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Privacy cryptocurrencies: Find out the Top 5

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 of market capitalization, and their growth potential remains enormous.

In this article, the Cripto InterCambio blog will present the Top 5 privacy cryptocurrencies.

Top 5 private cryptocurrencies

1. Monero (XMR)

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 the future.

2. Dash (DASH)

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.

Learn more about Dash in our article: What is Dash?

3. Zcash (ZEC)

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 anonymity.

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.

4. Verge (XVG)

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.

5. Zcoin (ZXC)

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 $6.35

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 is destroyed.

Its group of programmers continues to improve on the software. It was integrated into the Sigma protocol in 2018. This protocol ensures faster transactions.

Conclusion: privacy 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.

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