Bitcoin (BTC) has a lot of myths, and one of them is about its privacy. The first cryptocurrency wasn’t designed to be private, let alone anonymous. It’s the opposite, indeed. Its blockchain is a public one, which means anybody can check all the transactions and their details on the Internet. That’s why Monero (XMR) was created.
Monero is an open-source and mineable cryptocurrency, just like Bitcoin. Anyone can open a wallet and send and receive transactions. However, its blockchain is obfuscated. This means that no one outside the involved people can tell the source, amount, or destination.
The technology used to reach that kind of privacy are ring signatures, stealth addresses, and non-interactive zero-knowledge proof (NIZKP). With these cryptographic protocols, the important details of every transaction are hidden from the public. Additionally, the function Dandelion ++, implemented in 2020, lets the users obscuring their IP addresses.
Therefore, if you’re careful, no one should know a thing about your finances while using XMR. Nevertheless, as they explain in the official webpage, Monero does its best, but isn’t magical:“Monero is not magic. If you use Monero but give your name and address to another party, the other party will not magically forget your name and address. If you give out your secret keys, others will know what you’ve done. If you get compromised, others will be able to keylog you. If you use a weak password, others will be able to brute force your keys file. If you backup your seed in the cloud, you’ll be poorer soon.” Who created Monero?
If you check the original whitepaper, the names you’ll find there are “CryptoNote v2.0” and Nicolas van Saberhagen (2013). Nobody knows who that is, though. As for the CryptoNote thing, that is a privacy-focused protocol that powers several private coins —including Monero until 2019.
Previously, the first cryptocurrency to implement CryptoNote was Bytecoin (BCN). In A...