How is Monero encryption working

How is Monero encryption working

Monero (XMR) uses several cryptographic techniques to provide strong privacy and security for its users. These techniques are integral to Monero’s core functionality and include:

Ring Signatures

Ring signatures are used in Monero transactions to obfuscate the true sender of funds. When a user sends Monero, their transaction is mixed with others in a “ring” of plausible senders. This makes it computationally infeasible to determine which participant actually sent the transaction.

Confidential Transactions

Monero uses confidential transactions to hide transaction amounts. Instead of displaying the exact amount of XMR sent, a cryptographic commitment is used to verify that the transaction balances correctly without revealing the specific amount.

Stealth Addresses

Stealth addresses provide privacy for the receiver by generating a unique, one-time address for each transaction. This means that even if someone knows a recipient’s public address, they cannot easily link it to specific transactions on the blockchain.

Ring Confidential Transactions (RingCT)

RingCT combines ring signatures with confidential transactions, allowing both the sender and receiver of a transaction to remain private. This was a significant upgrade to Monero’s privacy features.

Key Image

To prevent double-spending, Monero uses key images derived from the sender’s public key. These key images are stored on the blockchain and ensure that the same funds cannot be spent twice.

Stealth Multisignature

Monero also supports multisignature transactions while maintaining privacy. This is achieved by combining multiple users’ key images into one, allowing multiple parties to participate in a transaction without revealing their identities.

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Bulletproofs are a cryptographic technique used in Monero to reduce the size of confidential transactions, making them more efficient in terms of storage and verification. This helps improve scalability and reduces transaction fees.

RingCT 3.0

This is an upgraded version of RingCT that further enhances Monero’s privacy and efficiency. It allows for smaller transaction sizes and improved verification times.


Monero subaddresses were introduced to provide users with a way to generate multiple receiving addresses associated with their primary wallet address. This adds an extra layer of privacy by making it harder to link different transactions to a single user.


Monero uses the RandomX proof-of-work algorithm, which is optimized for CPU mining and resistant to ASIC mining. This promotes decentralization and accessibility for miners.

These cryptographic techniques work together to create a robust privacy-focused cryptocurrency. While they make Monero transactions highly private and secure, it’s important to remember that privacy is not absolute, and good practices, such as keeping wallet information secure and being cautious with transaction details, are also essential to maintaining privacy in the Monero ecosystem.

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