What is Ring Signature?
Let's find out Ring Signature meaning, definition in crypto, what is Ring Signature, and all other detailed facts.
A ring signature is a cryptographic tool that helps anonymize the identities of entities involved in a cryptocurrency transaction. Privacy coins such as Monero (XMR) often employ ring signature technology to provide their users with reinforced privacy protection.
Monero is a privacy coin that can be difficult to track and is sometimes associated with shady financial operations. If person A wants to transfer 100 XMR to person B, they get a single-use spend key.
Several people in the Monero network can act as decoys to obscure transaction data and make it next to impossible to track the real identities of the parties involved in the transaction. The public key provided for one transaction may act as a decoy signature in other anonymous transactions.
As concerns regarding the regulation of cryptocurrencies rise, Monero and other privacy coins are being increasingly targeted as potential tools for money laundering, financial terrorism, or other malicious acts. Alongside regulatory policies, some institutions also work on cracking tools such as ring signatures to identify the parties behind the transactions.