How Does Monero Keep Your Transaction Private?
Most cryptocurrencies bear elements to protect the identities of transactors by default. That's the whole purpose of crypto and why they have been exploding in popularity over the last few years.
Bitcoin, for instance, was previously thought to be completely private, only for criminals--who thought they could abuse the transparency of public ledgers--to be busted by authorities. Bitcoin plans to fix this usingTap Root.
However, for privacy purists, specialist networks like Monero are their choice platforms.
The question is:How do they keep transactions private?
Monero uses several encrypting technologies to prevent triangulation and third-party decryption.
First, all Monero public keys are obfuscated, meaning the owners' identities can't be known.
Furthermore, by incorporating Ring Signatures, a user's ID is protected from the input side of the transaction. This is possible because Ring Signature is a signing technology where potential signers are lumped to produce a distinctive signature that authorizes that transaction.
In this arrangement, the transaction singer—or the confirming node—is combined with other potential signers--to form a ring. Since these non-signers draw their past outputs, they act as decoy, masking a sender's identity by ensuring that, come what may, the inputs are indistinguishable.