Yo cryptos is Jonathan from the block chain, today we're going to see a little what Monero is. The objective of this video will be to see what Monero is what there is behind this technology and the value it brings by comparing it with Bitcoin which is a bit like the "daddy of cryptocurrency". First of all, you have to know that Monero offers an exchange medium exactly the same way as Bitcoin that's why I'm going to compare it happily with Bitcoin but first we will retrace the history a little of Monero and see a bit of where it ultimately comes from Monero. The lead developer from Monero his name is Ricardo Spagni, he lives in South Africa, we don't really know his past, the projects he made before, but in any case we can see lectures he gave about Monero and he's someone who knows what he's talking about.
Monero is also about 200 contributors with a central team a core team of around twenty people. So in terms of fundamentals foundation, it's pretty solid in my opinion. And Monero is a fork of Bytecoin which was forked in 2014, so Monero finally it exists since 2014, April 2014 and this fork was made under a problem finally of philosophy that the part therefore the team that launched Monero wanted really focus on anonymization, on the fact that it is opaque and untraceable which was not the case with Bytecoin suddenly there was a fork at that time that's what gave Monero.
Now the value proposition of what Monero offers different from Bitcoin? It is in the end completely different but we'll really see where the value proposition is. So Monero first it's anonymous it's untraceable and it's completely opaque we will come back to all these points don't worry, we will start by talking about the anonymization of Monero. So the anonymization of Monero she resides from a technology called CryptoNote for the CryptoNote story it is a protocol in fact it is a blockchain which is not really a blockchain because it is a protocol made for blockchains to know that Bytecoin therefore Monero has been forked from Bytecoin, rests on the CryptoNote protocol.
CryptoNote we won't really get into the technique in details but I think it's interesting to see a this aspect there, CryptoNote uses what is called for anonymization a Ring Signature system. The Ring Signature system, the principle is ultimately simple to understand but to integrate it is a lot more complicated than what I'm going to say now but the ring principle signature is to group together users and in this group of users there is only one who carries out a transaction so we will say I want to make a transaction I am grouped with a set of users I will sign my transaction and given that there is a group of users who are included in the transaction well we are not able to know who signed the transaction which is the sender of the transaction that is the principle of the Ring Signature and it is so it's basically anonymized we hide the track by grouping lots of false data and finally there is only one true so namely me I am indeed the sender within a group.
So this is the principle of Ring Signature and what it offers is only anonymization, namely anonymization, it simply means to say that we do not know who sent such quantity of Monero that's just that anonymization but the Monero team wanted more than that so they increased CryptoNote i.e. they have updated CryptoNote which allows make the quantity that resides in the transaction opaque now another point is the intraceability and there we will see that it is a big value because mechanically intraceability calls fungibility fungibility means that one thing can be exchanged by another thing of the same nature and that in a medium exchange is very important we will take the example of money for good understand what it is, we are going to take a 10 euro bill I have a 10 euros, well this 10 euro bill I am able to exchange it for two 5 euro bills a note so this thing the note is the same nature it is a note and I am able to exchange it for an equivalent of value, that is to say that a 10 euro banknote I can exchange it for 2 5 euro banknotes so there is no problem it works very well but we will see that in the cryptocurrency and in this case in Bitcoin, fungibility is not not obvious it is even partial in fact and for well understand it should be known that a Bitcoin currency can be discriminated against by their past given that on Bitcoin we are able to trace all the transactions that were carried out according to a given Bitcoin well we are able to define the origin of a Bitcoin.
Now we are going to take a concrete example, let's admit that there is a Bitcoin that circulated in mafia networks for illegal exchanges well we could say that this Bitcoin is dirty in this case we can take another Bitcoin that has only been used for legal Bitcoin transactions you could call it a clear Bitcoin which means that 1 Bitcoin according to its origin does not really have the same value than other Bitcoins so one bitcoin cannot necessarily be worth another bitcoin according to its past and what could eventually lead to a system centralized on Bitcoin where it would be a service that ultimately controls the origin of Bitcoins since it is possible and to define ah bah like this Bitcoin is dirty, this bitcoin is clean ultimately deducting a value of one Bitcoin according to its past, as such Bitcoin is not really fungible.
Now Monero is untraceable, untraceable means that we are not capable in the Monero blockchain we are not able to go back go find out where a particular Monero piece comes from, well that's why mechanically Monero is fungible given that we are not able to trace the history of a Monero and well we can not discriminate a Monero according to its past and it is exactly like the banknote, a banknote of 10 euros, it may have circulated in money laundering I'll never know I have my current 10 euro bill that it is valid, it is in fact valid well it's the same for Monero it there is no past for the Monero coin therefore Monero is fungible.
Monero also has processes that are still quite different from Bitcoin namely the size of the Blocks. Monero has a block size system after all ingenious in my opinion, namely that Monero does not define a block size limit, namely that on Bitcoin today there is a limit unsurpassable. For Monero there is no limit the Monero system so the miners who mine blocks are themselves finally who will put the transactions in the blocks so what they are ultimately the ones that define the size of the blocks. Monero has introduced a penalty system, if a minor exceeds a certain height of block according to a mathematical formula well it will have penalties it is to say that this miner is going to get a much smaller reward therefore minors tend to put in about the same amount of transaction which mechanically homogenizes the size of the blocks at within the Monero network.
So today the size of Monero blocks is about 300 KBytes and an important point to note in relation to everything which is cut so what makes the size of blocks mainly are the transactions in the Monero block has a default is that these transactions are much much heavier than those of Bitcoin, i.e. let's take a Bitcoin block that is a certain weight and a Monero block which is a certain weight well for the same weight Monero will not have the same the same amount of transaction there will be less so Monero has this problem of ultimately for a block that cannot put as many transactions as Bitcoin could.
And the best for the end in my opinion is that Monero is not just a blockchain so Monero has several projects will quote that one is KOVRI and it is really the more interesting in my opinion. So if you know tor you have an idea of what KOVRI is. KOVRI in fact it is a network overlay that goes provide anonymization within the network flows, namely that today when i use the internet i have my ip address i can't be really anonymous and to finally understand that what are you going bring to Monero so KOVRI in fact it is a network overlay suitable for Monero but which will be usable for other projects so suddenly it will be a project that will be proposed for other technologies that really adds a value in my opinion to Monero and you should know that in fact this what will KOVRI really provide. So today the anonymization of Monero is present, it is an anonymization within of the Monero blockchain, i.e. in the Monero blockchain we are not able to know who sent what to whom but there is another concern to be resolved is that ultimately, although it is anonymous within the Monero blockchain well when we are going to carry out a transaction in a network well we are traceable, that is to say that when I see a Monero at one address well we are finally able to set on such date I sent Monero with such ip so from such and such a machine so it's rather precise we are able to trace that.
With KOVRI sa brings the solution to make this a lot more difficult if not impossible. Now the cons of Monero well it will be much shorter to know the first disadvantage is the scalability is ultimately a bit like Bitcoin, you should know that today the one of the challenges of Bitcoins is to ensure that the blockchain does not take an inconsiderable size, today the blockchain I don't know anymore how much she does but she is maybe a hundred gigabytes well i will put a correction if it is not the case because I do not have the information but it must be about a hundred gigabytes and the more we go go the bigger the blockchain and the harder it will be because miners to mine they need to download the whole blockchain this is the very principle of the blockchain system since it is centralized they must have park nodes or computers that have the blockchain in order to be able to redistribute it and indeed Monero has this same problem is that ultimately its blockchain will also be quite heavy heavy and even much heavier than Bitcoin since, as a reminder, Monero transactions weigh much more than transactions of Bitcoin but the team working on Monero speculates that more later technology will evolve and therefore the bandwidth will be much more large, i.e.
We can download a blockchain let's admit which is a terabyte quite quickly so suddenly they are speculating a bit on the future and in my opinion it is rather a disadvantage because finally we do not really know especially that the Monero blockchain as I said will be much heavier than that of Bitcoin and a final drawback which is much more philosophical and that I do not share for me it is not a disadvantage but I know that it is a problem for many others so we will consider it to know that Monero is used in the darknet and probably for illegal activities but also for legal activities in the darknet there is not only illegal activities but in fact I find that it is not really a disadvantage because the history of bitcoin it is somewhat similar, bitcoin was used in the darknet i.e.
In the non-indexed internet i.e. the somewhat obscure internet where in the end you can't see too much clear inside that's a bit like the idea that's why the activities illegal but not that must always be specified well Bitcoin its history it was used in these networks before it could be used for swap a pizza. This is how Bitcoin is immersed in the web a lot more visible than now for example Stripe which is an interface for carry out financial transactions integrates Bitcoin.
And Monero finally follow a little the same path to know that today it is in the darknet but that in my opinion we could see it emerging in uses much more common. That's all for Monero we have does the trick in my opinion so to summarize Monero it is untraceable, it is anonymous, it is opaque opaque that means that we are not able to see the amount of transactions and it is also other side projects to Monero like KOVRI which could really add value to Monero even in my opinion. Hope the video has given you some information and I see you soon!.