There are quite a few ways that a privacy coin could be used, based on the kind of coin you're using. Let's go through a couple of common examples:
One of the main ways in which a privacy coin can protect users is via the use of'stealth addresses.' Every time the user purchases cryptocurrency, a new account is generated and attached to the transaction making sure it's not tied to a wallet that is digital.
A 'ring signature' is another method to safeguard the information of users. It can be used to verify transaction data and will be entered into an ring with signatures of other signers. This guarantees that your identity is not identified. Collective immunity is po ssible because there are many options. https://hackernoon.com/meet-the-best-privacy-coins-in-2021