Private crypto coins are the ones that conceal the identity of the user and transaction history. Monero, Zcash, DASH, Horizen, Verge, and beam are the most private crypto coins. These coins offer the option of concealing the user’s identity and activities.
Have you ever wondered what makes cryptocurrency so much lucrative and attractive that it has crossed a market cap of $2 trillion? Let me answer it for you, the key feature of the crypto like volatility, decentralization, privacy, and easy access. The main two factors of crypto which will be the focus of discussion are privacy and anonymity. Private crypto coins conceal the identity of the user and the transactions history.
Private crypto coins Examples:
Well, some of these private coins are discussed as an example below.
Monero’s XMR is infamous for concealing the user’s identity. The ring signature and stealth addresses are the main features that help Monero in concealing a user’s identity. It’s the 26th largest crypto coin in the overall market.
Zcash or ZEC uses the Zero-Knowledge Proof tool which comes with the option of making a transaction without showing the address to others. It’s the 60th crypto coin trading.
By the use of the master node, DASH allows its customer whether they want to make a transaction anonymously or not. It’s the 61st crypto coin by the overall market.
Verge uses The Internet Project (I2P) and The Onion Router (TOR) to protect user identity. TOR bounces a user’s communications over a distributed network of relays and tunnels run by volunteers spread across the globe, thereby hiding the user’s identity. On the other hand, I2P encrypts user data before sending it through an anonymous, peer-to-peer, and volunteer-run globally distributed network. The rank of Horizon is 111 in the overall market.
Horizon uses the same protocol as bitcoin and offers the public T-Addresses and privacy shielded Z-Addresses. It is the 83rd largest crypto.
The beam is by default private coin and it doesn’t store any information of the user over Blockchain. The features like compact blockchain size, suitability support for offline and online transactions, and atomic swamps make it far more superior than others.
While privacy is a much-desired feature in the virtual world, it brings with it the perils of a large criminal element. Cryptocurrency operators have to fend off numerous hacking attempts by malicious participants. Law enforcement agencies and regulators are also more likely to investigate people with large transactions. Private crypto coins are mostly used to avoid tax issues and for the sake of keeping data safe.
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