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The privacycoins

Leestijd: 4 min.

IFC +

4/26/2022

Privacy

We're all Bitcoin and crypto fanatics, but if there's one major misunderstanding in that market it's privacy. Whether we want to hear it or not. The feature of many blockchains are transparency, perhaps too transparent. When you get someone's BTC address to make a transaction for example you can use this address to look up everything on the blockchain explorer. You can find out how much BTC this address received in total, what left from it as well as the address of the recipient. And as icing on the cake, it shows how much Bitcoin this address still owns. Imagine doing a transaction with your neighbor then he can go and see what you are worth in Bitcoin. Agreed, the transparency makes fraud almost impossible and the fact that everything can be checked makes for a fair system. However, and this applies to many platforms, the lack of privacy does not bother us at all. Everyone complains about it but nothing is done about it. Now this lack of privacy is already the case for the average person but what companies can do is completely over the top, there is software like chainalysis that can track every bitcoin in detail. If a government has access to this software then our comings and goings in the crypto world can be totally mapped. Especially the fact that everyone has to do a KYC (Know your customer) to create an account ensures that our name is linked to the coins in question. There is an option to remain anonymous but it is fairly costly. One way to keep everything private is to use a Bitcoin ATM that sends the coins directly to your ledger. Another alternative is to use a coin mixer. If you send your coins to a mixer they will be mixed with other coins in such a way that they can't follow what or how. Risks are coins that are blacklisted. If a coin has been stolen through hacking or criminal activities, certain coins can be blacklisted so you can't go anywhere with them.

Privacy coins

Another alternative are privacy coins, the number 1 in this is Monero. This cpin was launched in 2014 and is hugely popular among people who value their privacy. The protocol of Monero is also based on the proof of work system and cannot be traced. This is due to the ring signaturs shifting each time and the pool of so-so transactions, making it impossible to gain visibility. The sender is not visible, the receiver is not visible and the amount transferred is not visible. All this makes Monero the number one privacy coin. But there are alternatives.

Verge

This coin is also from 2014, also proof of work and uses a TOR Router which makes tracing almost impossible. The TOR router is known as the gateway to the deep web. This and the encryption takes care of your well deserved privacy.

Beam

This coin was launched in 2019 as a private network that makes the DEFI world reliable. This coin uses the mimble wimble protocol, this protocol ensures that the values and metadata are well protected making your anonymity #1.

Zcash

This one is a bit more special, with this coin you can turn on and off the privacy feature so you always remain in control. After Monero, this crypto is the largest of its kind.

Crypton

Crypton is the coin on the Utopia P2P ecosystem. This is a decentralized network that offers privacy and is multifunctional, we are talking about a message service, data transfer, surfing, mining and of course financial transactions.

Anticipate

As you can see, there are a lot of options for those who are concerned about their privacy. Not every coin is as user-friendly but you learn as you go. It is becoming more and more important to be on the crypto market with this in mind, you don't want your neighbor or employer to know how much money is in your wallet. Try to avoid this. With the right tools you can get very far.


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