Along with being accessible through networks such as Tor and I2P, Monero implements various cryptography techniques to unlock an extensive level of security and privacy:
Untraceable Stealth Address
As we all know, reusing the same address for bitcoin transactions is a common privacy issue of Bitcoin. Receiving or sending multiple transactions to the same address can allow anyone who knows your address to track its activity. Thus, bitcoin is not a tool that should be used on the darknet, especially for privacy purposes.
On the other hand, Monero has no such privacy concerns. Monero’s blockchain is secured in such a way that only the sender and receiver are able to identify the destination address. Only a unique cryptographic hash is provided, to each and every transaction that can be decoded by just the send or receiver to disclose the real address. These encrypted addresses are called “stealth addresses.”
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Unique Separated Transaction Units
When you send XMR to any address, it arrives as several separate payment units. Basically, each unit would appear on the Monero blockchain as being transferred to its appointed and distinct stealth address. This process is applied to the sender as well as the miners when any fees are paid to them. This makes tracking of any transactions far more complicated.
Undetectable Ring Signature Payments
Ring Signatures is another technique that adds up to the cryptographic system behind Monero’s blockchain.
Just to be clear, similar to Bitcoin, Monero also consists of a public and private key in order to engage in buying or selling of XMR.
For example, if you are to send 18 XMR to a shop, the XMR get sub-divided into 10,5 and 3 XMR streams, these flow into distinct Monero addresses of the ship. The private key that authorizes any 10, 5 and 3 streams sent across the network, becomes a possible signatory to the transaction. The number of possible signatories is dependent on the “mixing depth” you set. As your transaction splits into units, ring signatures guarantee that transactions can’t be stalked back to any system’s IP address.
In the end, it’s almost impossible to track or identify Monero users
These 3 techniques provide maximum privacy and prevention from roaming trackers. Monero’s code ensures the anonymity of every user and leaves barely any possibility of a linkage to take place.
Related: Read more about Altcoins