Monero is a privacy-focused digital asset that was created in 2014 as a fork of the Bytecoin protocol. The project is funded through the Forum Funding System, a donation based crowdfunding source. Monero uses enforced privacy for every transaction. This ensures that no user can be accidentally or deliberately discovered on the Monero ledger. Monero uses Nakamoto consensus that considers the valid chain to be the chain with the most accumulated proof-of-work (POW). XMR achieves privacy-preservation and transaction speed by utilizing bulletproofs, a zero-knowledge proof. Bulletproofs cut the size of transactions by at least 80 percent, significantly increasing transaction efficiency. The Monero block reward will continue to decrease until 2022, when the block reward reaches 0.6 XMR.
The Monero protocol performs a planned hard fork every six months. This enables the platform and digital currency to consistently evolve and improve while leaving Monero participants with plenty of time to update before the protocol gets forked into a new network. In an effort to make Monero more decentralized for miners, the protocol’s proof-of-work algorithm is adjusted via hard forks to guarantee that Monero remains ASIC resistant and available for those using less powerful equipment. Similar to Bitcoin, Monero mining nodes perform the task of emptying the transaction mempool. They do so by ordering transactions that will be moved to a block based on the network fee attached to the transactions. Higher fee transactions are cleared first.