Privacy Features

Definition ∞ Privacy features are functionalities within blockchain protocols or digital asset applications designed to obscure or protect sensitive transaction details or user identities. These features can include coin mixing, confidential transactions, stealth addresses, or zero-knowledge proofs. Their purpose is to enhance the anonymity and unlinkability of activities on a public ledger. They provide users with greater control over their financial information.
Context ∞ Crypto news often discusses privacy features in the context of regulatory scrutiny, as governments seek to balance financial privacy with anti-money laundering and sanctions compliance. Debates frequently arise regarding the legality and ethical implications of privacy-enhancing technologies. The ongoing development aims to provide robust privacy without facilitating illicit activities, a complex challenge for the digital asset sector.