Monero is one of the cryptocurrencies that was created after the success of Bitcoin. It is an open-source, privacy-oriented crypto that was launched in 2014. Nevertheless, history comes to 2012 with the first sign of this currency. In that year, Nicolas van Saberhagen (we don’t know his real identity) created a CryptoNote whitepaper by which he proposed a new form of payment called “CryptoNote.” Then, in 2014 CryptoNote underwent several changes that have transformed it into a current state as we know it - Monero.
PRIVACY
AS mentioned above, Monero is privacy-oriented crypto. Usually, cryptocurrencies work based on public ledgers into which all transactions are written. This is, however, not the case with Monero. All information about the sender and receiver or the payment itself is completely anonymous. To provide this anonymity, Monero relies on ring signatures, Stealth addresses, and RingCT.
Ring signatures are used for covering the real sender’s address. Ring signatures mix the address of the sender with the addresses of other users of Monero. Thus, the real sender is not traceable. From 2017, ring signatures hide the price as well.
Another important part plays the Stealth address. It is generated by the payee using a one-time public key, which is a combination of the public parts of the "spend" and "view" keys. Incoming tokens from the sender are stored at a hidden address where the software wallet (using the private part of the "spend" key) identifies the recipient by scanning the blockchain. The wallet then generates a one-time private key - and uses it to store the tokens in the software repository. Then, there is a RingCT that enables hiding the number of transactions.
DISADVANTAGE
Altogether, they create an anonymous place. Thus, Monero is a safer place as the sender or receiver cannot be tracked and blackmailed. Nevertheless, the huge disadvantage is that the reputation of Monero is also threatened by its usage. Due to its transparency, it can be used on questionable markets for gambling or buying and selling guns, drugs, etc. These markets could be found on the dark web, and among them, there were, for example, AlphaBay or Oasis.
MINING
Like Bitcoin, Monero is based on a proof-of-work consensus mechanism that allows miners to add blocks to the blockchain. Monero will have a total amount of 18.4 million XMR that should be reached in 2022. Nevertheless, after this milestone, Monero will still emit a small amount of XMR per block to keep miners doing their job and maintain the function of the crypto.
Although there might be a drawback connected to the usage of Monero on the black marker, it is still one of the safest cryptos on the market. Those who value their privacy as a fundamental pillar will find Monero a perfect opportunity as this topic is becoming more and more popular among people.
