Monero is known in the cryptocurrency world for offering transactions in a private and anonymous way. But behind this security upgrade that this currency offers, there are higher fees and an increased transaction sizes. On December the 7th, Monero has released a statement in which they explain the role of Bulletproofs in the network and how the fees are lower.
Monero Compatible Bulletproofs
Monero offers confidential transactions that hide the amounts that are involved on it. Furthermore, in order to know that inputs and outputs balance properly, in a way that they can be verified by anyone, the network uses commitments that have different algebraic properties. But that was not enough. So as to know that the amounts are positive, the network implements range proofs. That increases the transaction size and the time to proceed the information.
A new paper released by a group of specialists shows how the range proofs that Monero implements could be handled in a much more efficient way. Now there are two types of bulletproofs, single-output and multiple-output. According to the statement, with the current range proof, the transaction is around 13.2 kB in size. With single-output bulletproofs, the transactions would be around 2.5 kB. That means that the transaction is reduced an 80 percent as well as the fees. Besides that, the blockchain validation becomes also faster.
“We propose Bulletproofs, a new non-interactive zero-knowledge proof protocol with very short proofs and without a trusted setup,” reads the papers written by Benedikt Bünz et. al.
Monero is receiving a nice upgrade. While keeping the anonymity and privacy, its searching ways to reduce fees and speed up the transactions. With this new bulletproof protocol, it’s working in this direction.
Issues With Multiple Outputs
Multiple outputs would need further thoughts because with their implementation, the fee structure would need to be adjusted. According to Monero “fees will scale properly and in a safe way.”
In short, the network receives a massive upgrade. Bulletproofs bring space savings, reduced verification times and lower fees.