Discussion on privacy features, differences between protocols, and potential future adoption

On the blockchain, privacy coins, or user-friendly cryptocurrencies, enhance the user’s ability to shield the details of every transaction from the public ledger. This feature makes such cryptocurrencies different from bitcoin and other public ledgers that are transparent. These altcoins, on the other hand, employ different privacy-based aspects and protocols that will give users privacy depending on their needs.

Often referred to as the ‘secret coins’ in the cryptocurrency community, Monero (XMR) is considered to be the best privacy coin of them all. Sender information is hidden using ring signatures while the identity of the receiver is protected by stealth addresses and the amount transacted is concealed using RingCT. This way, she ensures that every transaction is always private by default making Monero secure and untraceable.

In the case of Z-Cash, it has a more elastic strategy as protection is optional. ZCash’s distinct and interesting element is the use of the privacy feature. Z-tranactors shield users’ identities including their payment amount using a technology called a-Zk-snarks without creating non-scarce transactions. This helps the privacy users and the users who have to work under domestic regulations while providing them with different products.

Other familiar works like Dash (DASH) provide CoinJoin as an advanced privacy feature that makes the transaction history more opaque through transaction mixing but does not guarantee the level of anonymity offered by Monero or Zcash.

In the current socio-political context, there are heavy reasons to argue that the speed of adoption of privacy-oriented crypto has become compromised due to the overwhelming control of authorities who argue that it has the potential to be abused for illicit purposes. However, as the craving for privacy in financial aspects increases, development will take place. This brings concern because, with time, people’s privacy will have to be compromised to suit the changing laws which will induce more acceptance.

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~ Nesaty