Private Transactions on the XRP Ledger
Does XRP have private transactions built into the XRP Ledger (XRPL) by default?
A lot of discussion on privacy and blockchains have been discussed over the years. In fact, there have been cryptocurrency projects built specifically for private transactions. But what if I told you that private transactions are built into the XRPL and there was no need for any privacy coins? Let's do a thought experiment combined with a private transaction on the XRPL testnet to show that privacy is already built into the protocol.
This transaction is open on the Ledger and visible to everyone.
This process doesn't quite make it anonymous, as when Bob wants to sell the XRP for cash, it would be simple to identify if using an exchange. However, if we continue the process and Bob pays for something by by rotating keys, you could easily argue that private transactions are possible except for the originator Alice and the final individual that wants to cash out the XRP on an exchange with full AML/KYC. (Lets say that is Fran in below image).
Comment below on Twitter Post
Photo by Tim Mossholder on Unsplash
I made a video to demonstrate this process on the Bithomp Testnet link below.
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