Privacy Coin Skepticism Continues: Beam Halving on the Horizon for January

Crypto News- As the Beam halving approaches, a significant change is on the horizon — the end of Treasury contributions. This shift coincides with the circulation of Beam coins reaching 60%, marking a pivotal moment where all mining proceeds will be directed exclusively to miners. In the past, block rewards were distributed between miners and the Treasury.

Privacy Coin Skepticism Continues: Beam Halving on the Horizon for January

Beam, operating as a deflationary asset, undergoes a halving every four years, reducing miner earnings. The proof-of-work algorithm sets it apart, utilizing Graphical Processing Units for transaction verification instead of Application-Specific Integrated Circuits. The maximum supply of Beam is capped at 262,800,000, and the blockchain, launched in 2019, prioritizes privacy and usability. Transactions on Beam remain confidential, with no on-chain storage of addresses or personally identifiable information.

The issue of privacy has long stirred controversy within the blockchain space. Bitcoin, known for its transparent and traceable network, is often deemed unsuitable for those seeking complete anonymity. Privacy coins, including Beam, entered the scene, employing encryption methods to obscure fund flows while keeping blockchain data public.

Monero (XMR) utilizes random signatures for spending authorization, complicating sender identification. Zcash employs zero-knowledge methods to prove user identity without disclosure. Dash offers an optional feature called PrivateSend to conceal transaction information.

Governments worldwide have responded to the perceived criminal potential of privacy coins. Dubai and Japan have imposed bans, while South Korea blocked their use in 2021. Europe’s Markets-in-Crypto assets bill extends a ban on privacy coins across all 27 states in the European Union. Exchanges have delisted many privacy coins due to regulatory concerns. However, some argue that thoughtful regulation could provide a middle ground by allowing optional privacy features. Despite these debates, the global trend toward government-controlled tokenized currencies, particularly in China, poses a formidable challenge to the advocacy for privacy coin rights.