Remaining Anonymous: Which Crypto Privacy Solution Works Best?

Later dubbed CoinJoin, the technology utilized an already existing principle of Bitcoin that single transactions can contain many “outputs” and “inputs” that flow to and from multiple wallets. Each transaction takes a certain amount of Bitcoin in the form of inputs and reshapes it, like clay, into different chunks of outputs.

With CoinJoin, multiple participants offer their Bitcoin into a single transaction, which then reshapes them into different outputs that are sent to the wallets specified by each user. Though the introduction of “bulletproofs” range proofs was a significant remedy to this problem, Monero transactions tend to be heavier than 1,500 bytes, while simple Bitcoin transactions can be as low as 280 bytes.

Timeline of Bitcoin, Monero