When it comes to purchasing of crypto, a huge range of coins with various features and options is available.
Each coin is created with a purpose of improving some of the features that Bitcoin has. However, if you need anonymity and protection against transaction tracking, only a few cryptocurrencies
will suit you.
Perhaps Monero is the most unique of them.
Because of its security features and anonymity, many people invest in it.
Monero:
the first anonymous
cryptocurrency
the first anonymous
cryptocurrency
Monero is the first untraceable cryptocurrency in the world and one of the best known anonymous currencies.
Content:
- 1. Brief history
- 2 Features of the coin
- 3. Ring signatures
- 4. Anonymity. Hidden addresses
- 5. Interchangeability
- 6. Monero's prospects
1. Brief history
The official launch date of Monero is April 18, 2014. Originally, this coin was known as BitMonero.
By the end of 2014, it turned out that 80% of BitMonero coins had already been emitted, so the developers decided to simply re-emit coins, after several improvements, and change the
name to Monero (XMR). This means "coin" on Esperanto.
Today Monero is among the top 10 most promising and popular currencies.
Today Monero is among the top 10 most promising and popular currencies.
A 7-person team is constantly working on the development of the coin, financing the project on their own without attracting additional investments. Monero also has a research laboratory, which
brings together scientists, specialists in the cryptography area, and researchers from universities.
There is no limit to the emission of coins. The initial emission was 18,400,000 coins, and then it is planned to pay 0.6 coins per block or 0.3 coins per minute to maintain the system after
the main emission.
The main features of the coin
Anonymity.
Monero transactions are anonymous. It's impossible to find out the balance through its blockchain.
Monero transactions are anonymous. It's impossible to find out the balance through its blockchain.
Interchangeability.
No matter where and when all cryptocurrencies have the same market price.
No matter where and when all cryptocurrencies have the same market price.
Security.
Complex mathematical solutions protect users' wallets and transactions conducted in Monero coins. It is believed to be one of the most secure coins.
Complex mathematical solutions protect users' wallets and transactions conducted in Monero coins. It is believed to be one of the most secure coins.
Decentralization.
Monero is not controlled by anyone, there are no controlling bodies or centralized servers in this system. The coin is managed by the community of the network.
Monero is not controlled by anyone, there are no controlling bodies or centralized servers in this system. The coin is managed by the community of the network.
Monero uses three privacy technologies: ring signatures, confidential ring transactions (RingCT) and hidden addresses.
They hide the identity of the sender, the amounts transferred and the recipient.
3. Ring Signatures
Monero operates on CryptoNote protocol. This protocol was developed back in 2012.
ByteCoin - the precursor of Monero - was the first cryptocurrency based on this protocol implemented on a large scale.
In contrast to Bitcoin, which is fully transparent and allows people to view how much currency is transferred from one user to another, CryptoNote hides this information in every
transaction to protect the privacy of users.
In fact, in the blockchain of Bitcoin, a transaction looks like this: "Nick transferred 3 bitcoins to Alex". And in Monero it looks like this: "User Y transferred 3 XMR to user X".
Monero's transactions cannot be tracked thanks to ring signatures. This technology allows to "shuffle" the keys, which eliminates the identification of information.
"The ring signature is a version of the electronic signature, which is implemented approximately like this:
When a user is going to send a payment, a group of any number of other users, including the signatory himself, is formed in the Monero Blockchain system".
The signatures of these people form this ring signature system. Each user has 2 types of signatures - secret and public. This group of signatories knows the public signatures/keys of participants, and no one can see the secret ones.“
The scheme is similar to a double front door - the first is visible to everyone, and the second is visible only to you
To verify the payment, the sender randomly uses any of those public signatures that were selected when the ring signature was formed. It is impossible to identify who actually makes the payment, and which signatures were used, neither for the sender nor for the recipient or external observers. The signature is made as if on behalf of the whole group, and who exactly made the payment is unknown to anyone.
To verify the payment, the sender randomly uses any of those public signatures that were selected when the ring signature was formed. It is impossible to identify who actually makes the payment, and which signatures were used, neither for the sender nor for the recipient or external observers. The signature is made as if on behalf of the whole group, and who exactly made the payment is unknown to anyone.
The signatory also uses his private key for the final verification, but no one can see it. Transactions involving the public signature of the user by other participants do not prevent him from spending his own funds.
The same signatory's public key can be used in an unlimited number of other transactions; in fact, it will act as a distraction factor even if it has already been used for its own or
third-party transactions.
Even if multiple users create ring signatures with the same public key, signatures will be different in the result as the final verification utilizes different private keys belonging to the
payers.
By the way, the ring signature scheme has been known since the 17th century, when people signed petitions to the authorities in a circle, without following the hierarchy, to avoid being
punished for being the first to sign, they created a kind of collective responsibility.
4. Anonymity. Hidden addresses
Most systems of cryptocurrencies operate on the principle of transparency. This means that it is possible to track transactions, and addresses can be linked to the real identity of a person.
“Monero's peculiarity is that it uses hidden addresses to protect users and all data about transactions.”
The main point of invisible addresses is the following: wallets, where coins are stored, generate Stealth addresses - these are disposable addresses that hide the link between the sender,
recipient, and the transaction itself.
Thus, a participant has one open address - a disposable one that they can provide for transactions, and one private address that no one knows or can see except the owner.
There are two types of keys for addresses: a private key and public key. Each key can be public or private: for viewing (view key) and for spending (spend key). Private spending keys provide the right to spend coins (private spend key) and to view transactions (private view key), respectively, in combination with the key image.
Exchange generates a one-time address for this particular transaction, where the funds are sent. Then a connection is established between the one-time address and the real wallet, to which funds are redirected. Once the transaction is completed, the connection is terminated, and it becomes impossible to establish who made the payment and to whom, as this address is no longer used anywhere.
It turns out that each Monero transaction "confuses" the address of the sender and the recipient, as well as the amount transferred.
It seems that such a system provides opportunities for scammers because nobody sees anything and nobody tracks information. However, this is not true.
Every transaction in Monero is connected with the image of the key, which can be created only by the owner of funds for withdrawing. Images of keys are tracked by the system - keys that are
used more than once are rejected during the verification and cannot be added to the block. Thus, a double-spending is excluded.
The encrypted information does not become clear to the person, though the observer can check transactions using the same encrypted system which will not disclose the information to the user,
but will check the information in its language and will confirm the legitimacy of transactions to the user in the form available to him.
Hidden addresses do not allow interference by any third party; no one else can see the information related to your transaction in the blockchain.
If you make an analogy with a current account, the bank account number can also be considered as an address but employees of the bank can track your expenses and the movement of money just
knowing the account number.
Meanwhile, it is impossible to see the details of the operation via Monero's blockchain, to find out the recipient's address, the amount of payment, or the source of funds. Instead of the
usual address, a new receiving address will be created, which is linked to the main address of the recipient only at the moment of the transfer of funds. The system is designed so that no one
else can link the recipient's hidden and public address.
In 2017, Monero began using another protocol for anonymity - Ring Confidential Transaction, which allows hiding the sum of payments and the source of funds transferred as well. In addition to
other ways to anonymize the coin, the Kovri project was launched; it provides the ability to encrypt even the IP address of the user.
5. Interchangeability
Interchangeability is a basic feature of money, meaning that there is no difference between two amounts of equal value.
A problem exists in the world of cryptocurrencies: coins with "bad reputation" are not accepted by recipients.
The thing is that in the blockchain of Bitcoin, for example, it is possible to check where the coin came from. If the funds were used for illegal activities, in particular for the purchase of weapons, gambling, and other shady transactions, the coins may not be accepted by some companies and shops.
There are even cases when large companies block the accounts of customers who paid with coins with "bad reputation".
A problem exists in the world of cryptocurrencies: coins with "bad reputation" are not accepted by recipients.
The thing is that in the blockchain of Bitcoin, for example, it is possible to check where the coin came from. If the funds were used for illegal activities, in particular for the purchase of weapons, gambling, and other shady transactions, the coins may not be accepted by some companies and shops.
There are even cases when large companies block the accounts of customers who paid with coins with "bad reputation".
Monero, thanks to its privacy, is interchangeable - which means that none of the coins can be tainted because of unfavorable information about it in the blockchain.
6. Monero's prospects
Monero already is in the TOP 10 of the most promising and popular cryptocurrencies.
Back in the first months, its capitalization has reached those figures, which other coins have been trying to get for years: in the first 1.5 years, Monero's rate of growth was about
4000%. Monero's capitalization is also steadily growing and currently stands at hundreds of millions of dollars.
In the process of development, the growth of Monero's rate was promoted by the use of coins on the well-known sites - App store, iTunes have included this currency in their payment
systems. AlphaBay has also been integrated with Monero, and the Sigaint postal service also accepts it as a payment option. The legitimacy of the coin was recognized by the Oasis global
consortium.
In general, Monero is a very important and revolutionary technology. The private transactions implemented in its protocol can resist attempts to regulate transactions by the government.
Due to these features, the cost of XMR reached its peak at $453 in early 2018. Such an unprecedented demand has caused the spread of information that the U.S. Internal Revenue Service will use
special tools to detect tax evaders. Naturally, Monero attracted those who care about anonymity and privacy.
The quality of Monero system development and constant updates are impressive - the roadmap of the project involves many improvements that will be implemented and introduced in the near future.
Despite the discussions around this cryptocurrency, almost all experts are confident: Monero is an excellent option for long-term investments.
The quality of Monero system development and constant updates are impressive - the roadmap of the project involves many improvements that will be implemented and introduced in the near future.
Despite the discussions around this cryptocurrency, almost all experts are confident: Monero is an excellent option for long-term investments.