What Is A Privacy Coin?
Coins Privacy is a coin that makes senders and recipients invisible (anonymous), so that no one can see a single detail of any transactions made. Those who can see the transaction are only the first and second parties.
There are some anonymous full coins and do not offer any option to show transaction details. However, there are some who allow partial anonymity. The biggest issue of the Privacy Coins is that it’s easy to use for illegal activities. This, of course, triggered the concerns and suspicions of government officials. The anxiety is reasonable because the Privacy Coin dominates transactions on the Dark Web or the Dark Market Online.
When many government agencies attack the Dark Web, they know how Privacy Coins dominate the market. From here comes an unjust perspective on the Privacy Coins, as they only highlight what the negative side of the coin is, without considering its benefits at all.
It should be noted again that perfect anonymity poses an inherent risk, but so does complete transparency. If the individual bank account balances are public information, there will be more robberies taking place. One’s finances should not be information that can be known by the general public.
Coins Privacy has many benefits besides hiding our information and transaction data. These coins protect users from others who want to target them as crime targets, such as robbery and theft.
More recently, hacking incidents in the crypto market have increased sharply, as their targets clearly have substantial funds. User Coins Privacy can breathe a sigh of relief, as it can have the protection needed to hide the value of wealth from the public.
What is Transparency Coin?
The opposite of Coins Privacy is Transparency Coins. However, Transparency Coins allow others to know how much funds (coins) are in our Wallet. An example can be seen in Bitcoin. Every Bitcoin account owner can view your balance and transactions since the cryptocurrency is indeed decentralized to the public.
If your neighbor or friend wants to see how much money you have in the wallet, do they have the right to know? Of course not! Other people have no right to know your finances, because such knowledge may be misused for crime
Example Top Board Privacy Coins
From the description above, there is obviously a big problem in every published transaction, including the balance in the user’s Wallet. Privacy Coins allow them to apply anonymous mode on standard crypto coins. This poses a problem for governments everywhere, as it is very difficult to monitor the spending or use of Coins Privacy, as well as ensure taxes to be collected to the government.
For that reason, some countries may ban the Privacy Coins, or even ban crypto completely. But there are still many places that do not block activities in the crypto market or do not specify certain regulations. They usually just circulate the transaction risk warning in the crypto market for each individual, so people will know if involvement in the crypto market is not recommended by the government, there is a legal umbrella that can help them if something bad happens.
Currently, there are various types and names of Coins Privacy. But of the many currencies in the crypto market, only the following 3 Coins of Privacy are leading with considerable adoption: Monero (XMR), Dash (DASH), and ZClassic (ZCL).
Monero (XMR) was first launched in April 2014, as a result of Fork from Bytecoin. The goal is to create an untracked currency. XMR utilizes CryptoNote technology, Ring Signatures, Ring Confidential Transactions, and Stealth Addresses. This utilization provides multiple layers of protection to support anonymity, as each layer of protection creates more privacy for the sender and receiver.
CryptoNote is an open source protocol that allows increased privacy. Most other cryptoes use fixed signatures to verify transfers. CryptoNote specifically uses Ring Signature that covers the sender’s signature.
Meanwhile, Ring Confidential Transactions (RCT) covers the amount of funds transfer through a unique technology. In September 2017, this feature is coupled with a hidden address so that the privacy level becomes higher.
Extensive privacy features in XMR occur alongside Monero adoption as a Dark Web utility token. This can provide the foundation for becoming one of the top cryptocurrency. If XMR is able to improve its image in the public eye with some new features not to be used as a crime utility, of course, the adoption of XMR will be more mainstream again. Currently, XMR is trading at $ 272, with a Market Valuation of $ 4.2 billion. This currency ranks 12th of 1,519 other crypto coins.
Similar to XMR, DASH is the most widely used Dark Web currency. However, unlike XMR that all transactions are automatically protected with Private mode, DASH allows users to specify their own, when to use Private mode or not.
DASH has two main transaction features, namely Instant Send and Private (Dark Send). Users can have an optional system, which allows for anonymous delivery or not. Because DASH facilitates more transparency and anonymity in a single platform, the likelihood of its adoption is greater than Monero.
Currently, DASH is trading at $ 589 with a market valuation of $ 4.6 billion. This cryptocurrency ranks 11th of the overall 1,519 other coins.
ZClassic, ZenCash, and Zcash are tech-based privacy coins similar to the name “ZK-SNARKS”. ZClassic (ZCL) itself is a Fork product from Zcash that intends to remove the 20% cost of Zcash technology. In addition, the three Z-Branded products and ZK-SNARKS technology are also intended to provide 100% anonymity such as Monero (XMR).
But the interesting thing here is the cooperation of the ZClassic (ZCL) and Bitcoin Classic (BTC), to do the Fork of Bitcoin Private coin (BTCP). The fork is scheduled for late February 2018, and every ZCL or BTC holder will get a 1: 1 ratio on their Wallet.
ZClassic is currently trading at $ 130, with a market valuation of around $ 442 million, and is ranked 46th of 1,519 coins in the crypto market.