Monero is a cryptocurrency based on open-source created in 2014. Monero focuses on privacy, decentralization and scalability. Unlike many cryptocurrencies, Monero is based on the CryptoNote protocol. What’s more, it has significant differences in algorithmic blockchain calculations.
Monero experienced rapid development in market capitalization (from $ 5M to $ 1,7BN). Monero is one of the six most revolving cryptocurrencies. The name Monero means “Coin” in Esperanto. The particular feature of this virtual coin is that it has built-in anonymity mechanism. It is possible to prove that one person has sent funds and their amount but can’t determine which one.
In September 2017, a hard fork is planned. It will be abandoned the Ring Signatures transaction system, leaving only a new secure RingCT. One of the assumptions of Monero was the introduction of a block resizing mechanism that would respond to market needs. It is based on the principle that if a miner wants to dig a block larger than the median of one hundred blocks, creating a block must attach proof of work for a higher difficulty than normal. When small miners form small blocks, the mechanism increases the cost of creating large blocks, which eliminates the differences in profitability caused by the size of the mines.
When Monero reaches 18,132,000 coins, the supply will decrease significantly. It will be 0.6 XMR every two minutes per block. Inflation will therefore initially be around 1% and will continue to decrease as the Monero stock is growing.
Last modified: September 15, 2017
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