Monero introduced to be a leader of privacy in cryptocurrency world. In fact, it guarantees that you can use cryptocurrency in a private environment that nobody can have access to or track your transactions history.
Monero launched in 2014, as an open-source, privacy oriented cryptocurrency, which operates on a public ledger called blockchain. Its blockchain is non-transparent, what means that the identity of senders and recipients and also the amount of transaction keep anonymous by hiding the address which used by participants. The other unique feature that Monero provides to its users among all other cryptocurrencies is its mining process.
Every participant in Monero mining network are equal and deserve equal opportunities. Unlike other cryptocurrencies like Bitcoin, it can get mined individually using standard computers and does not need any specific hardware such as ASICs. It can be mined using x86, x86-64, ARM and GPUs. It was Nov 2019 that Monero introduced RandomX proof of work algorithm which increased the resistance to ASIC mining. However, to make it more profitable, miners can join mining pools and share their power with other miners to earn more.
What is Monero?
Monero (XMR) is an open source cryptocurrency. It created as a fork of Bytecoin with the focus on privacy and decentralization in April 2014. By using Monero’s public ledger anybody can send or receive transactions, but nobody from outside of the network can identify the source, amount or destination of the transaction. Monero uses a proof of work mechanism called CryptoNight to issue new coins and incentivize miners to keep the network secure and validate transactions.
Monero focuses on privacy and provide a currency, which is a digital currency that has the anonymity of cash. It means that when a user purchase something by using Monero, the receiver doesn’t need to know the identification of sender or even where the money comes from. it uses enforced privacy by default, So the transactions history remain all the time private.
In order to keep the transaction history (sender, receiver and amount) private, Monero uses ring signatures, stealth addresses, and ring confidential transactions and etc.
Privacy and security features of Monero
When a transaction broadcasted on Monero’s network, the sender signs the transaction cryptographically. In fact, the sender signs with an input they own and 10 other inputs. Finally, 11 inputs used to generate a transaction. By applying this feature no external observer can be certain exactly about the transaction source or the sender’s address.
Stealth (one-time) Addresses
In Monero network it requires that senders generate a one-time address cryptographically using receiver’s public address. However, several transactions may end up to a same wallet, any third party won’t be able to recognize whether two transactions have been sent to the same public address.
Ring confidential transactions (RingCT)
RingCTs using range proofs and cryptographic commitments to unintelligible the amount sent in a transaction.
Monero is an open-source altcoin with decentralization and privacy at its core. Monero’s developer team believes it’s a competitor to Bitcoin and claims it can solve the issues that Bitcoin network has.