CryptoNote is an
application layer
An application layer is an abstraction layer that specifies the shared communications protocols and interface methods used by hosts in a communications network. An ''application layer'' abstraction is specified in both the Internet Protocol Sui ...
protocol designed for use with
cryptocurrencies
A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It i ...
that aims to solve specific problems identified in
Bitcoin.
Namely:
* Traceability of transactions
* The proof-of-work function (see
Bitcoin network
The bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally-signed messages to the network using bitcoin cryptocurrenc ...
)
* Irregular emission
* Hardcoded constants
* Bulky scripts
* Financial privacy
The protocol powers several decentralized privacy-oriented cryptocurrencies, including
Monero
Monero (; Abbreviation: XMR) is a decentralized cryptocurrency. It uses a public distributed ledger with privacy-enhancing technologies that obfuscate transactions to achieve anonymity and fungibility. Observers cannot decipher addresses tra ...
,
MobileCoin
MobileCoin is a peer-to-peer cryptocurrency developed by MobileCoin Inc., which was founded in 2017 by Josh Goldbard and Shane Glynn.
Technology overview
MobileCoin claims to focus on transactional anonymity (fungibility), ease of use, tran ...
and
Safex Cash.
Nothing is known about the original author of CryptoNote, "Nicolas van Saberhagen." Its mathematical component and motivation are described in the article "CryptoNote Whitepaper", released in two editions: in 2012 and in 2013. Launched in the summer of 2012, Bytecoin was the first cryptocurrency to use this technology. Later, several teams launched their networks, based on the Bytecoin code.
Emission
Just like in Bitcoin, miners are rewarded for finding solutions. But the stepped release curve characteristic of Bitcoin has been replaced with a smooth one in CryptoNote: the reward decreases with each block.
One implementation of the CryptoNote protocol has resulted in a non-smooth emission curve, specifically, the S-curve of the
Safex Blockchain, which was designed to match the
Diffusion of Innovations technology adoption curve theory.
See also
*
Monero (cryptocurrency)
Monero (; Abbreviation: XMR) is a decentralized cryptocurrency. It uses a public distributed ledger with privacy-enhancing technologies that obfuscate transactions to achieve anonymity and fungibility. Observers cannot decipher addresses trad ...
References
Application layer protocols
Cryptocurrencies
Digital currencies
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