Monero: A Private And Secure Cryptocurrency
Monero launched in 2014 is an open-source, decentralized cryptocurrency. It is basically a privacy-focused currency. All the details like amount, time, address of a transaction are kept completely hidden, giving users paramount privacy.
Monero was initially called Bitmonero but since it wasn’t forked from bitcoin, monero community dropped the ‘Bit’ and simply called it Monero.
Monero is basically a untraceable, unlinkable, secure and private cryptocurrency. It is also fungible and dynamically scalable.
XMR is based on the CryptoNote protocol by implementing CryptoNight proof-of-work hash algorithms and its privacy is based on the following protocols:
- Ring Signatures
- Stealth Addresses
Ring signature is a type of digital signature in which an actual signer is merged with other signers to produce a signature that can validate the transaction. There is no way to determine the actual signee of the transaction.
Main feature of ring signature is that it makes the output of a transaction completely untraceable to the input.
RingCT stands for Ring Confidential Transactions was implemented in September 2017 on the monero network. It is basically a set of transactions which hide the main transaction inside.
Suppose user A owns 7 XMR and wants to send 5 XMR to user B. With ringCTs, A will send 7 XMR for transaction and B will receive 5 XMR. Remaining 2 XMR will be sent back to user A.
Thus, ringCTs obfuscated the amount of the transactions.
Every monero transaction requires a new, unique address.
A stealth address is a one-time usable address generated by the sender on behalf of recipient. This address acts like a burner phone and cannot be linked to sender or receiver.
So, ring signatures provide untraceability to the sender, ringCT obfuscate the details of a transaction and stealth address provide privacy to the receiver.
Only the sender and receiver know the whereabouts of a transaction.
Buy, Send, Receive and Store Monero
There was a time when the only way to buy XMR was exchanging it with BTC. Now it is available almost every cryptocurrency exchange. All you need is a working internet connection and funds to buy it. You can also buy it on peer-to-peer trading platforms.
Sending, receiving or storing XMR is fairly similar to any other cryptocurrency.
Monero is constantly criticized for being private, untraceable cryptocurrency. While it is an ideal choice for black-market dealers, it is still just a digital commodity.
I forgot to mention that Monero is selectively transparent. This means that a user can choose to share his transactions publicly.
One should blame a user for its misuse, not the whole currency.
Anyone who doesn’t wants complete private over their funds and its usage will find it useful.
I think in a world full of publicly accessible digital currencies, it’s good to have a privacy-oriented cryptocurrency.
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