Privacy coins are a type of cryptocurrency designed to enhance user anonymity and transaction confidentiality. Unlike traditional cryptocurrencies like Bitcoin, which have transparent transaction histories, privacy coins use advanced cryptographic techniques to obscure sender and receiver identities, as well as transaction amounts. This makes it difficult for outside observers to trace transactions on the blockchain. Some popular examples of privacy coins include Monero, Zcash, and Dash. These coins aim to provide users with greater control over their financial privacy, appealing to individuals who prioritize confidentiality in their digital transactions. However, their use has raised concerns among regulators due to potential associations with illicit activities.