Evaluating Privacy-Preserving Strategies in Bitcoin and Beyond

Abstract

Bitcoin is a decentralized, pseudonymous ledger-based cryptocurrency where all transactions are public. Over time, various privacy-preserving techniques have emerged to address the de-anonymization of Bitcoin users. Meanwhile, newer cryptocurrencies have been developed with enhanced privacy features. This paper evaluates major privacy-focused strategies in Bitcoin and beyond, focusing on techniques still relevant as of 2025. We summarize well-known privacy attacks that de-anonymize Bitcoin, and analyze countermeasures deployed or proposed to protect user privacy. We also examine privacy mechanisms in other cryptocurrencies (e.g., Monero, Zcash) and compare their effectiveness. Finally, we discuss the current state of privacy in cryptocurrency usage, including key technical and regulatory challenges.