Date of Review: 17/11/17
Name: Monero (XMR)
Number of coins: ~ 18 500 000
Current capitalization: $ 1,854,163,535
Start date: (18-25) / 04/2014
Current lowest price: 120 $ / 0.01524380 BTC
Current block height: 1 444 750
Creator: Monero Research Labs / Riccardo "fluffypony" Spagni, Francisco "ArticMine" Cabañas, othe, smooth, tacotime, luigi1111, NoodleDoodle https://getmonero.org/community/team/
Monero is based on cryptonote technology, and it is a bytecoin fork. The creation of the bytecoin began with pre-mining and a bunch of related forks scandal. More information can be found in this post: https://cryptoblog.tech/is-bytecoin-a-scam/. But since the cryptonight technology itself is quite an interesting solution - the community "took" the leadership in its hands and made a fork and a normal crypto-currency that entered the market without any ico and pre-mining and has been modifying the wallets for two years, since vulnerabilities against certain types of attacks were in the core of the monero. At the moment, monero is in the top 10 of the Crypto-currency by capitalization.
Well-developed infrastructure, a lot of mining pools (minexmr.com, xmr.farm, moneropool.com), there are wallets for all operating systems (getmonero.org/downloads), in addition - there is also a support for easy (simplified payment verification) wallets and hardware (physical) wallets. Block Explorer: moneroblocks.info. This crypto-currency is connected to more than 50 exchanges, including such as poloniex, bittrex, bitfinex, and it is in the top 10 crypto-currency.
Description of the technology and the distinctive features:
Monero is called anonymous crypto-currency, and it deserved it rightly. Unlike Dash or Zcash, where anonymity is provided by add-ons (for example - in Dash there is a masterware that provides a mix of transactions) - monero anonymity is provided at the level of the network protocol by a special algorithm called cryptonote. This algorithm has already been tested and has been running for quite some time, unlike the rather new ZCash algorithm, and the level of anonymity provided by CryptoNote is unattainable with Bitcoin code base. The main important features of this algorithm are a unified (group, ring) signature and untracked transactions.
Ring signature is an electronic signature that allows one of the group members (called a ring) to sign a message on behalf of the whole group, and you don’t know who of the group members signed it.
In Bitcoin, you can trace where your coins came from right up to the coinbase transaction, which allows you to find out which coins you use - clean or "dirty". And create difficulties for the average user when trying to sell these coins. Unmonitored monero transactions allow you to ensure that no one can track the "pedigree" of coins, thereby getting rid of this problem.
But that's not all, except this - privacy is provided by the so-called "Stealth addresses". Instead of the Public and private key monero uses 3 keys. Public, viewkey, which allows you to view the operation history of a specific address, and spendkey, similar to privateKey from bitcoin, which allows you to spend UTXO.
Bob decides to spend the exit of the transaction, which was signed with a one-time public key. He needs to know Extra (1), TxOutNumber (2), and his private account key (3) to restore a one-time private key (4).
When he sends a transaction to Carol, Bob generates the Extra value randomly (5). He uses Extra (6), TxOutNumber (7) and a public key from Carol's account, (8) to get the public exit key (9).
At the entrance, Bob hides a link to his exit between someone else's keys (10). In order to prevent double waste, he also packages the key image derived from its one-time private key (11).
In the end, Bob signs the transaction using his one-time private key (12), all public keys (13) and the key image (14). He adds the resulting merged signature to the end of the transaction (15).
In Whitepaper Bitcoin Satoshi said that the network should be decentralized and not follow a certain group of people. But, after the start of ASIC devices production - this problem became more urgent, as the producers of the miners allocated pools and began to centralize the industry.
Monero, to be more precise, the cryptonight protocol does not allow mining on special devices and adheres to what Satoshi wrote - one device is a one voice on the network. In addition, this algorithm allows you to use a bunch of CPU + GPUs at the same time, and does not heat your devices as much as, for example, Dagger-Hashimoto.
The complexity of the block is recalculated after each block, which makes it possible to forget about the abrupt jumps in complexity, or rather about the problems associated with them. Block time is a minute, and the reward for the block depends on the number of coins in circulation and the total number of coins, which allows you to smoothly change the reward for the block, without sudden jumps, like in bitcoin.
Interest to monero has appeared long ago, since the moment the cryptonight was studied. Monero can be considered as an improved version of bitcoin, accordingly this crypto-currency is underestimated and it should cost like Dash, and even higher. Especially it has got a real use in darknet.
The above information is a authors personal point of view and we does not encourage you to buy any asset.
Author is @coinreview_en.