Privacy Coins: Explore Crypto Anonymity
Anonymity is one of the values of cryptocurrencies, although not all of them are truly anonymous. As a new option to anonymous Bitcoin, Ethereum, etc, they are now taking the center focus in the crypto world. What are privacy coins and why people opt for them? How to exchange crypto anonymously?Find the answers in this article.
What are Privacy Coins?
Privacy coins are a group of anonymous cryptocurrencies used to power anonymous and private transactions on the blockchain. There are several techniques used to conceal the origin of the transaction and the destination, for instance, mixing several transactions together to evade blockchain analysis and concealing the real wallet address and balance of the user.
With Bitcoin and other non-privacy cryptos, anybody can see the transactions and public addresses of the users on their chain for the sake of transparency. So it’s easy to track users’ withdrawals and deposits.
Private cryptocurrency offers untraceability and anonymity. The first feature makes it super hard to trace the transaction with a blockchain analysis. Anonymity allows to conceal the identity of those behind the transaction process.
List of Private Cryptocurrencies
Among the topmost private cryptocurrency coins, there are Monero, Zcash, Verge, and more.
The XMR coin is gaining popularity since it provides users with the anonymity they crave for. Transactions on Monero are quite hard to trace due to the technical features such as stealth addresses and ring signatures. Thus, it becomes possible to conceal the identities of the receiver and the sender. Also, by using Ring Confidential Transactions (RingCT), Monero is able to hide the amount transacted. Well, we get the maximum privacy here!
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, Verge relays user’s connections through a distributed network of relays and tunnels operated by volunteers worldwide. Thus, Verge conceals the user’s identity. The I2P enables data encryption before it is sent through the TOR network. The IP addresses of users involved in the transaction are hidden. With the main goal of becoming one of the most private cryptos, Verge has already proved its value.
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. Top crypto OGs consider Zcash as “the best privacy coin” like the Winklevoss twins, Balaji, Vitalik, Snowden, etc.
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.
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.
Now, you are free to decide on which crypto to choose. That’s a new opportunity for people to stay maximum private while making transactions, so why not to take advantage of this? Consider what exactly you want from a private token and make the right choice!
What Is The Most Private Cryptocurrency?
In fact, Monero takes the crown of the most private cryptocurrency according to its popularity and usage among users. CoinMarketCap data show that the XMR is leading the list of private crypto coins. Monero’s ability to shield receiver and sender addresses and amount may be the win factors why users find it more attractive among cryptocurrency privacy coins.