Monero is a digital currency that provides a high level of anonymity to users and their activities. Like Bitcoin, Monero is a cryptocurrency that is classified as a peer-to-peer cryptocurrency, but unlike Bitcoin, Monero is seen as an anonymous or secretly focused digital currency. The privacy token operates on its blockchain, which encrypts almost all transaction information. The identity of the sender and recipient, as well as the value of the work itself, is hidden. Monero can work on Windows, MacOS, Linux, Android, and FreeBSD. Monero uses a public ledger called blockchain to record transactions and Monero coins (XMR) are created using GPU mines and CPU cryptocurrency.
The origins of XMR can be traced back to Bytecoin, a privacy-focused decentralized cryptocurrency that started in 2012. Two years later, a member of the Bitcoin talk forum, known only as thankful_for_today, forked the Bytecoin codebase into a new project called BitMonero. BitMonero is a compound of Bit (as in Bitcoin) and Monero (meaning "coin")
The launch of BitMonero received poor reviews to the community that initially backed it, and as a result, 7 community members forked BitMonero into a new project called Monero. Led by Fluffypony (Ricardo Spagni), this mostly pseudonymous group eventually became Monero's first core team. Monero started the project in April 2014 without any pre-mining.
The reason for creating the project was to focus on privacy, security, and untraceability. Its focus is on secretive and anti-research features using ring signature cryptography and other features such as confidential addresses.
In Bitcoin, multiple actions performed by a participant can be associated with the same address, allowing others to know the owner of the address owner and its identity. Monero on the other hand prevents these kinds of things from happening on the network.
· Ring Confidential Transactions: Ring Confidential Transactions (RingCT) hides the amount of XMR sent in a unique transaction. In particular, only Coinbase transactions display the amount of XMR so that everyone can verify that the mining rewards are accurate.
· Stealth addresses: Stealth addresses can be interpreted as unique one-time addresses that are used by both the recipient and the sender. The sender generates a 256-bit secret transaction key known only to the sender. It is multiplied by the recipient's public address. The output index is then connected to this value before being hashed using the Keccak256 algorithm.
· Dynamic block size: Monero uses the past median of the block size as one of the components to dynamically increase or decrease the block size limit. Dynamic block sizes provide space to grow over time, avoiding congestion as network usage increases.
XMR is used as the native currency on the Monero network. XMR can be used for peer-to-peer payments and can store value on the Monero network. Monero is also used to pay transaction fees. With strong privacy features that provide confidentiality by default, Monero is widely used as a black market or gray market currency.
DATE | NEWS/EVENTS | IMPACT |
07/05/2022 | TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath | -30% Decrease |
22/04/2022 | Monero announced that the protocol will be updated to fee changes and improve network security | +20% Increase
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02/12/2021 | Monero team discovered some vulnerabilities in their network’s multi-signature wallet code | -21% Decrease |
24/08/2021 | Monero's price goes up after Atomic Swap implementation | +20% Increase |
20/05/2021 | Biden discloses tax plans for crypto transactions | +30% Increase |
As cryptocurrencies become commonplace, Monero will play a key role in transforming people's spending. Whether these changes will only spread illegal activities or give people a way to express their freedom remains to be seen. However, XMR and other privacy-oriented currencies will grow exponentially as users, for the first time in history, are given the option to fully control their money.
Monero has an ecosystem system that focuses more on privacy within the crypto space. The digital currency network strives to live in harmony with the context of cryptocurrency when it comes to secrecy and security. It offers many useful and easy-to-use features that allow owners to enjoy a unique trading experience. The crypto world is highly volatile, so users should be careful before investing their hard-earned money in any project. However, projects like Monero have been in the industry for a long time and can be seen as a reliable investment option.
Monero