Monero: history of creation, advantages, disadvantages

In this article we will look at what the Monero cryptocurrency is, when it appeared and why it is good for use.

Similar to other cryptocurrencies, Monero is a decentralized system with open source code. Its main task is to ensure the conduct of monetary transactions while maintaining a high level of anonymity. The name is translated into Russian from Esperanto as “coin”. 

The Monero cryptocurrency was created based on the CryptoNote ring signature algorithm, introduced into the network in 2012. That is, the Bitcoin code, which is widely used to create other electronic coins, is not used. This guarantees a higher degree of reliability and anonymity. 

At the same time, Monero has something in common with Bitcoin. It uses identical technologies for transmitting information and earning cryptocurrency. But to accumulate coins, users use one unique e-wallet address. Only the owner has the key to it, so no one except the owner of the wallet can view the data. The determination of transactions is also suppressed through the chaotic mixing of transactions through the blockchain.

This altcoin began its existence in April 2014. The Monero system started working without the use of pre-mining. Only two weeks after the launch, they developed a program for mining Monero on GPU.

In the fall of the same year, there was a hacker attack, but the hackers failed to destroy the cryptocurrency. As experts noted, the hackers were very knowledgeable in the source code of Monero, and also well versed in the Merkle Tree algorithm.

This system has no restrictions on the total emission. The initial supply has reached 18.4 million Monero, and each 2 minute block will add 0.6 new currencies. The developers took this step so that miners could keep the system running after the end of the main emission..

The features of Monero that distinguish them from other cryptocurrencies include:

-the principle of a ring signature due to the Cryptonote algorithm;

-protection against mining on specialized devices;

-a high degree of anonymity (withdrawing cryptocurrency from your wallet can only be done by knowing a special code that is assigned individually to each user )

-inability to track transactions from outside the system;

-automatic mixing of transactions in the network;

-unlimited scalability (limited only by the performance of the hardware used)

-use of the Proof-of-work principle (an algorithm for protecting distributed systems from DoS attacks and spam mailings)

The advantages of Monero today, in our opinion, include three things:

-security - cannot be copied

-produced in limited quantities, which guarantees a constant increase in demand

-low volatility

Of the disadvantages, we note the following:

- small number of users, which makes it difficult to carry out the mixing transaction procedure. (that is, any large transaction can pop up and become noticeable to those who monitor such transactions )

- the volume of transactions takes up several times more space compared to Bitcoin

- the complexity of the code sometimes makes mining difficult for users of outdated equipment

- the transaction speed is low compared to other forks (the AES system with a huge amount of memory is actively used here)

- mining Monero requires quite powerful equipment. (for greater efficiency, it is recommended to use programmable logic matrices or ASIC processors. Their performance is 20-30 times higher and the cost is correspondingly higher)

-high anonymity of transfers naturally attracts special attention of all kinds of regulators and those who guard the security of states.

Today, the Monero rate is $434 per coin. Total capitalization - $6.7 billion Most often, this cryptocurrency is used for anonymous transfers, as well as in online casinos and online games.

Today, it has been added to such trading platforms as Oasis and AlphaBay. 

According to https://www.allcryptonews.com