What is Monero (XMR) cryptocurrency
Monero (XMR) appeared on the cryptocurrency market in 2014. In translation, this concept translates as "coin". This asset uses CryptoNote algorithm, announced in 2012, when Bytecoin cryptocurrency appeared. Monero is an anonymous cryptocurrency that borrowed its code exactly from Bytecoin.
History of Monero (XMR)
In a way, Monero anonymous cryptocurrency has a random history of appearance. The fact is that when everyone was discussing Bytecoin, no less than 79% of the coins had already been obtained. So the developers simply made a hardfork, and it was designated BitMonero, and then it was renamed to Monero once again. This happened on April 18, 2014.
After this open-source cryptocurrency was introduced, just a couple of months later, cybercriminals tried to destroy it. As reported by the team, those who attacked the coin were very familiar with Merkle's code and tree structure.
When the open-source cryptocurrency was attacked, it was decided to focus on the core of the system and leave the interface improvement work for later.
It is believed that Monero is one of the most anonymous cryptocurrencies, although this statement is controversial. Cryptocurrency news indicates that this digital asset is no longer completely anonymous. Nevertheless, its anonymity is higher than that of similar coins. But, it is inferior to such cryptocurrency as WAYF Coin.
What is Monero (XMR) cryptocurrency
Principle of Monero
Monero tokens work on a very different principle than Bitcoin. The functioning of Monero is based on so-called ring signatures. The point of this technology is that all signatures are made by one of the members of a group (the ring). It is impossible to find out which user performed the action. Operations are intermingled with each other.
If Monero tokens need to be transferred, the sender signs all outputs with a similar amount with his key. There is no need for confirmation from other holders. It is also possible to conduct a transaction without being connected to the network. When a transaction is created, a special key is drawn and specified, which confirms the reality of the output. That is, if an identical key appears, then it will be a confirmation that a double spending is being attempted.
The account balance information is checked against one-time addresses, so it is extremely difficult to identify a specific user.
Ring Signature Technology
Here is an example of how the currency works. Suppose a user has 10 coins, 5 of which he intends to send to another. His transaction will be 1 input and 2 output. One output is 5 XMR for the other user and 5 XMR he sends as the remainder to himself. No one except these users can see the amount of transaction.
Features and differences from other cryptocurrencies
One of the main features of Monero is that a "proof of coverage" is used. It enables Monero to cryptographically prove that the sum of transaction outputs and inputs is greater than 0 and less than any arbitrarily specified numbers. Monero uses proof of coverage to prevent invalid transactions from being sent.
Another technology used in Monero is stealth address. Users use it to create a one-time address to send a transaction to recipients. Such stealth addresses ensure that only the sender and the recipient can know where exactly the transfer was sent.
Another feature of this cryptocurrency asset is that, it is more fungible than Bitcoin. Such technology is not present in it. Due to the fact that they are interchangeable, transactions are extremely difficult to trace. Unlike Monero, Bitcoin's blockchain can be traced at any time. The Bitcoin blockchain has the peculiarity that if a coin is used for illegal transactions, its personal history will certainly reflect it. In that case, such a coin may not be accepted by a certain company for settlement.
Benefits of Monero
If you compare Monero to other cryptocurrencies, it has certain advantages. In particular, it is considered one of the anonymous ones. Ring signatures and ring transactions are used.
The cryptocurrency is fungible, it has unlimited issuance. Mining is available. Monero miners can use standard CPUs. Mining Monero cryptocurrency is easier and simpler.
Blocks are within 2 minutes, this figure is 5 times less than Bitcoin. But the cryptocurrency also has a number of disadvantages.
Transactions are more "heavy", on average, the block size in the network is 8 times the size of a Bitcoin block. The protocol is extremely difficult to integrate into cryptocurrency wallets.
Recently, there have been more and more rumors about the cryptocurrency's tracking capabilities. Since, for many, Monero is associated with anonymity, the development of the ability to track this anonymity is carried out with a view to Monero.
How can I mine Monero cryptocurrency? After the hardforward in March 2019, ASIC mining is no longer effective. Cryptocurrency can be mined using GPUs and CPUs. Before mining the currency, the user must decide for himself how he will mine it. The process of mining can be done independently or by using a mining pool.
Pools allow miners to link equipment capacity to increase the chances of confirming transactions in order to earn Monero faster. Individual mining is not recommended for beginners, as it is extremely difficult to make a large income.
Is it profitable to engage in mining
It is difficult to give a clear answer to this question. It depends on different factors, on the power of the equipment, the amount of electricity, the amount of commission, the rate of the cryptocurrency. Therefore, the user must decide for himself whether he should engage in this asset.
There are Monero pools that are most often used by participants. In particular, these include MiningPoolHub, Crypto-Pool and Minergate.
Where can I buy?
Where can I buy Monero for rubles? You can buy this asset for rubles on an exchange such as Livecoin, as well as on the Exmo platform. There are other cryptocurrency exchanges where you can buy, exchange cryptocurrencies.
Forecast and prospects for the cryptocurrency Monero in 2021-2022
At the moment, the rate of Monero is $326 with a positive growth rate. It is hard to say what the rate dynamics will be in the next few months. Maybe, it will be positive, although, no one has cancel the market volatility and various factors that could have a negative impact on the currency. Analysis of Monero, as well as other currencies, is approximate.
As for 2022, there are plans to introduce a new issuing mechanism (slow emission) in May. As a result, the supply in the market will be limited, which should theoretically increase the value of the currency in the long run.