Up to now, cryptocurrencies have developed rapidly and at the same time diversified into a huge number of varieties. Among these there is indeed one branch which specifically concerns itself with improving privacy, secrecy and anonymity in transactions. To define what is a privacy coin, we enter the mysterious realm of advanced cryptocurrency.
The focus is on user privacy. Advanced cryptographic techniques are used by privacy coins such as Monero (XMR), Zcash (ZEC) and Dash (DASH). Among them are ring signatures and stealth addresses, as well as zk-SNARKs (Zero Knowledge Succinct Non Interactive Argument Of Klein), which not only allows users to perform transactions without revealing their own wallet balances or transaction details.
For example, the obscuring of transaction data is one. Different from transparent blockchains like the Bitcoin, in which transactions are public and can be tracked at will, privacy coins have various methods for hiding sender and receiver identities as well as the amount transacted. This higher degree of privacy means that transactions cannot be linked. That's how users get a degree of financial secrecy they can't have with the traditional cryptocurrencies.
If users truly want to control privacy coins, then they must understand the nuances of how its stealth features work. And this includes figuring out how to use such privacy-oriented functions within wallets, and keeping transaction information secret. Branding financial portfoli also must keep up with news on developments and improvements in privacy coin protocols.
Despite this, citizens must know that the more advanced privacy features of these coins have also led to worries over misuse. The degree of scrutiny differs from region to region, but privacy coin users should be aware of the legal problems in their own places.
In short,you need to understand the underlying technologies of these digital assets. Behind the veil of cryptocurrency anonymization, users are in charge--they become financially private. So they will build a secure and private environment for digital payments.
