Cryptocurrency Monero: why hold?

0
607
Crypto

Many cryptocurrency holders are not limited to BTC alone, as there are many other cryptocurrencies that are in no way inferior to Bitcoin. And in the XBT Capex Club application, you can find a list of the most popular cryptocurrencies, among which Monero (XMR) may be. Since this coin is considered the most secure. In addition, the developers guarantee anonymity. So what is Monero?

From Bytecoin to Monero

Despite its security and anonymity, the coin can hardly be called flawless. Since Monero has a reputation as a coin that is often used for illegal transactions. That is, the coin often appears in cases related to financial transactions. Therefore, the fact for what purpose many users acquire Monero becomes obvious. But you should not immediately put an end to the coin, because it is not known where everything is going.

Monero, which means coin in Esperanto, comes from Spain, where it was introduced in 2014. It appeared after Bitcoin and Litecoin. Interestingly, the developers of Monero used the CryptoNote algorithm to develop this coin, which was used in Bytecoin, which failed to top the ratings of top cryptocurrencies. And the reason was not the coin itself. Since it was really an anonymous coin, the names of the creators are also unknown. 

But for some reason, the community did not immediately accept the existence of the coin, and the team had to conduct a hard fork to introduce BitMonero. It was BitMonero that opened the door for Monero to emerge. Since the developers announced that the coin was securely protected, hackers came in a couple of months later. The developers were not at a loss but decided to improve the cryptocurrency in order to provide reliable protection against hacker attacks.

If in the case of Bitcoin, the name of Satoshi Nakamoto immediately pops up, Litecoin – Charles Lee, then if it is Monero, then this is not one crypto-influencer, but several of them. But Ricardo Spagni comes to mind first. If not Spagni, then you can follow Francisco CabaƱas, who also talks a lot about the coin, and is one of the developers.

As mentioned above, Monero uses the CryptoNote algorithm, but this is far from everything you need to know about the anonymity of the coin. But what you need to know about the algorithm, and why the development team decided to take it as a basis, is the fast process of creating blocks and making transactions, which reduces the risk of hacking. 

But besides this, the main task of the algorithm is to provide reliable protection of the system from a hacker attack. And when making a transaction, there is no sender, and the signature can be delegated, so it is extremely difficult to track who the sender is. Yes, and it is impossible to do this in principle. The coin uses a mechanism known as mixing. This means that the coins that create transactional inputs will be mixed with the used coins.

Therefore, it is extremely difficult to understand who carried out the transaction. And the transaction itself is not tied to a specific wallet, so it is not clear who will receive the transfer.