S4B Crypto Contest - Season 8

Dear Friends, How are you all? Hope you all are well. I am also fine by the grace of Allah. Today I am here to share with you guys about topic S4B Crypto Contest - Season 8. This contest is organized in Steem4Bloggers.I am so excited to participate in the contest . First of all i thanks to @waqarahmadshah for this beautiful contest. Let's start without wasting our time.

Image was creating with canva

About five years ago today and people didn't know anything about cryptocurrencies. It was beyond people's imagination.With the development of technology, blockchain technology has spread to people all over the world.From the government to the people of every country, blockchain technology is now being researched.New cryptocurrencies are constantly being created through this blockchain technology.When we look at coinmarketcap.com we see thousands of coins being listed on this coinmarketcap.Such as bitcoin, ETH, Monero, xrp, trx, shiba inu, BNB etc.

What do you know about privacy coins?

Image was creating with canva

A privacy coin is a type of cryptocurrency used to maintain transactions and privacy for users.Cryptocurrencies in general are designed to prioritize user privacy over anonymity.As there are many privacy coins in the market today.Here are some of the privacy coins mentioned are

• Monero,
• Zcash
• Dash

These currencies can usually be traded in a confidential manner.
Photocalls are used to transact these currencieses, making it difficult to easily identify the address of the sender and recipient. Althoughs cryptocurrency transactions do not contain any personal information or addresses, the address of the sender or recipient can be inferred from transactions data or pattern analysis.

How do privacy coins differ from regular cryptocurrencies like Bitcoin?

Image was creating with canva

Privacy Coins were designeds in such a way that they have a feature that makes the addresses recorded in a transaction not easily identifiable. Bitcoin transactions are easily traceable but privacy coins are not. Privacy Coins have several features when it comes to transactions. It is through those features that transactions are very difficult to detect easily and privacy is maintained.

• Ring signatures
• Confidential transactions
• Coin mixing:

These privacy coins are traded all the time due to these features, so their privacy is always maintained and cannot easily be detected by other parties.This allows it to be difficult to identify which user initially made the transaction.

Since privacy currencies are allowed to hide all transaction information, data or addresses, these transactions are very difficult to detect easily.Multiple users make the coins mixed in such a way that it is difficult to trace the original or correct origin of the coins.

What are the advantages of using privacy coins?

source

Nowadays, privacy coins have many advantages.Some users enjoy various benefits by trading these privacy coins.Some of the facilities I am going to mention below.

• It maintains the confidentiality of any user identity or address involved in the transaction.

• It is capable of maintaining the financial secrecy of various corporations.

• It is able to hide privacy and identity by using different layers while transferring.

What are the concerns or criticisms surrounding privacy coins?

source

Along with the advantages of privacy coins have some disadvantages.There has been much criticism of privacy coins.There are several precautions to be taken while trading cryptocurrency.Some of its disadvantages are highlighted.

• Privacy Coins require high transaction fees to maintain privacy levels.

• Trading in privacy currencies is restricted in some countries or regions of the world.

• Simply we can say that it is considered illegal in some regions of the world.

• Through these privacy currencies, many illegal activities and transactions can take place to transfer funds.

Here I have finished writing. Everyone will be fine, stay healthy, God bless.
Here I want to invite @nooruleman, @tripsy and @firyfaiz to participate in this contest.