Bitcoins or cryptocurrency transactions are not anonymous because the blockchain shows the transaction information as it’s one of the most transparent payment methods. However, cryptocurrency coins have many levels of privacy. Privacy coins are opaque coins that people can trade anytime and anywhere while concealing sender and receiver information during a transaction. Moreover, they also hide the user’s wallet addresses, so people cannot link them to the owner’s identity. The outsiders cannot know the user’s wallet activity. For instance, Zcash has two types of coin - transparent and private. It is a fork of the Bitcoin protocol with the addition of a privacy layer via a cryptographic proof called zk-SNARKs (Zero Knowledge Succinct Non-Interactive Argument of Knowledge). Prover can prove the authenticity of a statement without revealing any specific information.
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