Bitcoin is not as inexpensive as general coins of a currency. It makes you spend a hefty amount but it would be a shame if someone loses or gets their privacy compromised due to lack of security and protection. However, usual privacy protection technologies usually cost quite a large quantity of money except for one. You can now protect all your activities related to Bitcoin just by using ‘Bulletproofs’. It is a software which uses a zero-knowledge proof system. This involves the system to scale the magnitude of privacy on the blockchain and later it provides suggestions where we can find even better means of privacy for the transactions. It is claimed to be better because it provides a new, quicker and compressed means of enhancing the privacy of all your Confidential Transactions (CT). In short, it helps to shorten the size of all the verifications for such transactions of the currency by a significant proportion.
Generally, transaction details include information such as the address of the wallet and the number of coins those are being transacted. However, like any other information on a blockchain, these are visible on Bitcoin’s blockchain. This could be an issue which requires attention because anyone could see how much an individual is trading. This invades an individual’s privacy. If someone unwanted were to get their hands on the details of the transaction of a person, they could use that against him or her which could put that particular individual in some critical circumstances.
Confidential Transactions are severely required by any blockchains who wish to upgrade their privacy systems to a whole new level. Confidential Transactions involve a process in which the sender of the Bitcoin and the receiver of the currency will have the proper information about the transactions which are stimulated by several varieties of tricks which involves cryptography. These complex tricks allow an individual to provide an amount of Bitcoin which can be fabricated according to one’s will and that amount will be seen by the viewers and other users on the blockchain. If someone is trying to track the number of coins transacted, they will only know what they observed from the blockchain. As obvious as it can get, calculating the tracks will only leave them with a wrong outcome. For instance, they might want to calculate the amount sent by the sender. They are going to only use the information which has been provided but they are tampered with. Thus, if the sender wants them to think he or she sent a large amount, their calculations will prove them wrong as the received amount will be quite lower than the ‘stated’ amount.