Cryptocurrencies are highly popular nowadays. And two of the most important factors why this is so are privacy and anonymity.
Cryptocurrency networks offer these features to users to let them secure their identities as well as make their transactions private.
At a time when user and data privacy are two big concerns, the cryptocurrency community is also starting to get worries about privacy security.
The following are the top cryptocurrencies that do business with privacy features, most of which built-in.
Let’s start the list with Monero, which is the cryptocurrency with a popularity and adoption that have been gaining traction because of the anonymization feature.
That is, XMR transactions are un-linkable and untraceable. It uses the concepts of ring signatures and stealth addresses to conceal the identities of the sender and the receiver in a transaction.
On top of that, Ring Confidential Transactions (RingCT) is utilized to conceal transaction amount, which guarantees total anonymity.
Monera is the 10th largest cryptocurrency by trading value.
It started as a fork of bitcoin, and now Dash has emerged to mean “digital cash” since January 2014. Also, it is referred to as the “first privacy-centric cryptographic currency.”
Dash makes use of the “coinjoin” anonymization technique called PrivateSend (or initially DarkSend). This method anonymizes the transactions being done by the users.
It hides the transaction details by mixing transactions of multiple participants and projecting them as a single transaction.
The strategy guarantees that there is zero way to know who transferred what amount to which other participant. Three transactions are the minimum for the coinjoin technique.
According to ZCash itself, “if bitcoin is like http for money, ZCash is https.” This statement highlights the cryptocurrency’s enhanced security and privacy features.
ZCash has implemented a cryptographic instrument called Zero-Knowledge Proof and grants participants a choice to protect transactions.
It also enables participants to do a transaction without any of them showing their addresses to the others. At the same time, Zero-Knowledge Proof also conceals the transaction amount.
Rather than using some cryptographic methods, Verge depends on the existing and tested technology of The Onion Router (TOR) and the Invisible Internet Project (I2P) to secure the user’s identities.
TOR bounces the user’s communications via a distributed network of relays and tunnels. These relays and tunnels, meanwhile, are operated by volunteers spread across the globe. In the process, the user’s identity is hidden.
Meanwhile, the I2P encrypts the user data before sending it through an anonymous, peer-to-peer and volunteer-operated globally distributed network.
The transacting participants will be able to hide their real locations as well as their IP addresses.
When a popular adult website adopted Verge to start receiving cryptocurrency payments, XVG made headlines.
Bitcoin Private (BTCP)
Bitcoin Private came out as a unique “fork-merge” of two notable cryptocurrencies, which are bitcoin and ZClassic.
The fork-merge took place on February 28, 2018, while the main net was kicked off on March 3.
Basically, Bitcoin Private tries to combine the security and popularity of bitcoin along with the features for privacy of ZClassic, which is a fork of the ZCash, offering the same privacy features as ZCash.