Privacy coins
How are you? Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah....
Privacy coins is my today's topic that I am going to share so I would let you know about its basics and some of the advantages and challenges associated with it so now I want to start my topic without wasting further time ❤️
Privacy coins as from the name is indicating that it is a type of token or cryptocurrency that is important for the enhancement of the privacy security and anonymity of the transactions that have been occurred and that are going to occur and there are different cryptography techniques that are used by privacy coins and these are rings signatures, stealth addresses confidential transactions etc. Through the use of privacy coins a user may be provided by the increase security and confidentiality while using the transactions.
Monero is one of the most popular example of use of privacy coin because it utilise ring signatures which mix with the spenders transaction with others so it becomes very difficult to trace the source of funds in this way and if we talk about other way then it also implement stealth address which is the responsible in return for the creation of new address for each transaction which ensures the recipient identity hidden.As well as when Monero implement confidential transactions then it encrypt the amount of transactions so it becomes much challenging to determine the value which is being transferred in transaction.
Zcash use zero knowledge proof like zk-SNARK to make it enable the private transactions and by the use of this protocol users can prove that they know a particular information without revealing the actual information so it permits for more shielding transactions in which the sender, recipient and transaction amount remain hidden.
Users become very happy by the use of privacy coins because privacy coins offers the users to maintain their financial privacy in this digital world so for that reason they provide alternative to traditional cryptocurrency like Bitcoin which have more transparent transactions in history and that can also be traced at the blockchain. There are many more advantages that we can get from privacy coins but there are also some of the regulatory challenges that are associated with it so for that we should be well awared in advance.
| Privacy Coin Advantages | |
|---|---|
| Enhanced Privacy | Privacy coins are very helpful in enhancing the privacy and safety as they use some of the very advance techniques that are cryptographic techniques for productions of the transaction details so it becomes very difficult for any manipulator to having an access on any transactions detail. |
| Anonymity | Privacy coins permits you to stay anonymous while conducting any kind of transaction so it means that in this way your real world identity would not reveal and it would give an extra layer of privacy to you and especially to your transactions. |
| Fungibility | Fungibility is another advantage that would also be promoted by privacy coins because privacy coins make sure that each coin is interchangeable so unlike other cryptocurrencies that are traditional,there are different coins that are associated with each other by illicit activities so privacy coins shows that each coin is equal and none of them can be tainted. |
| Security | There are strong encryption protocols are implemented by privacy coins for the protection of personal data and transactions against the any kind of hacking and any unauthorized access. |
| Decentralization | Most of the privacy coins are those that built at decentralized blockchains sweet means that there is no a single person or entity that have control over the whole blockchain so it enhance security and it promotes the less risk of any kind of manipulation. |
| User Autonomy | Privacy coins gives are user autonomy means I user always have full control over all the transaction that he have made so there is exclusion and eradication of any kind of intermediaries in this way while making the transaction. |
That was all about some of the advantages and benefits of privacy coins use and now you can easily understand that how much they are valueable for maintaining control over a transaction by any user.
That was all about some of my information that I had about privacy coins I have shared with all of you in my best and easier words and hopefully that what are the pros of it and there are some regulatory challenges with it now you can easily and understand about all those things and in short about basics of the privacy coins that why users always find it very helpful for enhancement of their security of transactions.
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Regards,
@jueco