What is Monero (XMR) – how one of the most anonymous cryptocurrencies works


Monero (XMR) is one of the most popular and most secure cryptocurrencies available today. It is based on a concept of privacy and anonymity, making it one of the most private digital currencies on the market. Monero offers its users complete anonymity, allowing them to send and receive payments without anyone being able to trace the transactions back to the sender or receiver. Monero also has a built-in privacy feature that allows users to hide the amount they are sending and receiving, making it an ideal choice for those looking for a secure, private way to transact in the digital world.

What anonymization technologies are used in Monero?

Ring signatures

In cryptographyring signatureallows a signer list member to anonymously sign a message without revealing their identity.

Ring signatures in Monero include impurities (mixins, decoys) in the transaction in the form of inputs / outputs of other people’s transactions made earlier. They help to confuse the traces: it is impossible to determine exactly where the “impurities” are in the transaction, and where the real funds are.

For a long time, the function of adding impurities to transactions was not available, and then it was offered for use as an option. Users ignored her. This allowed researchers to deanonymize about 64% of all transactions made up to September 2017.

Ring Confidential Transactions (Ring CT)

Confidential Transactions technology hides the time, payment amount and participating addresses.

Ring confidential transactions were implemented in Monero in January 2017. Since September 2017, this feature has become mandatory for all transfers. A minimum of 10 impurities are automatically added to the transaction.

Stealth addresses

Transactions on the Monero network are carried out through unique, one-time “stealth addresses” that create senders’ wallets. Coins are sent to this address.

Addresses hide the relationship between the sender’s address, the recipient’s address, and any other transactions/addresses.

The recipient will not lose their anonymity if they accept multiple payments to the same address, as incoming payments will go through different stealth addresses.

Future Implementation of the Kovri I2P Protocol in Monero

The protocol is written in C++ based on I2P. It will allow all Monero user traffic (IP and other metadata) to be transmitted through anonymous volunteer nodes, similar to Tor.

The user reveals his IP address when making a transaction. Even though it is not recorded on the blockchain, a real-time network scan will capture the IP.


Monero (XMR) is one of the most private and anonymous cryptocurrencies available today. It uses a variety of encryption methods to keep your transactions and holdings secure, anonymous, and untraceable. It is built on the CryptoNote protocol and is completely decentralized, meaning that no single entity controls it. Monero is also one of the most established and trusted cryptocurrencies and is quickly becoming a popular choice for those looking for privacy and anonymity in their digital currency holdings.


What is Monero (XMR)

What is Monero (XMR)?

Monero (XMR) is an open-source cryptocurrency created in April 2014 that focuses on privacy, decentralization, and scalability. Unlike Bitcoin, Monero uses a unique technology called Cryptonote which allows transactions to be completely untraceable.

How does Monero (XMR) work?

Monero (XMR) uses a unique technology called Cryptonote which allows it to have complete privacy and anonymity. Cryptonote uses ring signatures, stealth addresses, and ring confidential transactions to make sure that no one can trace the sender, receiver, or amount of a transaction.

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