"Privacy Coins And Anonymity Sets Analysis"

Assalam O Alaikum

Hello, dear friends! Well, come to my post. How are you all? I hope you will be doing well, by the grace of Almighty Allah. I'm also fine and enjoying my day. Today I'm here to share my knowledge with you about the topic "Privacy Coins and Anonymity Sets Analysis" in this Steem Alliance community. So let's start without any further delay.

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Friends, in this era of the digital world and crypto currencies, digital privacy holds great significance among people, but some of them take it as beneficial for them, while others share their thoughts on the basis of controversy about digital privacy. So if we talk about digital privacy, we will never forget to discuss privacy coins because they have a great role in providing digital privacy.

If we talk about the definition of privacy coins, then we can say that the digital coins that provide privacy and anonymity to investors, traders, and other stakeholders in the digital ecosystem are known as privacy coins. The main aim behind the creation of these coins is to keep things private, i.e., away from the public's eye and other people.

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The privacy coins are quite similar to other crypto currencies, due to which some people think that investing in them is safe and beneficial, but this is not true. This is because these coins are highly volatile, which means that their prices fluctuate over shorter intervals of time. In addition, they also face regulatory issues, and many other potential risks are associated with them.

With the passage of time, privacy coins are getting the attention of people because they allow them to validate transactions privately and contribute to the platform by investing in them secretly. Also, they provide them with a level of security and anonymity as well. Through privacy, it is very difficult to track transaction data, history, and balances of coins within digital wallets.

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The anonymity sets are the pools through which the transaction and account details data can't be checked or controlled. So in this regard, we can say that if the anonymity set is greater, then the level of anonymity and privacy will increase to the next level. On the other hand, if the anonymity sets are smaller, privacy and anonymity will be reduced.

Examples of privacy coins

The privacy coins can be found in different terms and can be different from each other. Most privacy coins are based on the principles of obfuscation, which means that details such as the addresses of senders and recipients and the amount remain hidden, i.e., private. In this process, many advanced cryptographic techniques are used, such as ring signatures and coin-join protocols. Anyway, let's have a look at some important examples of anonymity coins.

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1. Monero:

• Monero is one of the most famous and powerful privacy coins, based on the blockchain network and decentralized technology. So we can say that all the useful consensus mechanisms, such as proof of work and proof of stake, are used in privacy coins. Also, a strong and complex ring signature is used in validating the transactions of privacy coins.

2. Zcash

• It is another privacy coin that is considered a clone of Bitcoin and provides an extra layer of security and anonymity to investors and traders. Zcash solely depends on the zero knowledge proofs, which validate the transactions and provide anonymity to the platform's contributors.

3. Dash

• Besides Zcash and Monero, many other privacy coins can be found in the market, and the dash coin is also one of them. It also provides a level of privacy and anonymity to the people. Also, the dash coin has all the privacy features, but it is still not as famous as compared to the most famous zcash and monero.

Conclusion

So friends, the privacy coins provide an opportunity for investment and making profits through anonymity, but they also contain several risks. So it is very important to understand their workings, basis, and other major things related to privacy coins. Here, I suggest you do your own research and get knowledgeable before diving into the sea of privacy coins. So in that article, we have discussed the privacy coins, their workings, and some of their examples. I hope it will be helpful for you.

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Written by @abdullahw2

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Thanks All 💗

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