KB Topic Privacy Coin

A privacy coin is a cryptocurrency which is designed to preserve the amounts, sending and receiving addresses in transactions.

Although sectors of the mainstream media have called Bitcoin an anonymous payment system this is absolutely incorrect. Bitcoin is 100% transparent and allows for transactions to be fully traced forward and backward in unlimited fashion. If one end of a Bitcoin transaction is identified, then every other transaction stemming from or arriving into this end can be traced.

This is seen both as a plus and as a weakness for Bitcoin. It's a plus because Bitcoin promotes absolute transparency. Every member of the Bitcoin P2P network can verify any transaction using his own open source software running on an average personal computer. On the other hand this is seen as a weakness because once a customer makes a purchase, the seller can see the buyer's wallet balance and complete transaction history. There have been crimes where a Bitcoin wallet with a large balance was used for a purchase and thieves invaded this home days later to steal personal computers holding the Bitcoins. It is suspected that some purchase where the home address was known gave away the customer's Bitcoin balance and location.

Privacy coins are, therefore, of interest to average citizens who want to preserve their privacy as well as to criminals who want to hide their illegal activity. There is great debate about this latter use case which will eventually be regulated by authorities.

Based on Cryptocurrency Knowledge Base Topic privacy coin
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Coinbase Pro Adds Zcash (ZEC) Privacy Coin to Lineup, Transfers Open Immediately
On Thursday, another crypto asset was welcomed into the Coinbase Pro lineup Zcash. Zcash, a privacy coin, can now be transferred into the platform, but full support won't be added right away because of its status. On a Twitter post by Coinbase Pro, the platform told followers, ZEC is launching on Coinbase Pro. Starting at 10am PT, customers can transfer ZEC into their Coinbase Pro account. Traders can deposit ZEC but cannot place or fill orders. Order books will remain in transfer-only mode for at least 12 hours. The privacy coin is much different from many of the other tokens on the platform, but a post in the company's Medium blog helps to clear up any questions. It discusses that Zcash has both shielded and transparent transactions, which provide varied information about the activity that takes place. A shielded address is completely anonymous, while transparent transactions are traceable. Going on, Coinbase Pro adds,

Top 8 Privacy Coins
It's a common misconception that Bitcoin and other cryptocurrencies are fully anonymous and untraceable. In fact, many blockchains only disguise users identities while leaving behind a public record of all transactions that have occurred on the blockchain. The data in the ledger often includes how many tokens a user has received or sent in historical transactions, as well as the balance of any cryptocurrency that they have within their wallet. There is a concern that even with their identities disguised, users can still be identified based on their activity within a blockchain. This is why some people turn to privacy coins cryptocurrencies that provide users with a higher level of anonymity.

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