What Is Monero?

Monero (XMR) is a decentralized digital currency. It has no CEO and no formal organization behind it. The goal of Monero is to become the most cash-like cryptocurrency available. It does this by utilizing three different kinds of technologies that are different than most cryptocurrencies, ring signatures, stealth addresses and confidential transactions. These three key features allow Monero to become what is known as fungible, where every unit is indistinguishable from every other unit. Even though Monero may be private, users still have the option of allowing people to audit their transactions cryptographically thanks to the addition of view keys. This is not true of cryptocurrencies like Bitcoin and Ethereum.

Monero hopes to become a digital currency adopted by people all over the world.

The Three Pillars of Monero

Ring Signatures

Every transaction contains a ring signature. Ring signatures allow a sender to combine their public address with other addresses from the blockchain. When a transaction uses many different addresses it stops a third party from being able to know the true origin of it.

Stealth Addresses

Every time someone sends Monero, their wallet generates a one time use address that gets transmitted to the blockchain. Only the receiving wallet will recognize that this address is associated to it. This feature stops people from monitoring wallet addressses that aren’t theirs on the blockchain

Confidential Transactions

The amount being transacted is also hidden from public view. Using technology called Bulletproofs, a Monero transaction is able to prove that it is a valid amount (not more than in the wallet or less then zero) without actually giving away how much is being transacted.

The History Of Monero

Monero launched back in April 2014 with no pre-mine or ICO. The founder of the project thankful_for_today, was determined to have things his way and as a result the community and other developers  took control of the project and forked it away from him.

Monero is built upon the CryptoNote protocol which, like Bitcoin, was created by an anonymous inventor who is still unknown to this day. Since its inception, it has gone through a scheduled upgrade every 6 months to make its blockchain more efficient, as well as making transactions smaller and cheaper.

Pin It on Pinterest

Share This