@@ -134,7 +134,7 @@ In Monero, every transaction generates a key image. Key images that are used mor
We can also know that transaction amounts are valid even though the value of the inputs that you are spending and the value of the outputs you are sending are encrypted and hidden to everyone except the recipient of each of those outputs.
They're encrypted using Pedersen commitments. What this means is that no observers can tell the amounts of the inputs and outputs, but they can do math on the Pedersen commitments to determine that no Monero was created out of thin air.
The amounts are encrypted using Pedersen commitments. What this means is that no observers can tell the amounts of the inputs and outputs, but they can do math on the Pedersen commitments to determine that no Monero was created out of thin air.
As long as the encrypted output amounts you create which include an output for the recipient and a change output back to yourself plus the unencrypted transaction fee is equal to the sum of the inputs that are being spent, then you have a legitimate transaction and know no Monero is being created out of thin air. Pedersen commitments mean that the sums can be verified as being equal, but the Monero value of each of the sums and the Monero value of the inputs and outputs individually are undeterminable.
