The principle may give the FBI a headache, but it is the optimum protection of your privacy. All the data remain hidden, Monero on other crypto photographs than most digital currencies. The exact technology we look at in Detail later.
Coin DNA
Monero is a very lively Coin that is actively being developed. Behind the currency, a strong core development Team. In total, there are seven developers, two of which names are known: Riccardo "fluffy pony" Spagni and Francisco Cabañas. The other five works under pseudonyms, as well as the countless Others who contribute on GitHub in the project. Monero has the Ambition, every six months new Features and improvements.
In the last year (2017) developed Monero way to level up, to see how on the graph of CoinMarketCap.com .
Funfact: A surprisingly large number of American musicians, including Marilyn Manson, Lana del Ray, G-Eazy, Motörhead and Mariah Carey take part in the Project of Coral Reef. The project was started by entrepreneur Naveen Jain, and the Monero developers Spagni and should give crypto-currencies (particularly your Own) to a wider audience. This ensures that the music-join the conversation celebrities from all Genres now on crypto. Those shopping on the Coral Reef page online with Monero, benefit from a discount.
The Bitcoin Comparison
Privacy is a priority for any Kryptocoin as large as in the case of Monero. Step-by-step, the developers encrypted all the data, without the need for the security of a Blockchain without. But why? Here is the comparison with Bitcoin.
Bitcoin is completely transparent. Each Person can look in the Blockchain. Here the transmitter, the receiver and the amount are visible. It only takes one transaction to the Wallet address with a clear name. From the point of the insight in the balance and all the transactions is just a click away. This transparency can be for both individuals and for companies, is very detrimental.
An example: You've got sensible Trading an impressive amount of Bitcoins accumulated. In the pub you tell proudly about your BTC, currently each of 20,000 USD value. Anyone who has heard of you, could force you to now, by means of threat or blackmail to your Coins. Maybe he (or you) has found another way out, that the well-filled address XY belongs to you. Admittedly, the thief needs a little crypto knowledge, and must have the audacity, the Plan through. You were but not even close to the first victim. Once in the Blockchain for a refund of the transaction without the help of the perpetrator (or the perpetrator) is not possible.
For service providers Bitcoin also has a few unfair advantages. So you could make price comparisons with the competition or the price of the asset in the Wallet. The prices your company could shoot at once.
That's why the Blockchain of Monero looks a bit different: The Sender and receiver data does not lead to Wallets and the amounts are, without exception, marked as "confidential". Only the transaction fees and the size of the transaction in Bytes, of the are recognizable. Now you might think "the criminal Person from the penultimate paragraph could blackmail me still!". True. Only you have this time with your display, not even a transaction to Show for it. You're just supposed to not be about your Coins talk.
Another difference from Bitcoin is the Mining. Both crypto-currencies use for the Mining of the Proof-of-Work (PoW) process. This Miner and your computer need to solve a mathematical task. Whoever finds the solution first, be a Block in the Blockchain and receives a reward. Bitcoin-Miner to invest for this work in special Hardware (ASICs – custom graphics cards) and work together in Mining Pools. Monero uses a different algorithm, with the 'normal' calculator. Both currencies are decentralized through the Proof-of-Work method.
The difficulty of the tasks increases. In the case of Bitcoin every two weeks, in the case of Monero with each Block. The reward, the Miner with the Block earn is halved in Bitcoin after 210,000 Blocks. Also, at this point, Monero has opted for smaller steps and reward falls continuously, with each individual Block.
Bitcoin has a fixed block size. Even though this is not always discussed, it is for the time being, 1 MB. The block size of Monero is variable. The target interval of Bitcoin 10 minutes. This means that, in the ideal case, every 10 minutes a new Block. In the case of Monero, the are all 2 minutes.
Then, a difference that may not be widely reviewed in the future: the maximum amount of Bitcoins is set at just under 21 million. After this Miner can mine any longer Bitcoins and will make your work with transaction fees to pay. Monero has no absolute maximum amount. However, to be reduced rewards to about 18 million Coins the Block. Monero is assumed that from the point of disappearing Coins (of users who have lost their Private Key) and mined Coins to offset, approximately, and the amount of 'active' Coins to about 18-18.5 million stabilised.
More specifically, the technique looked behind Monero
Like most other Coins, Monero is based on a Blockchain. Corpses simplified, transactions by miners verifies and blocks are packaged. The different blocks are strung together to form the Blockchain. In Bitcoin, everyone can see the Blockchain. Here is the transmitter addresses, amounts and recipients ' addresses are visible. It may be possible to connect the address with a company or a Person and, therefore, the Bitcoin Blockchain is completely anonymous.
By different Features, neither the transmitter and receiver are in the case of transactions of Monero is still the exact amount of the transaction is recognizable.
1. Stealth addresses to protect the identity of the recipient
A Stealth address , or "One-Time Public Key" is automatically generated as part of a transaction. The Key determines who can spend the transferred Coins as the next.
A Monero Wallet is made of 95 signs, each of a 's Public Send Key and a Public View Key . In the case of a Transfer, both Keys can be used with additional arbitrary data to a new Key, with the Output (the amount transferred). This appears in the Blockchain.
In the Wallet you will also find a Private Send Key and a Private View Key. The Private View Key in the Wallet transactions in the Blockchain so that the Coins arrive in your Wallet.
If you will put the Key of an other Person, you can also view the transactions, comparable with a Bank statement.
With the Private Spend Key, you can spend the received Coins. This Key is similar to a PIN, or the Login-data to a Bank App.
The Private Keys are not in the Blockchain released. Outsiders see only a Stealth address that you can associate with any Wallet. The recipients will be anonymous. The parties Involved can find the transaction with your Private View Keys in the Blockchain.
2. Ring Signatures protect the identity of the sender
A Ring Signature ("circle signature") is a signature, consisting of equivalent Parts. Part of it is the actual signature of the sender. This is the One-Time Spend Key of the Wallet. The other parts are arbitrary signatures from previous transactions in the Blockchain. Outsiders and the receiver can not understand the signature or Output actually comes from you, the Sender.
In order to avoid that Coins can be spent on several occasions, but there must also be a way to check the transaction. This is done via the so-called Key Image. Each Outputhas a unique Key.
The cryptography is not to detect what kind of Output has generated the Key. Only a Miner, but on the basis of a list of all the Key Images in the Blockchain , check whether the Key already has been used.
3. Ring Confidential Transactions or Ring CTs conceal the amount
Ring CTs have been introduced at the beginning of 2017 of Monero. These ensure that the amount of a transaction does not appear in the Blockchain.
In order to avoid fraud, Monero is a basic rule for transactions: The sum of Inputs equals sum of Outputs. Even if your account balance is displayed as a full amount, it consists of different Inputs.
An Example:
Inputs: 2.5
1.3
6
7.8
12.9
3
Balance: 33.5 XMR
Of an Input value of 6 XMR so not only 4 XMR can be transferred. In the transaction, therefore, two Outputs: 4 XMR for the Transfer and 2 XMR, the exchange of money in your Wallet.
The word "Ring" comes from the visualization, which is used in Monero for the Split of the Outputs. What are in the example image red arrows, were the amounts in the old model rings with the fixed part. These were also visible in the Blockchain. There are in the Ring CT no set amounts, you can split the Outputs, freely and anonymously.
To Miner , the transaction can confirm to be minimal info on the credit sent. So never more Coins can be transferred, as in the Wallet.
Negative values are also due to the so-called Range Proof excluded. This determines that the amount of a transaction is greater than Zero , and in the Blockchain.
4. Kovri – anonymized IP addresses
Kovri anonymisation software which was developed by Monero. Monero looks at security vulnerabilities in VPN-servers, and criticized the network neutrality of the gate. Nevertheless, it needs to ensure the anonymity of a solution. Without Tor, VPN, or other Software, the IP addresses and data may be evaluated.
Access is via Kovri should provide more anonymity and censorship in the Monerosystem prevention. The technology is based on the I2P network. This creates an Overlay (Blending) in which the IP-addresses of Users are visible. The encryption and forwarding of data with the so-called "garlic technology", these are inaccessible to third parties.
The packaging of data with a matryoshka compare. At each node point (node) will be Packed an additional layer to the data. Each new layer obscures the last and only contains the Info to which Node the packet has to be given. Only the recipient with the proper Key can open all the dolls back in and gets access to the data.
Is announced a Kovri API, so that other Cryptocurrencies can take advantage of the Software.
Buy and trade
Monero is moving already for a long time in the TOP 20 of CoinMarketCap.com. The Coin will be negotiated on a relatively large number of platforms and sold.
The absolute anonymity of the transactions makes Monero especially compared to many other Altcoins, which serve as a means of payment.
Short analysis from the 14.03.2018
XMR is developed for BTC is currently better as compared to USD:
The trend line is very flat, but the rate against BTC continuously to the top. As in the MACD, the Orange line has crossed the blue recently, which is a sign that it goes for a while down. The created Support was previously a strong resistance. My guess is that the price will fall again below it, the Support breaks down and the trend line is approaching.
The positive Trend in the Pair USD was severely broken:
The price is hitting the upper Bollinger Band and has broken the trend line. The MACD shows no buy signal and the CCI is no divergence. The normal RSI (not in the picture) is still in the normal range. It looks so, that the rate falls even further.
A proper Level of Support, I can't draw. The course has a very short-term. From the long climb before even none. Note if you use the CCI and the MACD.
Stay informed
Now you've got a detailed first impression of Monero. If you want to make even more, you can always look again, how the Coin develops. The Team behind Monero has set a ambitious target: every six months Updates with new Features and even more privacy should appear. So it pays to Google, as it is to the developments. Your Points Of Contact:
<li><u>Monero </u><a href="https://getmonero.org/">Website</a></li>
<li><a href="https://www.reddit.com/r/Monero/">Monero Subreddit</a></li>
<li><a href="https://forum.getmonero.org/">Monero Forum</a></li>
<li><a href="https://twitter.com/monerocurrency">Monero Twitter</a></li>
Sources
For this post information and data from the following sources were adopted:
- Post for beginners by Linda Xie
- The Monero Website
- A couple of interesting Clips
- Monero on Wikipedia
- Post on Coindesk
- Contribution to Steemit
- Contribution to monero.how
Images 1-10 are created from Screenshots from the Monero YouTube Channel