The future of blockchain privacy: zero-knowledge proofs in decentralised exchanges

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Zero knowledge proofs, such as those incorporated in ZK SNARKS, are becoming <a href="https://hackernoon.com/the-rush-for-zero-knowledge-proofs-and-where-it-leaves-privacy-coins-32efdf27f18b" target="_blank">the go-to privacy technology sought in blockchains</a> at present. This is for good reason — they allow for true “zerocoin” transactions, meaning that coins transferred have no transaction history which can be tracked through the blockchain, and even the amounts are obscured from outside parties. Users transacting with these currencies can rest assured that their identity or use of funds will not be ascertained by any third party, regardless of their resources — an extremely powerful idea. However, problems will occur when they seek to exchange these currencies for a non-privacy equipped token, and even more so when they attempt to buy in or cash out with fiat. Of course, they can exchange their privacy token for something like Ethereum in a centralized or decentralized exchange, but as soon as that happens a trail emerges and can be followed.