Monero (XMR) is a cryptocurrency that has succeeded in setting itself apart from others through its focus on privacy, anonymity, and security. Here, we take a closer look at this digital currency’s specifics to determine whether it’s a good investment in 2024. Enjoy a complete guide to help you better understand Monero (XMR), its mechanisms, Monero blockchain, its assets, and also Monero value. Read our Monero crypto review here!

What is Monero (XMR)?

Created in 2014, Monero (XMR) is an open-source cryptocurrency focusing on the privacy and anonymity of transactions using cutting-edge technologies. Unlike other cryptos such as Bitcoin, Monero guarantees complete anonymity of transactions, meaning that information on the sender, recipient, and amount is untraceable.

Like most cryptocurrencies, Monero is based on a public blockchain but differs in that it uses a unique protocol called CryptoNote. This protocol combines several cryptographic mechanisms, such as ring signatures and stealth addresses, to ensure the confidentiality of transactions:

Ring signatures conceal the sender’s identity by mixing their public key with other users.

Stealth addresses guarantee the recipient’s anonymity by generating a unique address for each transaction.

Another notable feature of the Monero project is its consensus algorithm, RandomX, which favors using CPUs rather than GPUs or ASICs for mining. This approach makes Monero mining more accessible to individual users and prevents the centralization of mining resources. Monero regularly performs network updates, known as “hard forks,” to improve the system’s security and scalability.

The history of Monero

The story of the Monero crypto begins in 2012, with the creation of the CryptoNote protocol by an anonymous developer using the pseudonym Nicolas van Saberhagen, that is the official Monero founder. CryptoNote presented itself as an alternative to the protocol used by Bitcoin, offering better privacy protection and a mining algorithm more resistant to centralization.

But it was in 2014 that Monero saw the light of day, under the name BitMonero, following a fork of the Bytecoin cryptocurrency. The project was then taken over by a developer known by the pseudonym thankful_for_today, who wanted to improve Bytecoin’s source code and make it more transparent. However, differences of opinion within the community led to a new fork, at which point BitMonero became Monero.

The name “Monero” comes from Esperanto and means “coin”. This choice reflects the project’s ambition to become a universal digital currency accessible to all. What about Monero staking? Since its inception, Monero has stood out for its decentralized governance, with a development team of volunteers and various stakeholders who contribute to the evolution of the project.

In 2016, the RingCT (Ring Confidential Transactions) protocol made it possible to conceal the amount of transactions and the identity of the parties involved. This innovation reinforces the anonymity offered by Monero while ensuring the traceability of coins to prevent currency creation out of thin air (double spending).

2019 marks an important milestone for Monero with introducing the RandomX consensus algorithm. This algorithm favors mining on CPU processors, making the crypto-currency more resistant to centralization and more accessible to individual users. This evolution has also reduced the environmental impact of Monero mining.

Why was Monero designed?

The Monero crypto was designed to meet a specific need: to offer a cryptocurrency that guarantees transaction confidentiality, anonymity, and security. At the time of its creation, other existing cryptocurrencies, such as Bitcoin or Ethereum, had certain limitations regarding protecting privacy.

To bridge this gap, Monero was developed based on the CryptoNote protocol, which implements advanced cryptographic mechanisms to guarantee the confidentiality of transactions. The use of ring signatures and stealth addresses masks the identity of both sender and recipient, making transactions on the Monero blockchain untraceable.

The other intention behind the creation of Monero was to combat the centralization of mining and enable a fairer distribution of mining rewards. This is why Monero uses the RandomX consensus algorithm, which favors mining on CPU processors rather than specialized hardware such as GPUs or ASICs. By making mining more accessible to individual users, Monero aims to preserve the decentralization of the network and avoid the problems associated with the concentration of mining power in the hands of a small number of players.