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What is anonymous cryptocurrency?

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Monero is a peer-to-peer payment system with the same unit of account based on the cryptographic protocol CryptoNote, which ensures anonymity of transactions through ring signatures and stealth addresses.

The CryptoNote protocol was created by a person or a group of people under the pseudonym Nicholas van Saberhagen and was first implemented in the Bytecoin cryptocurrency, of which Monero is a fork [April 2014].

Initially, obfuscation of data in the Monero network was carried out by mixing the transaction inputs of different senders, generating one-time addresses for each transaction and hiding the amount transferred.

In October 2018, Monero developers successfully implemented hardfork with the activation of the Bulletproofs protocol, aimed at significantly reducing the size of anonymous transactions and commissions by replacing the RingCT mechanism (circular confidential transactions), which required a large amount of computation on the full node .

The Monero network uses the Proof-Of-Work consensus algorithm, which focuses on GPU miners. In April 2018, the developers implemented hardfork aimed at opposing ASIC devices.

Despite the high level of privacy, if an attacker manages to seize control of most of the network as part of the attack, then transaction can be deanonymized.

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