Top 5 Privacy-based Cryptocurrencies
A lot of laurels have been sung about the revolution that bitcoin is. And an equal amount of concern has been put forward regarding the one thing it lacks privacy.
The main narrative behind cryptocurrencies was transparency to protect transactions against fraud but people have been concerned with their right to privacy.
The fact their wallet IDs and transaction history along with the number of coins they own, purchase, and trade has been a bother for a majority of users.
Enter, privacy-based cryptos. For a long time, cryptos followed in the footsteps of bitcoin and introduced a public ledger into the market. But to address the privacy-related concerns of the people, many new privacy currencies are now sailing in the market.
In this article, we are going to take a look at the top 5.
Zcash is an open-source, decentralized cryptocurrency that offers privacy and selective transparency of transactions. The payments made on the Zcash platform are published on a public blockchain but the details such as the sender, receiver, and the amount of money transferred are not.
How does Zcash work?
Zcash employs a rather new method of cryptographic privacy called the zero-knowledge proof construction, acronymed as zk-SNARK (Zero-knowledge, Succinct Non-Interactive Argument of Knowledge), which allows the Zcash network to maintain a secure ledger of balances without revealing the parties or the amount participating.
The transaction meta-data is encrypted and zk-SNARKs are used to prove that no theft, cheating, or fraud has occurred.
One of the most salient features of Zcash is that it allows for both public and private payments and users can choose to send Zcash privately or publicly. The transaction made from a protected address to a transparent address will reveal the received balance but the one made from a shielded account to a transparent one will not.
Pros: Zcash is not private by default. It gives users the choice to opt for a secured account, therefore, providing a neutral platform.
Also, the project is backed by a strong development team.
Cons: The optional privacy could be due to the inefficacy of the zk-SNARK system. The majority of the blockchain is transparent and those who use the privacy feature are easy to identify which makes the blockchain prone to hacking.
Moreover, creating a zero-knowledge transaction is a slow and costly process. The platform is run by a for-profit company which tales 20% of all the coins mined for the first four years.
Circulating Supply: 3,663,506 ZEC
Market Cap: 1,6,34,874.83x against ETH
Currently Trading at: 0.466x against ETH
Dash is a hard fork of Bitcoin which means that the platform has all the technology which makes Bitcoin so great. The Dash network has been developed as the next generation P2P blockchain network that features instantaneous transaction confirmation, a self-governing, self-funding model, and doubled speed protection.
The platform employs PrivateSend to ensure that your activity history and balances are kept private. The platform is not cryptographically private and since it works similar to Bitcoin, the blockchain is primarily public with the option of privacy.
The platform works on the concept of master nodes representing an added layer of network servers working in high-security clusters to provide decentralized services. Master nodes are rewarded for validating, storing, and serving the blockchain to users.
Pros: The coin focuses heavily on its own mass adoption and is available through ATMs globally. Dash is more often than not the fourth currency to be accepted in stores after bitcoin, litecoin, and ethereum.
The platform is fast and allows the users to send coins anonymously through Dash’s PrivateSend.
Cons: The privacy is optional which, as is the case in Zcash, can be threatened. The master nodes require a minimum deposit of 1000 Dash coins to run. The master nodes appear to have more power and influence over the regular nodes which means that the network is not fully decentralized.
Total Supply: 18,900,000 DASH
Circulating Supply: 8,000,641 DASH
Market Cap: 6040729.30x against ETH
Currently Trading at: 0.789x against ETH
ZenCash is a decentralized and anonymous platform that offers money transfer, media, and messaging services. The platform employs several privacy features including zk-SNARKs, TLS integration, and domain fronting to ensure that the users’ digital assets, publications, and communications are protected against any unwanted third-party.
The platform works primarily on 3 systems: ZenChat (which ensures a customized, secured communications network), ZenPub (an anonymous document publishing platform), and ZenHide (which enables circumnavigating the blockchain using domain fronting).
Pros: Zen is the first ever crypto to be built in TLS protecting both the protocol and the data exchanged between communications. The platform works on secure nodes and master nodes (much like DASH) and also offers additional decentralized governance where node operators vote on issues.
Moreover, ZenCash offers a free three-month trial period wherein users can manage up to 10 customers without any cost.
Cons: ZenCash appears to be the true leader not only in privacy but also with governance and incentives. The currency is like a dream come true for traders who want to maintain a high level of privacy. The project, as of now, does not seem to have any cons but a close eye on its updates can only confirm or deny that.
Total Supply: 21,000,000 ZEN
Circulating Supply: 3,599,725 ZEN
Market Cap: 219290.30x against ETH
Currently Trading at: 0.067x against ETH
Monero is a decentralized cryptocurrency which is cryptographically private. The currency has been a popular alternative among those who prefer anonymity over privacy. The platform employs distributed consensus to confirm transactions which are them unchangeably stored on the blockchain.
Because the platform is cryptographically private, its coins potentially avoid the risk of being affected by deprecating transaction history. All coins are worth the same value and therefore, there is no chance of blacklisting or debasing the coin.
The coins employ multiple privacy features including stealth addresses and ring confidential transactions to ensure optimal privacy for its users.
Pros: The coins are interchangeable, therefore, won’t diminish the value based on their history. The platform has been quite popular among the users of the dark web which speaks for its privacy.
Cons: The coin is not optimally beginner friendly, and developing with Monero is quite a difficult process. There are very few numbers of merchants who accept the coin, therefore, mass adoption can be difficult.
Circulating Supply: 15,913,234 XMR
Market Cap: 6619357.5x against ETH
Currently Trading at: 0.449x against ETH
Another decentralized cryptocurrency that offers privacy as a choice. That is to say that Verge is not cryptographically private. It only offers privacy through Tor and I2P routing and conceals a user’s ID while a transaction is taking place.
The platform uses a Wraith Protocol to allow a user to make a choice between public and private ledgers for each transaction. However, information such as the receiver and the amount transferred is public and can be viewed by anyone on the blockchain.
The coin appears to be a clone of bitcoin and carries all the attributes of bitcoin’s decentralization.
Pros: Verge has a great development team and is still early in its development phase which means that the coin can show potential growth over time. The transactions are fast and cheap and immutable.
Cons: Optional privacy raises the same concerns as it did in case of other above mentioned optional-privacy offering coins. The platform has a transparent blockchain which increases the risk of Verge coins being blacklisted.
Total Supply: 16,555,000,000 XVG
Circulating Supply: 14,856,278,739 XVG
Market Cap: 3091110.5x against ETH
Currently Trading at: 0.00019x against ETH
Join the ItsBlockchain community on Facebook for industry news and free trading signals – https://www.facebook.com/groups/139015939966125/
Get free altcoin day trade signals on our free Telegram group – https://t.me/ibcsignals
For up to date technical analysis and trends, follow us here – https://t.me/Itsblockchain