Cryptocurrency took the financial world by storm as it paved the way for the next generation of digital/virtual currency. Banks and companies have taken advantage of this new kind of currency to give people the option for a different way to transact. A cryptocurrency can be either private or public. However, there is a fine line between the two which we are going to tackle below.
It is not as “private” as you think
Cryptocurrency is a blockchain type of technology that offers anonymity by allowing users to transact using pseudonyms. However, just because it allows users to operate under a different identity doesn’t mean it is already private.
Bitcoin, which is a type of cryptocurrency, can still be tracked just like other cryptocurrency options in the market. Things like address and transaction amount can be easily traced. And if you are unfortunate enough, someone might leak it to the public without your consent.
Public Cryptocurrency Tokens
Here are some examples of a public cryptocurrency tokens/coins:
Bitcoin
This one is the most popular cryptocurrency option to date. You probably heard about bitcoin by now, especially from ads that suddenly pop up on some websites. Select banks also utilize bitcoin depending on where you live.
Although it offers pseudonymity, transactions and addresses are still trackable which makes it not truly private. Bitcoin has its own share of disadvantages too, such as slow transaction speeds and scalability issues.
Litecoin
Litecoin existed for the sole purpose of fixing bitcoin’s issues that are mentioned above. Litecoin is a breath of fresh air compared to bitcoin’s daunting transaction times and lackluster scalability efficiency.
It is a slight improvement to Bitcoin, especially when it comes to scalability. But privacy is still an issue since it’s a public type of cryptocurrency.
Private cryptocurrency tokens
Here are some cryptocurrency examples that offer true privacy:
Particl
When it comes to privacy, there’s no other name than Particl. It is built from the latest version of Bitcoin but offers robust privacy features such as untraceable transactions and unlinkable amounts.
It gives users control over their own security compared to Bitcoin. Particl is also versatile because it allows users to use it as a public token or a private one without compromising their security.
ZCash
What to love about ZCash is that it automatically erases transaction history once the process is done.
That means you are leaving no trace behind, making it impossible for everyone to get their hands on your transactions. ZCash utilizes a cryptographic technology called “zk-SNARKs” to achieve this level of anonymity which provides users the privacy they deserve.
Final Verdict
Public cryptocurrency may have gained its spot under the limelight, but it’s time to give private cryptocurrencies a chance too. The privacy it offers is miles apart from popular cryptocurrency options such as Bitcoin.
And just because it is the talk of the town doesn’t mean you have to hop into the bandwagon as well. Your privacy matters even on things such as cryptocurrencies.
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Christophe WILHELM
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Source: Blockchain & Crypto
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