What is Monero?

what is monero

July 25, 2019

FrederikNielsen
24

What is Monero?

At the moment, Monero can be considered one of the most anonymous cryptocurrencies. At the heart of her work is the CryptoNote protocol. It has also been incorporated into products such as AEON, ByteCoin, DigitalNote. The start of the Monero launch can be considered April 2014 as a fork from ByteCoin or HE! Bitcoin The reason for the beginning of the formation of a new cryptocurrency was that the base currency had already been issued in large quantities and did not represent ample opportunities for investment. Starting the project, the developers placed in the center the safety, reliability, and privacy of all the operations.

It is worth noting that the first year of Monero turned out to be difficult. In September, hackers attempted to crack and completely destroy the cryptocurrency code and resources. However, they suffered a fiasco. The impact was reflected, and the security system was substantially reworked. In addition, it was possible to increase the speed of the network, which provided an additional convenience of work.

what is monero

Monero – how was it created?

Monero was launched on April 18, 2014, and was originally called BitMonero, combining Bit (as in Bitcoin) and Monero (Moneto as“coin” in Esperanto) in the name Bit.

Unlike many network currencies, which are derivatives of Bitcoin, it is based on a protocol with the blockchain (chain blocks) obfuscation principle. This algorithm is called CryptoNote, and its modular code was highly appreciated by Bitcoin programmers, in particular, Vladimir Van der Laan.

Immediately attacked after launch, Monero recovered from an unusual and new hacker attack. Two years later, discussions appeared in financial forums: “Why is Monero growing … How to start working with Monero’s wallet … Will Monero be able to replace Bitcoin … Where to exchange better … How to invest …” What caused this interest?

Monero Digital Currency Vulnerabilities

Mining Monero, with the use of a graphics processor, is ineffective since the work requires a significant amount of memory approximately 8 times the size required for Bitcoin operations.

The anonymity of transfers to Monero does not yet have a 100% guarantee. Hypothetically, an attacker who managed to capture most of the network could gain control over some transactions.

How to mine Monero?

The CryptoNight Monero algorithm is designed to support viable mining by a computer processor, although at the current stage mining with a video card is the only profitable method.

There is no specialized ASIC hardware for mining. The mining algorithm itself is actively using AES or Randal (Rijndael) – a symmetric block encryption method for microprocessors.

Resources with aggressive advertising, vivid design, and promise of high rewards should be avoided. These “pools” by 110% are HYIPs and have nothing to do with digital mining.

what is monero

Creating a virtual wallet

A running wallet form will appear in the running program. After entering and confirming the password, the new wallet is synchronized with the blockchain. It is suitable not only for this cryptocurrency but also for testing the program.

Most of its options are similar to other cryptosystem wallets, but there are some differences. So, when you make a payment, a large amount will be removed from the balance, then it will be corrected to the correct values.

You can replenish your wallet by receiving money from other people, exchanging or buying cryptocurrencies on the stock exchange. The address of the wallet can be provided to any person. In secret, you must keep the password to enter the system. It is possible to restore the wallet with the help of a specially created phrase of 24 English words, it must be saved and used, if necessary.

Factors will influence the price of Monero in the future.

List of suppliers of goods and services using Monero for calculations. Remembering that the stunning growth of the cryptocurrency rate in 2016 coincided with its adoption by the AppStore for calculations, such plans of other major electronic players will be a positive signal of Monero’s price changes. Currently, the currency is more used for exchange operations with crypto money.

The advantage over Bitcoin in terms of anonymity must be confirmed by time. The upcoming upgrade in September 2017 may attract new interest in the currency; perhaps, some participants in the e-commerce market are expecting this event. Maximalists, devoted to Bitcoin, expect Monero to be retrained as the father of all cryptocurrencies. Monero developers probably have other ideas.

Even succeeding as an economic tool and retaining competitiveness with Bitcoin, Monero may still not have enough of the existing issue to fully participate in crypto commerce, which would limit its acceptance for calculations.

Frederik Nielsen
Frederik Nielsen

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.

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