Privacy is always one of the main demands of many users and investors. The Monero currency and its network can be considered one of the most well-known and famous networks created for this reason. This project has been so successful in protecting privacy and preventing the leakage of customer information that many exchanges are not willing to support it, because Monero is a privacy coin that they cannot monitor its transactions.
Since many digital currency market participants do not have enough information about this currency and its network, we decided to share comprehensive explanations about this currency with you in this article.
What is Monero digital currency?
Project Monero currency open source It was launched in 2014 as a fork of Bitcoin digital currency with the aim of protecting user privacy. The unique features of this network have made it popular and special. The developers used a protocol called Cryptonote to generate this currency.
This blockchain is unlike other blockchains thatThe goal of transparency have been launched To prevent disclosure of information related to transactions and to keep users’ information secret designed. For this purpose, the Monero currency uses several improving technologies (such as CryptoNote) to ensure the anonymity of its users. Simply put, you cannot connect any transaction in this network or identify its origin and destination.
Different ways to get Monero
If you intend to get this digital currency, its developers have put two ways in front of you:
- Join mining pools
- Mining this currency using personal computers
Investigating the goals of creating the Monero currency
The main purpose of Monero digital currency can be considered privacy and untraceability, which is also the reason for its popularity. This currency, like other cryptocurrencies, uses blockchain technology, with the difference that by making changes in cryptography, it hides the amount of transactions, sender and receiver. Other goals of this project include decentralization and security.
Review of Monero network and its architecture
The main feature of this network that has confused many experts is the type of architecture of this network. This unique and complex network has its own hiding technology called Circular signature (Ring Signature) to hide the transfer path. Ring signature is a protocol that is in the central layer and the network uses it to perform transactions. This protocol works completely independently of the outer layer, which is related to security and block formation.
To transfer and confirm the transaction in a new destination, the user must use his private key known as Private Spend Key. After using this key, a component called Ring Size is created for the user’s transaction, which corresponds to the amount of currency specified for transfer.
For example, if you intend to transfer 10,000 Monero currency, a ring with the size of 10,000 will be produced. Based on this size and to complicate the transfer path, different outputs are merged with your transaction. To put it simply, each of the currencies that you intend to transfer will move through the authorized path in the network.
It is interesting to know that the complexity of the created addresses is so high that the verifiers and miners are not able to distinguish the origin and destination of the transaction. They can only see the categories of senders and receivers to verify transactions if the private key is used.
Developers to increase security and prevent fraud in the network, another feature named View key added to this network, which is very similar to the technology used in ZCash. This feature is intended to allow law enforcement agencies to access transaction details at your discretion. Of course, these details only include the transaction history and nothing else can be seen.
What are Monero’s security mechanisms?
Monero network to increase the security of transactions made by Monero currency, from the structure Asymmetric encryption It uses two keys:
Private Key
Several private keys are generated in the Monero network, whose task is to Data signing and decryption Is. One of the main ones is the root key, from which other keys are derived. Keys derived from root are spend and view keys. You need spend key to confirm transaction and view key to view incoming transactions privately. All keys are disposable.
Public Key
The public key is created from the private key, and its main purpose is to share information, verify signatures, and encrypt data. If the key generation process is done correctly, the private key cannot be recovered through this key. The result of the correct implementation of production processes is the increase of network security.
What are the applications of Monero digital currency?
In general, this currency is used by those who want to make their transactions completely confidential. In the following, we mention the most common uses of Monero.
- Monero digital currency is one of the most popular methods Payment on the dark web it counts; Because no person or institution can trace it.
- One of the main uses of this currency Paying for goods and services Is. Using this currency, it becomes impossible for advertising companies to track your purchases.
Introducing the Monro development team
The uniqueness of the Monroe project can also be attributed to its development team; Because they are very interested in keeping their identity hidden. Only the names and information of two of them can be accessed from this team. First Riccardo Spagni who is known as the head of the project and the initial founder of Monro and the second person named David Latapia is one of the developers of this project.
Of course, it should be noted that Monro consists of several working groups, all of which are working to develop this network. We will mention them below.
- Core team
- Community working group
- Developers group
- Website group
- Localization group
- Policy group
Introducing wallets compatible with XMR coin
Many wallets in the market do not support Monero because they cannot monitor transactions made with Monero. For this reason, the developers of this currency were forced to launch a dedicated wallet to store Monero. Of course, according to the reception of users, more and more wallets support this currency; But we recommend you to use the wallet made by the developers to store your assets. In the following, we mention some of the wallets that support this currency.
- Ledger Nano S
- treasure
- Ledger Nano X
- Trust Volt
- Feder
- Walt’s cake
Which exchanges support Monero cryptocurrency?
Few exchanges provide the possibility of buying and selling this currency for their users. The reason for this is the legal restrictions that some governments have created for the transfer of this currency. With new updates and the possibility of publishing public keys, these sensitivities have decreased and the number of exchanges that support this currency is increasing. The following are among the most important exchanges where users can buy and sell Monero currency.
- Binance
- Cocoin
- Kraken
- gate
Advantages and disadvantages of XMR coin
Like other currencies created on the blockchain platform, XMR coin also has advantages and disadvantages. In order to invest in this network with sufficient knowledge, we will point out its advantages and disadvantages.
Advantages:
- Using advanced and up-to-date technology
- The possibility of making transactions anonymously
- Easy extraction
- high security
- Using a decentralized system
Disadvantages:
- Low speed compared to other networks
- Lack of enough information about developers
- The opposition of legislative institutions and its limitation
The reason lawmakers are concerned about Monroe
Governments and regulatory bodies are always looking for ways to monitor and control financial transactions that take place around the world. For this reason, they strongly oppose the use of Monero currency. Due to the complexity of this network, the transactions made cannot be traced in any way and the legislator cannot identify the origin and destination of these transactions. As a result, it is always looking for a solution to limit its use.
Examining the outlook and future of Monero currency
The future of this currency can be considered clear for two reasons, firstly, developers are always looking for solutions to reduce the shortcomings of the network, and secondly, the users’ acceptance of this network. Many of them prefer to hide their assets and financial transactions from regulatory agencies to pay less tax. So if you intend to use these two advantages, using Monero currency can be a good option for you.
What is Munro’s writing? Full introduction of digital currency monero or XMR Coin for the first time on Wallex blog. appeared.
