Maybe you’re interested in a privacy coin; if you’re not sure what that is, here’s a short guide for you.
What is a Privacy Coin?
A privacy coin is a type of cryptocurrency that’s made to keep any transactions you make hidden and safe. For someone who is worried about their use of cryptocurrency, or their transactions being detailed on the blockchain, a privacy coin is used to keep their information and actions anonymous.
Why Would You Need a Privacy Coin?
The blockchain itself, as well as crypto exchanges, are very transparent. Your data could be accessed by multiple people, including dedicated hackers that can use the information against you, which means your transactions, a.k.a., your financial history, is up for grabs.
How does a Privacy Coin Work?
There are quite a few ways a privacy coin can work, depending on what type of coin you are using. Let’s run through a couple of common examples:
One of the main ways a privacy coin shields a user is through a method known as ‘stealth addresses.’ Every time a user buys cryptocurrency, a new address is generated and attached to the transaction, ensuring it cannot be linked to a digital wallet.
Another way to shield user information is via a ‘ring signature.’ When using a digital signature to verify transaction data, it will be entered into a ring with other signatures from other senders, ensuring you cannot be traced. There are simply too many possibilities involved leading to collective immunity.
Want to take advantage of Privacy Coin? Open up an online bank account, deposit your crypto, and start using your BlockCard as soon as your application is complete.