Anonymous Cryptocurrencies List 2020

Anonymous Cryptocurrencies List 2020

12.06.2020
Anonymous Cryptocurrency

In many ways, the popularity of cryptocurrencies is caused by their anonymity. Bitcoin was initially declared as a decentralized and anonymous payment tool, but problems arose with the latter. Each transaction is added to the blockchain registry, which is open to all, which means that everyone can track the movement of the coin from the moment it is issued to the present holder. This privacy policy does not meet the ideas of many and to solve this problem began to develop anonymous cryptocurrencies that have a different algorithm of adding transactions to the blockchain.

What are anonymous crypto coins?

The openness of the blockchain registry has forced many users of cryptocurrency networks to question their anonymity. Special services, hackers, and even ordinary users can easily track any transaction and even calculate the identity of the holder when cashing digital coins. Therefore, many developers have directed their efforts to create truly anonymous cryptocurrencies that would allow users to observe maximum privacy.

Anonymous cryptocurrencies are peer-to-peer payment systems with their own unit of calculation.

A high level of privacy is achieved by using cryptographic protocols that make it difficult or completely impossible to track transactions in the blockchain.

The most anonymous crypto

With the discovery of a vulnerability in the crypto industry began a real race among developers who release new anonymous cryptocurrencies and apply different protocols to achieve a high level of privacy. To date, there are more than 10 anonymous cryptocurrencies with different methods of protecting the privacy of users.

Monero

Monero

The creators of Monero have developed a special blockchain structure based on the cryptographic protocol CryptoNote, which allows you to hide the addresses of the sender, the recipient and the amount of the transaction in the blockchain itself.

To achieve anonymity, the system uses a complex mechanism of ring signatures, in which transactions are signed at once by a group of users, not by one person, so it is impossible to find out who exactly made the translation. In addition, the system generates one-time stealth addresses for each transaction.

The coin appeared in 2014 and at this stage is considered the most anonymous cryptocurrency, but as a result of the application of complex cryptography the size of the transaction on the Monero network is 50 times greater than that of Bitcoin.

ZCash

ZCash

Anonymous and public transactions are now operating on the zCash network. This is due to the fact that secure transactions require the use of more powerful verification equipment and accordingly have increased fees. In the future, it plans to transition to a completely anonymous system.

The anonymization of users in the system is achieved through the zk-SNARK protocol, also known as proof of zero-value operation. It is a mathematical algorithm that confirms the authenticity of information without disclosing it. A random number generator is used to do this. Hidden transfers only keep the payment time in the system.

Dash

Dash

Dash is one of the first anonymous cryptocurrencies to allow users to hide their privateSend data. Anonymity is achieved through a two-tier blockchain system and the use of masternods, which share the reward equally with miners.

A user who wants to make an anonymous transaction turns to masternods by sending them a request to commit a transaction. When a certain number is collected, the coins are split into small pieces, shuffled several times between different users and only then sent to the final recipient. The coin is shuffled in several stages by randomly selected masternods, making it impossible to track the connection between the sender and the recipient of the transaction.

Verge

Verge

Verge cryptocurrency has an ambiguous reputation and a distinctive mechanism of data concealment from its competitors. Unlike other cryptocurrencies, where cryptographic methods are used for anonymization, Verge uses Tor and I2P networks.

There are two types of transactions on the network. The first type occurs through an open blockchain, and anonymization is achieved through a private connection with the blockchain using Tor. The second type of transaction is carried out through the anonymization of the address, similar to the Monero system, with additional concealment of the IP address.

Bytecoin

Bytecoin

Bytecoin was developed back in 2012 and many consider it the first anonymous cryptocurrency, which gave impetus to the development of a whole direction in cryptocurrency technology. Bytecoin uses cryptoNote.

It is from Bytecoin that Monero originates. As in Monero, the anonymity of transactions in the system is achieved by using a unique one-time public address for each transaction, making it impossible to track the identity of the sender.

During the existence of Bytecoin was made a lot of forks, but in recent years the developers have taken a course to improve their own positions, rebranded and began to actively promote their development.

Bitcoin Private

Bitcoin Private

Bitcoin Private is a bitcoin fork and a zclassic that combines bitcoin security and anonymization based on the progenitor technology of zCash.

The developers set their goal to create a cryptocurrency that would combine the advantages of two digital coins at once. Transaction anonymization is achieved by using a zero-value proof protocol, as in zCash, but without rewarding the founder.

Zcoin

Zcoin

It is another cryptocurrency operating on the protocol of zerocoin. The principle of burning coins is used to anonymize a transaction. When you make a transaction, the coins are destroyed, and a similar number of new coins arrive on the wallet that do not have a transaction history.

Criticism of anonymous cryptocurrencies

Shadow financial areas are an attractive area for attackers. State control bodies are significantly concerned that cryptocurrencies can be used in criminal schemes, while remaining completely uncontrolled. In particular, they allow hackers and extortionists to hide the further movement of coins. There is no provision for any responsibility for illegal actions. The Japanese authorities even obliged cryptocurrency exchanges to remove anonymous currencies from the listing. The U.S. intelligence agencies are also seriously concerned about the problem.

Another negative factor of anonymous cryptocurrencies is the size of transactions. It is enhanced by the use of complex cryptographic and other algorithms that are used to hide data. This leads to high commissions and the need for more power (more computer memory) to verify transactions.

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