Anonymity is one of the values that crypto users look forward to in cryptocurrencies. Although most cryptos offer a certain level of anonymity not all are truly anonymous cryptos. This is where privacy coins come in. In the last decade, fully anonymous crypto has surfaced as the center focus of blockchain research with millions of dollars poured into it. We are starting to see privacy coins take the center stage as people opt for private crypto as the new option to the regular cryptocurrencies like Bitcoin, Ethereum, etc.
What are privacy coins?
Privacy coins are a group of anonymous cryptocurrencies that are used to power anonymous and private transactions on the blockchain. This is achieved by concealing the origin of the transaction and the destination. There are several techniques that are used and some of them are mixing several transactions together to evade blockchain analysis and concealing the real wallet address and balance of the user.
For cryptocurrencies like Bitcoin and other non-privacy cryptos, they allow anybody to see the transactions and public addresses of the users on their chain for the sake of transparency. This makes it easy to track users’ withdrawals and deposits.
However, private cryptocurrency introduces two new features – untraceability and anonymity. Untraceability prevents the tracing of transactions by third parties on the chain making it very hard to do even with services like blockchain analysis. Anonymity makes it possible to conceal the identity of those behind the transaction process.
List of private cryptocurrencies
Here are some of the topmost private cryptocurrency coins, the list of privacy coins includes the likes of Monero, Zcash, Verge, and more.
The XMR coin is gaining popularity rapidly and that is because it is able to provide users with the anonymity they crave for. Transactions that occur on Monero are quite hard to trace due to the technical features that are used such as stealth addresses and ring signatures. These features enable the platform to conceal the identities of the receiver as well as the sender. Also, by using Ring Confidential Transactions (RingCT), Monero is able to hide the amount transacted thereby offering more privacy. It is easily one of the top privacy coins.
Talking of cryptocurrency privacy coins, we have to consider Verge. In the quest to provide anonymous crypto, Verge uses the tested and trusted Onion Router Technology (TOR) and Invisible Internet Project (I2P) instead of cryptographic techniques. By using TOR, it allows Verge to relay user’s connections through a distributed network of relays and tunnels operated by volunteers worldwide. This allows Verge to conceal the user’s identity. The other feature, which is the I2P enables data encryption before it is sent through the TOR network. The IP addresses of users involved in the transaction are hidden. The main reason Verge was developed was to make it one of the most private cryptos.
Zcash calls itself the “HTTPS of crypto” to highlight its focus on privacy features and improved security. To create anonymous crypto, ZEC private cryptocurrency uses the Zero-Knowledge Proof while providing an option for users to conceal their transactions. Users can carry out transactions on Zcash without anybody knowing the address of the other party. Also, Zero-knowledge Proof conceals the amount that is transacted. Many users see Zcash as one of the top anonymous crypto coins.
The full name for PIVX is Protected Instant Verified Transaction and it was launched in 2016 as an MIT-licensed open-source and decentralized private cryptocurrency that protects users’ financial data. The protocol is community-oriented with the platform developed, stewarded, managed, and governed by community-driven DAO. PIVX anonymous crypto is built and tested using advanced cryptography. The financial data protection feature of the PIVX protocol is backed by the trusted zero-knowledge proof (zk-SNARKs). A feature called SHIELD shields every transaction.
One of the top privacy coins is Horizen that provides two options for users, which are the public T-Addresses and the privacy shielded Z-Addresses. The public T-address is similar to the Bitcoin address and transaction on this address is transparent. The Z-address is protected and the transaction concealed. ZEN private cryptocurrency has a wide range of network nodes that help keep ZEN one of the best private cryptocurrencies.
So, here we’ve gone through some of the best privacy coin cryptocurrencies in the market. Deciding which of these anonymous crypto coins to go for will depend on what you want in a private token. By now, you should know what are privacy coins. As well as the list of privacy coins to choose from in the market.