In 2014, BitMonero was founded, which finally turned out to be called Monero. Monero is a fork of Bytecoin that was created on the Cryptonote protocol and the cryptocurrency is private, secure and anonymous.
According to Monero’s website, security, decentralization and privacy are the principal values of this cryptocurrency,
“Nearly all improvements have provided improvements to security or privacy, or they have facilitated use. Monero continues to develop with goals of privacy and security first, ease of use and efficiency second.”
How Monero Works
In this Bitcointalk page, the transaction is clearly explained:
“Bob decides to spend an output, which was sent to the one-time public key. He needs Extra (1), TxOutNumber (2), and his Account private key (3) to recover his one-time private key (4). When sending a transaction to Carol, Bob generates its Extra value by random (5). He uses Extra (6), TxOutNumber (7) and Carol’s Account public key (8) to get her Output public key (9). In the input, Bob hides the link to his output among the foreign keys (10). To prevent double-spending he also packs the Key image, derived from his One-time private key (11). Finally, Bob signs the transaction, using his One-time private key (12), all the public keys (13) and Key Image (14). He appends the resulting Ring Signature to the end of the transaction (15).”
The way Monero differentiated itself is by integrating CryptoNote, a privacy encryption protocol which has been created since 2001 and is still relevant and functional today.
Detractors of the cryptocurrency have said that Monero’s mining is centralized, that it is only used for illicit transactions, that the size of the blocks is too large, that is difficult to integrate to multi-currency wallets among others.
However, Monero has always continued to be a successful cryptocurrency and even one of the biggest by market cap. They have even developed their own hardware wallet and are accepted as a means of payment on Overstock.