Many people have a misconception that most of the cryptocurrencies are anonymous. This is not true at all. Even the most popular cryptocurrency that is Bitcoin is pseudonymous rather than completely anonymous.
We would today not only delve into the details of anonymous cryptocurrency but also share with you 5 anonymous cryptocurrencies.
What is anonymous cryptocurrency?
Anonymous cryptocurrency allows you to send and receive coins without leaving any traces. Neither, can the coins be linked to you. Even with the history of the blockchain, any anonymous cryptocurrency does not trace back the coins. Another characteristic of anonymous cryptocurrency is Fungibility. This characteristic ensures that each and every coin is equally valuable and can be interchanged.
We would now go into the details of 5 anonymous cryptocurrencies.
- Monero:
Current Market cap: $ 4.7 billion
Your quest to find the anonymous cryptocurrency ends with Monero. It provides you with complete privacy which ensures that you cannot even trace the number of coins which are exchanged between 2 parties. This characteristic of Monero was tested when the law enforcement agencies tried to detect the number of coins held by Alphabay owner when it was shut down.
Monero uses multiple cryptographic methods including Ring signatures, Stealth Addresses, Kovri, and Ring CT to ensure that privacy is completely maintained.
The only downside of Monero is that the cryptographic methods of the cryptocurrency are very complicated. This results in the transaction verification data of Monero being 50 times the size of Bitcoin.
Owing to the fact that it is one of the most secure cryptocurrencies, the future of Monero looks great.
- Deeponion:
Current Market cap: $ 155 million
Deeponion is another anonymous cryptocurrency as the transactions are done through the secured network. This ensures that neither real IP nor the real credentials are recorded of the parties who are conducting or initiating the transaction. Moreover, the confirmation is received instantly which ensures that you are able to complete the transactions in real time. The wallets are secure as well and compatible with Windows, Linux, and Mac. With the help of the TOR network, the payments cannot be traced back to the initiator or to the recipient. This helps the parties hide their identity entirely.
- Zcash:
Current Market cap: $ 1360 million
Zcash uses the zk-SNARK protocol which provides truly anonymous transactions. The protocol ensures that there is no proof of the transaction. The main obstacle in the anonymity of Zcash, however, is that this protocol is not implemented as default. Currently, it uses an open blockchain system. Once however, this protocol is implemented as a default option, it would be easier to conduct anonymous transactions in Zcash.
One thing however which you need to keep in mind is that if you truly want to initiate anonymous transactions, you would need 4GB of RAM. Many blockchain companies, as well as cryptocurrency enthusiasts, are trying to find a way to reduce this resource requirement so that it becomes easier for individuals to use Zcash for anonymous payments. Only the future would be able to tell whether truly anonymous payments are possible using Zcash or not.
- PIVX:
Current Market cap: $ 391 million
PIVX recently initiated privacy measures on the cryptocurrency. It is one of the 1st cryptocurrencies to implement the Zercoin protocol which provides complete anonymity to the users of the cryptocurrency. It works on the proof of stake concept. Even though the transaction mechanism is not entirely seamless as the protocol has been recently activated but the glitches are being sorted out by the development team. The development team is highly active in fixing these glitches to make the use of PIVX entirely easy for the users.
When you combine the proof of stake concept of this cryptocurrency along with the privacy which it provides, you can be sure that it would provide faster transactions as well as complete anonymity to the users. There is hardly any other cryptocurrency which works on the basis of proof of stake concept and also provides truly anonymous transactions.
- Komodo:
Current Market cap: $ 618 million
Komodo has not gained a significant amount of media attention when it comes to cryptocurrencies. One of the main reasons why it deserves significant attention is due to the fact that it is truly anonymous cryptocurrency. It uses the zk-Snark protocol like Zcash. This ensures that there is no proof of transaction and neither there is any knowledge of transaction on the blockchain.
In fact, Komodo has inherited these protocols from Zcash. The reason why we are using the term inherited is because it is forked from Zcash. It, however, has a better algorithm as compared to Zcash. This provides it with additional security and privacy of transactions.
In addition to that, they are looking to incorporate cross chain swaps as well as use decentralized exchanges in order to make the cryptocurrency much more secure. Owing to this very reason, it is important to look at this cryptocurrency for investing.
Why should you invest in anonymous cryptocurrencies?
One of the main advantages of cryptocurrencies is that they provide you with a secure ecosystem to transact. However, owing to the increased attention of authorities as well as governments on cryptocurrencies, it is necessary to invest in the anonymous ones. Investing in anonymous cryptocurrencies provides you with a lot of advantages like:
• Easy to protect the coins
• Easy to transact
• Easy to liquidate the coins
• Easy to transact using the coins
Owing to these four advantages, the potential of these points is also much more as compared to the normal cryptocurrencies. That is why, when you’re holding them for a longer period of time, you can be sure that you would be able to reap rich rewards. The returns on these cryptocurrencies would be higher as compared to other pseudonymous or transparent cryptocurrencies.
Conclusion:
Thus, if you’re looking to invest in cryptocurrencies, it is a much better idea for you to invest in anonymous cryptocurrencies. With the help of investment in these anonymous cryptocurrencies, you would be able to get above average returns. Moreover, as the usage of these anonymous cryptocurrencies increases more and more you can be sure that the value of these coins would increase further. Anonymous cryptocurrencies also provide you with a unique distinction while investing in the cryptocurrencies space as they are not just any other cryptocurrency.
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