In this article we will explain to you, what is the most anonymous cryptocurrency - Monero (XMR). We will discuss how to mine Monero and how XMR privacy works.
Monero - The most anonymous cryptocurrency
Monero (XMR) is an open source cryptocurrency, belonging to private-coins, i.e. a cryptocurrencies that provides users with privacy, alongside Zcash (ZEC), Bytecoin (BCN) and PIVX. Monero is currently considered the most anonymous digital currency. Monero, like most other cryptocurrencies, is based on blockchain technology, i.e. a distributed and decentralized register of transactions. In the Monero blockchain, the addresses (public keys) of people who transact with XMR are hidden. With RingCT it is also possible to hide the transaction value, making Monero completely anonymous and censorship resistant. This makes Monero a favorite currency of dark net and cryptojacking hackers, using the processing power of unaware users such as websites or hacking access to large servers.
Monero was originally called BitMonero and was founded in April 2014 as hard fork of Bytecoin (BCN). Monero does not have a maximum supply (number of coins), so it is a cryptocurrency where inflation occurs. The average block time in Monero is about 2 minutes, but it is not fixed and depends on the network traffic, as is the size (capacity) of the trading block, which is ready for future growth. Monero is famous for its highly developed community of over 200 active developers.
Monero (XMR) is a cryptocurrency based on the Proof of Work consensus algorithm, which means that it can be mined. Monero is based on the CryptoNightV8 algorithm, which allows you to mine using graphics cards (GPU excavators) and even smartphones (e.g. in MinerGate for Android phones or browser extensions or JS scripts placed in the code of sites, such as Coinhive.
Monero's developers also care about maintaining decentralization, so XMR is ASIC-proof, even though Bitmain's Antminer X3 model, among others, was developed for it. The Monero cannot be excavated with it, as the cryptovcurrency has gone through hard fork, which resulted in a change in the cryptographic algorithm and the creation of new cryptocurrencies: Monero Classic (XMC), Monero Zero (XMZ), Monero Original (XMO). Currently, the Monero team is changing the cryptographic algorithm every six months.
Privacy in Monero - how does it work?
XMR ensures full anonymity of transactions thanks to a cryptographic mechanism called ring signature, implemented by RingCT. Monero's privacy mechanism is often compared to dancing on the dance floor among people with masks on their faces - none of the dancers are sure who was on the dance floor. The same is true for Monero - both the transaction route and its value are untraceable, because in fact, each operation is a series of transactions that make it impossible to track, just like the bitcoin address mixers.
What's more, even if a particular Monero address does not make any transactions, it is constantly active on the web, making Monero the most advanced private-coin that exists today. Monero developers are also planning to implement the I2P (Invisible Internet Project) network protocol, so that not only transactions and Monero users will be anonymous, but also the network watchers will not be able to determine whether the user has an XMR address and is a network member.
Monero and bitcoin - differences
Monero is quite noticeably different from the most popular cryptocurrency. Monero is completely anonymous, and bitcoin is pseudo-anonymous. Monero and Bitcoin are Proof of Work cryptocurrencies, but bitcoin is mined using ASIC excavators with the SHA-256 algorithm, and Monero can be mined using, among other things, GPU graphics cards with the CryptoNightV8 algorithm, which is now completely resistant to ASICs.
The Monero has a faster block time (about 120 seconds) than bitcoin, which is about 10 minutes. The time and block size of the Monero are not fixed and may vary. Bitcoin has a limited supply of 21 million coins, so it is deflationary crypto, when Monero has no limited number of coins and there is inflation.