Privacy coins are meant to hide your identity and keep your wallet anonymous while making transactions. This is what makes them stand out since your financial information and activities are hidden from the public. However, when this aspect is stripped away and most privacy coins aren’t as private as people are made to understand and this makes them merely become altcoins and leave their users at risk of public exposure. Recent reports have questioned these privacy features by coins such as Monero and Zcash.
The Zcash funds are either public or private. The transparent value is similar to bitcoin together with its privacy features. The private amount includes a paying key which states the destination to which the funds can be transferred. The paying key is connected to a spending key that spends notes sent to the address. However, the transactions are not shielded by default. Thus 85% are public.
Additionally, when most private transactions in Zcash are not private by default, it makes those who enable this feature look suspicious to agencies such as the National Security Agency (NSA). According to Edward Snowden, the agency has been spying on Bitcoin users using spy tools and collecting unwarranted data. An example is when Ross Ulbricht from Silk Road was prosecuted on the basis of the data collected by the agency.
While Monero offers a stealth address to every user and bounces hundreds of transaction together, it has become the most used coin in the dark web in executing crypto jacking attacks to unsuspecting users. Monero was established in 2014 with an aim to maximize anonymity; however, according to the Wired Notes report in 2017, the enhanced anonymity feature has worked to the advantage of malicious individuals in the dark web.
Moreover, according to Monero’s Riccardo Spagni, currently, the aspect of privacy in cryptocurrency can only be achieved to a certain point, which is perhaps not good enough to escape the spying eyes of a determined agency such as the NSA, which has the resources and determination. This also confirms that most privacy coins aren’t as private as they seem.
Do you think it is possible to achieve 100% anonymity in privacy coin transactions? If so, what would it take to accomplish this?
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