First, at present, the problem of privacy does exist.

The pursuit of transaction and information privacy has always been a necessity for certain human activities. This is mainly reflected in the following aspects:

  1. In modern society, especially in commercial communication, which involves commercial interests and secrets, both sides of the transaction often have a strong demand for privacy.

  2. In the early days of Bitcoin, it wasn’t the enthusiasm of geeks that rapidly popularized its use and expansion. It was a big scene that much of the public media avoided, but in fact couldn’t avoid: dark web transactions. Because in its early days, bitcoin’s pseudo-anonymity was enough to satisfy such traders’ primary concern, privacy, in the absence of regulation.

  3. In the West, the desire for privacy is almost in the DNA of the culture. Moreover, since the birth of Bitcoin, the development of private currencies has been almost exclusively by Western teams, which further illustrates how large the need is and how valuable it can’t be overstated.

Does Bitcoin have privacy?

  1. Bitcoin was originally developed as an anonymous cryptocurrency that protected privacy as long as a real-world identity could not be linked to a Bitcoin address.

  2. However, due to the public nature of the Bitcoin blockchain, it soon became apparent that it was possible to identify individuals based on usage patterns of certain addresses and transactions.

  3. In addition, the node also discloses its IP address when broadcasting transactions.

Third, how to protect privacy?

Four privacy and security solutions for blockchain:

  • Channels
  • Mixers
  • Ring Signature
  • Proofs of Zero knowledge

See the article for detailed answers:

zhuanlan.zhihu.com/p/296827377

Current privacy technologies have achieved the integration of private addresses, hidden financial data, masked identities, traceless IP, private smart contracts and DeFi/DEX on the privacy framework of blockchain.

Iv. What are the main uses of anonymous currency?

  1. When it comes to anonymous transactions, many people first think of illegal transactions and crimes.

  2. But in fact, our lives are full of these kinds of transactions.

  3. For example, after a deal has been made, the parties to the deal generally do not want to disclose the deal, especially the true amount.

  4. Or, when smart contracts are used to handle bidding and bidding, neither side of the transaction wants to publish the bid amount on the blockchain for anyone to check before the bidding and bidding end.

  5. The confidentiality of this information is important in many business situations.

  6. Of course, every issue has two sides. We are committed to respecting human rights and freedom as well as the laws and customs of other countries. We firmly reject acts that are anti-human, anti-social and against social morality.