Top 5 Privacy Cryptocurrencies And their Importance
Privacy Currencies and their importance:
Bitcoin is one of the most revolutionary technology as of now, but it also has a significant flaw. Bitcoin uses blockchain ledger for its transaction. What makes blockchain insecure is that any transaction done through it remains entirely exposed to the public. While some people find it insecure, some people react it to the least. Most users say they are ok using blockchain as they don’t have anything terrible to hide, so there is no point of getting worried about it. But to be precise, most people do not feel like making their transaction details public. It is arguably true that no one will be comfortable showing their credit card bills to a stranger standing nearby, you can’t even feel comfortable your colleague checking your private mails in your smartphone. No matter if you have something to hide or not, a personal violation is not something one should be in support of.
So, we can establish the fact that Bitcoin do have a significant privacy issue and the world need a new reformed Cryptocurrency. To make the transactions anonymous, some even try to replicate a Bitcoin. Eventually, someone will find a way to infiltrate through the weakest link and destroy a chain of an end-to-end transaction. While replicating Bitcoin keeps the transaction private, but the transactional communication and purchase history is still accessible.
The next major perpetrators are the hackers. With time, hacker community has become so intense that even giant companies like Sony couldn’t save itself. Not only Sony but also websites such as Ashley Madison, known for storing sensitive information, has also been hacked. Mass websites including MegaUpload are also shut down by Government due to hacking activity. The necessity of an improved version of Bitcoin is crucial. It is because hackers will always find a way to attack any vulnerable link they find and Government, on the other hand, is popular for shutting things down.
Top 5 Privacy Coins available:
1. DASH (DASH)
Website: https://www.dash.org/
Algorithm: Decision Algorithm for Supportive Housing© (DASH)
Block Time: 2.5 Minutes
DASH uses the PrivateSend feature to provide impeccable anonymity to the users that make it one of the most used privacy coin. According to techies, DASH is not that anonymous what users think it is. The PrivateSend feature is nothing but an improved version of Coinjoin which is Coupled with decentralization and chaining approach. Integrating the decentralized function with Dash protocol, the currency can be easily interchangeable, but such feature is yet to be introduced.
To mix PrivateSend with DASH, at least three participants are required to involve in the process so that the funds could be merge together and create an obfuscated transaction. Moreover, it also requires all the users to use the same Dash denominations as inputs and outputs to make the PrivateSend mixing take effects. To reach the anonymity and privacy level to optimum, there has been a lot of PrivateSend Sessions. Though DarkSend feature has its limits too when it comes to sending money per transaction. Currently, one can only send up to 1000 DASH per session.
2. Monero (XMR)
Website: https://getmonero.org/
Algorithm: CryptoNight
Block Time: 60 Seconds
If you prioritize your anonymity over privacy, then Monero might be the right choice for you. With improved anonymity feature, Monero has gained a worldwide name among cryptocurrency users. In January 2017 the developer team of Monero improved the anonymity feature in its protocol which makes the transactions entirely confidential. According to their claim, one can execute a transaction with extreme confidentiality as all their network nodes have been appropriately transitioned without causing any hitch. With Such improved feature, the price of Monero has taken a rise recently.
To improve the privacy and security of Monero, a new Ring Confidential Transaction has been implemented. With the help of older network transactions, the sending and receiving of public keys have been bundled together causing a mixer with a capability to obfuscate the addresses. With Such feature, analyzing a blockchain has become impossible. The new feature also allows users to increase their transaction size, but that’s not something worth celebrating as Monero already has an Adaptive Block Size. The real goal is to provide extreme anonymity to the users and Monero has come quite close to it.
To hide the data of both the sender and the receiver, Monero use features like ring signature and Stealth addresses in addition to Ring Confidential Transactions. The team of Monero is working on offering additional anonymity and privacy features. In future, Monero will use Kovri Router that has the power to hide the transactional address of an origin node in I2P.
3. Zcash (ZEC)
Website: https://z.cash/
Algorithm: Equihash
Block Time: 2.5 Minutes
Zcash can also be a good alternative when it comes to maintaining privacy and anonymity in cryptocurrency transactions. With the use of Zero-Knowledge Proofs, the team of Zcash has successfully managed to provide anonymity to their users. With the help of Zero-technology proofs, one can verify the transactions and add privacy to the data simultaneously. By encrypting the address of both the sender and recipient along with encrypting transaction amounts, Zcash provides optimum privacy and anonymity. Moreover, like Bitcoin, all the transactions are validated by blockchain technology.
To make it possible, Zcash uses the ZK-SNARKS technology. Each transaction you make include a string of data by the sender along with an encrypted form of transaction data and the zero-knowledge-proof. With this technology, a sender will not be able to create that string of data unless he/she has the spending key for that specific address. To execute the process, the input values of both input and output has to be equal.
A Blockchain analyst can still use a public transaction if he/she wants to correlate the information. Zcash also does not provide anonymity for the user’s IP address. So, to obfuscate the IP address, a user has to use its routing service. Zcash doesn’t hide the personal identifiers linked to public data. Therefore, before using Zcash, a user must consider these limitations too.
4. PIVX (PIVX)
Website: https://pivx.org/
Algorithm: BTC Core 0.10.x, BIP38 Encryption/Decryption of Private Keys
Block Time: 60 Seconds
PIVX holds the fourth position in private-centric cryptocurrency transactions. PIVX uses the same platform as DASH which enables the users to run their transactions on master nodes. However, to use the master nodes of PIVX, users have to lock at least 10,000 coins into a wallet while in DASH the limit is up to 1000 Coins.
Instant transaction in PIVX is secure with the help of SwiftTX feature. As compared to another platform where only developers are involved in the currency, PIVX uses the support of both developers as well as members of the community. In future, the community members are planning to utilize the Zerocoin protocol to enhance the privacy of the transactions.
5. VERGE (XVG)
Website: https://vergecurrency.com/
Algorithm: Scrypt, x17, groestl, blake2s, and lyra2rev2
block time: 30 seconds.
Verge may be in its early phase of development, but it has a promising future ahead. According to ‘Black paper,’ to keep the transactions hidden from others, verge use the TOR and I2P technology, which helps it to keep the blockchain obscure. The only issue is that if anyone finds a specific address belongs to you, then that person can see the amount of value you have and what kind of transactions you have done with the particular address. Even though with its limitation, Verge has an enormous potential of becoming a privacy coin.
The key feature of verge lies in the fact that it is the first coin who provides an electrum wallet feature which connects to the I2P nodes directly. The anonymity offered by Verge is spectacular. Even with premium prices in Dash and Monero, you will not be able to get the security compared to VERGE. VERGE also comprises of the entire feature that ZCash is offering that’s even with such as small amount of block time.
It is surprising that VERGE couldn’t achieve the popularity it deserves, even when last year there was an explosion of privacy oriented currencies. Though verge has such as outstanding community and subpar developer team, it still a mystery why VERGE is undervalued.
Rachael Chapman
A Complete gamer and a Tech Geek. Brings out all her thoughts and love in writing blogs on IOT, software, technology etc
