The Rise of Privacy Coins

monero dash zcash

Lets recap. Bitcoin is the first decentralized currency that doesn’t need a third-party intermediary to transfer funds. The invention of the blockchain solved many issues pertaining to anonymity and verifying transactions across the network. While many thought Bitcoin was completely anonymous, we are learning today that this is not necessarily true. The blockchain records all transactions and is kept on a public ledger for anyone to see. A fact frequently misconstrued is that there was no way to track user activities on the blockchain until governments developed sophisticated software to tie Bitcoin transactions to the user’s IP address. Bitcoin is now considered pseudo-anonymous, meaning it has some level of anonymity.

This problem gave rise to other coins looking to offer total anonymity. They do a much better job at hiding transactions. And are much less expensive, however, because they are so good at hiding transactions governments have put stricter regulations on these cryptos. Anonymous coins are playing a huge role in the dark web, but don’t have that same popularity as Bitcoin. If Bitcoin was any more private governments would clamp down hard with regulation maybe even outlawing it. There are plenty privacy coins, but in this blog post, I will cover the top 3.

MONERO

This is a decentralized peer-to-peer cryptocurrency with no needed third-party. Monero keeps your crypto safe by using confidential ring signatures and stealth addresses. The Monero team aims to be the digital medium of exchange for untraceable payments and linkable transactions. Monero is resistant to blockchain analysis. Sending and receiving addresses can’t be read, the blockchain simply is unintelligible for anyone to interpret. The amounts sent across the network are unknown and never recorded on the blockchain. Only you and the other party know where the Monero is going. The development team behind Monero uses proof-of-stake algorithms to mine and validate transactions across the network. An infinite number of Monero coins can be created. When Monero first came out, the team never had of pre-sale of pre-mined coins, a practice that is frowned upon. People believe that in order for a coin to work there shouldn’t be any political agenda toward holding a huge amount of coins. Monero has exploded in popularity for these very reasons. And is the most popular privacy coin to use on the dark web.

DASH

Dash stands for Digital cash. It is an another form of decentralized currency. It is a fork of Litecoin which is a fork of Bitcoin. With Dash you can use a feature called Instant Send to send instantly. The fees are relatively small and is not private. Dash coin also has the option for privacy. When a user wants to send the coin privately you use the Private Send feature. It can take as little as an hour or up to 6 hours to send Dash depending on how private you want the transaction to be. Dash works like this. If I send my coin to a sender. The sender will receive Dash from another sender that didn’t send to me. No one is receiving the original coin sent. This is possible because so many transactions are happening simultaneously on the network. While it does take time to propagate, Dash transactions are untraceable. Dash is closer to mass adoption than any other privacy coin. Visa and Mastercard have partnered with Shake and TenX Apps to convert you Dash into USD and Euros.

ZCASH

Zcash is a fork of Bitcoin. The Zcash team added privacy features they claim Bitcoin was lacking. By default, the transactions are not private, you must enable it before sending to Zcash users. Coins must be sent to a separate Z-address generated by the user wanting to receive Zcash. With Bitcoin you can trace where funds are coming from by checking a blockchain explorer. With Zcash balances remain private.  Zcash can process 8 times more transactions than Bitcoin and is cheaper than Monero. Zcash is minable and there can only be 21 million coins in existence.

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