Is Bitcoin Anonymous? While it is not easy to identify individuals using Bitcoin, it is not completely anonymous. Strictly speaking, it is a cryptocurrency with a pseudonym. Because Bitcoin uses a public key to secure transactions, it is considered private because the key is not associated with any identifying information. But in theory, information about Bitcoin users could be collected over a long period of time, with companies like Chainalysis and CipherBlade specializing in this type of work.
Luckily, for those who want a truly anonymous cryptocurrency, there are plenty to choose from, and a few like DASH, XMR, and ZEC are familiar names. To answer the question of what are the best anonymous coins, you need to consider what you want to use them for, privacy level (default or optional), and transaction liquidity.
Is anonymous money legal?
Yes, at the time of writing, anonymous crypto is legal in most countries. However, it is unlikely that this will continue to happen as more and more people are eyeing the use of cryptocurrencies in money laundering and ransomware attacks. For example, both the U.S. and Japanese governments have explored the law banning XMR and ZEC. In Japan, the Financial Security Agency (FSA) bans DASH, XMR, and ZEC. While this does not make those tokens illegal, it does make trading them very difficult for anyone using an exchange in Japan as the FSA is the government agency that oversees exchanges. in this country. It is likely that when centralized exchanges try to operate legally, they will remove anonymous coins to avoid a negative eye from the authorities. In 2019, OKEx Korea and Upbit both stopped trading anonymous coins and XMR pairs were removed by Bithumb in June.
5 coins electronic top anonymity by market capitalization
Anonymous Coins Comparison (November 2020) | Source: CoinMetrics, OnchainFX
Launched in 2014, XMR is the #1 anonymous coin by market capitalization and allows for private, untraceable, anti-analytical, and unlinkable transactions. XMR is anonymous by default (while with some other coins, private transactions are an optional setting). XMR privacy is supported by a security system called Ring Confidential Transactions (RCT), Multilayered Linkable Spontaneous Anonymous Group signatures. MLSAG) and hidden addresses. The XMR network operates on a decentralized distributed consensus technology, with no centralized place of attack in the event of a breach. Unlike other popular cryptocurrencies, XMR is not linked to a public address. So if you share your public address with someone, they won’t know how much money you have.
Price XMR | Source: Coinmarketcap
Created in 2014 and called XCoin, the token relaunched as DASH (short for ‘digital cash’) in 2015. DASH is not anonymous by default, users must choose instead make transactions anonymously. DASH’s PrivateSend feature provides users with financial privacy by concealing the origin of all funds. DASH does this through a mixing protocol that uses an innovative network of decentralized servers known as masternodes. The DASH in a digital wallet consists of various “inputs” that act as separate, discreet coins. DASH splits these transaction inputs into standard denominations and mixes them with the inputs of two other people without your coins leaving the wallet. The DASH network offers double-sent, instant-confirmed proof-of-transactions.
Price DASH | Source: Coinmarketcap
First launched in 2016, Zcash is a fork of Bitcoin. Its private function is optional and achieved using zero-knowledge proofs, which summarize non-interactive arguments of knowledge – also known as zk-SNARK. Zcash users can choose to protect their transactions. ZEC addresses starting with the letter “t” are transparent and those starting with the letter “z” have privacy enhancements and are known as “protected addresses”. Zcash uses the Proof of Work consensus mechanism, but with the consensus algorithm is Equihash, not SHA-256 like Bitcoin. Equihash is ASIC-resistant, which means that ZEC tokens can be mined at home.
Price ZEC | Source: Coinmarketcap
PIVX stands for Private Instant Verified Transaction, which is a fork of the DASH blockchain. PIVX is open source, with optional privacy features labeled ‘Shield’. Like many other anonymous coins, PIVX uses a customized version of zk-SNARK. Transactions protected by PIVX are near-instant and data such as sender and receiver details as well as transaction value are hidden. PIVX operates a PoS consensus. Like all optional anonymous coins, PIVX is designed to be used as a standard transactional cryptocurrency and has an active program for users who do not wish to remain anonymous. In such a case, PIVX transparent addresses will be used and they can be viewed publicly.
Price PIVX | Source: Coinmarketcap
GRIN is the default anonymous coin launched in January 2019, which uses MimbleWimble to mask transaction data. MimbleWimble allows GRIN to delete transaction data without affecting the security or stability of the blockchain. GRIN can be mined on home computers.
Price GRIN | Source: Coinmarketcap
Why use anonymous coins?
While a lot of people assume that the only use case of anonymous money is shady transactions, there are actually many cases where law-abiding citizens might want to use cryptocurrencies anonymously. Here are some examples.
Get involved in politics
While some people are happy to openly sided with political and social parties, there are also many who prefer to keep such information to themselves. For example, if someone is pro-life and works in an environment where their employers and co-workers are pro-choice, they can participate in politics. with these cryptocurrencies without anyone finding out.
Secretly doing business
Anonymous money is the perfect solution for an entrepreneur or company that wants to send money to another company whose competitors don’t know who they are doing business with.
Prevent government interference
It is not difficult to imagine a world in which government organizations go after all the creators of cryptocurrencies, forcing them to implement anti-privacy and anonymity features. Governments around the world have begun to implement such regulations. If the Monero – AlphaBay situation has taught us a lesson, then anonymous cryptocurrencies can cause serious problems for government agencies and prevent them from intruding on users’ privacy at will. protect us from the unwanted attention of tyrants or villains.
Secure your device with anonymous coins
When asked for investment advice, one expert said their number one consideration is buying a Virtual Private Network (VPN) with military-grade encryption. This ensures no one can track altcoin purchases or gain access to your wallet.
The most private VPNs are log-free, which means they don’t keep a log of user activity or collect any personal information. Using a reliable web host and a dedicated VPN solution can provide traders with the extra layer of security they need. Seychelles-based VPN BolehVPN allows customers to pay for VPN services with XMR.
According to Brave New Coin
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