Confidential transactions.
WHAT THEY PROVIDE
Concealment of participants, amounts, or both.
WHAT TECHNIQUES ARE USED
Signatures that conceal which key signed Addresses generated so recipients are not linkable Commitments hiding amounts Zero-knowledge proofs
WHAT THAT ACHIEVES
Transactions verifiable as valid without revealing contents.
WHY PRIVACY IS ARGUED FOR
Financial privacy is normal in other contexts Public balances expose people to targeting Businesses cannot expose supplier relationships
WHY IT IS ARGUED AGAINST
It impedes investigation of crime.
WHAT REGULATORS HAVE DONE
Pressured exchanges to delist such assets, and restricted some services.
WHAT THAT MEANS PRACTICALLY
Access varies, and may become more restricted.
WHAT USING SUCH NETWORKS MAY ATTRACT
Additional scrutiny from institutions.
WHAT MIXING SERVICES ON TRANSPARENT NETWORKS DO
Obscure origin by pooling funds.
WHAT RISK THEY CARRY
Several have been sanctioned, and interacting with them has affected users.
WHAT TO UNDERSTAND
That privacy and regulatory acceptance are in genuine tension.
WHAT TO CONSIDER
The legal position in your jurisdiction, before using anything in this category.
