Homework task on Privacy coins in crypto ecosystem by @dorismos || Club5050

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Greetings to everyone in this community. Hope we all had a good day with steemit today? @fredquantum gave an assignment that is intrinsic. This are the assignment questions and here are my answers.

What's your understanding of Privacy Coins in the Crypto Ecosystem? Give examples of Privacy Coins. Explain 2 Cryptographic techniques utilized in Privacy Coins.
What are the Benefits of Privacy Coins? And what are their disadvantages? Would you love to use Privacy Coins and Why?

What's your understanding of privacy coins in the crypto Ecosystem?

My own understanding of privacy coins in the crypto ecosystem is straightforward following the words implied. When you say something is private, you're actually saying that thing is confidential and not opened for unauthorized access or users. Privacy coins are types of cryptocurrency or are cryptocurrencies that conceals transactions, address, wallet balance, amount transacted and identity of users in the blockchain from outsiders. They obscure transactions on their blockchain to maintain the anonymity of their activities and it's users, only authorized users within a transaction can decipher the amount transacted and the rest. It also conceals the identity, wallet balance and transaction history of a crypto holder unlike other coins that display these information. Their data are very much anonymous to others since its backbone or watchword is on anonymity.

Give two examples of privacy coins

• Monero
• Zcash
• Dash
• Verge
• Beam
• Horizen

Explain two cryptographic techniques

• ZK-SHARKs: The full meaning of this acronym is Zero- knowledge Succinct Non-interactive Argument of Knowledge. This type of cryptographic techniques enable users prove the authenticity of a transaction without disclosing any vital information or details like the address, the amount and even wallet balance of the transaction to anyone, not even to miners.

• Conjoin is another cryptographic technique whereby transactions from different senders are automatically grouped into one transaction which makes it hard to trace where the transaction came from because a new address would be utilized.

Benefits of privacy coins

• Data privacy
• Anonymity
• Financial security

Disadvantages

• High transaction fees
• Some groups have used it for illegal activities like money laundering etc.
• Funding of arms for terrorism

Would you love to use Privacy Coins and Why?

Yes because privacy coins are based on anonymity and untraceability which means it preserves the anonymity of people making transactions in the crypto Ecosystem.It makes it impossible for a third-party to trace or follow the trail of transactions using blockchain analysis

I invite @bossj23 and @imohmitch
Cc,
@fredquantum
@benton3
@steemkidss