Monero was developed with four core principles:
Monero is a Proof of Work cryptocurrency, based on a frequently updated version of CryptoNote, which relies on different privacy features such as Ring Confidential Transactions (RingCT) to prevent non-transacting parties from distinguishing between individual transactions, and stealth addresses to maintain the confidentiality of transacting parties.
Some of the key features include:
Ring Confidential Transactions (RingCT) hide the amount of XMR being sent in a unique transaction. Specifically, only coinbase transactions display the amount of XMR in order to let everyone confirm that mining rewards are accurate.
Ring Confidential Transactions follow a two-step process that works as follows:
Stealth addresses can be interpreted as unique single-use addresses. One-time addresses are used by both the recipient and the sender. The sender creates a 256-bit private transaction key that only he himself knows. This number is multiplied by the recipient's public address. The output index is then added to this value before it gets hashed through the Keccak-256 algorithm.
Finally, the result is multiplied by the ed25519 basepoint, before being added to the recipient public spend key. The final result is the stealth address.
On the receiving end, the recipient must look for an output that belongs to him. Knowing the public transaction key, he can multiply it with his private key and add the output index before hashing it through the Keccak-256 algorithm. Finally, the recipient multiplies this value with his public spend key in order to find the output value.
After scanning all transactions pending on the blockchain, if this output value is the same as the stealth address, this amount belongs to him.
One of the most innovative aspects of Monero is the dynamic block size for new blocks. Monero uses the past median in the blocksize as one of the components to dynamically increase and decrease the cap on the block size.
Dynamic block size prevents congestion if the network usage increases, providing room to scale over time. However, some research companies (e.g. Noncesense Research) uncovered a potential vulerability known as a “big-bag attack.”. Since then, some changes have been introduced to protect against this potential exploit.
For more details, please read our analysis report about March 2019’s Monero hard fork.
Initially, the ASIC-resistant feature of the network owed itself to a modified version of CryptoNight (a PoW algorithm) that was frequently adjusted to prevent ASIC mining。
However, since December 2019, RandomX has replaced CryptoNight. Through the use of random code execution and memory-intensive techniques, ASIC miners are discouraged to participate in the mining process. In addition, GPUs have also been penalized since the network upgrade.
Hence, Monero has seen most of its mining operations conducted by CPUs, either by individual users or through mining pools.
In a similar fashion as Bitcoin and Litecoin, Monero block rewards are decreasing.
However, after 2022, mining block rewards will be set at 0.6 XMR per block, maintaining a perpetual decaying inflation rate.
The following lists few key individuals in the Monero ecosystem.
For more information on the Monero team, please visit its official website.
|Riccardo "fluffypony" Spagni||Core Team Member|
|Francisco "ArticMine" Cabañas||Core Team Member|
|othe||Core Team Member|
|Smooth||Core Team Member|
|binaryFate||Core Team Member|
|luigi1111||Core Team Member|