While Bitcoin might be the first and most recognizable cryptocurrency, thousands of alternatives do exist – and as new investors seek to buy cryptocurrencies and stake their claim in a bold and exciting new financial world, many have turned their attention to so-called ‘dark coins’ – cryptocurrencies with a focus on providing secure, private transactions. Thus you must know about the finest Privacy Focused Cryptocurrencies out there.
While Bitcoin is pseudonymous – providing transacting parties with the means to obscure their identity. The leading cryptocurrency is not perfectly anonymous cryptocurrency. Meaning that it is possible to trace chain analysis tools and wallet identities to show exchanges of value between parties. Unless, you do the transaction via the best broker to buy bitcoin. Then your privacy shall be maintained.
Subsequently, new alternative coins – or altcoins – have emerged in recent years that offer strong focus on anonymity. Ensuring that despite tough regulatory talk, the power for blockchain technology to bypass middlemen such as nation-states and other regulators might well continue unabated.
12 Best Privacy Focused Cryptocurrencies Popular Right Now
You must know about the finest Privacy Focused Cryptocurrencies listed below:
Originally made in 2014 as BitMonero, Monero is sometimes recognized as the most visible privacy coin in the best privacy coins list.
Monero leverages the concept of ring confidential transactions. It is a means which essentially bundles together sending and recipient addresses and renders transaction flows opaque. Further, technologies such as ring signatures and stealth addresses can obscure both the sender and receiver in any given transaction.
For these reasons, Monero has quickly risen in popularity. And its focus on privacy cryptocurrency has presented a strong focus on fungibility. You can buy it from any trusted exchange such as Bittrex, Coindirect or IQOption.
Digital Cash, or Dash, originally started life as DarkCoin is a privacy-focused effort. Today, Dash is one of the largest Privacy Focus Cryptocurrencies by its market capacity alone, which presently stands at some $2 billion USD.
Dash is unique in the sense that it provides both a transparent and ‘opaque’ method of transaction. While Dash users can opt to issue Instant transactions which are recorded on a blockchain similarly to how the Bitcoin blockchain functions, CoinInsider explains that transacting parties can also use its PrivateSend feature, which uses a decentralized ‘mixing’ service.
Essentially, this enables three or more participants to pool their funds. Leaving any intended transaction obfuscated. The cryptocurrency has its limits. however, and at present only allows 1,000 DASH are permissible per PrivateSend transaction.
Grin is the first cryptocurrency to implement MumbleWimble. It is said to be very protective and secure as its transactions have no address or amount records. Also, since it implements MimbleWimble, all the past transaction data is erased, making it one of the top privacy coins.
Grin is community-driven and thoroughly open-sourced. With a block time that is of 1 minute, the coin base reward of each is a total of 60 grins, resulting in one unit/sec. Grin was launched back in early 2019, and it focuses on “usability for all.”
It is funded by community donations and is written in rust. It is highly scalable and well known for its anonymity.
With Verge, you can enjoy both its privacy mode and its public mode. Verge has seen a lot of ups and downs in its run but always seems to thrive because of the big names behind it backing it up.
It is a well known open-source cryptocurrency and generates an enormous number of addresses for a single transaction using tor, making it very anonymous and private. Verge was made by its very own community and combined a total of 5 different algorithms for its working. It uses the Wraith Protocol for its secured transactions and has been gaining a lot of popularity these days.
In a somewhat alternative approach to the protocols leveraged by Dash and Monero, Zcash has risen to fame for its use of ‘zero-knowledge proofs’.
Fundamentally, this allows data recorded on a blockchain to serve as a private means of verification. The Zcash enables the encryption of both sender and recipient addresses alongside transaction amounts. Meaning that any analyst attempting to determine the origin, destination, and nature of a given transaction might well be stymied.
Importantly, Zcash does not obfuscate the IP addresses of its users. Meaning that Zcash cannot hide personal identifiers linked to public data.
It has a strong foundation on Z cash platform, making privacy-focused improvements such as buying new currencies by the Komodo blockchain and decentralized exchange while remaining unknown, or severing the connection with your coins and transactions ere moving them on.
However, It is a tough fork of ZCash and the zk-SNARK custom. Komodo shares many connections to the Privacy Focused Cryptocurrencies, including zero-knowledge records.
The Komodo is also one of the various innovative throughout, performing and producing tiny swap tech.
If you are wondering which cryptocurrency has the best implementation of the MimbleWimble protocol, then with privacy coin, you have your answer. Beam is said to have perfect the MW protocol by ensuring super scalable and private transactions.
There is no record for any kind of tracing in its blockchain, and it’s very compact size ensures a high level of scalability. It has now also integrated the LelantusMW protocol for even more secured transactions. Beam also supports different custom transactions like time lock and atomic swap. The blockchain of Beam was coded in C++ ad was programmed from scratch. You can make instant payments using laser beam and issue payment proofs for senders even if the blockchain stores no transaction records.
Private Instant Verified Transaction is another Privacy Focused Cryptocurrencies which uses some points of zk-SNARKs like Komodo and ZCash.
It uses a decentralized and optionally unknown proof of stake algorithm that lets you participate in the network while remaining private. The PIVX wallet operates over Tor, for both master nodes and staking, moreover improving your privacy.
Another added side of the PIVX network is transaction speed. Apart from the excellent privacy features and security, PIVX transactions place amongst the agile in the cryptology globe. A unique added thing to relish is that PIVX is eco-friendly, utilizing a minimal volume of energy matched to the direct rivals and especially Bitcoin’s.
The applications on ethereum has a specific platform consisting of small tokens called ether. It is a centralized software program that allows Distribute Application and Smart Contract to be developed and operated without any delay, fraud, control, or intervention from a third person. Ether, a means for walking around on the ethereum principles and to inquire by developers looking to improve and operate applications inside ethereum software, or now by investors watching to make acquisitions of some other Privacy Focused Cryptocurrencies making use of ether.
As of 2014, ethereum began an early sale for ether which got a robust response; this assisted in leading in the age of the initial coin offering. In the attack of the DAO in 2016, Ethereum got split into Ethereum Classic and Ethereum. Ethereum had a capital of $12.59 billion and a per token price of $118.72.
Being launched in 2012, It is a real-time global arrangement network that allows instant, cheaper global payments and “enables banks to achieve over-seas transfers in real-world, with commendable transparency, and at more affordable costs. In this way, It anchors itself apart from bitcoin and various other digital coins. Ripple’s construction doesn’t require mining. It diminishes the usage of network latency and computing power.
As of now, ripple has noticed success with this pattern; it persists as one of the most enticing Privacy Focused Cryptocurrencies among financial organizations looking for ways to revolutionize over-seas payments. Ripple had a market capital of $12.69 billion and a per token worth of $0.308.
Horizen, also alternatively known as ZEN, uses the optional privacy transaction, which is upto the sender to decide. It has two transaction modes, T-transaction, which basically translates to transparent transactions which are public. The second is Z-Transaction, which is a privacy mode and ensures completely private and anonymous transactions.
The Z-Transaction mode has a very vast network of nodes in its blockchain, which helps in making it more anonymous digital currency. Horizen also provides a very large range of exchanges and has been continuously working on expanding more.
Navcoin, also known as NAV, is built on the bitcoin core and is a free cryptocurrency. It ensures private transactions through its blockchain and has a very fast turn around time of only 30 seconds for each transaction.
The Navcoin community is very strong and has been running and funding it since its establishment in 2014. It has made various improvements and updates in its features and working and has been continuously growing. NAV is also one of the most user-friendly and simple understood privacy coins available.
Why Use Privacy Coins?
With increasing legal scrutiny surrounding cryptocurrencies. Which has specifically seen many nations plan to implement tax laws upon Privacy Focused Cryptocurrencies transactions. Many believers in blockchain technology have begun to turn to best privacy coins as a means to escape observation.
While this can naturally have the implication of fueling illicit activities on the internet, Privacy Focused Cryptocurrencies offer a means for regular consumers. To privately purchase goods or services while retaining control of their own financial information – a key promise that underpinned the introduction of cryptocurrencies from the inception of the Bitcoin white paper.