Privacy in blockchain can be divided into two main categories based on the type of service required. These categories are the anonymity of the users and the confidentiality of the transactions. Anonymity is concerned with hiding the sender's or receiver's identity, whereas confidentiality addresses the requirements of hiding transaction values.
Anonymity is desirable in situations where the identity of users is required to be hidden from other participants on the network. This can be due to regulatory requirements, enterprise requirements, or just due to the sensitive nature of the transactions. For example, in a business network, it might be desirable to hide the dealings between different participants on the network from other competitors to avoid friction or unjustified business competitive advantage. The properties of unlinkability and untraceability are used to achieve anonymity.