Monero, considered in the review, is one of the cryptocurrencies. In many ways, its principles are similar to the most famous electronic currency Bitcoin. The main difference in the security and privacy of wallet owners.
At first glance, it seems that this is true for Bitcoin. In fact, only partly. Monero’s concept is the creation of an untraceable digital currency. Therefore, all transaction details are strictly classified and only the wallet owner has access to them.
If we talk about Bitcoin, then you can always see the data regarding the operations of a particular wallet. This was done on purpose so that you can always verify the success of transactions. However, even if the names of the owners are not indicated, it is often possible to find on the Internet who owns this or that Monero wallet – it is enough for a person to publicly inform about his address.
On the one hand, openness has its advantages, but for most cryptocurrency users it is not advisable that data on their financial transactions become available to the whole world. Monero is of the opinion that any information about operations should be hidden. Therefore, the developers based the work of the currency on the technology of ring signatures.
History of occurrence
The XMR cryptocurrency first appeared in April 2014 as a fork of Bitcoin. However, soon the creator of Monero Ricardo Spagni decided that it was necessary to reissue from zero. It was then that the modern name appeared – Monero (“coin” in Esperanto). Soon after launch, mining software was developed. For mining, XMR uses the power of the GPU.
The adoption of the currency took place with great difficulty – pretty quickly she had opponents. Their main argument was that the complete anonymity of users can lead to its use in illicit trade, for example, drugs, weapons, and other things. However, there was another opinion that, in fact, the anonymity of Monero is not so high. Edward Snowden even called it “amateur cryptocurrency.”
In September of that year, the first hacker attack occurred. Fortunately, the main goal – the destruction of cryptocurrency – was not achieved. An investigation was later conducted, during which it became clear that the crackers were aware of the algorithms and source code used by Monero.
Due to a hacker attack, the developers did not have time to create a graphical interface for working with currency – all operations were carried out through the command line, which caused outrage among many owners. However, at the end of 2014, the MyMonero Web-wallet was launched, which greatly facilitated the work.
Many users believed that developers are sitting idly and are not going to improve anything in cryptocurrency. In fact, the experts carried out a grandiose internal work:
- prepared for integration with I2P;
- transferred blockchains to LMBD;
- Speed up the domain
- Developed multilingual support for mnemonic-seed
- implemented accelerated blockchain synchronization.
Work on the implementation of a convenient cryptocurrency user interface was resumed only in 2016.
Today, Monero’s story is not over – the currency continues to evolve, and conquers more and more new horizons.
Features and principle of operation of the Monero cryptocurrency
As mentioned above, Monero’s work is based on CryptoNote – ring signatures. Thus, in this electronic money, a code different from the Bitcoin code is used.
The essence of this technology is that all signatures are performed by one of the group members (the so-called ring). At the same time, it is impossible to determine who exactly from this group performed the action. Thus, the operations are mixed together.
When it is necessary to complete a transaction, the sender signs with his key any suitable outputs with the same amount. There is no need for confirmation from other owners. Moreover, it is possible to create a transfer without connecting to the Internet and have already connected to the network, sends the final data chain.
Users feared the occurrence of the so-called double spending due to such an algorithm. However, the developers have foreseen this point. During the creation of the transaction, a special key is created and made the public – key image, confirming the reality of the exit. Thus, the appearance of an identical key will indicate an attempt to spend double-spending.
Moreover, all data on the account balance is checked at a one-time address. Therefore, it is almost impossible to calculate a specific face.
Monero also uses keys to work. They can be for spend (spend key) and for viewing (view key). They are intended to open access to third parties.
Initially, only its owner has the key, therefore access is as limited as possible – the data is classified even for special services officers. By the way, it was this feature that created such a huge number of opponents, fearing for the use of Monero cryptocurrency in illegal activities.
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