What is Monero? How does it work? – Crypto Trends – Bitcoin, Cryptocurrency And Blockchain News

Bitcoin is the mother (or father) of all cryptocurrencies since, thanks to its appearance, the emergence of an electronic version of cash that allows making payments without having to go through financial institutions was possible. Thanks to its presence in whitepaper and later in code, bitcoin opened the door to various cryptographic projects that seek to provide solutions to money management and the right to privacy; as in the case of Monero and which we will deal with in this post.

Logo of the currency Currency

What is Monero? and what makes it different?

monero cat 001
Illustration by @helloluis on twitter

Monero, like most current cryptocurrencies, has an open source blockchain (you can see its code in github) that allows transactions to be verifiable and traceable by anyone in the world. Like bitcoin, it is a cryptocurrency that allows you to transfer value; However, one of the points that sets Monero apart from other cryptocurrencies including bitcoin, is the ability to carry out private transactions and resistant to censorship; Unlike other cryptocurrencies such as Dash, Zcash and Horizen where the participants in the transactions can opt for the anonymity option, Monero through its XRP currency (symbol of the Monero cryptocurrency) makes absolutely all their transactions private by hiding the addresses of who sends and who receives at the same time that conceals the amount of the shipment.

How was Monero born?

The Enemy is listening Final Monero
Image taken from www.themonera.art/

Currency (XMR) which in Esperanto means “Currency” is born from a hardfork or fork that is nothing more than an unsupported update of the source code of a cryptocurrency, the hardfork of Bytecoin one of the first cryptocurrencies that focused on privacy and that makes use of the cryptographic protocol CryptoNote which we will touch on later in the article; It was given in the month of April 2014 after the announcement of the founder known in the mythical foro Bitcointalk What thankful_for_today where he proposed a series of changes and an action plan that was initially called BitMonero.

Bytecoin It had behind it some problems that were detected by its community where, for example, its coins had already been mined by 80% and it was one of the factors of the aforementioned fork.

After that first stage, the project was renamed what we know today as Currency (XMR); the core team is made up of seven developers of which only two have publicly revealed their identities; they are Francisco Cabañas who has a doctorate in physics and the South African Riccardo Spagni, while the rest still retain their anonymity on the internet under the pseudonyms of Smooth, Othe, NoodleDoodle, binaryFate, luigi1111.

Since its creation, which did not have a previous or instant mining, Monero has made several improvements focused mainly on the area of ​​security or privacy first and ease and efficiency of use as a second priority.

In addition, the project has had the participation of more than 420 developers who have helped the growth of Monero counting the more than 30 core developers with which it currently has.

Monero Features?

As mentioned at the beginning of the publication, Monero is a cryptocurrency that serves like bitcoin to transfer value without the need to trust a third party such as a bank.

However, Monero is based on three fundamental values ​​which we can find on its website and are the following:

Security

Users must be able to trust Monero and the transactions they carry out, without risk of error or attack. Monero delivers the entire block reward to the miners, who are the most critical members of the network and who provide this security. Transactions are cryptographically secure as they use the latest and strongest encryption tools.

Privacy

Monero takes privacy very seriously. Monero needs to be able to protect its users from potential legal issues, and, in extreme cases, the death penalty. This level of privacy should be fully accessible to all users, whether they are technologically competent or have no idea how Monero works. A user needs to trust Monero so that they do not feel pressured to change their spending habits because of the possibility of risk or because someone else notices them.

Decentralization

Monero is committed to providing the maximum decentralization possible. With Monero, you don’t need to trust anyone on the network and it’s not run by some large group. An accessible algorithm that uses proof-of-work makes mining easy on simple computers, making it more difficult for someone to buy a lot of mining power (hashpower). The nodes connect to each other through I2P to reduce the risk of revealing sensitive transaction information and the risk of censorship (if advertised). Development decisions are extremely clear and open to public discussion. Development meeting logs are posted online in their entirety and are viewable by everyone.

Among the main developments that Monero has, it stands out Basket; which seeks to be an improvement in terms of anonymity by adding a fourth layer of privacy to Monero transactions and which consists of masking the IP addresses of those involved (sender and receiver) to add more security and privacy to the backbone of the transaction, objective Monero maximum.

Some of the crypto concepts that distinguish Monero are Ring signatures y CryptoNight.

Ring signatures or Ring Signatures ensure that the results of transactions within Monero are not traceable and consists of a type of signature that can be created by any member of a group of users who each have their own keys. Therefore, a message signed with a stamp signature is endorsed by someone in a particular group of people. One of the security properties of a ring signature is that it should not be computationally determinablewhich one of the group member’s keys was used to produce the signature.

In Monero, this type of cryptographic signature makes use of the keys of an account and several public keys (also known as outputs) extracted from the blockchain using a triangular distribution method.

For his part CryptoNight is the hashing algorithm used by CryptoNote-based systems which he mentioned at the beginning of the publication; This algorithm allows Monero to be a little more resistant to ASIC miners and is designed to be compatible with CPU and GPU since it was created to build a more fair and decentralized monetary system avoiding the creation of mining reserves or mining farms as most knows you and that can affect the ecosystem.

Monero has been targeted on several occasions to mine XMR through Cryptojacking using the goodness of the algorithm and its anonymity.

Maybe you would like to read: Malware hijacks millions of Android devices to mine Monero



Differences between bitcoin and Monero

Unlike bitcoin, which has a maximum amount of twenty-one million units to be mined, Monero has an infinite supply of coins, also adding a shorter time for the generation of blocks, being 2 minutes, compared to the 10 it takes to generate the block in bitcoin; as well as a dynamic block size unlike Bitcoin which was created with a 1Mb block size.

Regarding the size of the Monero block, as it is dynamic, it can suffer malicious attacks by creating excessively large blocks; To combat this the system includes a block reward penalty taking first the average size of the last 100 blocks to what is called M100, to place an example of this assuming that a miner extracts a new block with a particular size or as it is known New Block Size (NBS); if NBS> M100, that is, the average of the previous 100 blocks, the reward of that block is reduced in quadratic dependence of how much NBS exceeds M100.

The Enemy is listening Final MoneroMany claim that cryptocurrencies like Monero are ideal for crime (as if cash and the dollar weren’t) because of their anonymity; But the truth is that in the midst of a society increasingly watched over by corporations and governments that in many cases seek to curtail the freedom of their citizens Monero opens a door to choose the privacy and control of digital assets as its currency (XRM) in a more personal way and adjusted to new times, new needs and new systems that seek to empower citizens.

If you want to learn more about Monero visit the project website at www.getmonero.org/es/

Current Monero Price (XMR)

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What is Monero? How does it work? – Crypto Trends – Bitcoin, Cryptocurrency And Blockchain News

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