Concept of Privacy Coins

Privacy coins are a method for implementing private payments, representing a special type of blockchain tokens that conceal both transaction amounts and the identities of senders and recipients during transactions. They use cryptographic techniques to ensure that both parties' identities and transaction details remain confidential. By employing technologies such as ring signatures and zero-knowledge proofs, privacy coins enable users to conduct transactions in a way that prevents other on-chain participants or external observers from tracing or identifying their identities and transaction amounts.