Moneoro

There are so many privacy techniques, lets take a brief look at how each of them works from a higher level, looking at Zcash, Monero, Dash, Mixers (General)

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  • [00:00 - 00:08] So, Monero is another currency like Zcash which provides privacy. Monero works by using Ring Signatures to achieve privacy.

    [00:09 - 00:16] Ring Signatures don't require trusted setup and provide reasonable privacy guarantees. Ring Signatures work by introducing the concept of Ring.

    [00:17 - 00:33] Let's say there are 10 transactions with 10 senders and 10 receivers. What a Ring signature does is create a signature such that the probability of any transaction belonging to a single sender is the same as anyone else within the Ring.

    [00:34 - 00:42] As you might have already thought about, the Ring or only works if the values are the same. Otherwise, because of the varying amounts, it can break down.

    [00:43 - 01:09] But however, with Ring CT, varying amounts work and we'll talk more about this later on. The Ring is composed of first of all the transaction that you've sent, the known signers, the people who are not actually involved in this and also the people who are signing the transactions and also the outputs of the previous transactions on the Monero blockchain.

    [01:10 - 01:35] And this is randomly taken so that every Ring contains transactions on the Mon ero blockchain that were formed before to increase the Ring size and the larger the Ring, the higher the privacy. And you can think about this is very similar to the Shielded Pool, but the Shielded Pool works by using ZK Snox, which require a trusted setup.

    [01:36 - 01:50] But Monero uses Ring Signatures, which don't require a trusted setup. And every Ring can be different and they provide a reasonable probabilistic guarantee of privacy.

    [01:51 - 01:58] Once the Ring is composed, no one knows who the sender or the receiver or the amount is. Everything is hidden within the Ring.

    [01:59 - 02:27] And if one of the Rings of multiple blocks are broken, it only breaks that one Ring, not every single Ring, because there's randomness within the Ring signatures and how they're used. So Monero is also similar to ZKASH in terms of how it provides privacy and it uses quite good cryptographic primitives to do that.

    [02:28 - 02:33] You can read more about it in the links below and we'll talk more about these techniques