CryptoNote - Definition from the Hotspot Shield Encyclopedia

CryptoNote is a protocol that operates at the application layer of the OSI reference model and is used to power several different decentralized digital currencies. It is different to Bitcoin but has evolved from the ideas Bitcoin uses.

The main difference between CyptoNote currencies and Bitcoin is how the public Blockchain or ledger is used. Bitcoin uses a Blockchain ledge that anyone can access and view. This leaves transactions open to scrutiny and means they can be easily traced. CryptoNote still uses a public Blockchain however its transactions cannot be followed. Only the amount of currency transferred can be traced, all other information such as the origin destination and sender remains anonymous. Currencies using CryptoNote include Bytecoin, Monero, Aeon and DigitalNote.