Monero (code XMR) is an open-source cryptocurrency founded in April 2014, which focuses on privacy, decentralization and scalability. Monero is based on the CryptoNote protocol - this is different from many cryptocurrencies derived from Bitcoin. In addition, XMR also has significant algorithm differences in blockchain fuzziness.
Monero has made several major improvements since its birth - first, it has migrated the blockchain to different database structures, which aims to optimize efficiency and flexibility; Set the minimum ring signature size so that all transactions are private, and implement RingCT to hide the transaction volume.
How does Monero (XMR) Work?
The efficient operation of Monero (XMR) can not be separated from the following points:
Anti ASIC concept
ASICs (Application Specific Integrated Circuits) are specific, so those specially built ASICs often have much higher computing power than general CPUs, GPUs and even FPGAs. Presently, Bitcoin (BTC) and other currencies adopting the SHA256 algorithm can be said that almost all the computing power comes from ASIC. However, only a few companies have the ability to design ASIC, which will bring some serious problems. As a result, the emergence of ASIC will lead to the situation that the computing power is too concentrated and can even be monopolized by a single centralized organization.
It is precisely based on this situation that Monero (XMR) has considered using technical means to combat ASIC from the beginning of its design. Specifically, the core development team of Monero (XMR) will modify and hard fork the algorithm of the consensus mechanism within a certain period of time, so as to ensure that it can effectively combat the emergence of ASIC & the monopoly of computing power. For example, Monero uses randomx, which is an anti ASIC and CPU friendly POW algorithm created by Monero community members to make it impossible to use mining specific hardware. Monero has previously used CryptoNight and variants of this algorithm. More information in the GitHub repository.
In order to ensure that there is always power to mine Monero (XMR) and ensure their safety, the emissions are unlimited. There are two main emissions: first, the main curve: by the end of May 2022, there will be about 18,132 Monero (XMR), and then the tail curve: 0.6 XMR every 2 minutes. Once the main emissions are completed, it will be converted into a decrease in inflation rate of < 1% over time (tail emission).
A new block is created every approximately 2 minutes. There is no maximum block size, but block reward punishment and proactive block size to ensure proactive scalability.
Key privacy enhancement technologies
Ring signature - sender, untraceable. Monero (XMR) will copy the transaction to multiple users and make them all appear as valid recipients, so as to prevent the currency from tracing the circular digital signature formed by the payer and other signers of Monero.
Anonymous address - receiver, not linkable. The hidden address, that is, the "one-time public key", can effectively prevent the wallet address of the payee from connecting to this transaction. This public key will be recorded on the blockchain to prove that the "control right to output Monero" has been transferred. Although this public key is recorded in the public ledger and can be observed by any user, only the two parties to the transaction can understand that they have indeed conducted transactions between them, and outsiders can not know the relevant information of this transaction.
Ring signature transaction - concealment of transaction amount. Through the technology of financial Mask and the role of Monero rule: total transaction output = total transaction input, the transaction amount is successfully concealed.
Monero (XMR) Crypto Wallet
In addition to placing XMR in the Gate.io exchange to facilitate trading, XMR can also be placed in a crypto wallet.
The development team of XMR community recommends Monero (XMR) GUI wallet and Monero (XMR) CLIi wallet.
The open-source graphical user interface (GUI) wallet developed by the Monroe community is completely free to use, suitable for beginners and advanced users. It includes simple mode, advanced mode and other functions, and provides more than 30 languages.
The open-source command line interface (CLI) wallet developed by the Monero (XMR) community is also completely free to use and is most suitable for developers, intermediate and advanced users. CLI wallet allows users to fully control their Monero nodes and funds. Highly customizable, including various analysis tools, as well as HTTP RPC and 0MQ interfaces.
In the actual demand environment, users can choose more suitable wallet products according to their own use needs.