Cryptocurrency Monero (XMR) – full review: prospects, characteristics, history, features, mining and wallets
Monero (XMR) cryptocurrency is in the top 20 in terms of market capitalization. The key parameters of the coin are privacy, security and non-traceability. The official ticker is XMR. Original name: Bitmonero. The cryptocurrency is traded on many crypto exchanges, including Binance.
Monero is a cryptographic currency based on the CryptoNote protocol, providing a high level of anonymity for every transaction. An important difference between a currency and its competitors is its autonomy. To make payments, the user does not need to interact with third parties or other users.
The structure of transactions is similar to Bitcoin: each participant signs the payment with his private key before sending it to the addressee. However, in Monero, the sender generates a one-time, unique public key based on the recipient’s address. The recipient must decrypt it using his private key.
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Characteristics of the cryptocurrency Monero (XMR)
As of January 2019, the Monero cryptocurrency (XMR) has the following indicators:
- Market cap – $ 894,458,681.
- Course – $ 53.57.
- Cryptocurrency exchanges for buy / sell / trade: Binance, EXMO, Huobi and others
- Emission – 16.7 million.
- Mining algorithm – Cryptonight.
- Hashrate – 402 MH / s.
Online chart Monero (XMR)
History of creation
Monero’s date of birth is April 2014. The currency appeared as a fork of Bytecoin. The decision to reissue the cryptocurrency under the new name “Monero” was made by the community based on the information that 80% of all Bytecoin coins have already been distributed. Monero did not have premining. The project got its name from the artificial language Esperanto, translated from which the word means “coin”.
Soon after the launch, the developers released a program that allows you to mine Monero on video cards. In September 2014, hackers launched an organized attack on the system, which, however, was unsuccessful. Nevertheless, experts believe that the attackers have thoroughly delved into the algorithm and source code of the project.
Features of the Monero cryptocurrency, technical implementation
The software that runs Monero is open source. Mining is done on a proof of work (PoW) basis. One of the differences between Monero and Bitcoin is that the issue of XMR is not limited by anything; the initial issue is 18.4 million coins, and further mining brings 0.6 coins per block. Block mining time = 2 minutes. This scheme has a specific goal – so that miners do not stop supporting the system even after the end of the main release.
Mining Monero on video cards is not very efficient. This is due to the active use of microprocessor instructions for x86, as well as the use of a large amount of memory.
Monero’s calling card is the CryptoNote protocol based on ring signature technology. The base used in the protocol was developed back in 2001 and improved in 2007. The signatures are based on the EdDSA mathematical algorithm.
CryptoNote combined with obfuscation (“obfuscation”) of transactions leads to so-called passive mixing. This is when all transactions on the network are anonymous, and if necessary, each participant will be able to apply plausible denial.
A few words about the shortcomings of the project:
- Monero has been repeatedly criticized for its anonymity – the authorities believe that in this way the developers encourage the dissemination of illegal information, the purchase and sale of prohibited goods. However, online anonymity is far from absolute. If a hacker manages to take over a significant part of the system, then in theory he can break through the anonymity of a number of transactions.
- Monero’s transaction volume is eight times that of BTC.
- In the fall of 2018, a vulnerability was discovered that allows you to burn a deposit denominated in cryptocurrency; it was named Devs Patch.
Cryptocurrency developers provide users with an official crypto wallet to store and manage XMR. The program is available for download at getmonero.org. There are versions for Windows, MacOS, Linux. The application supports about 30 interface languages.
The Monero Wallet functionality allows you to send and receive transactions, as well as control payment history and enter frequently used addresses in the contact book.
But the functionality is not limited to this. On the Advanced tab, you can find the possibility of solo mining, checking and confirming transactions, using RingDB – a tool to increase privacy.
In addition to the official Monero Wallet, there are other options for storing cryptocurrency:
- Online: Mymonero, Cake Wallet, Monerujo and others.
- Crypto exchanges: Exmo, Binance, Livecoin, etc.
- Hardware wallets: Trezor (Model T). Support will soon be added to another popular device, the Ledger.
Mining cryptocurrency XMR
XMR mining can be done on both GPUs and processors. Both options can be beneficial under certain conditions. The CryptoNight hashing algorithm is an integral part of the CryptoNote protocol. In the process of mining Monero, a PoW algorithm is implemented. Detailed instructions can be found on the official website getmonero.org
- Any modern processor running on the x.
- Video adapters from AMD or NVidia.
- Cloud mining (purchase of computing power for rent).
In addition, there is a distinction between mining in a pool or solo. Solo mode means that blocks are searched by one node (device). This process is quite lengthy, and it is almost impossible to win the race to create a block. The income from this method is unstable.
Therefore, most miners prefer to join in pools. The pool has a much higher chance of creating a block, and the profit is divided fairly among all participants, depending on the invested capacity. However, the creators of Monero emphasize that solo mining helps the project a lot, keeping it decentralized. No wonder this feature is even built into the official wallet.
There is an intermediate option – to combine several of your devices into a small pool. As practice shows, this option does not greatly increase the probability of finding a block.
Prospects for Monero for 2022
Let’s highlight the key advantages of the Monero cryptocurrency, which affect its success, demand and prospects:
✅ Anonymity of transactions.
✅ No emission restrictions.
✅ Stability of the algorithm to ASIC hardware.
✅ Extensive scope of partnership.
Over the past 2-3 years, the currency has been introduced into many projects supplying services or goods. In particular, the collaboration with the AppStore triggered a huge leap in rate.
If developers pay enough attention to security and exclude the possibility of hacker attacks, then Monero has every chance to remain in the top of the most demanded cryptocurrencies for 2022.