Monero

Monero is a cryptocurrency, the main feature of which is the anonymity of transactions. It was created in 2014 and was originally called BitMonero. Like many other cryptocurrencies, Monero is built based on blockchain and uses an algorithm of proof of work. Computers on which Monero software wallets are installed form a network of peer-to-peer public crypto nodes. For a long time cryptocurrency Monero was protected from mining on ASIC. This ensured a high degree of decentralization of the Monero network.

Monero wallets will need to connect to the blockchain to ensure the anonymity of transactions. Most of the free nodes in the Monero network are full, and a small number of mobile wallets belong to the light free nodes. Light Monero nodes are also called relay Monero nodes because they only transmit information. Bypassing the transaction to the next blockchain nodes provider, the wallet program will also take from the blockchain the information needed to hide the transaction. Once the transaction has reached the full blockchain nodes provider, the transaction is checked. If the transaction meets all requirements, Monero node adds it to the blockchain. Full blockchain nodes of Monero have a full copy of the blockchain. By default, each installed wallet program becomes a full node Monero.

The main thing for Monero developers is the anonymity of transactions between Monero nodes. Cryptocurrency Monero additionally uses Kovri protocol to ensure anonymity. It allows hiding IP addresses of sender and recipient of coins from third parties. The number of XMR coins is not limited in principle, but the number of new coins issued decreases smoothly with each new issued block. The block creation time is on average two minutes. The Monero network can currently handle 1700 transactions per second, which is significantly more than the Bitcoin and Ethereum.

Monero uses the CryptoNote protocol, the main feature of which is a ring signature. Thus, the anonymity of transactions between the Monero nodes is provided at the algorithm level. Each anonymous transaction between the Monero nodes creates a one-time pair of addresses, which are not used anywhere else. Confidential ring transactions are also used to hide the total amount of transactions between XMR nodes. The higher the decentralization of cryptocurrency, the easier it is to anonymize. For this reason, the developers try to avoid excessive ASIC development for Monero mining and use CryptoNote algorithm, which places high demands on the amount of RAM. To protect against double waste XMR node exchanges key image, this is information that can only be sent once. If XMR node sends the key image again, its request will indicate an attempt to double waste the same means, such an attempt will be rejected.

Monero receives regular program code updates. With updates, developers try to balance the chances of maintainers using ASIC and maintainers using GPUs. It is planned that Monero will get sidechains for communication with public crypto nodes of other networks, such as Bitcoin and Ethereum. This will allow the direct exchange of Monero for other cryptocurrencies. Updating Fluffy saves bandwidth because only block headers are sent over the network at necessary moments, not the whole block.