Top 5 privacy coins explainedDuring its early days, Bitcoin was regarded as a privacy coin since transactions are performed anonymously on its blockchain. Since then, it has become known that it is rather easy to find out who a person is by following his/her Bitcoin address. Bitcoin is unfortunately not the best privacy coin and has given way to innovative technologies emerging to offer better privacy and anonymity.
MoneroTo date, Monero (XMR) is said to be the best privacy coin and has an impressive market cap ($946,687,226) to support the statement. Monero makes use of ring confidential transactions (RingCT) and ring signatures to obfuscate transaction details. This means that if one sends Monero, the identities of the receiver and sender is untraceable as well as the amount. No link between the user and the Monero blockchain exists.
ZcashZcash (ZEC) is unique in the sense that it allows users to choose between two types of transactions: Transactions on the public ledger (unshielded transactions) or transactions that shield the individual’s address (shielded transactions). At the same time, Zcash is still compliant with regulatory agencies. The project has made it clear that they are not going to assist criminals but are focusing their attention on protecting law-abiding citizens. Zcash makes use of zero-knowledge proofs cryptographic techniques in order to keep key information private.
Bitcoin PrivateBitcoin Private (BTCP) is the result of a ‘fork-merge’ between Bitcoin and ZClassic that occurred in February 2018. It represents the best of both Bitcoin and ZClassic in terms of security, resilience and popularity. ZClassic is a fork of Zcash and thus has the same privacy features. Bitcoin Private uses the Proof of Work algorithm called Equihash in order to ensure mining remains decentralized. It is supported by Zk- Snarks technology.
DashDash (DASH) was one of the first privacy coins on the market and was launched in 2014. It is a fork of Bitcoin and was first called Xcoin, then Darkcoin and more recently, Dash. It makes use of PrivateSend that gives users the option of hiding transaction data by means of its mixing service. PrivateSend merges funds in order to uncouple them afterwards. This way, outsiders cannot know how much a specific sender has send or the destination.
VergeVerge (XVG) primarily focuses on anonymity. It is a community-led and open sourced coin which was forked from Dogecoin. Verge allows users to switch between public and private ledgers with its ‘Wraith Protocol’. Users identities are protected with The Onion Router (TOR) and the Invisible Internet Project (I2P). As a matter of fact, Verge is so secure and anonymous that even Pornhub and other popular adult websites have adopted the coin as an accepted cryptocurrency payment.
Majority of these privacy coins are available on South Africa’s favourite cryptocurrency exchange, AltCoinTrader. These privacy coins are built for every day use.