I have been watching this videohttps://www.youtube.com/watch?v=GEVm1dMn5Ks&t=2158strying to understand how the transactions work through Monero, I have some basic understanding to some aspect of the function, although I am starting to question if there are certain things that I may believe I have an understanding of and am misinformed?

From my understanding, TOR relies on publishing the public key (derived from a portion of the private key) to a hash which at that point as a transaction is made to another user, then the blockchain acts as a public ledger allowing for this transaction to be published as part of a hash block? At that point, the miners which work the block are confirming the transaction which is then sent to the recipient which this public key can be pulled from the individuals input or UTXO? and delivered to the public key. For some reason, I think I may not have this completely correct.

With Monero, just looking through block explorer, it seems quite a bit more advanced. I see outputs which Monero appears to have it's own sending key and view key which is private, and then some sort of stealth key for the sending and view key or public key, and for outputs, say someone wants to send 500 XMR out of a 1000 balance, then 500 is broken down into several transactions through a variety of other keys as part of the mixin, and in return, the change or return of funds is sent back or broadcasted to the origination while the funds are processed to the destination. It appears the input for the receiver goes through TXO via several incoming keys to receive or show the funds in their own wallet.

my knowledge on cryptocurrencies right now is limited to some of the whitepapers released and videos i've seen thus far.

I have studied the I2P white papers and technical data, so maybe my understanding of this is how I am trying to apply that logic to the cryptocurrencies.

I know that I2P functions "similar" to TOR but that the difference is that it is exclusively for darknet only. Essentially each user runs a router which they are assigned a private key and a public key which is broadcast. A user has to seed to a centralized list to be able to download a list of IP addresses with open ports to sync up with other users, as this seed list builds, then a router is able to start building connections or tunnels for inbound and outbound connection, so say if alice wanted to communicate with bob or vice versa, you'd have Alice ----> 3 tunnels outbound | Floodfill lookup for leaseset | ----> 3 tunnels inbound to bob and then bob -----> 3 tunnels to | Floodfill lookup for lease set | -----> 3 tunnels inbound to Alice. The lease sets are published by the flood fill via distributed hash table and the lease sets are simply inbound and outbound tunnels built for communication between each user to prevent the receiver knowing who the requester is.

In addition, the packets sent are encrypted AES/El Gamal in layers, so instructions are similar to a Matryoshka doll which the packets are in layers, each packet has instructions on the lease set which is decrypted by the flood fill to allow communication to the lease set of the receiver and vice versa to the sender.

Is this comparison valid? Thanks.

In addition, somewhat confused why when i sent funds I received a larger portion back and then funds werr resent. Is this part of the change process? Is this simplified drawing how monero functions?


closed as too broad by 254123179 Aug 10 '17 at 12:14

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  • Can you break this down into a few different specific questions? – 254123179 Aug 10 '17 at 12:15