Private Cryptocurrencies: Comparisons and Capabilities
February 02, 2019
The key behind the secret success of top cryptocurrencies is anonymity.
Cryptocurrencies are great. There! We have said it. The very first cryptocurrency, Bitcoin was forged from a solid concept – A decentralized cryptocurrency that was devoid from regulation from governments or authoritative figures, amassing Bitcoin Exchanges to take shape like no other monetary exchange as ever seen.
The crypto market strives to be a stand-alone FinTech sector that is self-powered and yet, protected. Using solid cryptography, Blockchain mobilizes high privacy and fast exchanges that make the crypto world go round.
In recent times, issues of security as well as anonymity have been on a rise and an heavy observation of criminal activities has been observed especially for Bitcoin – Rewarding yourself full control over safeguarding your privacy gives you more privileges and rights.
Privacy. Fungibility. Decentralization. The three principles that drives cryptocurrencies and is an ode to how the crypto market has progressed and forever will continue doing so.
Comparison of Top Private Cryptocurrencies
Multiple cryptocurrencies exist in the market as of today, however let’s have a look at the true crypto kings in every crypto sense of being a benefactor to privacy and anonymity.
1. Bitcoin (BTC)
The surprising thing about the most popular cryptocurrency that there ever was is that in its more than 10 years of being around, never has it once denied the allegations of not being private. The blockchain of Bitcoin is fully transparent and every single transaction along with its history as well as the parties involved with it can be viewed by crypto users.
It’s simple. Bitcoins have addresses and those addresses can easily be used to trace an user or link back to the parties.
Of course the Bitcoin address does conform to its norms of “anonymity” with a promise that although personal information such as your name or number that is provided to it will not be delved, the future can be unreliable. If in case you ever are at a dooming risk of cashing out too many Bitcoins on a non-reliant platform, you may have to shell our personal information to make your transaction successful.
Every Bitcoin is not alike and the same goes for their values. The transparent nature of Bitcoin on its blockchain, the transactional amounts sanctioned in the past with Bitcoin will lessen the value.
In certain cases, it has been observed that Bitcoin addresses were blacklisted for specific addresses. Although, not a reason to lose sleep over as it would take a lot of competency to do so.
Bitcoin as the first ever cryptocurrency there ever was decentralized since its inception and continues carrying transactions on a Peer-to-Peer payment network.
2. Monero (XMR)
As Monero uses strong cryptography technology and is private by default - It puts into action the power of stealth addresses and ring confidential transactions (RingCT)
· Stealth Addresses
Every crypto user using Monero, waiting to receive a lot of coins on a sole address at one particular given time can do so only after validating to check if no blockchain links exist between their address as well as someone else’s. That’s where stealth addresses come in where a one-time address is created for the time being for every transaction that is to be availed.
All the payments enroute to the recipient are routed to different addresses existing on the blockchain so as to mask the identity of the recipient as well as hide the sender and the crypto coins associated in the transaction.
The main objective is untraceablity.
· Ring Confidential Transactions (RingCT)
RingCT is an advanced, upgraded version of ring signatures and when merged with the amazing possibilities of confidential transactions does not dish out on any private details as well as disguising the transacted amounts all the while allowing the network to crosscheck the information.
As Monero provides amazing privacy owing to its extensive usage of cryptography technology, it is both untraceable and unlinkable due to which crypto coins are protected from the evil clutches of derogatory history of Monero transactions.
If you wish to Convert Monero To Bitcoin or any other cryptocurrencies then you should know that all Monero coins are of one pricing that are mutually interchangeable so there is no underlying risk or possibility of getting blacklisted.
The best thing about Monero is how decentralized its entire system is. There is no ne to tabulate the transactions and the developers are collectively funded by Monero users through the Forum Funding System.
Public can access meeting logs and partake in development discussions actively to provide regular insights and more. As for the source code, you can go on the official site of Monero GitHub
3. Dash (DASH)
Although Dashis not cryptographically private, it provides excellent anonymity by conjoining Dash coins together, a method also used to give anonymity to Bitcoins.
Dash works a lot like Bitcoin, when one goes to Exchange Dash the blockchains are transparent by default and privacy is discretional.
As Dash’s blockchain is transparent by default, as an optional resort its uses privacy mixing to pave a way to blacklist unneeded Dash coins and trash addresses.
Dash has masternodes that call for a deposit of 1000 Dash coins to execute successfully. It is believed that these masternodes have beyond comprehended control and impose more influence over regular nodes making Dash only partially centralized.
The “Dash Treasury” earns 10% coins per block whereas the miners and masternodes earn 45% each. This happens as every associated group is required to split all block rewards.
Every cryptocurrency is brilliant in its own belief. All you have to do is make a choice and get crypto-active with these remarkable private cryptocurrencies.