Monero (XMR) is unique among cryptocurrencies because it has a strong focus on privacy and secrecy. As a privacy coin, Monero has become the first choice for people who want to keep their financial information private. Advanced encryption methods prevent user transaction information from being displayed on the blockchain, making it untraceable. Because of this, Monero is becoming increasingly popular among people who want to swap XMR for other coins without disclosing their financial information. But what exactly makes Monero untrackable?
Because Monero has advanced privacy features that hide the sender and recipient names, as well as the amount being sent, it cannot be tracked. Collectively, these features make Monero one of the most secure coins as transactions cannot be traced back to specific users or accounts.
1. On stealth
People who receive Monero messages can keep their information safe using secret addresses. A one-time public address is created for each transaction when you send XMR to someone. In other words, a person can be paid multiple times, but each payment will appear as if it is going to a different address on the blockchain. For this reason, a user’s public address cannot be used to communicate with that individual for more than one transaction. With hidden addresses, the recipient’s address is kept secret from the public, adding a basic measure of confidentiality.
2. Signed on rings
Ring signatures are a technology Monero uses to hide who sent a message. Another type of digital signature is a “ring signature,” which allows one person from a group of people to sign a transaction without being sure who signed it. Your signature gets mixed with the signatures of several other users when you start a Monero transaction. This forms a “ring” of possible signers. This confusion makes it very difficult to determine which signature belongs to the real sender, which protects his identity.
When you use ring signatures and hidden addresses together, you create a strong layer of security that prevents both the sender and the user from being hacked. Someone could look at the blockchain and still not be able to determine who sent or received a particular transaction.
3. RingCT stands for Ring Confidential Transaction.
Monero adds even more security by hiding how much cryptocurrency is sent during an exchange. RingCT (Ring Confidential Transactions) allows you to do this by hiding the amount sent in a transaction. The amount of money used in each transaction with Bitcoin and other transparent coins can be seen on the blockchain. This may help people who are trying to track or find a transaction. They are hidden using RingCT Monero so no one can see how much XMR is being sent.
4. Blockchain transparency is not set in stone.
Bitcoin has a completely open blockchain that allows anyone to see every transaction. On the other hand, Monero has a private blockchain. Every Monero transaction is private, so people not involved in the transaction cannot use this information to find specific people or addresses. While the lack of openness makes things more private, it also protects the stability of the system through cryptographic checks that verify the correctness of transactions without revealing the specifics of the transactions.
5. Mining without using ASIC
Monero is committed to privacy and independence, including the RandomX mining method, which cannot be hacked using ASICs. Large mining companies will not be able to control mining, but ordinary people with the right tools will still be able to do it. Decentralized mining adds more security, making it more difficult to penetrate the Monero network and violate privacy rights.
