An introduction to privacy coins
admin,March 27, 2018
Privacy coins are an upgrade evolved from cryptocurrencies like Bitcoin.The owners of the wallets for Bitcoin are anonymous . However every transaction is logged in a public ledger that is available for all to see . Being linked personally to a wallet can compromise your privacy.
Most privacy coins make use of a public ledger for transacting purposes. However they utilise different means of hiding the sender and receivers of any transaction made. Leading privacy coins utilise the fact that the connection between receiver and sender on any transaction can be obscured so that any attempted tracking of wallet address is made more difficult.Semi anonymous transactions make use of blockchain but the ownership of the wallets are unknown however as soon as the addresses are linked to a bank account there is the chance that the address can be linked to real world entities.
Privacy coins still rely on a certain public style ledger but also use up to date technology that conceals the path leading from sender to receiver. It may be possible to see that a certain amount of currency was sent but not traceable to a real life person or entity . Every privacy coins uses different ways to achieve this result .
Common Algorithms that are used frequently are zk-Snarks, Coinjoin, and RingCT. . Used mostly on the following popular privacy coins.
Dash (formerly known as Darkcoin and XCoin) Is a cryptocurrency originally forked from bitcoin offering the same features but will new capabilities offering private instant transactions.
Zerocash offers a different way of assembling payments and transactions and then verification which in turn provides even more anonymity to the user.
Monero is a privately designed untraceable currency. Sender and receiver address are both concealed on the ledger as well as the transaction amounts.Therefore making sure that any balances in wallets are also not available for public notice.Monero implements transaction privacy using a method called Ring Confidential Transactions .This enables business and individuals to keep their net worth hidden.