We all know that bitcoin uses cryptographic algorithms and therefore it is perceived by many as a private payment option. However, it’s not.
To say the truth, the best anonymous currencies has already been launched and they totally worth your attention.
Today we will list some of those currencies that boast to be completely private. They are an important part of cryptocurrency world, so you should be aware of them.
Moreover, we believe that these coins will become more and more popular in the nearest future, because anonymous transaction is one of the predominant aspects of financial system today.
So, let’s get started.
Zcash is a cryptocurrency that uses a zk-SNARK protocol to keep users’ transactions in secret. However, they still use blockchain, which is an open resource. Blockchain is an open-source and it shows users’ information by default. On the other hand, zk-SNARK protocol is one of the most advanced methods to hide personal information, since it is a zero-knowledge proof that doesn’t require any interactions with verifier and prover.
This sounds pretty good, however there is a serious problem for those who want to enable a privacy feature on Zcash – you need to have 4 GB of RAM to do so. Unfortunately, most average users cannot afford this.
However, the company is working on this problem and develops new ways to make Zcash more accessible.
No doubt, that Monero is the best choice when it comes to private cryptos.
The system is absolutely anonymous and nobody cannot even find out how much currency has been transacted between users. Moreover, even members of a law enforcement agency have no rights to view the information about users’ bills and balance.
To reach this anonymity level, Monero uses such cryptographic methods as RingCT, Ring signatures, Stealth addresses and Kovri.
The only issue with Monero is that due to the complex cryptography, the transaction sizes are enormous – 50 times bigger than BTC’s. So an average user with his modest means won’t be able to enjoy this coin’s features to the fullest.
Still, we believe that this is not a big problem, considering the fact that Monero offers a super-high privacy level you won’t find anywhere else. Therefore, we are assured that Monero will continue developing, getting rid of all weak points and developing strong ones.
Komodo is not as popular as Monero and Zcash, so most users don’t even know about its existence. However, it is an anonymous currency as well.
Komodo uses zk-SNARK protocol, derived from Zcash. This means that they have implemented this algorithm and improved some aspects of it. However, this coin has the same limitations as Zcash, when it comes to transaction privacy.
Komodo’s main focus is decentralized exchange and cross chain, thus it is not only for private transactions. However, we think that it is an interesting project to look after.
PIVX is an interesting cryptocurrency project that has recently implemented anonymous transactions.
If PIVX is not familiar to you, then you should know that this currency uses proof of stake to enable Zercoin protocol. This gives them odds in the crypto segment focused on privacy.
PIVX is a relatively new project and its developers are facing some challenges, however they work hard to improve all aspects of the service. In our opinion, PIVX shows great promises with such features as anonymity and fast operations.
If you are interested in cryptocurrencies, you must have heard about DASH. This is a well-known coin that gained popularity in 2017.
DASH developers call this currency anonymous, but we believe that it is not as anonymous as its opponents. Let’s make it clear: DASH’s privacy is based on the most basic coin-mixing algorithm. This service shuffles transactions, making their real directions unclear. However, this algorithm provides metadata that can be analyzed, which is a pretty simple way to find out who the members of the deal are.
Also, DASH’s blockchain has KYC/AML compliance, which comes into collision with what privacy is.
Still, DASH is here on this list because they do work on the anonymity aspects and somehow implement them in their work. We hope that DASH will lean forward.
Zcoin allows anonymous transactions due to the Zerocoin Protocol. This is a trustworthy technology that hides users’ personal information and keeps it away from any prying eyes.
There is one downside of Zcoin – a so-called “trusted setup” that was created at the start of their career. This setup means that there is a group of people accountable for setting the initial parameters for the launch of Zcoin. The risk is that if these people get corrupted anyhow, they might produce as much coins as they wish out of nothing.
However, the development team claims that they will remove this trusted setup as soon as possible. This will make Zcoin one of the strongest anonymous currencies ever.
NAV is an undervalued private crypto. The reason is that their anonymity approach is simple and unique, but still has some problems with centralization.
NAV doesn’t use cryptography, but complex obfuscation algorithms, that include not only the main blockchain, but a sub-one, which works in parallel to the first one. The problem is that this makes NAV a centralized system and therefore NAV ‘s technique can be attacked to compromise members’ privacy.
However, NAV works on decentralization right now and we believe that they will cope with this issue very soon.
We know that our readers may have a different point of view on the anonymity in the world of cryptos and might not agree with the options above. However, let’s remember that it is not a knockout game.
Cryptocommunity tries to solve the privacy issue and every company has it’s unique way with certain pros and cons.
For example, Monero has advanced cryptography, but this technology has a downside of high volume transactions. At the same time, DASH offers a simple mixing service, which doesn’t give too much anonymity.
We offer to continue watching these and other coins and see them evolving in the nearest future.