Even advanced Bitcoin usage, in which third-party anonymizing services such as mixers are employed, is often insufficient to hide one’s trail from blockchain forensic which certain companies and tools provide.
Although it does not (yet) offer perfect privacy, Monero’s default level of anonymity likely exceeds that which can be achieved in Bitcoin by the most sophisticated user.
You can verify this yourself by putting a publicized Monero address (which likely contains some XMR) into the Monero block explorer: If you were to send XMR to an “address,” in reality the encoded stealth address described above, it’d arrive as several discrete payment units.
For example, if you were to send 18 XMR it would arrive in whole number units of 10, 5 and 3 XMR, totalling 18 XMR.
If you’re thinking of getting involved in Monero, this guide covers the coin’s history, features and future prospects in detail.
Later sections are dedicated to the practicalities of trading and mining Monero.
Besides being accessible through darknet networks such as I2P and Tor, Monero integrates several sophisticated cryptographic techniques to achieve an impressive level of overall privacy: Address re-usage is one of the common privacy bugbears of Bitcoin.
Receiving multiple payments to a single address allows anyone who knows your address to track its balance and all related incoming and outgoing transactions. All destination addresses are obscured within its blockchain, such that only the sender and receiver can identify them.
Monero has long played the tortoise rather than the hare, at least until XMR jumped up and started sprinting in August of 2016.
As endless competing coins – fuelled more by hype and speculation than any real innovation or utility – fell by the wayside, Monero plodded along.
Analysis of the Monero blockchain will never reveal the destination address at which one receives XMR.
Instead, only a cryptographic hash of the destination, unique to each and every transaction, is visible.
Only the sender or receiver can decode this to reveal the actual address.