Monero is new cryptocurrency that originates from Bitmonero. It is a fork of Bytecoin. Monero focuses on privacy and decentralized. It is operated on Windows, macOS, Linux, Andriod, and FreeBSD. It utilizes a public ledger to record transactions while new units are created through a process called mining. It is an open-source cryptocurrency established in April 2014.
Monero desires to improve on existing cryptocurrency which is design by ambiguous sender, recipient and amount of every transaction. This has made mining process more equitable. It is secure, private and untraceable cryptocurrency. Monero is open-source and is accessible to each and everyone. The user is wholly responsible for his funds. The accounts and transactions are kept private from prying eyes.
Why is Monero
Monero is structured on the CryptoNote protocol. It provides high level of privacy. Monero is fungible which means that another unit can substitute every unit of currency. This makes Monero different from public-ledger cryptocurrencies like Bitcoin.
Monero clouts ring signatures and stealth addresses to enigmatic the identity of senders and recipients. Ring signatures combine or mix a user’s accounts keys with public keys which are obtained from monero’s blockchain to design a “ring” of possible signers. Monero is created to be resistant to application specific integrated circuit mining. It is utilized to mine other cryptocurrencies such as Bitcoin. This can be mined efficiently on consumer grade hardware such as x86, x86-64, ARM and GPUs.
- A pseudonymous author Nicolas van Saberhagen in October 2013, launched “cryptoNote” a protocol on which Monero is based on.
- Monero has rapidly grown in the market capitalization and transaction volume during the year 2016.
- In the year 2017, the privacy of Monero transactions was further strengthened by adopting algorithm Confidential Transactions. It is being hidden by the amounts being transacted.
- Secure: – Monero is a decentralized cryptocurrency which means that it is safe digital cash. The transactions are confirmed by distributed consensus and recorded on the blockchain.
- Private: – Monero utilizes ring-signatures, confidential ring transactions and stealth addresses to baffle the origins, amounts, and destinations of all transactions. Monero provides all the benefits of a decentralized cryptocurrency without privacy concessions.
- Untraceable: Default beclouds all sending, receiving addresses and the transacted amounts. The transactions on Monero blockchain cannot be connected to a particular user or real-world identity.
- Fungible: – Monero is a fungible because it is private by default. Vendors or exchanges cannot blacklist the units of Monero due to their association in previous transactions.
- Analysis resistant: – Monero’s blockchain analysis resistance results from unlinkability that is acquired by utilizing a modified version of Diffie-Hellman exchange protocol. This protocol generates multiple one-time public addresses which can be collected by the message receiver. It is hardly analyzed by confused foreigners inside the block explorer.
As we all are familiar with the features of Monero, it is beneficial for users and investors. It still has a long way to go before it reaches its goal of being a globally used currency. Monero has few drawbacks when compared with other digital currencies. It is challenging to use Monero as merchants are finding it hard to accept the currency. There are numerous apps which are developed to resolve the challenges. Monero community is known as concentrated mining. Large pools consume almost 35% of Monero mining.