Introduction to privacy currencies, privacy-based cryptocurrencies

With a Privacy Coin or Cryptocurrency you can do completely anonymous transactions; This is not possible with Bitcoin and many other cryptocurrencies. In this article, we will first explain the privacy-oriented cryptocurrencies and then introduce you to the 4 Privacy Coins on the market.

What is a Privacy Coin?

Contrary to popular belief, Bitcoin, Ethereum and many other Cryptocurrencies transactions are not anonymous. Although we do not need to provide personal information to conduct transactions in Bitcoin, Blockchain and the Bitcoin network are completely transparent and you can track a specific transaction or address from source to destination.

It is also easy to see the inventory of a bitcoin or Ethereum address, so if a transaction goes through a centralized system (such as an exchange office) and has a personal information system, one can see how much bitcoin a person has and To which addresses did he transact?

So at best we can say that Bitcoin is “semi-anonymous”. Achieving an acceptable level of anonymity in this network is a bit complicated and it can be said that complete anonymity is impossible.

Using a Bitcoin Explorer website such as Blockchair.com, you can track a Bitcoin address and all related transactions.

Cryptocurrencies have eliminated the ability to view transaction history and address inventory with cryptographic techniques. Of course, it should be noted that the privacy features of these currencies can vary. In some Privacy Coins, such as XRM, transactions are hidden by default, but in others, such as ZEN, people can choose whether or not to have a secret transaction.

Introduction to 4 Cryptocurrency based privacy

Let’s take a look at some popular cryptocurrency privacy-driven ones that have several privacy-related features at their heart. These Cryptocurrencies claim to offer advanced security features or options that help keep users’ identities and activities secret. Privacy Coins are sorted by market value below.

Monero (XRM)

Monero is the largest and most popular privacy-oriented cryptocurrency at the time of this writing. The main reason for this popularity is the ability of this cryptocurrency to help anonymously identify users. Monroe transactions are very difficult to track because they use circular signatures and secret addresses. These methods help to hide the identity of the sender and receiver. In addition, secret ring transactions (RingCTs) help you to keep the amount of transactions secret and create more privacy for you.

ZCash(ZEC)

ZCash defines itself as: “If bitcoin is like HTTP for money, it’s smart HTTPS.” This definition highlights the enhanced security and privacy features of ZCash. ZCash uses the Zero-knowledge proof encryption tool and offers participants options to protect their transactions. ZCash allows subscribers to perform transactions without the need to disclose the sender and recipient address. Proof of zero knowledge also obscures the amount of transactions.

Horizons (ZEN)

Introduction to Cryptocurrency Privacy Coin
Horizen provides Z addresses that are privately protected with public T addresses and works similar to Bitcoin. However, when sending money from Z address to T address, the amount received will be displayed. Horizon benefits from an extensive node network that helps keep users anonymous.

Beam

Beam is a security-focused cryptocurrency whose main feature is complete control over your privacy. All transactions are private by default, and no other addresses or private information are stored on its Blockchain. This Cryptocurrency claims excellent scalability due to its compact blockchain size. Handling, support for online and offline transactions, Atomic Swap and hardware wallet integration are other features of this Cryptocurrency.

Introduction to privacy currencies, privacy-based cryptocurrencies