What is Monero?
As a stable, anonymous and untraceable currency framework, Monero (XMR) is the most notable privacy-centered cryptocurrency based on the CryptoNote protocol.
A specific form of cryptography is used by Monero to guarantee that all its transactions stay 100 percent unlinkable and untraceable. Monero’s security and privacy has become very attractive in an increasingly transparent crypto environment.
What is the History of Monero?
Bytecoin, CryptoNote’s first real life implementation, was released in July of 2012. While Bytecoin had potential, people found that 80% of the coins had already been pre-mined.
Thus, it was determined that the Bytecoin network would be forked and that the latest coins in the new chain would be numbered Bitmonero, which would then be dubbed Monero, in Esperanto, meaning “coin.” A block will be mined in this latest blockchain, and inserted every two minutes.
How does Monero (XMR) work?
The success of Monero in the crypto world has increased largely due to its anonymization function. A public address or key which is special to each user is issued to all cryptocurrency users. The receiver of the coins with Bitcoin gets the coins sent to his address that he has to report to the sender. A Monero token is known as XMR.
Once he has awareness of the public address of the fund receiver, the sender can see how much Bitcoins the recipient has. Both coins passed from the sender to the receiver are registered and rendered available via the Bitcoin blockchain.
However, transfers of Monero do not offer the sender a window view of the holdings of the receiver, even if the sender knows the public address of the recipient.
Transactions of Monero are unlinkable and untraceable. Coins sent to a receiver are rerouted through a randomly generated address to be used exclusively for that transaction.
Unlike Bitcoin, the Monero ledger does not document the sender and recipient’s exact stealth addresses and the one-time generated address that is registered is not connected to any party’s real address.
Anyone investigating Monero’s opaque ledger will also not be able to trace the addresses and entities participating in any trade in the past or current.
What are the features of Monero?
Monero has a function called the ring signature, which obscures the origins of funds such that the individuals participating in the move are practically untraceable.
The ring signature guarantees that any two-party Monero transaction is grouped with several other transactions that occur among other unrelated parties.
This suggests that the funds of the receiver are combined with the transactions of other Monero users and transferred arbitrarily around the list of transactions, rendering it exponentially impossible to track them back to the source or recipient.
The signature of the ring deciphers the real sum involved in every trade. Note that the signature of the ring varies from the strategy of mixing and conjoining anonymization embraced by other cryptocurrencies competing for anonymity.
Finally, Monero has a distinct method of managing transfers by dividing the amount exchanged into several sums, and treating each split amount as a different transaction. For eg, the sum will be split into say, 83 XMR, 69 XMR, and 48 XMR, totaling 200 XMR, for a consumer who transfers 200 XMR (Monero’s currency unit) to a buyer.
Both of these is handled separately and each of the separated figures produces a special one-time address.
Both of these split sums is combined with other transactions that have, of course, already been split with the ring signature, rendering it incredibly challenging to determine the precise mix of 200 XMR that corresponds to the receiver.
Where can I hold Monero?
As of writing, many exchanges such as Bittrex have started delisting Monero from trading. As such, it is recommended to hold Monero on a personal wallet rather than an exchange. Some ways to hold Monero include the Monero GUI wallet, the Monero Ledger Wallet, and the Monero Trezor Wallet.