In the world where privacy concerns are greater than ever, there is a new hope — privacy-focused cryptocurrencies.
Privacy coins are anonymous, encrypted and decentralized digital money.
Nobody knows where people spend their cash. You can spend it on a nice shirt or buy a lamp at a garage sale — there are no records of it, unlike the transactions made with a credit card.
The mighty privacy coins will act as a barrier against the entirely controlled digital money.
But, before we go any more in-depth it is crucial to ask ourselves:
Why do we even need privacy?
Why would not we want everything to be transparent and traceable? Maybe you are thinking “I don’t have anything to hide. I’m not a criminal.”
As we previously mentioned, Glenn Greenwald’s TEDtalk is something you should definitely look at. In the video, Greenwald says that privacy is not only about “being a criminal or not” but about keeping our private lives safe. We don’t want cold bureaucrats anonymously monitoring our lives 24/7. There are opinions we like to keep to ourselves and other things we would be embarrassed if other people got to know them.
But what about the people who abuse the privacy rights to gain illicit gains?
Well, law enforcement does have ways to prevent it even today. They have the tools to uncover all kinds of illegal activities.
And centralized entities are proving again and again that it is hard to keep the data safe. Security breaches happen every day, to every major company or organization in the world.
Return of Privacy
The most prominent feature of cash is that it’s hard to track.
In other words, anonymity is the main thing about cash.
Since all early digital ledgers were very easy to track for those that know where to look, the world took a step further and privacy coins came to be.
The true anonymity of money is coming back.
They obscure transactions at every step of the process of exchanging money between two entities. That involves all the information. Where it comes from, who has it, how much, where did it go and when?
Thanks to the privacy coins, privacy protection is advancing every day. From zero knowledge proofs to ring signatures and stealth addresses, privacy coins developers are expanding the human knowledge and helping us improve in this field further and further.
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