typically be denominated in your national currency.
One common tax implication of using Monero for your business is the potential for capital gains tax (CGT) upon disposal of your Monero funds, if the value has risen substantially since you received it. This means that if you sell your Monero for a profit, you may be required to pay tax on the gain. However, there is no need for this if you make use of an auto-conversion service, as introduced in video 3 of this series.
In addition to tracking and monitoring your Monero transactions, it's also important to understand the utility of various transaction proofs and how they can be performed.
Transaction proofs are a way of proving that a Monero transaction occurred on the Monero network. They can be useful in various situations, such as resolving disputes or verifying the authorship of a transaction.
There are several types of transaction proofs that can be performed. For example, you can prove that a transaction occurred, prove that you were the author of a transaction, or simply prove that you are the owner of a certain payment address.
To perform a transaction proof, you'll need to use a Monero wallet that supports this feature. Most Monero wallets for desktops have this capability, and they typically provide instructions on how to generate and verify transaction proofs. Even if the wallet is mainly operated from a mobile device, it can also be accessed on desktop as needed to generate proofs, should the need arise.
In conclusion, keeping track of your Monero cashflow is an important part of managing your Monero finances for your business. By using a Monero wallet, you can easily track and monitor your Monero transactions and always have a clear and accurate picture of your Monero finances at all times. Understanding the utility of various transaction proofs and how to perform them can also be useful in certain situations. Thank you for watching this educational animated video on keeping track of your Monero cashflow for your business, and stay tuned for the next video on what to do with your Monero revenue.
What to do with Monero income?
Welcome to part 5 of this educational animated video series, this time on what a business can do with the Monero it has obtained from payments for goods and services. Today, we're going to be discussing some of the options and considerations for managing and using your Monero funds.
First, let's briefly review the benefits of using Monero for your business. Monero is a decentralized digital currency that allows for fast, secure, and private transactions. By accepting Monero payments for your goods and services, you can provide your customers with an additional payment option and take advantage of the features and benefits of Monero.
Once you have received Monero payments for your goods and services, you'll need to decide what to do with your Monero funds. There are several options available, and the best one for you will depend on your individual business needs and goals.
The first and simplest option is to hold on to your Monero funds and use them for future outgoing transactions. This can be a good choice if you expect to cover future expenses using Monero, or if you simply want to use Monero as a form of savings or an insurance of last-resort that cannot be frozen or stolen. Monero is a highly liquid and widely accepted digital currency, so you can also easily convert it into other cryptocurrencies or fiat currencies when needed.
This brings us to the second option, which is to convert your Monero funds into your local fiat currency. This can be a good choice if you need to pay bills or expenses that are denominated in your national currency, or if you want to withdraw your Monero earnings as a salary and use them for personal expenses. You can use a Monero exchange service to convert your Monero funds into your local fiat currency, and then withdraw the funds to your bank account or use them for other purposes.
A third and most beneficial option is to use your Monero funds directly to make purchases or cover expenses. For example, you can use your Monero funds to buy goods and services from other Monero merchants, or you can use it to pay staff salaries or bonusses. Paying suppliers or staff in Monero is a good way to remain within the Monero economy and aid in its establishment in your community, while also avoiding the financial friction of conversions. Such organic circulation amplifies the value of Monero as a non-corporate and independent tool for commercial activities and allows businesses to be more free from undue corporate or government control.
In conclusion, there are several options for using the Monero that you have obtained from payments for your goods and services. Whether you choose to hold onto your Monero funds, convert them into fiat currency, or use them for purchases or wages, you can manage your Monero finances in a way that meets your business needs and goals. Thank you for watching this educational animated video on what your business can do with the Monero it has obtained from payments for goods and services.