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Monero (/ m ə ˈ n ɛr oʊ /; Abbreviation: XMR) is a cryptocurrency which uses a blockchain with privacy-enhancing technologies to obfuscate transactions to achieve anonymity and fungibility. Observers cannot decipher addresses trading Monero, transaction amounts, address balances, or transaction histories.
Since the creation of bitcoin in 2009, the number of new cryptocurrencies has expanded rapidly. [1]The UK's Financial Conduct Authority estimated there were over 20,000 different cryptocurrencies by the start of 2023, although many of these were no longer traded and would never grow to a significant size.
Non-interactive zero-knowledge proofs are cryptographic primitives, where information between a prover and a verifier can be authenticated by the prover, without revealing any of the specific information beyond the validity of the statement itself.
Proof of work (also written as proof-of-work, an abbreviated PoW) is a form of cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended. [1]
It was later implemented into the Mimblewimble protocol (which the Grin and Beam cryptocurrencies are based upon) and Monero cryptocurrency. [25] In 2019, Firo implemented the Sigma protocol, which is an improvement on the Zerocoin protocol without trusted setup.
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The Invisible Internet Project (I2P) is an anonymous network layer (implemented as a mix network) that allows for censorship-resistant, peer-to-peer communication. Anonymous connections are achieved by encrypting the user's traffic (by using end-to-end encryption), and sending it through a volunteer-run network of roughly 55,000 computers distributed around the world.
On the contrary, the account model preserves a record of each account and its corresponding balance for every block added to the network. This setup enables quicker balance verification without the need to scan historical blocks, but it increases the raw size of each block (though data compression techniques can be utilized to alleviate this).