Privacy coins have become popular, and major projects are competing to see whose privacy technology is stronger. But the key issue is how to assess the true level and risk points of a privacy chain.

Taking the currently trending privacy chains as an example, zero-knowledge proofs can effectively hide transaction paths, but they are not foolproof. If targeted by side-channel attacks, some metadata may still be leaked. Therefore, industry consensus is that multiple approaches are necessary—combining technologies like ring signatures and mixing circuits to disperse tracking risks, in order to truly block various attack vectors.

Based on actual data, in high-frequency trading scenarios, some modular privacy chains can keep the probability of privacy leaks below 0.01%, which indeed surpasses pure anonymous chains. Coupled with rapid upgrade capabilities, the overall system resilience is even stronger. Quantum computing threats and regulatory uncertainties are looming, but a well-designed privacy architecture can provide sufficient security for institutional users.