Monero. Overview

in money •  last year  (edited)

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You can find our previous reviews here:

Dash. Review - August 2018.
Binance Coin. Review
IOTA. Review. August - 2018
NEM.Overview
Ethereum Classic.Review
TRON overview.
Cardano - review. Future plans.
Ripple - review. Further Perspectives
Litecoin. June'18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May'18 overview
Ethereum. May 2018 overview

Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.

Today’s review: Monero

What is Monero?

This cryptocurrency got its name from the word "coin" in Esperanto. The сryptocurrency appeared on April 18, 2014, as a Bytecoin fork (not Bitcoin). The release of the coin created increased interest from the crypto community after releasing the Roadmap and the Whitepaper. The essence of the project was to make cryptocurrencies anonymous.

The creation of this cryptocurrency attracted the attention of law enforcement agencies, including Europol. An argument was brought to the attention of developers, that Monero could become a good means of payment on the black market for the market for drugs trade.

The FBI released a statement, confirming that Monero is in the TOP three crypto-currencies used on the black market:

  1. Bitcoin
  2. Litecoin
  3. Monero.

The level of Monero anonymity is sometimes questioned, in particular, Edward Snowden called it "amateur cryptocurrency."

At the time of writing, Monero is ranked 11th by the capitalization in Coinmarketcap.com

How does it work?

Monero is mostly an open source software that uses the principle of proof-of-work. Unlike Bitcoin, Monero emissions are not limited. With this, it means that the miners can ensure the system's operation even after the emission was completed.

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The developers of Monero have made a lot of efforts to make their cryptocurrency secure. To achieve a high result, special measures were taken:

  • Use of "Annular signatures". This technology allows you to "shuffle" all the public keys, thus eliminating the possibility of identifying any of the participants in the system.
  • Monero uses a unique protocol that creates one-time addresses. This allows you to hide information about the payee, the balance of their account etc.
  • Protection against hacking. The Cryptographic algorithms ensure the security of electronic cash stored in user wallets.

Due to CryptoNote and the obfuscation added to the protocol, passive mixing is provided: all transactions in the system are anonymous, and all participants in the system can use plausible negation in the event if they are being captured.

Dirty Monero?

Among the miners, it’s in high demand, due to anonymity for mining on other people's computers and servers. Recently, there have been more cases where Monero coding was infected by many viruses.
To extract Monero it takes the power of multiple computers around the world, one incident in particular that occurred last year in London, where scammers hacked into the UK government servers for mining.

Monero, along with Bitcoin, Zcash and Dash is the most commonly used cryptocurrency in Darknet. A favored method of money laundering is the so-called "mixer". The principle of “mixing” is that the money received illegally is sent to a cryptocurrency exchange and Bitcoin is received Monero is then purchased. The attacker can safely exchange the Monero back at a cryptocurrency exchange and receive money in any form that convenient.

Advantages of Monero

  • Absolute decentralization. Without any control, including financial organizations (banks and etc);
  • The anonymity of transactions;
  • Constant growth and trust;
  • The presence of his own personal wallet.

Disadvantages of Monero

  • The size of one transaction in Monero is more significant than in Bitcoin;
  • The anonymity of transactions began to challenge experts working on the development of other cryptocurrencies.

Conclusion

Now the developers are actively working to promote the currency. Given the high anonymity and growth in demand, success is entirely assured.
The anonymity of Monero transactions is not always guaranteed. If the attacker controls a large part of the network, then under certain circumstances, the network can deanonymize some of the transactions.

At the time this article was published, Monero [XMR] is 0.812% of the total of CryptoIndex portfolio.
You can always check the current CIX100 composition at our MVP platform:
http://cryptoindex.ai/

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