Mechanics of MobileCoin: First Edition exploring the foundations of a private digital currency April 6, 2021, Preview (10/11) v0.0.39 koe1,2 DRAFT INFORMATION: This is just a draft, and may not always be available wher- ever it is currently hosted. The final version will be available at https://github.com/ mobilecoinfoundation. License: `Mechanics of MobileCoin: First Edition' is released into the public domain. 1
[email protected] 2 Author `koe' worked on this document as part of a private contract with, then as an employee of, MobileCoin, Inc. Abstract Cryptography. It may seem like only mathematicians and computer scientists have access to this obscure, esoteric, powerful, elegant topic. In fact, many kinds of cryptography are simple enough that anyone can learn their fundamental concepts. It is common knowledge that cryptography is used to secure communications, whether they be coded letters or private digital interactions. Another application is in so-called cryptocurrencies. These digital moneys use cryptography to assign and transfer ownership of funds. To ensure that no piece of money can be duplicated or created at will, cryptocurrencies usually rely on `blockchains', which are public, distributed ledgers containing records of currency transactions that can be verified by third parties [115]. It might seem at first glance that transactions need to be sent and stored in plain text format to make them publicly verifiable. In truth, it is possible to conceal a transaction's participants, as well as the amounts involved, using cryptographic tools that nevertheless allow transactions to be verified and agreed upon by observers [151]. This is exemplified in the cryptocurrency MobileCoin.