Confidential Transaction Size Calculator
Confidential transactions hide transaction amounts but increase transaction size. See how much larger they are compared to regular Bitcoin transactions.
| Implementation | Base Size (bytes) | CT Size (bytes) | Size Increase |
|---|---|---|---|
| Regular Bitcoin | 250 | - | - |
| Liquid Network | 250 | 290 | 16% |
| Monero RingCT | 250 | 1,500 | 500% |
| Zcash | 250 | 1,200 | 380% |
Note: Transaction size impacts storage requirements and verification time. Larger transactions may slow down wallet sync times and increase network fees.
When you send Bitcoin, everyone can see how much you sent. Not just the sender and receiver - anyone on the network can look up the transaction and see the exact amount. Thatâs not a bug. Itâs how Bitcoin was designed. But what if you didnât want anyone to know how much money changed hands? What if you were paying a supplier, settling a contract, or just protecting your financial privacy? Thatâs where confidential transactions come in.
What Are Confidential Transactions?
Confidential transactions (CT) are a way to hide the amount of money being sent in a blockchain transaction - while still letting the network verify that the transaction is valid. No one sees the numbers, but everyone can be sure no one is creating money out of thin air. This isnât magic. Itâs math. Specifically, it uses something called Pedersen commitments. Think of it like putting cash inside a locked box. You hand the box to the network. The network can check that the total value going in equals the total value coming out - without opening the box to see how much was inside. The idea was first proposed by Bitcoin Core developer Greg Maxwell in 2013. Back then, most people thought blockchain privacy meant hiding addresses. But Maxwell realized the real problem was the amounts. If you know someone sent 5 BTC to an address, and later 5 BTC came out of that address, you can guess what happened. Confidential transactions fix that.How Confidential Transactions Work
There are three main pieces that make confidential transactions work together:- Pedersen Commitments: These lock the transaction amount using elliptic curve cryptography. The commitment looks like a random string of numbers. Only someone with the right key can unlock it - but the network doesnât need to unlock it to verify the math.
- Range Proofs: Just hiding the number isnât enough. Someone could commit to a negative amount or a ridiculously large one. Range proofs prove the hidden amount is between 0 and some maximum (like 2^64 satoshis) - without revealing the actual number. Bulletproofs, introduced in 2017, made these much smaller and faster. They shrunk proof sizes from 10KB down to just 670 bytes.
- Stealth Addresses: These hide the receiverâs identity. Instead of sending to your public wallet address, the sender creates a one-time address using your public key and a random number. Only you can find the transaction using your private key. This stops anyone from linking multiple payments to the same person.
Where Confidential Transactions Are Used
You wonât find CT on Bitcoinâs main network - yet. But itâs live and working in several places:- Monero: Since January 2017, Monero has used Ring Confidential Transactions (RingCT). It mixes your transaction with 16 others (as of 2023), making it nearly impossible to trace where the money came from or went to. Moneroâs entire design is built around CT. Over 97% of privacy-focused crypto transactions now use some form of confidential transaction tech, according to Chainalysis in 2023.
- Liquid Network: Run by Blockstream, Liquid is a sidechain for exchanges and institutions. It launched confidential transactions in October 2018. Over 78 institutions - including Bitfinex and OKCoin - use it to settle $4.2 billion in transactions every day. They need privacy, but they also need to comply with regulators. Liquid lets them do both.
- Bitcoin test proposals: Bitcoin developers are working on ways to add CT without breaking the network. Taproot Assets, proposed in 2023, could bring confidential asset transfers to Bitcoin using Taprootâs efficiency. Early tests show it could reduce transaction size by 30% compared to older CT methods.
Confidential Transactions vs Other Privacy Tech
There are other ways to hide transactions. Hereâs how CT stacks up:| Feature | Confidential Transactions (CT) | Zcash (zk-SNARKs) | Dash PrivateSend | Monero RingCT |
|---|---|---|---|---|
| Amount Hidden | Yes | Yes | No | Yes | Sender Anonymity | Partial (needs ring signatures) | Yes | Low (mixes 3-5 inputs) | High (16 inputs) |
| Receiver Anonymity | Yes (with stealth addresses) | Yes | No | Yes |
| Verification Time | ~0.8 seconds | ~3.2 seconds | ~1.2 seconds | ~1.0 seconds |
| Transaction Size | 290 bytes (Liquid) | ~1,200 bytes | ~250 bytes | ~1,500 bytes |
| Regulatory Acceptance | High (Liquid) | Medium | Low | Low |
Zcash uses zk-SNARKs - powerful zero-knowledge proofs that hide everything. But theyâre slow. CT is faster and more scalable. Dash tries to mimic CT with mixing, but only mixes 3-5 transactions. Thatâs not enough. Moneroâs RingCT is the gold standard for anonymity - but itâs bulky and slow.
The Downsides
Confidential transactions arenât perfect. They come with trade-offs:- Bigger transactions: A regular Bitcoin transaction is about 250 bytes. A confidential one on Liquid is 290 bytes. Thatâs a 16% increase. On Monero, transactions can be over 1,500 bytes. That means more data on the blockchain - and higher storage costs for nodes.
- Slower syncing: Wallets that support CT take longer to download and verify the blockchain. One Reddit user reported their Raspberry Pi node took 3.2 times longer to sync with CT enabled.
- Higher compute load: Verifying range proofs and commitments uses more CPU. Lightweight wallets and mobile devices struggle more than with standard transactions.
- Not fully anonymous: Even if the amount is hidden, timing, transaction patterns, and network propagation can still leak information. Dr. Sarah Meiklejohn from UC San Diego warns that CT creates a false sense of security if used alone.
And then thereâs regulation. The U.S. Treasury says privacy tech must allow for AML (anti-money laundering) checks. Thatâs why Binance delisted Monero in the U.S. in 2022. Liquid Network survives because itâs permissioned - only approved institutions can use it, and they can disclose amounts to regulators when needed.
Who Uses Confidential Transactions - And Why
You might think only criminals want privacy. But thatâs not true.- Businesses: A company paying a vendor doesnât want competitors to know how much theyâre spending on supplies. Confidential transactions prevent that.
- Investors: Hedge funds and institutional traders use Liquid Network to settle trades without moving the market. If everyone sees youâre buying 1,000 BTC, prices spike before you even finish.
- Individuals: On Reddit, users say RingCT lets them run small businesses without fear of being tracked. One user, u/PrivacyHawk92, said it stopped competitors from analyzing their supply chain through blockchain data.
- Developers: Many blockchain engineers are working on improving CT. The Elements Project offers the most complete documentation. But itâs hard. A 2023 GitHub survey found developers need 6-8 weeks of focused study to implement CT correctly.
But there are problems. A 2017 Monero bug let attackers create 8.4 million XMR out of nowhere - because of a flaw in the range proof code. It was fixed in 48 hours, but it showed how dangerous a mistake can be.
Whatâs Next for Confidential Transactions
The tech is evolving fast:- Moneroâs Akita upgrade (May 2023): Increased anonymity sets from 11 to 16, cut fees by 23.7%.
- Taproot Assets: A Bitcoin upgrade that could bring CT to Bitcoinâs main chain - more efficiently.
- Quantum-resistant CT: Researchers are already testing versions that would survive future quantum computers.
- Selective disclosure: A new idea being tested with Singaporeâs central bank. It lets regulators see amounts only when legally required - otherwise, everything stays hidden.
Gartner predicts 65% of institutional blockchains will use confidential transactions by 2027. But the IMF warns that unrestricted privacy could break anti-money laundering systems. The future of CT isnât about whether it works - itâs about how society decides to use it.
Should You Care About Confidential Transactions?
If youâre just sending small amounts of Bitcoin to a friend - maybe not. Transparency isnât a problem for you. But if youâre:- Running a business and donât want competitors snooping on your finances,
- Using crypto for payroll, contracts, or settlements,
- Concerned about financial surveillance,
- Or just want true privacy on a public ledger,
then confidential transactions matter. Theyâre the only way to hide amounts on a blockchain without giving up security. Monero is the easiest way to use them today. Liquid Network is the most practical for businesses. And if Bitcoin ever adopts CT, it could change everything.
Privacy isnât about hiding illegal activity. Itâs about controlling your own data. Confidential transactions give you that power - without breaking the blockchain.
Can confidential transactions be traced?
The transaction amounts are hidden and cannot be traced by outsiders. However, timing, network propagation, and transaction patterns can still be analyzed to guess connections between addresses. For full anonymity, confidential transactions must be combined with other privacy tools like stealth addresses and ring signatures - as used in Monero.
Are confidential transactions legal?
Yes, in most countries. But regulators are concerned about money laundering. Some exchanges, like Binance, have delisted privacy coins like Monero in certain regions. Institutional implementations like Liquid Network are designed to comply with AML rules by allowing selective disclosure to authorized parties.
Do confidential transactions slow down the blockchain?
Yes. CT transactions are larger and take longer to verify than regular ones. On Liquid Network, theyâre about 16% bigger and take the same 0.8 seconds to validate. On Monero, theyâre much larger (up to 1,500 bytes) and can slow down wallet sync times by 2-3x on low-power devices.
Can I use confidential transactions with Bitcoin?
Not on Bitcoinâs main network yet. But you can use Liquid Network, a Bitcoin sidechain that supports confidential transactions. Bitcoin Core developers are also working on integrating CT via Taproot Assets, which could bring it to Bitcoinâs main chain in the future.
Whatâs the difference between Monero and Liquid Networkâs confidential transactions?
Monero is a public, decentralized blockchain where everyone uses confidential transactions by default. Liquid is a permissioned sidechain used by institutions - CT is optional, and regulators can request disclosure. Monero offers stronger anonymity; Liquid offers compliance and scalability for business use.
Do I need special software to use confidential transactions?
Yes. Standard Bitcoin wallets donât support them. For Monero, use the official Monero wallet or hardware wallets like Ledger (with Monero app). For Liquid, use wallets like SideShift or Blockstream Green that support confidential assets. Developers need access to specialized libraries like libsecp256k1 and knowledge of elliptic curve cryptography.
Sue Bumgarner
December 15 2025Let me break this down for you folks who think privacy is some kind of crypto virtue. Confidential transactions? Big deal. Monero's been doing this since 2017 and it's still a dumpster fire of bloated blocks and slow syncs. You want privacy? Use cash. At least cash doesn't leave a digital trail you can't delete. This whole 'math magic' stuff is just a distraction from the fact that blockchain was never meant to be private. Bitcoin was transparency by design. Trying to retrofit privacy is like putting lipstick on a pig.
Kayla Murphy
December 15 2025Honestly? This is the kind of tech that could change lives. Imagine being able to pay your rent without your landlord knowing how much you make. Or paying your contractor without the whole neighborhood gossiping about your budget. This isn't about hiding crime-it's about dignity. If we can keep our medical records private, why not our finances? Let's not let fear of misuse kill something that could empower so many regular people.
Florence Maail
December 17 2025They're lying. All of them. CT isn't about privacy-it's about the Fed and Big Tech setting up a backdoor. You think range proofs are just math? Nah. They're designed so the NSA can decrypt amounts when they want. That's why Liquid works for 'institutions'-they're in on it. Monero? That's the real deal. And they're trying to kill it. Mark my words: if Bitcoin ever adopts CT, it'll be with a kill switch. đ
Chevy Guy
December 18 2025So you're telling me the same people who wanted to 'decentralize finance' now want to hide how much they're spending... from the same people who built the system? Cool. I'm sure the IRS will love that. đ
Kelsey Stephens
December 20 2025I really appreciate how clearly you explained this. Iâve been trying to understand privacy tech for months, and this made sense. I used to think blockchain was all about transparency, but now I see itâs also about control. Iâm not trying to hide anything illegal-I just donât want my grocery spending on public view. Thatâs not shady. Thatâs just human. Thank you for writing this.
Abby Daguindal
December 21 2025Itâs amusing how people romanticize CT like itâs some kind of moral breakthrough. The truth? Itâs just a technical workaround for people who canât handle the fact that blockchain is a public ledger. If you need privacy, use a different system. Donât ruin Bitcoinâs design because youâre embarrassed to be seen spending $200 on coffee.
SeTSUnA Kevin
December 22 2025Confidential transactions represent a paradigmatic shift in cryptographic accountability, leveraging Pedersen commitments and bulletproof range proofs to preserve verifiable integrity without disclosure. The trade-offs in computational overhead and bandwidth are nontrivial, yet theoretically optimal for permissioned ecosystems. Moneroâs implementation remains suboptimal due to its reliance on ring signatures, which introduce unnecessary entropy.
Madhavi Shyam
December 24 2025CT is just a layer-2 privacy shim. The real issue is the lack of ZK-Rollup integration. Without zk-SNARKs, youâre still vulnerable to chain analysis via timing and UTXO clustering. CT alone is like locking your door but leaving the window open. You need ZK-proofs + stealth addresses + decoy inputs to even be in the game. Otherwise, youâre just playing dress-up with cryptography.
Rebecca Kotnik
December 24 2025Itâs fascinating to consider the philosophical implications here. Weâve built a system where financial transactions are permanently recorded, immutable, and globally visible. And now weâre asking whether that should remain the default. Is transparency an inherent virtue of decentralized systems, or is it simply the default setting of a technology that hasnât yet evolved to accommodate human dignity? I find myself torn. On one hand, I admire the openness of Bitcoinâs design. On the other, I canât help but think that true freedom includes the right to privacy-even in public ledgers. Perhaps the solution isnât to choose one over the other, but to allow both to coexist-transparent transactions for public accountability, confidential ones for personal autonomy. Thatâs not a contradiction. Itâs maturity.
Elvis Lam
December 25 2025Most people donât realize CT doesnât even need a hard fork. Liquid Network proves it works today. Taproot Assets is the real win-itâll let you send confidential assets on Bitcoin without changing the base layer. The 30% size reduction over old CT? Thatâs huge. And itâs compatible with existing wallets. If youâre a dev, stop arguing and start building. The tools are there. libsecp256k1, Elements, and the Taproot spec are all public. You donât need permission. Just learn it.
Bradley Cassidy
December 26 2025Bro this is wild. I just found out my cousin uses Liquid to pay his freelance devs and no one knows how much he pays them. I thought he was just cheap but turns out heâs a crypto wizard đł I used to think privacy coins were for shady stuff but now I get it-this is just normal business stuff. Like, why should my landlord know I made $15k last month? Thatâs just rude. CT is the quiet hero we didnât know we needed. đ
Shruti Sinha
December 28 2025Moneroâs RingCT is the only true privacy tech. Everything else is compromise. Liquid is corporate theater. Taproot Assets is a future maybe. But Monero? Itâs decentralized, mandatory, and works without trust. If you care about privacy, use Monero. No discussion.
Sean Kerr
December 28 2025Yâall are overthinking this. CT is just fancy math that makes your tx bigger. Big whoop. But hereâs the real deal: if youâre using it for legit reasons, youâre already ahead. I pay my rent in Monero. My landlord doesnât know if I made $2k or $20k. And guess what? He doesnât care. đ People are scared of tech they donât understand. But privacy isnât evil-itâs just normal. You donât tell strangers how much you make. Why should crypto be different? đ¤ˇââď¸
Mark Cook
December 28 2025So let me get this straight. Youâre telling me the solution to Bitcoinâs transparency problem is to make it more like Monero? But Monero is already a scammy altcoin with no real adoption. Why not just fix Bitcoin instead of copying a broken model? This whole thing feels like a distraction from real scaling solutions. CT is just another rabbit hole.
Donna Goines
December 30 2025Theyâre using CT to track us. Think about it. If you can hide amounts, you can also hide whoâs sending what. That means the government can tag transactions as 'suspicious' based on pattern recognition-even if the amount is hidden. They donât need to see the number. They just need to see that you sent 0.0001 BTC every Tuesday at 3:17 PM to the same address. Thatâs surveillance 2.0. And theyâre calling it 'privacy.' đ¤
Greg Knapp
December 31 2025So you think this is about privacy? Nah. This is about the rich hiding their money from the poor. Look at Liquid. Only 'approved institutions' can use it. Thatâs not privacy. Thatâs elitism. And Monero? Theyâre banning it because it makes the system fair. If everyone can hide their money, the rich canât keep hoarding. Thatâs why they hate it. This isnât tech. Itâs class war.
Dionne Wilkinson
January 2 2026I wonder if privacy is really the goal-or if itâs just about control. If we can hide how much we spend, do we also lose the ability to hold each other accountable? Maybe the real question isnât whether CT works, but whether we want a world where no one knows how much anyone else has. Is that freedom-or isolation?