erik on Nostr: There is engineering trade-off between transparency and fungibility. In bitcoin ...
There is engineering trade-off between transparency and fungibility.
In bitcoin everyone can see how (many) sats flow between UTXO's. The ordinal trick assigns a unique number to each sat and breaks fungiblity. The fungiblity depends on social consensus and not on cryptography.
Monero has confidential transactions and breaks the ordinal trick. The amount of sats in UTXO's is blinded to the general public and the ordinals trick cannot be aplied.
However, it is incredibly hard to verify that no one is creating XMR out of thin air. A single inflation bug could go unnoticed.
In bitcoin everyone can see how (many) sats flow between UTXO's. The ordinal trick assigns a unique number to each sat and breaks fungiblity. The fungiblity depends on social consensus and not on cryptography.
Monero has confidential transactions and breaks the ordinal trick. The amount of sats in UTXO's is blinded to the general public and the ordinals trick cannot be aplied.
However, it is incredibly hard to verify that no one is creating XMR out of thin air. A single inflation bug could go unnoticed.