Monero - Anonymous Cryptocurrency: Review and Prospects
26.01.2021
Cryptocurrency Monero (XMR) is a digital coin with open source code, completely decentralized. Financial structures of some countries are extremely negative about this type of electronic money. Monero can be put in first place in terms of rejection by states and respect of users. And all thanks to its complete anonymity.
Contents:
The Monero cryptocurrency is based on the CryptoNote protocol, previously used in the Bytecoin cryptocurrency, developed back in 2012. This cryptocurrency did not develop, its tokens were distributed in a strange way, which led to accusations of fraud by its creators. The network was restarted through a hard fork, the result was called Bitmonero. To successfully promote the new cryptocurrency, the Bit prefix was removed and on April 18, 2014, Monero, one of the most anonymous cryptocurrencies on the market, was released.
The CryptoNote protocol made it possible to achieve the set goals: the cryptocurrency can be mined using ASIC, anonymity is provided by ring signatures and stealth addresses. The disadvantage of the protocol was the need to updаte it every two years. In December of the year before last, the problem was solved by replacing the CryptoNote protocol with RandomX.
The Monero exchange rate changed unpredictably, perhaps, like many cryptocurrencies. For example, in 2015, the Monero cryptocurrency could be bought for only forty-nine cents. And during the maximum peak of the cryptocurrency market in January 2018, XMR was sold at $484.
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- The history of the emergence and development of Monero
- What distinguishes the Monero cryptocurrency from other cryptocurrencies
- More details about the privacy of the Monero cryptocurrency
- How to mine Monero
- Prospects for the Monero cryptocurrency
The history of the emergence and development of Monero
Since the advent of bitcoin, programmers from many countries have made every effort to eradicate the main shortcomings of the first cryptocurrency, namely: facilitating mining and ensuring complete confidentiality of transactions.What makes the Monero cryptocurrency stand out from other cryptocurrencies
The Monero cryptocurrency is becoming more and more popular every day. Why do users prefer a relatively young cryptocurrency, to the detriment of the "pioneer" Bitcoin and other well-known cryptocurrencies? There are several reasons for this:- Transaction privacy. The creators of the Monero cryptocurrency ensure complete anonymity of the transaction participants, their addresses, transfer amounts, signatures, and so on. Thus, even small details of transaction history are not stored in the public domain, which is not the case with Bitcoin and some of its altcoins.
- Token interchangeability. This is a very important quality for an electronic coin, because the ability to rеplace a token with a "bad" reputation with a "clean" coin. A bad reputation during verification can simply be banned, without returning funds to the owner. At the same time, it does not take into account how the "dirty" coin got to him.
- Unlimited scalability. As is known, both in the Bitcoin network and in many other systems, blockchain technology is used. Bitcoin limits the block size to 4 megabytes. The Monero cryptocurrency allows you to increase the block, depending on the amount of transaction data. At the same time, as the number of transactions increases, the block size also increases, and vice versa. Unscrupulous miners tried to take advantage of this. They increased the block sizes to hundreds of terabytes. The developers of the Monero systеm solved the problem by allowing the network to check the size of the last hundred blocks. If the size of the new block exceeds their number on average, the miner receives a smaller reward for its creation.