Monero (XMR) is a cryptocurrency that working over the CryptoNote protocol. The main purpose of the protocol is to ensure maximum anonymity and confidentiality of transactions inside the network but no observer can tell the source, amount or destination.
Anonymity in CryptoNote ensured by the use of ring signatures (hide sender) and one-time addresses (hide recipient).
Cryptonote Protocol was developed in 2012. Bytecoin launched in the summer of 2012 and became the first cryptocurrency based on this technology
Monero (XMR) appeared on April 18, 2014 as a fork of Bytecoin (not Bitcoin).
How is Monero different from Bitcoin?
Bitcoin users can make transactions without providing their personal data. All addresses with transaction information stored in the public registry. Bitcoin registry open to all users and can be viewed by analytical companies. These organizations are able to deanonymize transactions with great accuracy. Blockchain is openly viewed by analytical companies. These organizations are able to deanonymize transactions with great accuracy.
Using Bitcoin, you need to do something to ensure your anonymity in Monero protocol, privacy is set by default. Untraceable transactions and anonymity – this is the main difference between Monero (XMR) and Bitcoin. The size of one transaction in the Monero network is approximately 8 times larger than one Bitcoin transaction.
Monero Coin. What is Monero used for?
Monero (XMR) primarily used for anonymous transactions. Also, Monero (XMR) is used as a currency in some MMORPG (online games) and online casinos.
Monero’s community is very large! A huge number of people from the world of cryptocurrencies respects this currency for its privacy and compliance with the principles of decentralization.
CryptoNote technology uses a blockchain-based transaction database similar to the Bitcoin database. The integrity of the database is also protected by the proof-of-work method (PoW algorithm: CryptoNight). Transactions in CryptoNote are similar to transactions in Bitcoin. Each transaction means a change of ownership of a specified number of units (XMR).
Some analysts note that based on the chain of Bitcoin blocks, it is possible to identify the affiliations of some Bitcoin addresses. CryptoNote technology uses one-time addresses as recipient addresses and also ring signatures.
An important point for miners: Here is a big difference from other protocols using by cryptocurrencies. In CryptoNote computation, time depends, first of all, on the speed of random access to memory, and only then on the speed of performing simple mathematical operations.
The algorithm includes:
- Keccak (https://en.wikipedia.org/wiki/SHA-3) and sponge function
- 2MB buffer, similar to that used in the Scrypt algorithm, to which random read and write access is performed
- 64-bit multiplication operations
- Additional hash functions named:
- AES encryption round calculation
In cryptography, “ring signature” allows a member of a list of signatories to anonymously sign a message without revealing his/her identity.
Ring signatures in Monero (XMR) include “impurities” (mixins, decoys) in the transaction info. These impurities are visible in the form of inputs/outputs of other user transactions completed earlier. They help to confuse traces: Where are “impurities” in the transaction hash and where are real funds – impossible to determine exactly
When you send XMR to a specific address, it will be delivered in several separate payment units. For example, if you send 19 XMRs, they will be delivered in whole amounts of 10, 5, and 4 XMRs. All of these units will be separately recorded on the blockchain, as they were transferred to their own stealth address.
When you send 19 XMRs to any recipient, any tracker will simply see the public key that sent 10, 5, and 4 XMRs through the blockchain since its first genesis. This public key may be a potential participant in this particular transaction.
The exact number of potential signatures depends on what is known as “mixing depth”. For example, when setting the mixing depth to 4 inputs, any other 3 keys may be potential participants in the transaction. Such a system ensures that transactions cannot be tracked to any specific IP addresses or their proxies.
Reusing the same addresses is one of the most common privacy issues.
If different users send several transactions to your public address (wallet), anyone who knows this public address can easily track the balance along with their incoming and outgoing transactions.
XMR designed to be resistant to mining using ASICs, which are used to mine many cryptocurrencies, such as Bitcoin, Ethereum, etc. Monero can be efficiently mined on consumer-grade equipment such as x86, x86-64, ARM and GPU, and therefore miners love this currency.
Also, in November 2019, the Monero development team introduced a new RandomX health check algorithm to further increase resistance to ASIC mining.
Unlike Bitcoin, the total emission of Monero (XMR) is not limited (tail emission): after 18.4 million XMRs will release, further mining will bring 0.6 new XMRs for each two-minute block in Monero’s blockchain. This is done in order for miners to continue to support the system even after the completion of the main emission. Monero (XMR) is programmed to gradually reduce block rewards, similar to Bitcoin.
As mentioned earlier, Monero is an open-source project. You can see all the information by clicking on the link.
Transaction Key Monero – Guarda Wallet feature
How do I look up Monero (XMR) transaction?
You can use https://moneroblocks.info But this service provides incomplete (a small part) information about transactions. But users only can track information about blocks, the number of transactions, the complexity of blocks, the size of blocks (in bytes), and the hashrate.
Where is Monero transaction key located and How to prove Monero XMR payment?
If you sent Monero (XMR), and the recipient claims that you have not received the funds, you may need proof that you made the transaction. As you already understood, Monero (XMR) is a private network, and you cannot just refer to your transaction in the blockchain. You can provide a TX key (transaction key) to check whether funds were sent or received to your account.
You can find the TX key inside Guarda Wallet – Best Monero Wallet.
Best Monero XMR Wallet
Easy, fast and secure wallet for Monero is Guarda wallet!
Guarda Wallet is simple, secure and easy to use. Its interface is intuitive. It is ideal for working with this anonymous currency.
Guarda Wallet is not just a Monero (XMR) wallet! It is Multi-Currency!
If you already have a Monero wallet, you can import your private key into the Guarda wallet. This feature is absolutely free and unique. Don’t worry, Guarda will not get access to your private keys.
You can store your XMR and buy, sell and exchange it for other cryptocurrencies (Bitcoin, Bitcoin Cash, Bitcoin Gold, Dash, Ethereum, Ethereum Classic, Binance Coin, Cardano, EOS, Litecoin, Ripple, NEM, NEO, TRON, Tezos, Zcash, etc),
tokens (Guarda Wallet supports all ERC-20 tokens, ERC-721, BEP-2, TRC10, TRC20, WAVES, OMNI, EOS),
and stablecoins (Tether (USDT), Binance (BUSD), Usd coin (USDC), True USD (TUSD) and others)
Guarda Wallet Supports over 45 of the most popular blockchains and thousands of various tokens.
Exchange currencies inside Guarda Wallet. Built-in service lets you easily swap coins, tokens and stable coins inside Guarda Wallet!
You also can easily purchase cryptocurrency using your Visa or Mastercard.
Besides the high level of encryption, the main advantage is that Monero Guarda Wallet is non-custodial. Our product doesn’t store your personal data and private keys. cryptocurrency management in the Guarda wallet belongs only to the owner. Guarda does not store your funds. We simply provide you fast and easy-to-use software, with a convenient user interface necessary for storing your funds. Your wallet is protected on your device (PC or smartphone) with your personal password. Your password is your key to lock and unlock your wallet. Guarda doesn’t have access to it.
Unique Multi-Currency Wallet Supporting Monero
To create Monero XMR wallet, you need to follow just a few simple steps:
- Please open this page in your browser – https://guarda.com/
- Choose “Create a new wallet”
- Create an original password for access to your wallet. DON’T LOSE YOUR PASSWORD! It is better to create a password not shorter than 8 characters and use capital letters and numbers. Then click “I’ve written it down”
- Please wait for a few seconds! Your Guarda Wallet is creating now!
- Now, you need to save your backup file and keep it properly as well as password. It ensures access to your funds. Remember, that access to the wallet is possible only using both the password and the backup file. Guarda Wallet does not keep nor is able to restore your backup and password. Only you have access to your wallet. Now, Click on “Download backup”
- The backup file automatically saved to your hard drive in the TXT format.
That’s all! You are in your Guarda Wallet!
Find Monero (XMR) in the list at the left column, click and you will see the public address of your XMR wallet.