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.
erik / Erik
npub1xz…pma2y
2023-02-14 20:26:30
Author Public Key
npub1xz8gmqnm7yuyv66an9r4xdl0z2hrxu2m4nx3nr6x4v2qf2v32tmqrpma2yPublished at
2023-02-14 20:26:30Event JSON
{
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"pubkey": "308e8d827bf138466b5d99475337ef12ae33715baccd198f46ab1404a99152f6",
"created_at": 1676406390,
"kind": 1,
"tags": [],
"content": "There is engineering trade-off between transparency and fungibility. \n\nIn 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.\n\nMonero 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.\n\nHowever, it is incredibly hard to verify that no one is creating XMR out of thin air. A single inflation bug could go unnoticed.\n\n",
"sig": "6b44fbbbec7d4a878bca2eac9702428e1bd6d3ae89bbd531a49ffe3e8d3adae5f356c56affc6546ac6c41d178f735ea5d578ddfc183c737da15b2cb30426704b"
}