Hello world. It’s Suraj, and Monero is the currency that I’m going to talk about today. So first I want to start off by saying one thing. I do not condone any illegal usage of any crypto currency. Monero is an untraceable crypto currency and definitely lots of people who like to sell things illegally on the Internet use it. But the reason that I’m talking about it is not for that reason I’m talking about it is because you should be able to control your data. And some of your data is transactional data. And currently companies can mind that data for free. And use that to make predictions about what you will buy and what you won’t buy so they could show you ads and stuff like that. But ideally, they pay you for this data, right? And the only way for them to pay you for that data is if you control it. And the only way you can control it is if it’s anonymous and they have to ask you for permission to see your transaction history. Okay, So Monero is the currency I’m going to talk about today and I have this image here off thes three different features that I thought was the best high level description of Monero. So it says decentralised, private and digital and Monero is all three of these things, so it’s decentralised because no one controls it. It’s digital because you can run it over the Internet, and it’s private because no one can tell who you are when you send the transaction. That means no one can tell who sent a transaction, who you sent it to and the amount that you sent. So it’s all private, unlike Bitcoin and these three kind of Venn diagram looking things are examples of assets or currencies that are examples of Book two of these, right, so Bitcoin is decentralised cause no one controls it. It’s digital because it runs over the Internet. Theon currency, like the dollar, is private because you could exchange it by hand. It’s digital because you could do it over the Internet as well. And gold is he centralised because no one authority controls it and it’s private because no one can tell, you know, if you just take some gold and give it to someone else, there’s no third party involved, so no one can tell anything about that transaction. Okay, so Monero is all three of these things and there are other crypto currencies that are all three of these things. But in terms of popularity, Monero is definitely at the top right now, at least. So let’s get into this technical analysis of how Monero works. I’m going to talk about all the features of Monero gonna talk about how you can mind it. I’m gonna talk about how you can buy it. And mostly, this is a technical talks. We’re gonna go into the technical details of how these transactions are private and what difference is it has from Bitcoin. Okay, so the first thing I want to talk about is the difference between Monero and Bitcoins. So got this great list here of all these different features that Monero has and all the different features that Bitcoin has and how they’re different, right? Because they are very different. Some of them are very similar, like they both use the proof of work algorithm to secure the network. They’re both digital currencies. They both have a transaction fee. However, Monero is is much less and Bitcoins. I don’t know what what is Bitcoins now twenty dollars transaction Just crazy. That’s crazy. Block time is much faster from from a narrow but the rial difference. Here the rial key difference is the trackable factor. Monero is untraceable, and its unlinked herbal Bitcoin is not. I’m going to go into the details of what I mean, like really into the details. So so stick around. So ah, lot of the hype around Bitcoin was that it’s it’s oh, it’s Sadan Imus currency. No one can’t note there’s no third party involved. There’s no bank. You own your currency, you own your data, you on your assets. But but the truth is that Bitcoin is very, very much traceable. Okay, you Khun, send Bitcoin by literally on ly pointing that transaction back to a previous transaction in the chain of blocks, right? A Blockchain. That’s the only way and and so your transaction when you make one in the Bitcoin network, points back to every transaction that came before it all the way back to the coin based transaction. The coin based transaction is that transaction that occurs when a miner and only a minor can make a coin based transaction procedure reward from mining’s and blocks. So it’s like Bitcoin that it comes from nothing. But I mean, it comes as reward for performing the proof of work algorithm. But right, so you can trace any transaction back all the way to the coin based transaction in the Bitcoin network. And you might be saying, Well, how am I able t do this? Well, it turns out that you can look up any transaction in the Blockchain Explorer, so that’s that. And that’s gonna be hard to do manually, right? I mean, you say you sense centre transaction to somebody else and then they send it to somebody else, right? That’s two links in the chain. It’s easy to just go click once and then click once again on the Blockchain explore. But as nodes are added, the complexity increases exponentially, right, because as those funds are split and then those funds are split and then those fines or splits, it gets harder and harder and harder to tell where that transaction originated from. And if you don’t believe me when I say that Bitcoin is traceable, just asked the founder of Silk Road, the online dark web market for selling illegal items. There are people literally sitting in gaol right now? Because Bitcoin is, in fact, a very, very traceable system. Okay, so Silk Road I mean, there’s this whole storey about self road. They should definitely make a movie about it. The guy was ordering hits on people and he was doing all this crazy stuff which I don’t condone and I don’t think it’s cool, but he’s sitting in gaol right now and they probably will probably have made a movie about it. But my point is that Bitcoin is traceable, right? So, yes, criminals don’t want to use a currency that is traceable. But But the thing is whether or not I make this video, criminals will find a confined and untraceable currency. You just type into Google untraceable currency. If you want to do bad, you will do bad, right? I am not making this video for criminals. I’m making this video for you. You are my viewer, right? I’m making this video for people who want to understand all the technical details of how cryptocurrencies work and then use this knowledge to then do good for the world. Right? This is just knowledge in your arsenal to do good. Okay. So just remember that as a motivation behind this video so you could attempt to make anonymous transactions in Bitcoin three ways. So remember, Bitcoin is not anonymous. It’s Sadan Imus. Meaning? Even if someone traces back through the trail of transactions back to you, that is still your public address. That public address says nothing about your identity. It’s not like the word Suraj is embedded in my public address, right? So how can you tell ownership? Well, there’s a variety of ways I p addresses, you know, finding the end points of our talk about, let me assure you that. So there’s three ways attempt anonymous transactions. The first way is to create a new wallet after every transaction and coin based dotcom does. Isn’t does this like by default, but has suited that money is used. The end point person could be squeezed for information, right? So if you send the money to somebody and you want to remain anonymous, you’re creating wallets between every transaction. Eventually, someone is going to use that money in the real world for paying a dentist or buying a soccer ball or whatever, and then that is an end point person, a real person that you know, people with guns or whatever can say Hey, give me the information and they can trace it back to you. Another way is to wash your money through a tumbler. And a tumbler is a service that aggregates your money with many other funds and then sweeps them through large financial institutions. So if I send money to a tumbler service, other people send money to the tumbler service those funds air, then aggregated together and then split up into little amounts and then they’re sent out through through these different date waste, right? So it’s very hard to tell who originated a transaction. However, in a court of law, this could be deemed that supporting evidence for criminal intent by courts. You could also wash your money, wash your money by purchasing assets, real world assets, you know, a basketball court. Ah, house ah, car and then transferring the money back to Bitcoin or another currency and just doing that over and over again. But that is illegal and yeah, so these are all not good methods, their possible methods, but they’re mostly illegal, and you will get caught. Okay, so again. Is it untraceable ity? Only good for criminals? No, no, it is good for criminals. Yes. So with PayPal in the early days, so was Bitcoin in the early days. But there are legitimate use cases for non criminals like us. Right? So distributed online payment vulnerability is an example. So target target the corporation, or you know, any of these corporations, They mind your transaction data to then use it for predictive analytics To predict what you’re gonna purchase and show you ads and other things to make you purchase things. This is your data. It’s very valuable. And as everything gets automated, your data will be the only agency you have in this new world. It will be the only value that you own, right, So you should be paid for it. And so if you understand where this is all going, you’ll see that data is the most valuable asset we have. Right? So watch my DECENTRALISE application video. Just search decentralised application, Suraj, and you’ll understand more about what I mean when I say just how valuable your data is. But the point is that if your transaction history is anonymous, then they have to ask you for it, which means they have to pay you for it. And as you’re getting these payments from all these different institutions for your data, you’re making something like a basic income right just from your data. And that’s where we’re headed. And that’s the reason we want to use an anonymous currency like Monero, for example, right so user business and only shop. The online shop collects user data and then an outward and predicts purchase probability. You should be paid for this in short. So let’s get into the technical details now, shall we? So the Krypton no protocol introduced the idea of anonymous, not sit Don Imus transactions. So it all started with by coins of by coin was the first implementation of an anonymous currency is a first implementation off the Krypton. No protocol is this white paper. And then there were some offshoots of by coin, right? So first Buddha coin on Paladin Coin Bull Berry and then Monero and then Monero with the one that really took off right? Monero, I think, is number ten right now on coin market cap dot com. It’s, I think, seven billion dollar market cap so It’s a lot of money. And all of these currencies that follows were offshoots of Monero. They were forks of Monero with added features. But Monero is really the most stable in the most popular off the anonymous currencies out there. Okay, so, um, kryptonite transactions cannot be followed through the block chain in a way that reveals who sent or received addresses. So Monero is a virgin of Krypton note that hides the sender, the amount that transaction broadcast and the receiver. So the sender is made anonymous through the use of what are called ring signatures, which will explain the amount through ring confidential transactions. The transaction broadcasts like the location of where you are your i p address, et cetera, through an eye to P router cult Cauvery and the receiver through the use of stealth addresses. Now, I’m gonna explain how all four of these things work, Okay, so let’s get it. Let’s get into this, right. So Monero has a lot of features. The two main ones that really matter that make it unique or untraceable ity. And unlike ability, unlike ability means if I have a public address in the Monero network, no transaction can be linked back to the public address so anyone can take my public address and they could say what transaction? Ten percent to and from this address and no one will know. Untraceable means that no one can tell where any transaction originated from. So there were two separate descriptions. They’re very similar, but not quite. And I’ll talk about each right now. So for unlike ability, right? So for unlike ability, here’s how Bitcoin works In Bitcoin, everyone has a public address, twenty five character public address, and you use it to receive funds. And anyone can see how much you received right, because it’s a public ledger. When sending funds, you announced to the entire Bitcoin network that the funds you own now belong to the recipients public address, so that transaction is fully public. The difference in Monero is this, So this is an image of a very high level image of hell. Monero works. I’ll get into the details in a second. So in Monero, everyone has a public address like this, right? So it’s a much longer public address, and unlike Bitcoin, your funds are not associated with your public address. So when you send funds to someone else’s public address. You’re actually sending those funds to randomly created one time destination address right here. The commitment. Public key. So no public record of sending or receiving funds when I send funds to someone they’re actually sent to a one time address. It’s just created temporarily just for that transaction. And that’s what’s public. Not my public he not that not descent, not the receivers public he but that commitment, public heat and so that public address will never appear. So your public address will never appear in the public record of transactions. Instead, a stealth address is recorded in a way that only you and the recipient can recognise the incoming funds. So when the recipient cheques for funds, they need to scan the Blockchain to see if any transactions are destined for them. So the recipient has a secret beauty, which is used to cheque each transaction. When they scan the Blockchain to see if it was addressed to them and because the recipient is the only one that knows the secret beauty on ly, the recipients can see the funds that have been sent to them, right? So that’s why when you launch monero wallet. It’s scanning the Blockchain to see if any transactions have occurred for you as a recipient, right? So But anyone who has your secret view key can also see what funds you have received. Right? So when you send the transaction, right, so it’s an input. The output is gonna be this commitment public key, which is public. And then these two secret view keys one for the centre. So I can see how much I sent and one for the receiver so they can see how much they received. But publicly speaking, they’re just this one time address not linked to either you or the centre. Okay. And so that’s the idea of stealth addresses. And what that does is it hides thie receiver. Okay, right. So it’s also untraceable. So we talked about unlike ability, but it’s also untraceable, though. Let me talk about untraceable ity. Okay, So untraceable iti That’s where the use of rings signatures come into play. Right? So, foreign signatures in Bitcoin when you when you haven’t input. So some incoming transaction, right? It used its signed using a signature by some identity. Right? And then all inputs are clearly linked to a previous transaction, right? So anyone can view this input and say, Oh, that’s where it originated from. But in Monero, when you when you receive an input, it’s not just one input that you’re receiving it there several and they’re all linked together as a ring and all these us All of these inputs are signed using using what’s called a ring signature. And then any input is going to be linked to more than one previous transaction. So no one will be able to tell who that input originated from because it’s a part of a ring of transactions. Let me go into what I mean. Okay, okay, so here’s what I mean by ring signatures. So the Monero money supply is divided into outputs just like the US dollar is divided into dollar bills, quarters, dimes, pennies. Monero is divided into outputs divisions of currency and these output store a certain value of Monero each and the value they hold can change over time. So suppose that these are all the outputs that exist, and the one you control and can spend is highlighted in red. So let’s say these are all the output. All the green ones. And I own this red one number eight, which, let’s say, is the equivalent of, let’s say, three hundred dollars. And some of these are like two hundred. Some of these are ten dollars in Monero currency, right? And, uh, when I create a Monero transaction, I’m using a ring signature toe hide which input is actually being spent. So and the way this has done is by making it seem like a zit. All the chosen inputs are the possible rial centre. So when I send an input, when I send a transaction there, five other transactions that are picked by random from other nodes in the network and we don’t need their permission to choose those they’re just there to all escaped where that transaction is coming from right there, all linked together in a ring. And they’re all signed using a ring signature. So it says so in the photo. You’re really input is red, and the five selected inputs are light blue, and these inputs can be controlled by anyone else. We don’t need their permission to add their input to the rain signature. We signed them all such that an outside observer cannot determine which is the real one being spent, right? And so once we have selected the other inputs, we need to finish creating the ring C t ring signature. So the ring’s C T bring signature is used to hide the amount that is spent. The ring signature hides that the sender, the stealth address, hides the receiver, and the ring CT spring signature hides the amount that is being sent. So you sign it in such a way that all these inputs appear to be the rial one used, and this signature includes several other important elements. So this is a more detailed view of what a transaction looks like in the Monero network, right? So when I make a transaction, there are up to six other transactions that are added to the to the ring, right? All these rings rings are signed using a ring signature, right and importantly, very critically, a key images created from all of these transact actions. That key image is one hash, and it’s given to the network as proof that the signature was created appropriately. The network verifies that this image has not been used before to prevent double spending, so It’s got a list in the block chain Of all of these key images and the look for match has his key image been sent before? Yes, okay, it’s double spending. You can’t do it. No, this is a valid transaction. Go ahead. And so that’s how double spending is prevented using the key image. Next is the Peterson commitment. So this is used to prevent other people from knowing how much is actually being spent. So it’s a formula, right? So you have the actual amount that is spent. A. It’s multiplied by a random number and this constant value here, and the result is this number that is a result of the formula, and that is a commitment right. You can use his commitment to commit to spending a certain value that only you have the authority to spend. But other people don’t know what that value is because it’s it’s the result of this formula, right? It’s not. It’s not the original amount. It’s a result of this formula, and that’s with public, right? So so. The Peterson commitment is a critical component of the ring confidential transaction or ring CT. It hides the actual value by adding a random number. X. The commitment value is calculated for the set of inputs and outputs in the transaction, and it is broadcast to the network. So that’s what the network sees is the result of that of that Peterson commitment formula and and so that all comes together to form the Ring SETI Research country. And the result is an unknown amount of Monero being spent. Thie commitment public. He is what’s used by the network to verify that commitment that I talked about before, right? So how do the outputs get used over time so we can compare Bitcoin and Monero to find out? Right So and this theoretical history off the outputs we control all the bloc’s highlighted reds are the ones where the output appears. And if this was for Bitcoin, we would really easily be able to tell that this output was transferred from user A to B to C, but with narrow, it’s not so simple. There are three reasons for now put to show up in a block. Either it’s new money and a coin based transaction. It was actually spent or it was added as a decoy and a ring signature I also want to talk about covert rights. We talked about how the sender is hidden. Using ring signatures. We talked about how the amount is hidden. Using ring CT. We talked about how the receiver it’s hidden using stealth addresses. But how about the location? Right, Like where you are, your i P address and that’s obvious. Skated using this guy to P routing service called Ovary. It’s kind of like tour, but basically you’re transaction is routed through all these different notes. These Internet What are they called these Internet? Invisible Internet Project notes, right eye to pee nodes and these nodes past your messages along and have no visibility over what is in them. And that’s under construction. Right now, it’s getting better and better over time, and you can view its progress on get hobbits, all public and open source. But it’s double spending proof, right? Because we talked about that. That key image that the whole block chain has a copy off its Blockchain analysis resistant? Not completely. Nothing is. But it’s the most Blockchain analysis resistant Cryptocurrency that exists currently. And yes, this is a huge, high level level overview of everything I’ve talked about. If you want to go into more details, really look into this. But yeah, those four components are really the key features of Monero. Lastly, adaptive parameters. Like we said before a Monero transaction has an ambiguous output origin on unknown amount in a commitment and an unknown receiver. So for every transaction on the network, all of the information stored on the block chain is obfuscated, right? So let’s talk about howto Last time I had a bye Monero and then how to mine Monero OK, in terms of how to buy Monero, I’ve got this great link here It’s in the Jupiter notebook and get help description to cheque it out. But change Lee is the best site I found two by Monero you Khun by using visa or MasterCard there’s you, Khun by with Bitcoin on you can buy it with even us dollar If you if you so please There does all these currencies So definitely cheque out this website change Lee and to mine Monero I found this really great python repository that you can clone in Docker. It’s got the doc or dependency is ready for Mac and Lennox. You can run in and you could start mining it as well. And yeah, it’s gonna be awesome, But yeah, it wraps this JavaScript mining library for coin hive. That’s kind of like this generic mining library for a bunch of cryptocurrencies, but it works with any Monero pool. So these are pools of miners based on the strata mining protocol. You can set up your own pool. There’s no depth feed, there’s no had block, and you can use any pool you’d like. But you clone this depositary repository, you CD into it, you build it with Doctor and then you run it with Dr please subscribe for more programming videos. And for now, I’ve got a plan. My scaling strategy for the new year. So thanks for watching.

This page and it’s content is part of a ML Experiement and can be found in original video format here All respective rights reserved