What are Privacy Coins?
Digital Assets, Guides, Self Sovereignty
crypto privacy coins :Privacy is freedom defined in the constitution.
It is sacrosanct that this remains as it is.
Cryptocurrencies are privacy’s shield.
Also Read :What are privacy coins?
At the height of the last financial crisis, banks were criticized for failing the economy and rolling everyone on mud.
It spurred the founder of Bitcoin into action. The result was the first cryptocurrency operating without a middle man and controlled by the community rooted in mathematics.
Most people fail to mention that Bitcoin has baked-in privacy-preserving features due to integrated cryptography. It is not a perfect privacy coin per se, but the coin formed a base for the subsequent release of privacy coins.
What are Privacy Coins?
Privacy coins are as the name suggests. They bear better transaction obfuscation features.
This means connecting transactions and revealing the personal information of its users is extremely hard, even impossible.
Monero, the most valuable in this category, is an example of a privacy coin. Others include ZCash and SCRT of the Secret Network.
A privacy coin is perfect for masking and protecting personal, identifying details of a user—even severing systems that may trace a transaction. Ordinarily, in networks such as Bitcoin and Ethereum, these “profiling details” may be used to decrypt the identity of the sender/receiver, violating their right to privacy.
#PrivacyCoins represent the ideas of crypto founders. Privacy coins like Monero offer better privacy concealing features than ordinary digital assets. Learn More: Click To Tweet
Types of Privacy Coins
A privacy coin may focus on enabling anonymous transactions—quite literally hiding details of persons/groups behind a transaction–, or untraceability, therefore, preventing a group or a computer system from tracing a transaction trail.
Strategies employed to guarantee privacy in these networks include the use of:
- Coin Mixers work by dividing a single transaction into many bits, hiding the person behind the transaction
- Stealth and Ring Addresses that
- creates a new address after every transaction
- ZK-SNARK allows a party to prove ownership without submitting identifying information.
Holding crypto privacy coins like Monero or ZCash is legal. It can be purchased in most cryptocurrency exchanges like Binance and Kraken.
You can build up your crypto knowledge by listening to Darius Kozlovskis in this podcast for more information on how to make them work for you.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.
