Questions ยป What is the Monero network?

What is the Monero network?

Monero (XMR) is a cryptocurrency that is designed to provide users with a high degree of privacy and anonymity. It was launched in 2014 as a fork of the Bytecoin protocol and has since developed into one of the most popular privacy-focused cryptocurrencies.

The Monero network operates on a proof-of-work consensus algorithm and uses a technology called “Ring Signatures” to obscure the identity of senders and receivers in transactions. Ring Signatures mix the public keys of multiple users in a transaction, making it difficult to determine which user is the actual sender or receiver of the transaction.

In addition to Ring Signatures, the Monero network also uses “Stealth Addresses” to obscure the destination address of a transaction. Stealth Addresses are temporary addresses that are generated for each transaction and are not linked to the user’s permanent address on the blockchain.

The Monero network also features “Kovri”, which is an implementation of the I2P (Invisible Internet Project) network that allows users to connect to the Monero network through an encrypted and anonymous network of nodes.

Overall, the Monero network is designed to provide users with a high degree of privacy and anonymity in their transactions, making it difficult for outside observers to track and monitor user activity on the network. While this feature makes Monero attractive to privacy-conscious users, it has also been criticized for its potential use in illegal activities.