How do privacy coins protect your privacy? Simply put, privacy coins use advanced cryptographic technologies such as:
Ring signatures: hide the identity of the sender by combining multiple keys into a single signature.
Stealth Addresses: Creates a new address for each transaction, preventing transactions from being traced via wallet addresses.
Zero-Knowledge Proof: Allows users to prove that an amount was sent or received without revealing the identity of the sender, recipient, or amount sent.
Ring Confidential Transaction (RingCT): Hides the amount sent in each transaction, preventing traceability of money flows.
These cryptocurrencies aim to enhance privacy protection by making transaction flows indecipherable and unencryptable. Including by governments and financial institutions. Anonymous digital currencies therefore provide an additional layer of security for those seeking to keep their financial activities confidential.
