DERO Privacy Suite
Privacy by Design
Privacy is a spectrum, not binary. DERO provides strong privacy guarantees while maintaining usability and functionality. DERO doesn't add privacy as an afterthought - it's built into every layer of the protocol, from network communication to smart contract execution.
Core Principles:
- Privacy by default (no opt-in required)
- Multiple independent layers (defense in depth)
- Mathematical guarantees (proven cryptography, not security through obscurity)
- Conscious trade-offs (transparent about limitations)
The Breakthrough: DERO achieved something no other blockchain has accomplished: combining account-based architecture with strong privacy guarantees through homomorphic encryption. This enables private smart contracts, instant transactions, and encrypted balances - all while maintaining complete privacy.
Privacy Technologies Overview
| Technology | What It Protects | Key Benefit | Learn More |
|---|---|---|---|
| Ring Signatures | Sender identity | Hide among ring_size/2 potential senders (naive guess 1/(N/2)) | Explore → |
| Homomorphic Encryption | Amounts, balances | Math on encrypted data (network never sees values) | Explore → |
| Bulletproofs | Amount validity | 128-bit combined range proofs (logarithmic size) | Explore → |
| Account-Based Privacy | Transaction patterns | Account model + privacy (unique to DERO) | Explore → |
| Payload Proofs | Sender verification | Only YOU can prove you sent (third parties can't) | Explore → |
Homomorphic Encryption
Math on encrypted data. Blockchain never sees your balance. Ever.
Do math on encrypted balances without ever decrypting them. Your balance stays private. Forever.
The Magic:
E(500) + E(100) = E(600)
Network never learns: 500, 100, or 600Enables: Instant balance queries, private tokens, private smart contracts.
Explore Homomorphic Encryption →
Account-Based Privacy
The Impossible Combination: Accounts + Privacy + Smart Contracts
DERO's unique architectural achievement: account-based model with strong privacy guarantees.
DERO's Unique Solution:
- Account-based model (simple, fast)
- Private smart contracts (unique to DERO)
- Target block time set by consensus parameters (BLOCK_TIME = 18s)
- Lightweight wallets (no chain scanning required)
Explore Account-Based Privacy →
Bulletproofs
Zero-knowledge proofs that don't reveal amounts.
Proves your transaction values are valid without revealing what they are. DERO uses a 128-bit combined range proof that validates both the transfer amount (lower 64 bits) and remaining balance (upper 64 bits) in a single proof. Cryptographically secured by the bn256 elliptic curve discrete logarithm problem.
Key properties:
- Logarithmic-size proof (7 rounds for 128-bit range)
- Triple-layer defense against negative transfers
Privacy + Security = Perfect.
Ring Signatures
Hide among ring_size/2 potential senders.
Your address is mixed with other members in a ring. Rings are split evenly — half senders, half recipients. The blockchain sees ONE of the sender-half sent the transaction, but cannot determine which one.
Privacy Levels (naive guess):
- 1 in (ring_size/2) chance if no additional information is available (e.g., 1/8 for ring size 16)
- Larger rings reduce the naive guess probability
Key Insight: Ring members' encrypted balances change even as decoys - this is normal behavior, not a bug!
Payload Proofs
Only YOU can prove you sent it. Third parties can only guess.
Privacy by design: Only YOU (with your private keys) can prove you sent a transaction. Third parties can only make guesses - exactly as designed for maximum privacy!
The Design:
- Wallet-level convenience tools (not blockchain verification)
- Can be faked - by design, for privacy
- Third parties cannot definitively prove sender identity
This is a feature, not a bug.
Complete Privacy Documentation
Core Technologies:
- Ring Signatures - Sender anonymity (2-128 members)
- Homomorphic Encryption - Encrypted balances and operations
- Bulletproofs - 128-bit combined range proofs (logarithmic size)
Privacy in Action:
- Transaction Privacy - Complete end-to-end flow
- Account-Based Privacy - Unique architectural achievement
- Private Smart Contracts - Contract privacy with encrypted state
Understanding Proofs:
- Payload Proofs - Wallet-level verification mechanisms