Privacy cryptocurrencies are perfect for those who
wish to have their identity fully protected. They use advanced encryption
methods in such a way that it is possible to send or receive money from
anywhere in the world without the risk of revealing your identity.
Initially, many people believed that Bitcoin would
provide perfect anonymity features. In fact, it was later discovered that it is
a cryptocurrency of pseudonyms. Why is that? Basically, all transactions with
BTC are stored on a kind of public spreadsheet, which saves the virtual wallets’
addresses and the number of coins being sent.
Although having a virtual wallet requires no registration, it is not very difficult to identify the IP address of a particular wallet. Then, with this address reach the true identity of a person.
Due to this fact, anonymous cryptocurrencies have emerged to try and satisfy the demand for complete anonymity. In recent years, they have created large user communities and gained market relevance. Some of them are among the 50 most important currencies in terms ofmarket capitalization, and their growth potential remains enormous.
In this article, the Cripto InterCambio blog will present the Top 5 privacy cryptocurrencies.
Top 5 private
Monero (XMR) was launched in 2014, and
it is the largest among all privacy cryptocurrencies in terms of market
capitalization. It has an estimated value of $95 per unit, and is currently the
14th largest currency in the entire crypto world.
“With Monero, you are your own bank” is the
motto of this cryptocurrency. Their transactions are confidential and
impossible to track. Unlike Bitcoin, where digital wallet addresses are stored
on a public spreadsheet, Monero generates unique keys for each transaction. CryptoNote protocol technology
guarantees the complete anonymity of this currency.
Also, Monero offers faster transactions than Bitcoin
since its transaction blocks are up to 2 MB (compared to 1 MB with BTC).
This mix of speed and anonymity has made Monero
popular in recent years. It’s probable that its demand will increase further in
Dash (DASH) was created from the
Bitcoin protocol. It brought innovations in terms of scalability and
transaction anonymity. Currently, it is the 19th largest cryptocurrency in
terms of market capitalization, with an estimated value of $964 million.
Not all transactions with Dash are private, only those
made through Dash PrivateSend. Instead of storing individual transactions on a
public spreadsheet, the algorithm makes a “mix” between various
transactions that were all executed at the same time. In this way, it is
impossible to track the original source.
Another large privacy currency is Zcash (ZEC). Currently, it is the 27th largest cryptocurrency in
terms of market capitalization, with an estimated value of $513 million. A unit
of it is worth approximately $53
ZEC was launched in 2016 and is an innovation on the
idea of semi-transparent transactions. Like Bitcoin, the network’s financial
operations are stored on a public spreadsheet. However, unlike BTC, the
identities of the digital addresses are encrypted. Therefore, there is
This gives greater transparency to the network; public
data hinders malicious intentions and attempts to circumvent the system, but
maintains the privacy of its users. This system is what makes Zcash different.
Verge (XVG) was put into circulation
in 2014. It acquired great fame in the crypto world by being promoted by John
McAfee, the creator of an antivirus software that bears his last name. McAfee
is a famous crypto world enthusiast.
Currently, it is the 77th largest cryptocurrency in
terms of market capitalization, with an estimated value of around $73 million.
A unit of it is worth approximately $0.004
Verge uses the same technology as TOR browser, which focuses on anonymous browsing. In simple terms, this technology “hides” its users’ activities within several layers of servers, so that it is impossible to track a user’s IP address. Therefore, their true identity will not be revealed.
In addition, other technologies reinforce anonymity.
All transactions on Verge are made by the I2P network, a kind of
“anonymous internet”. Its technology is quite interesting.
Zcoin (ZXC) is based on the Bitcoin
code, but has developed into an original project in recent years. Currently, it
is the 89th largest cryptocurrency in terms of market capitalization, with an
estimated value of around $59 million. A unit of it is worth approximately
Zcoin, like Zcash, was created based on the Zerocoin
protocol. However, it does not store any information about its transactions. It
uses a system known as zero proof of
knowledge. Basically, when an amount is sent, a temporary key is generated.
As the transaction is confirmed, all the information related to the transaction
Its group of programmers continues to improve on the
software. It was integrated into the Sigma protocol in 2018. This protocol
ensures faster transactions.
cryptocurrencies and the importance of anonymity
The Internet and social networks have brought numerous
benefits to the world we live in. However, we have never before shared so much
of our personal data with large companies and governments. Fortunately,
technology also brings alternatives that promise privacy.
When it comes to money, personal data is extremely
important. Private cryptocurrencies offer their users the possibility of
protecting their assets, and identity from companies and governments.
As the importance of anonymity becomes more
apparent to vast sectors of society, the trend of projects such as Monero,
Zcash, Dash, Verge, and Zcoin continuing to grow is undeniable.
Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.