How does Monero work?
Monero is a privacy-focused cryptocurrency that utilizes a unique protocol called CryptoNote to ensure the privacy of its users.
It is an open-source project that is maintained by a large community of developers and volunteers. At its core, Monero works by using a combination of ring signatures, stealth addresses, and RingCT (Ring Confidential Transactions) to ensure the privacy of its users. Ring signatures are used to obscure the sender’s identity in a transaction.
When a user sends Monero, they create a ring signature with their private key and other public keys from the blockchain. This creates an unlinkable transaction that makes it impossible for anyone to determine who sent the funds. Stealth addresses are used to obscure the recipient’s identity in a transaction.
When someone sends Monero, they generate a one-time address for each recipient which is then used as the destination address for the funds. This ensures that no one can link any particular transaction to any particular recipient. Finally, RingCT (Ring Confidential Transactions) is used to obscure both the sender’s and recipient’s identities as well as the amount being sent in each transaction.
This ensures that no one can determine who sent what amount of money to whom on the blockchain. In addition to these features, Monero also utilizes Kovri, an I2P router designed specifically for Monero users which helps further obfuscate their IP addresses when sending or receiving transactions on the network. Overall, Monero provides users with an unprecedented level of privacy and security when sending or receiving funds on its network.
