Is Bitcoin the Best Source for Execution of Private Transactions?

As reported by CryptoNewsZ, “Making its first appearance in the financial market space as the world’s first-ever digital or virtual currency, Bitcoin can be considered as the pioneer in the evolution of a new-age payment settlement mechanism. Cryptocurrencies operate on blockchain technology, which is a distributed ledger network where transactions get stored securely via cryptography. Digital currencies are entirely different from fiat money as they do not exist in paper and metal coins, they are considered to be designed for facilitating private transactions the keep the origin of funds and the owner anonymous.

“Interestingly, Bitcoin has always been popularized as a payment system that supports the anonymity of the owners in the best possible way. In contrast to general thinking, Bitcoin is, in reality, one of the most transparent payment networks available in the industry at the present time. The globally reputed coin is neither wholly anonymous and nor truly transparent; rather, it follows the mid path where a person’s financial activities can be unveiled depending upon the efficiency of the adversary and the choice of tools made by the user.

“Anonymous Bitcoin transactions are those wherein no third-party had any knowledge about the transaction executor. On the other hand, a private Bitcoin transaction is that wherein no third-party has to access to transaction details like the amount involved. It is necessary to understand the difference between anonymity and privacy before drawing an inference. Bitcoin trading activities are predominantly anonymous and not private. The identities of the owners are not recorded on the Bitcoin blockchain, but all the confirmed transactions are permanently secured on the network and are visible on the blockchain. The Bitcoin blockchain supports immutability that and so no changes can be made in the blockchain secretly without the knowledge of the owners…”