WHAT IS A PRIVACY COIN?
Privacy coins are unique cryptocurrencies that allow a user to gain total anonymity when making blockchain transactions. The identity of users and the origins of their transactions are completely protected.
WHAT ARE THE MOST POPULAR PRIVACY COINS?
1. MONERO
Monero (XMR) is a private, secure and untraceable cryptocurrency and as a fork of ByteCoin. It is an open-source, privacy-oriented digital currency built on a blockchain that is designed to be opaque. With Monero, it is said you are in complete control of your funds and privacy, as no one else can see anyone else's balances or transactions.
Monero works as a privacy-oriented cryptocurrency by using ring signatures and stealth addresses. A ring signature is an anonymous digital signature that does not reveal who signed the transaction. They are generated on the Monero platform through a combination of a sender's account keys and public keys on the blockchain. Stealth addresses are randomly-generated addresses that are created during each transaction for a one-time use, and they hide a transaction's destination address, as well as the receiver's identity. Ring confidential transactions (RingCT) also hides the amount of the transaction; this feature was added in January 2017 as a mandatory feature of all Monero network transactions.
Monero is based on the CryptoNote protocol, and has a dynamic block size and fees, as opposed to Bitcoin.
2. ZCASH
Zcash is a code fork of the bitcoin protocol and maintains its own blockchain and currency token. Zcash builds on the existing work from the Bitcoin core team to enable privacy preserving transaction data using zero-knowledge proofs. It also includes some non-privacy changes to bitcoin, including its proof of work algorithm. Zcash enhances privacy for users by encrypting sender, amount and recipient data within single-signature transactions published to its public blockchain ledger. Zcash does not: encrypt data for multisignature, protect against correlations made with public transactions (for example, when Zcash is traded to/from another cryptocurrency) or obfuscate IP addresses. It is possible to use it in conjunction with an anonymizing network such as Tor, in order to obtain protection against network eavesdropping which is complementary to transaction privacy.
3. DASH
Dash is a digital currency that enables anyone, anywhere in the world to make quick, easy and cheap payments at any time without going through a central authority. Based on a decentralized peer-to-peer network, and secured by strong cryptography, Dash offers a safe and user-friendly payment method without barriers. Dash is portable, inexpensive, divisible and fast digital cash for both the internet and everyday life.Dash offers optional transaction anonymity through a feature called PrivateSend. An improvement of CoinJoin, PrivateSend allows you to break up your Dash into specific denominations and “mix” these with other participants, thereby obscuring the origin of funds used in the final transaction. PrivateSend offers superior privacy to centralized mixing services because each round of mixing is facilitated by a different masternode, making it effectively impossible to track funds on the blockchain.
4. KOMODO
Komodo Platform (KMD) is a privacy-centric coin that promises to be a faster, safer, and ultimately decentralized cryptocurrency with its own established ecosystem. Komodo's very private development team stresses the concept of freedom with their platform, from the standpoint of both users and developers.
5. Verge
Verge Currency wallets feature Tor and I2P networks already integrated, so that there is no additional setup required. Just download the wallet and start transacting with your IP-address obfuscated. Both Tor and I2P encrypt all network traffic so that a user's IP address and data cannot be accessed. A Virtual Private Network (VPN) also encrypts network traffic, but you must trust the VPN provider to not log any of your activity (which they can and often do). Read this gist for more information about the pitfalls of VPN services.
6. Horizen
Horizen (ZEN) offers privacy shielded Z-Addresses and public T-Addresses that work similarly to Bitcoin. However, sending funds from a Z-Address to a T-Address will show the amount received. Horizen also boasts a vast node network, which helps to improve anonymity.
7. Grin
Launched on January 15th, 2019, Grin is a cryptocurrency focused on privacy without censorship in its implementation of Mimblewimble. According to their website, the developers want Grin to be usable by everyone regardless of borders, culture, skills or access. Without address information or amounts stored on the blockchain, the chain is meant to be lean and scalable. Grin was launched without a premine, ICO, or founders rewards and relies on donations to support the long-term development of the project.
8. BYTECOIN
Created in 2012, Bytecoin (BCN) describes itself as a private, decentralized cryptocurrency with an open source code. The main goal of the project is to facilitate fast, anonymous, and untraceable transactions. Bytecoin claims to be the first project to implement CryptoNote technology. Its security reportedly comes from using ring signatures to protect a sender's identity and unlinkable addresses to prevent blockchain analysis. Bytecoin claims to have a block time of 2 minutes and adaptive parameters that are designed to make it easy to mine. Recent additions to Bytecoin technology include Auditable Wallets, which reportedly enables secure, publicly observable deposits, and Blockchain Gateways, a means of connecting Bytecoin's blockchain with other blockchains.
9. PIVX
PIVX is a Proof of Stake Coin, a form of digital online money using blockchain technology that can be easily transferred all around the world in a blink of an eye with nearly non-existent transaction fees with market leading security & privacy.
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Disclaimer: This article reflects its author’s opinion only and is not financial advice. We take no responsibility for the results of any trader’s decision or action.
