Riccardo Spagni aka Fluffy Pony, a core team member and developer at Monero, in his tweet on June 26th, posted a live interview where he has spoken on Monero vs Bitcoin, their individual features and mechanisms, and more. The interview was broadcasted on a YouTube channel called Ivan the Tech.
The very first question put in front of Spagni was about ‘the working on Bitcoin leading him to discover or contribute to Monero or not’. The developer responded bluntly by stating:
“Contributing to Bitcoin has never really been difficult for people if you are, how do I put it sensitively… not a complete idiot.”
The conversation traveled deeper into the technicalities applied to Monero and Bitcoin. Spagni explained, in simple words, how Monero works differently from Bitcoin; and its impact on the privacy factor.
Monero vs Bitcoin signatures:
An output in a Bitcoin transaction consists of the amount paid, the address being paid. Most of the transactions have two outputs – one that goes to the recipient for a particular amount and another that comes back to the exchange. On the other hand, Monero uses Greg Maxwell’s confidential transactions. Spagni elaborates:
“With Monero the difference is that firstly you don’t see the address that’s being paid. Instead, we use something called dual-key stealth addresses and basically what happens is you take your public keys or private keys and you take recipient’s public keys… You’re able to do a Diffie Hellman key exchange. You get a shared secret. You’re able to pack it in in a random value and hash the whole thing, …and you end up with this 64-bit number that is the destination that it’s going to. And that’s kind of like all that you see on the blockchain. So it’s not an address that’s being paid but a destination… only the recipient can decode that this transaction is for me. “
He also spun some light on the ring signatures used by Monero. While Bitcoin shows the details of its transactions, such as the address and the amount in its output, Monero’s ring signatures fetch many outputs from different time stamps and parties including the one with the active transaction. The ring gathers the transactions and signs across them as one. This very feature conceals the active transaction and maintains confidentiality.