What Exactly Are Privacy Coins And The Reason Why You Need Them

1. What Are Privacy Coins As Well As the Reason Why You Need Them Privacy coins are simply coins that allow you to transact in a private manner. Peer-to-peer transactions (transactions that do not require an intermediary) aren't always secure. Blockchain transactions were viewed as having the implication as being anonymous. Do you think that's the case? Transactions can be viewed by anyone who has access to a public ledger system such like Ethereum or Bitcoin. Anybody who has access to your address can see how much cryptocurrency you have and where you have transferred them. This can help solve the issue. It conceals three important details: the sender's address and the recipient address along with the amount of the transaction. It doesn't end there. As technology develops to offer greater security and privacy as well, so do the dangers to privacy. Corporate society is not doing its part. Because they are able to greatly benefit from user data and data, large corporations have constructed their business around it. Although there are laws that guarantee privacy, the federal government is not able to do much. For financial matters they can only take away whatever privacy is available to the user. There is a growing need for an environment that concentrates on privacy. The announcement by Ethereum of the implementation of a second privacy level using zk– rollups has been receiving a lot of attention. Ethereum is the second biggest coin by market capital, and plans to add a second layer that uses the zk–SNARKS protocols. This is a move designed to make the coin more flexible and adaptable. Privacy Architecture at Beldex Beldex best privacy coins, uses the Cryptonote privacy protocol to secure transactions. It makes use of three essential components of cryptonote, namely Ring Signatures: The signatures of a ring can be used to disguise the sender's identity, as the input of the sender is mixed with inputs from many others. Thus the sender's identity is obfuscated. RingCT rings: Ring Confidential Transactions enable you to confirm the inputs and outputs of the rings transaction. The amount of the sender is obscured. Stealth addresses: Stealth addresses protect the identity of the receiver. Stealth addresses can be an integrated address which can be shared by the sender with money to be received but does not compromise the identity of the receiver. The main address will receive money sent to stealth addresses. What does privacy do to increase fungibility? Fungibility is a characteristic of any fiat currency that has the same value for the different denominations. In the world of cryptocurrency, fungibility can be defined as the capacity of a

2. coin to keep the same value between every fraction which is 0.1 BTC = 0.1 BTC regardless of the market's dynamics. Every coin and every part of it has the same amount as their counterparts. But, Bitcoin and other digital currencies are at risk of an individual coin losing its value over being "tainted" - that is, coins that have been taken or used for illegal actions. Privacy coins are fungible, meaning, no single coin or their units will lose value against their counterparts within the same network. This is because there is no record of the history that can be tracked back to the origin of the coin.