How Do Ring Signatures Enhance Privacy in Cryptocurrencies?

Ring Signatures obscure the true spender by mixing their digital signature with the public keys of several other users, forming a "ring." All members of the ring are plausible signers, making it computationally infeasible to determine which member actually authorized the transaction. This technique ensures that transactions are unlinkable to a specific user's wallet address.

Monero is a prime example of a privacy coin that uses this method. The larger the ring size, the greater the anonymity set.