I looked into Obyte privacy and I believe it is seriously flawed. Though the idea behind Blackbytes is fantastic overall. Each time a user creates a transaction to move blackbytes, the user has to pay a network fee in Obytes. This violated the coin's privacy, correct me if I'm wrong.
Indeed, the user has to pay network fees in Bytes (not in Obytes), and the address where the user had Bytes shows up on the ledger. Of course, we'd like to leave as few traces as possible, however I don't think showing their fee-paying address is such a big deal because other privacy protections are still in place:
- the recipient of the payment is hidden
- the payment amount is hidden
- the fee-paying address is pseudonymous