What is Monero?
Monero is an open-source, privacy-oriented cryptocurrency that was launched in 2014. It focuses on providing completely private, untraceable, and secure transactions using advanced cryptography.
Some key features of Monero include:
- Ring signatures - Hide the identity of the sender by mixing it with other transaction outputs
- Ring confidential transactions (RingCT) - Hide the transferred amount
- Stealth addresses - Single-use addresses that protect the privacy of the recipient
- Inbuilt anonymity - Sender, recipient, and amount are all obfuscated by default
Monero uses a proof-of-work consensus algorithm and is not based on Bitcoin's codebase. The masked sending addresses, one-time destinations, and coin mixing all guarantee the network's privacy and anonymity. Transactions on the Monero blockchain cannot be linked to a particular user or real-world identity.
As a result, Monero provides true transactional privacy and fungibility unlike most other cryptocurrencies. It has gained adoption in gray or black marketplaces online but also has legitimate use cases. Overall, it focuses heavily on user privacy, confidentiality, and anonymity.