Monero (XMR) – the most popular anonymous cryptocurrency
In our age of high technology, many people know that it is possible to make very successful crypto investments, make crypto donations, naturally pay with digital currencies, and much more. The system’s decentralization, the absence of the need to open bank accounts, a high degree of protection (double authentication) – all this suggests that over time, a virtual currency can supplant all the usual money. After Bitcoin was released in January 2009 and achieved stunning success, the developers began to actively create electronic coins, but very few competed with BTC, one of these cryptocurrencies was Monero. Today, the XMR cryptocurrency justifiably occupies an honorable place in the TOP. Let’s look at what Monero is together and try to understand the intricacies of its use.
The first release of Monero dates back to April 18, 2014; it was originally called BitMonero. Exchange ticker (unique identifier) - XMR. Basically, network currencies are BTC derivatives, while the Monero protocol is based on the principle of blockchain obstruction. This is a mechanism – CryptoNote, based on ring signatures and transaction obfuscation, it should be noted that Bitcoin programmers, for example Vladimir Van der Laan, highly appreciate this modular code.
As of 2017, Monero had a capitalization of more than $ 764,000,000. Impressive performance, isn’t it? For the most part, Monero cryptocurrency owes this success to the level of confidentiality of its appeal, provided by:
- Address ‘mess’. The same receiver and sender have several one-time addresses.
- Ring Signature. Sending funds is accompanied by several signatures, as a result of which it is almost impossible to determine the sender.
- The encrypted transaction amount. In this case, Ring CT technology (“Pedersen commitment”) is used.
Anonymity is especially enhanced if transactions on the network are widespread, which means that the more users there are, the more ‘traces get confused’.
The history of the cryptocurrency Monero
The XMR cryptocurrency that is being watched is open source and ensures complete anonymity of transactions. Monero in Esperanto means ‘coin.’ Despite the fact that the age of this crypt is only three and a half years, the capitalization of Monero brought it to the TOP of digital finance with a high level of liquidity.
It is noteworthy that the preliminary mining of Monero, which should precede the release of any crypto, was absent before the launch of this particular coin in 2014. A few weeks after the appearance of XMR on the market, a separate special-purpose software was developed, thanks to which Monero mining became possible within the framework of graphic video cards. Naturally, this fact contributed to its rapid spread. In less than 5 months, and hackers have already directedly attacked this cryptocurrency. The situation was complicated by the fact that scammers had complete information regarding the source code of Monero and the Merkle Tree algorithm. All this weakened the defense of the coin, despite this, the developers repulsed the attack, as a result of Monero exists to this day.
In order to implement the Ring Confidential Transactions (RCT) feature, in February 2017, XMR developers launched a hard fork. Thus, mining Monero has become even safer, respectively, and the level of confidentiality of transfers has increased. In addition, many users prefer Monero because:
- Darknet AplhaBay, one of the most sought after web markets, integrates Monero coins.
- The Proof-of-work mechanism provides reliable protection and first-class encoding of information.
It is worth mentioning that initially there was no extraneous funding in the development of the Monero cryptocurrency, enthusiastic programmers worked on it as part of a hobby. Today, this idea has gained the scale of a full-fledged large-scale project, bringing a stable income to its authors.
Features and principle of operation
The CryptoNight mechanism initially provided for the viable mining of crypto by the PC processor, however, in the current period of time, mining using a video card is the only profitable method. There are no specialized ASIC hardware tools aimed at mining Monero. The direct mining mechanism is based on the use of:
- Randal (Rijndael).
The latter of which is a symmetric block coding method for a microprocessor. In the process of mining, PC users and owners of narrowly targeted ASIC installations feel a certain “karyorexis”, the goal of CryptoNight is to reduce it. It is noteworthy that cryptographers such as Abadi have developed mechanisms that are keenly responsive to RAM (its state). In other words, a large block of information (notepad) is allocated in RAM, the sequence in which is unpredictable. Each call is aimed at calculating data, the number of calls is extremely large, it is more expedient to collect and store this data so as not to go for it every time, the size of the block for storing it should be appropriate. Among other things, the principle of the algorithm should exclude the presence of internal parallelism: simultaneous threads – N require a larger amount of memory N times.
Another common Scrypt mechanism also exploits memory, however, along with this, it generates powerful and inexpensive computing devices for calculations within the framework of this algorithm. When it comes to CryptoNote, here we observe a certain chain: every subsequent block (64 B) is directly dependent on the previous one, this is a fundamental difference from Scrypt. The new algorithm consumes RAM in the amount of approximately 2 MB, which in turn is the minimum size of the L3 cache of any modern processor, naturally, ASIC is excluded.
Be sure to distinguish CryptoNote from CryptoNight, which is just one version of the CryptoNote algorithm. The CryptoNight protocol is the foundation for:
- Monero (XMR);
- ByteCoin (BCN).
As part of mining using CryptoNight:
- Emission is falling smoothly.
- The time intervals between blocks are reduced.
- There is no possibility of mining on ASIC, but mining on a PC becomes more expedient.
- Used a bunch of CPU + GPU, respectively, increases productivity.
- Monero stands out against the background of Bitcoin, thereby attracting additional attention.
- CryptoNight Coins are very different from altcoins using older protocols.
- The profitability and rationalization of Monero’s mining is increased compared to other cryptocurrencies.
- The video card and processor heat up much less.
To start mining Monero, you should buy a video card, better Nvidia, so the efficiency will increase significantly. Then select a mining program: Claymore CryptoNote GPU Miner, and a pool. Install the software and configure it.
If you have Nvidia GeForce, then it is better to give preference to mining through the open CUDA-miner and Ccminer cryptonight nvidia.
Suppose mining was successful, now the coins need to be transferred to the exchange and there they already exchange them for BTC or USD.
Sending to the exchange, in programs there is a pointer to the payment ID (payment_id) – it is determined by the exchange. As for the anonymity parameter (mixin_count) – this is a feature of the Monero cryptocurrency. If you want to hide the payment, use the values 1 – 10. The higher the value, the higher the degree of protection. It should be borne in mind that the first confirmation process will be significantly slowed down by the high value of transaction encryption.
Provided that all the settings were made correctly, the mining process should start. You need to follow the statistics on the website of the pool, as a rule, its main page is equipped with a corresponding window. You should enter your wallet number here, click ‘check’ and the system will display the status of your statistics.
Using a processor when mining Monero will significantly reduce the amount of electricity consumed. To do this, you need to install the appropriate software: Wolf’s CPU miner, or Yam CPU. In this case, it is best to use the Linux operating system, since it makes it possible to set thin optimization parameters on your own.
Monero Wallet – Overview of Features and Benefits
Developers are constantly and actively working on alternative ways to store XMR, in addition, Ledger is trying to add Monero integration. In the meantime, users are satisfied with the already developed variations of the Monero wallet:
- STANDARD MONERO GUI, the name speaks for itself. This wallet was created to ensure the security of users and their tokens. The creators also worked on the release of new GUI files to update Helium Hydra. Installation is available within any OS: Windows, Linux or Macintosh. In general, this is a good and fairly reliable version of the XMR wallet, it is worth paying attention to the complexity of the password and the backup of the file copy of dat.
- USB MONERO COLD WALLET, this Monero wallet is extremely effective for safe storage and work with various cryptocurrencies. Taking into account the actively growing course of Monero, this is a matter of paramount importance. Using this particular wallet is simple and convenient, the installation also does not take much time and does not require any special knowledge and skills in the field of computer technology.
- MYMONERO is a product of the creators of Monero, so this wallet is the most trusted by users. This is also justified by the fact that from the date of development, not a single account has been hacked by fraudsters.
Exchange, purchase and earnings Monero
You can earn Monero in several ways:
- Mining cloud farms are sites that provide users with the power of their computers. In fact, all such services are only investment platforms, because the user does not have access to mining equipment and process control. But despite this, cloud farms are a great high-yield way to earn money.
- Purchase and sale on exchangers.
- Monero cranes – coin distribution services. However, it is in the framework of this cryptocurrency, unfortunately, there are a small number of working cranes. The principle of earning is very simple: by going to the corresponding web page, you need to enter your wallet number in a special field, unravel the captcha, click on the special button and get what the faucet selects for you, it’s simple. Then, save the received coins in your personal vault. Perhaps in the future the number of Monero cranes will increase, but for now we value what we have.
- Investing in Monero.
The most popular, given the prospects of Monero, are cloud mining farms and various investment projects.
According to analysts’ forecasts, the high confidentiality of transactions and the growth dynamics of XMR, indicate that now is the time to purchase Monero. This is an excellent investment tool that can play into your hands in the future and bring a stable and high level of income. But before rushing to buy this crypto, once again weigh all the pros and cons. Do only deliberate actions and make informed decisions.