In-Depth Mining Process

Discussion of math, cryptography, protocol, and features

In-Depth Mining Process

Postby Theo » Mon Jul 21, 2014 1:41 pm

I have been reading about Monero, and CN on various forums and websites, but still I can't find the answer to the following questions:

  • Can somebody explain to me what are the protocol specifications? I mean, how exactly is the amount divided between several users and then sent to the delivery address? How is a transaction generated, and then received?

I am still a newbie in the field of cryptocurrencies, so I would appreciate a "for idiots" response :D
Theo
 
Posts: 4
Joined: Mon Jul 21, 2014 12:42 pm

Re: In-Depth Mining Process

Postby Werner_Albert » Fri Jul 25, 2014 3:08 pm

Hello Theo,
Thank you for your question. It's a great pleasure to see your desire to get acquainted with the principles of cryptocurrencies.
First of all, I recommend you to read some articles to get a general idea how cryptocurrencies work. For example, this one provides a clear explanation of how Bitcoin works.
Bitcoin is the first successful implementation of the concept of p2p electronic cash and on the basic level the differences between Bitcoin and CryptoNote-based coins are marginal. However CryptoNote was developed as a solution to the main Bitcoin deficiencies and provide users with a higher level of privacy protection and security.
To understand the working principles of CryptoNote technology you may read the whitepaper. And you are welcome to ask your questions about CN here.
Werner_Albert
 
Posts: 56
Joined: Wed Mar 26, 2014 3:23 pm

Re: In-Depth Mining Process

Postby Theo » Wed Jul 30, 2014 3:22 pm

Thank you for your response! :)

I played a bit with several transactions, and from the blockexplorer I was able to figure out these things:

I transferred 0.0123 Moneros to an address, having 2 out public keys in the ring signature.

For each transaction, a certain fee is withdrawn from the balance. The simpleminer.exe tells us that we should expect a fee of 0.005, but as it seems, it changes according to the amount of money sent, and also, to the degree of anonymity, aka the number of public keys in the signature (still needs research).

The amount of money sent is divided into several smaller amounts, the number is equal to the ring signature level of anonymity, as the whitepaper describes. Given our example, for level 2, the money will be split into 2 amounts: 0.0100 and 0.0023, one decimal at a time, and then the rest.
Those 0.0123 XMR are taken from an old transaction. In this case, the algorithm chose an old input having 0.047 XMR. So, to send 0.0123 XMR, one needs to pay an additional fee = 0.0057, and the rest goes back automatically to the wallet.

Surfing the blockexplorer, I have noticed that when a specific amount has a mixing count of 1, one can trace the transaction it comes from. How is that possible, given that there are different hashes for the public keys, and there is not evident way of linking them?

Take a look at this one for example:
https://minergate.com/blockchain/mro/tr ... b46a96bf88

Thanks! :)
Theo
 
Posts: 4
Joined: Mon Jul 21, 2014 12:42 pm

Re: In-Depth Mining Process

Postby Theo » Thu Jul 31, 2014 3:03 pm

Does it have anything to do with the global index I keep seeing in the block explorer? Each amount has a 'print' of some sort?

For instance, here I see multiple 0.1 XMR having a different global index.

I see no other way of telling from which transaction a specific amount originates from.
Theo
 
Posts: 4
Joined: Mon Jul 21, 2014 12:42 pm

Re: In-Depth Mining Process

Postby Werner_Albert » Fri Aug 01, 2014 3:40 pm

The amount of money sent is divided into several smaller amounts, the number is equal to the ring signature level of anonymity, as the whitepaper describes.


The amount division is not related with the anonymity level. Apart from the fixed amount that is included into a fee, a smaller amount known as ‘’dust’’ (the smallest fraction of the input/s) is also added in order to avoid blockchain bloating. What's more, if the dust wasn’t included in the fee it would make a transaction traceable therefore wrecking the whole idea of anonymity.

Surfing the blockexplorer, I have noticed that when a specific amount has a mixing count of 1, one can trace the transaction it comes from. How is that possible, given that there are different hashes for the public keys, and there is not evident way of linking them?


It works the same way as in Bitcoin. That’d be weird if you were able to spend money out of thin air. Every transaction notifies which output is being spent. If the level of anonymity is 1, that’s about all the info you’ll get. If the level is higher, the other outputs will get mixed in to create the effect of anonymity and nobody will be able to tell exactly which of the inputs was spent.

Does it have anything to do with the global index I keep seeing in the block explorer? Each amount has a 'print' of some sort?


Through the global indexes we set all possible outputs for the ring signature and only one of them is being spent in a transaction. Amount is a sum that is indicated in the input. Every amount has its own list of indexes (since you can mix the outputs with same sums only).
Werner_Albert
 
Posts: 56
Joined: Wed Mar 26, 2014 3:23 pm

Re: In-Depth Mining Process

Postby Theo » Wed Aug 13, 2014 3:04 pm

Thanks! Everything is a bit clearer now.

Could you give me a hint about what information is transferred to the network when a transaction is made? I have spent some days now trying to figure that out, but still no success..
Theo
 
Posts: 4
Joined: Mon Jul 21, 2014 12:42 pm

Re: In-Depth Mining Process

Postby Werner_Albert » Thu Aug 14, 2014 1:31 pm

If I get your question right, everything that is enclosed in the data structure is transferred to the network, specifically: the set of inputs, the set of outputs, the set of signatures, the contents of the fields (unlock_time, extra, version, and so on). You may check this article for more details https://wiki.bytecoin.org/wiki/Structures
Werner_Albert
 
Posts: 56
Joined: Wed Mar 26, 2014 3:23 pm


Return to Technology

Who is online

Users browsing this forum: No registered users and 2 guests

cron