This document discusses privacy and the evolution of privacy tools for cryptocurrencies like Bitcoin. It focuses on explaining key privacy features of Monero such as ring signatures, ring confidential transactions, stealth addresses, and other tools that provide untraceable transactions. The summary highlights how Monero improved upon Bitcoin's privacy by making all transactions private by default and introducing new technical features over time to strengthen privacy.
3. Why Privacy Matters
Advertisements based on spending habits
Enables targeted crime against the wealthy
Unintended leaking of sordid purchases
Unwitting complicity in criminal acts
Allows miner censorship based on recipient
Reveals sensitive business relationships
Leaks salaries, profit margins, revenue
4. But People Don’t Care
Social Security
Number
Medications
You Take
Content of
Your Emails
Religious
Views
Your Friends &
What They Like
Basic Purchasing
Habits
Source: “Public Perceptions of Privacy and Security in the Post-Snowden Era”, by PewResearchCenter
Percentage of adults, in a November, 2014, USA survey, who view the following information as “very sensitive”
6. History of Privacy
In the beginning, people thought Bitcoin was private because addresses
did not directly reveal any information about the controller
7. History of Privacy
Bitcoin address can be connected to personal info by:
• Exchanges
• Whoever you send Bitcoin to
• Whoever sends Bitcoin to you
12. The Monero Difference
SENDER RECEIVER
RING
SIGNATURES
STEALTH
ADDRESSES
AMOUNT TRANSACTION
BROADCAST
ɱ
KOVRI
(I2P ROUTER)
RING CONFIDENTIAL
TRANSACTIONS (RINGCT)
13. Ring Signatures
1 (Tx ID e4hn4ifqyd5ed)
3 (Tx ID wb4f5hdfdicnd)
4 (Tx ID nh5nogsefwjw)
6 (Tx ID ybwnng8nengf)
8 (Tx ID hng6iwfumwf8)
9 (Tx ID cb8vqfi8dfj65f)
RingSize(mixin)=5
ring signature 100 XMR
key image
INPUTSMinimumSeptember2017*
MinimumToday
15. Ring Confidential Transactions (RingCT)
1 (Tx ID e4hn4ifqyd5ed)
3 (Tx ID wb4f5hdfdicnd)
4 (Tx ID nh5nogsefwjw)
6 (Tx ID ybwnng8nengf)
8 (Tx ID hng6iwfumwf8)
9 (Tx ID cb8vqfi8dfj65f)
RingSize(mixin)=5
RingCT ring signature,
signs difference
between commitments
? XMR
key image
INPUTSMinimumSeptember2017*
MinimumToday
23. Evaluating Privacy Technology
Monero contributors know that:
- Our code is responsible for securing people’s money
- Our code may be required to protect someone’s life
savings
- Our code may need to keep an innocent person out of
jail
- Our code may mean the difference between life or death
24. A Brief History
Launched
April 2014
All Tx Private
January 2016
Attacked
September 2014
RingCT
September 2016
GUI Beta 1
December 2016
26. Regulatory Compliance and Transparency
A view key is used to
reveal all transactions for
a Monero account, or just
the key for a single
transaction
Transparency
View keys can be given to
selected parties, or can be
made public
Selected Parties
By publishing their view
key, charities can invite
easy public oversight
Charities
Auditors can be given
access to accounts
without being able to
spend those account
funds
Auditing
Children can be given
their own accounts, and
parents can monitor their
spending
Parents
(with the View Key)
27. Roadmap and Ongoing Development
Multisig Improvements to
Dynamic Fees &
Dynamic Blocks
Smart Mining
Second Layer
Network
CoinJoin requires other participants to mix with. DASH, which built its PrivateSend functionality on CoinJoin, requires at least 3 participants. The service performing the functionality, whether it is a centralized server for Bitcoin or a randomly-selected masternode for DASH, can log what money goes where.
CoinJoin requires other participants to mix with. DASH, which built its PrivateSend functionality on CoinJoin, requires at least 3 participants. The service performing the functionality, whether it is a centralized server for Bitcoin or a randomly-selected masternode for DASH, can log what money goes where.