Zcoin’s entire raison d’etre is financial privacy. The vast majority of our research and time has been spent in building and deploying privacy protocols for cryptocurrencies such as Zerocoin, Sigma and Lelantus.
Despite this, usage of our blockchain privacy protocol remains low. At the date of writing, around 409,000 XZC has been anonymized via Sigma since its launch in July 2019 which represents only about 4% of Zcoin’s circulating supply. In contrast, our implementation of Dandelion++, which prevents your IP address from being tied to a transaction, is on by default and is used by almost 100% of Zcoin nodes.
It is clear that opt-in privacy does not work and is echoed in other cryptocurrencies that adopt this model including Zcash, Dash or even Bitcoin. Low usage means low privacy as indicated by Chainalysis’ claims that they can partially trace 99% of Zcash transactions and perform successful investigations into Dash’s PrivateSends. Other studies also indicated that despite Zcash’s advanced technology, many users who did not completely understand how its privacy worked, used it improperly and made it traceable anyway.
Various explanations have been given as to why these privacy cryptocurrencies do not seem to want to encourage greater adoption of private transactions primarily along the lines of that they need to play nice with regulators who are uncomfortable with the idea of private transactions. Dash in fact goes to great lengths to distance itself from being called a privacy cryptocurrency with a published legal position that in terms of privacy, it is no different than Bitcoin.
The fact is this: no matter how advanced the privacy technology employed, it is meaningless if it is not used. Privacy likes being in a crowd. Privacy needs to be easy to use.
Read the full article here: https://zcoin.io/paving-the-way-to-privacy-on-by-default-with-opt-out-with-lelantus/