Home Cryptocurrency XMR CryptoCurrency: How Does Monero Improve Privacy?

XMR CryptoCurrency: How Does Monero Improve Privacy?


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If you’re familiar with Monero (XMR), then you understand it’s one of the safest, most reliable and most secure cryptocurrencies available today. With features like completely anonymous transactions — as opposed to pseudonymous transactions in crypto coins like Bitcoin — Monero is the perfect choice for digital currency users who value anonymity above all. But how exactly does XMR cryptocurrency improve a user’s privacy? This guide will explore the security features contained within Monero that make it so private.

Obfuscation By Default

Monero has a number of key features that help enhance its privacy. But before we discuss individual features, we must first mention that the cryptocurrency uses obfuscation by default. In other words, Monero blocks certain private information about a user from being sent from the start, and all this is done automatically. All transactions that are processed through the crypto coin’s blockchain are obfuscated so that they cannot be traced to a person’s real-world identity. Though Monero uses a number of techniques to obfuscate transaction information, as we’ll discuss in the following sections, it’s important to know that all of these features are inherently ingrained into the cryptocurrency by design.

Stealth Addressing

One of the first key privacy features in Monero we should discuss is stealth addressing. Monero’s use of the technique of stealth addressing helps hide the identity of an individual user when they send or receive coins. If you think of a stealth address in terms of a Royal Post PO Box, then this concept may make more sense. Imagine you want to receive a package, but you do not want the sender to know where you live. Since you’re required to have an address to receive a package, you’ll still need to include one — which necessitates the PO Box. Likewise, because Monero transactions are sent from one individual to another, they require an ‘address’ at which they can be received. Monero users are given ‘stealth addresses’ — essentially PO Boxes to use our analogy — to receive their transactions. Your Monero address is private, and the only way that someone knows it is if you give it to them. Other users are unable to know if or when you receive funds at your Monero address, and you are unable to know who sent you the transaction (unless, of course, you’re expecting to receive the payment beforehand). What’s more, these transactions can never be traced back to a person’s identity — it’s as though the ‘package’ was sent with no return address.

Untraceability Through Ring Signatures

Imagine a Monero coin as though it were a fiver. As a fiver is passed along, it is touched by an innumerable amount of individuals, each leaving their personally identifying fingerprint on it. If the fiver were to be used as evidence in a crime, it would be very difficult for the authorities to pinpoint exactly who committed the crime based on all the fingerprints. In Monero speak, these fingerprints would be the equivalent of ‘ring signatures.’ When you send a Monero transaction, numerous ring signatures are attached so that transaction can never be traced back to you as an individual. In this way, Monero is completely untraceable.

As you can see, XMR cryptocurrency contains a number of features that add to its privacy. This, in turn, improves the privacy of the user. If you’re looking for the most private cryptocurrency available, look no further than Monero. And if you’re in need of a free online wallet to store your Monero coins, try XMR Wallet.