What is Monero?
Monero is a private and untraceable crypto-currency. It uses a special kind of cryptography to ensure anonymity of transactions. Monero is a fork from Bytecoin.
How does Monero Work?
The Monero is a proof-of-work based open source Cryptocurrency. Monero uses the CryptoNote protocol which distinguishes it fundamentally from the Bitcoin protocol. The CryptoNote’s transactions cannot be followed through the blockchain in a way that reveals who sent or received coins. The transaction sender can’t know if the receiver spent the funds or where they went and the receiver can’t know where the funds came from unless proven by the sender. CryptoNote protocol is also decentralised. ASIC mining is not profitable in Monero, thus making CPU mining for regular PCs possible. Recently following Bitmain’s announcement of its X3 designed to mine Monero, the altcoin’s developers have released an update that prevent the new device from mining it, so that it will remain reasonably decentralised. There is no cap in Monero supply.
As a further step ensuring full privacy, Monero implements ring signatures. Ring signature is a type of digital signature that can be performed by any member of a group of people. If someone from the group signs a message or a transaction with his/her private key, it should be impossible for someone to determine which group member signed the transaction.
