Question

How do privacy coins work?

Answer 1

Privacy coins, like Monero, Zcash, and Dash, utilize various cryptographic techniques to enhance the privacy and anonymity of transactions. These coins typically employ features such as stealth addresses, ring signatures, zk-SNARKs, or CoinJoin to obfuscate transaction details like the sender's address, receiver's address, and transaction amount. By doing so, privacy coins aim to provide users with increased privacy and fungibility compared to traditional transparent cryptocurrencies like Bitcoin.

Answer 2

Privacy coins work by utilizing various techniques to obfuscate transaction details such as the sender's address, receiver's address, and transaction amount. These techniques typically involve cryptographic protocols like ring signatures, stealth addresses, and zero-knowledge proofs to enhance the privacy and anonymity of transactions on the blockchain. By masking transaction information, privacy coins aim to provide users with increased financial privacy and confidentiality compared to transparent cryptocurrencies like Bitcoin.