XMR (Monero) is a cryptocurrency that was created in April 2014 and is built on the CryptoNote protocol. It is an open-source, private digital currency based on blockchain technology. XMR offers users anonymous transactions with near instant confirmations and low transaction fees.
The main innovation of XMR compared to other cryptocurrencies is its use of ring signatures and stealth addresses to hide the sender, recipient, and amount of all transactions made using Monero. Ring signatures are a form of cryptography which makes it difficult for outsiders to determine which party signed the transaction without knowledge from all parties involved in the signature process. Stealth addresses allow users to publish one address while actually receiving funds at another address known only by the user’s wallet software. This way third parties cannot tell where or who sent money as well as how much they sent or received.
XMR also uses Kovri, an overlay network that routes traffic through I2P nodes instead of IP addresses so that any node participating in communication can be sure no external observer knows their exact location or identity on the network. In addition, Kovri provides end-to-end encryption for messages exchanged between nodes participating in Monero’s decentralized network – allowing them even more anonymity than just hiding their IP address would offer them alone .
Because these features make it impossible for anyone outside of those involved in a particular transaction to know anything about what happened during said transaction – including who was involved – many people consider Monero one of the most private cryptocurrencies available today . As such, it has become increasingly popular among individuals looking for maximum privacy when making digital payments online .
