What is Monero?
Monero (XMR) is a Bytecoin code fork that offers anonymous value transfer through ring signatures, stealth addresses, private transactions, and bulletproofs, with a focus on privacy preservation and fungibility. It is an open-source project created by an online community that improves its technology to identify quicker and more effective uses for cryptocurrencies and the infrastructure that supports them.
Monero has been one of the market's oldest digital assets since 2014. Like Bitcoin, Monero was designed to support peer-to-peer, encrypted transactions that are quick, affordable, and safe via a blockchain network.
One of the biggest crypto assets by market cap is Monero's XMR. The XMR coin is among the most widely used cryptocurrencies for investment among traders, and has a large user base that uses it for anonymous transactions.
To create new coins and protect transactions, Monero uses a proof-of-work (PoW) consensus process. Using specialised mining equipment, miners can validate transactions and mine XMR to receive block rewards for their work. It also has a decentralised public ledger that allows anyone to broadcast or transfer transactions without disclosing their source, value, or destination to outside observers.
Contrary to other blockchain networks, which provide transparency inside their decentralised ecosystems, Monero is built with many features to improve user privacy and network transactions.
Stealth Addresses, Ring Signatures, and RingCT are three essential technologies that the Monero core team uses to ensure that all transactions on its blockchain are private and untraceable. The sender, receiver, and amount of XMR transmitted in each of the private transactions are all anonymous thanks to these technologies.
All network transactions are carried out using Tor/I2P, a system built with anonymity in mind. The Dandelion++ protocol is another piece of technology that improves the anonymity of the Monero network.
What makes Monero unique?
Attenuating the highest level of decentralisation is one of the main goals of the project. XMR is interchangeable. By default, information about the sender, the recipient, and the amount of cryptocurrency being transferred is hidden.
Ring signatures are used to obfuscate information. Here, historical transaction outputs are taken from the blockchain and used as a decoy, making it impossible for outside observers to determine who signed it.
Who is behind Monero?
Monero is believed to be launched by seven anonymous developers in April 2014.
Bytecoin, the first iteration of CryptoNote, an application layer protocol intended to remedy Bitcoin issues, is where Monero got its start. Despite previously backed BitMonero, the community had generally negative feelings about its release, which led seven community members to fork BitMonero into a new project called Monero.
Over the years, XMR has received contributions from hundreds of developers.