The Privacy Coins market cap today is $6.44 Billion, a -0.3% change in the last 24 hours. Read More about Privacy Coins
Privacy coins are cryptocurrencies which allow users to conduct transactions privately and anonymously. This ensures the identity of the parties involved are kept private, and ensures the transactions are untraceable.This is done by hiding the origin and destination of transactions. In some cases, multiple transactions are mixed together in order to make onchain analysis tougher.
Privacy coins are cryptocurrencies that obscure on-chain transactions for users that prefer to operate anonymously and conceal the details of their crypto activities, such as the size of their crypto holdings. After all, by entering a wallet address through its related blockchain explorer like Etherscan or BscScan, you can access the record of all its previous transactions.
Privacy coins usually feature technology like stealth addresses, zero-knowledge proofs, and “mixers.”
· Stealth addresses let you generate a unique single-use address for every transaction to prevent transaction tracing.
· Privacy coins like Zcash use Zero-knowledge proofs, which utilize encryption to verify truths without revealing more information than necessary.
· "Mixers" like Tornado Cash run on smart contracts that utilize liquidity pools or intermediary addresses to mask the direct link between the sender and recipient.
The legal status of privacy coins depends on the country where you want to use them. The use of privacy coins tends to be more restricted in countries where the government has strong concerns around using these coins to facilitate illicit activities, like evading taxes or money laundering.
Before using privacy coins, do your own research and ensure that you are complying with the laws and regulations in your area.
