Bitcoin Fungibility Can Be Improved With Top 4 Privacy Features

Bitcoin fungibility can be improved with a few key tools that are currently under development by core developers. In the latest cryptocurrency news today we will discuss the most exciting ones.

for the majority of the bitcoin users, the number one cryptocurrency remains fairly solid and unchanging but it is always under a constant evolutionary cycle through a series of proposals for improvement. One of the key aspects of the Bitcoin network is privacy. Of course, Bitcoin transactions are anonymous but we saw many times now that this doesn’t make them 100% anonymous. Privacy is one of the most important factors of bitcoin fungibility and it is a key feature of good money.

Fungible money means that each Bitcoin unit is interchangeable and each of the divided parts is different from the other part. The current proposals include two of the new bitcoin privacy-enhancing proposals named Whilst Taproot and Schnorr. They actually come with a new feature titled MAST. They all work together to increase the privacy level of signatures and in particular, they aim to hide the information about the multi-sig use from the public eye. Not to get into technical details, the new upgrade will be key for privacy enhancement.

Another privacy-enhancing protocol upgrade was proposed a year ago named Dandelion. This one addresses every step while transferring bitcoin. Broadcasting a transaction onto the network brings a huge point of risk. One observant node can pinpoint the original IP address of the transaction thus can show the owner. Dandelion will boas the privacy guarantees for each broadcasted transaction even in the presence of a widely connected supernode.

As explained previously in the coming altcoin news, Bulletproofs is another privacy-based proposal from last year that takes the form of a zero-knowledge proof in order to maintain the anonymity of a transaction amount. A zero-knowledge proof is a method by which one party proves the other party that she actually knows the value without giving out any information other than the fact that she really does know the real value.

The improvements take a long time to be implemented unfortunately but this can also be a good thing. After all, not all proposals are always accepted.