Privacy has become a major advantage in cryptocurrencies since they were initially introduced. However, as more cryptocurrencies have evolved, user privacy has deteriorated. This has led to the invention of privacy coins, such as Monero (XMR) and Zcash (ZEC) that provide better anonymity.
These coins give users complete anonymity while transacting. The transactions’ origin and users’ identities are usually concealed.
Best Private Coins in 2021
The user anonymity of XMR explains its rapid rise. It’s extremely hard to trace because of the stealth addresses and ring signatures it uses. Also, RingCT ensures that the amount involved in the trade is concealed.
This coin is built with advanced privacy and security features that give it an edge over Bitcoin. It is sometimes described as “https” while BTC is “http.” This coin also uses Zero-Knowledge proof to help users shield their trades.
This cryptocurrency gives users the choice to make their trades anonymous with its PrivateSend feature.
Privacy Coin ZEC
This digital currency is fast and known for its low fees and confidentiality. It was created for mobile and internet transactions. Zcash was also developed to deal with BTC’s major problem – the absence of privacy.
Developers that built Zcash are an academic team of cryptographers and computer scientists. The team designed a means of shielding transactions with ZEC through cryptography to ensure the privacy of its users.
Some ZEC features:
- Issuance and start: The Zcash team released two audits before it started in October 2016. It has a 21 million-coin supply limit.
- Security and network outline: Zcash was created from a split on BTC. However, it has been greatly modified by its developers. Some unique features are its block size and time, and its proof-of-work algorithm.
- Monetary policy: Founder’s reward takes 10%. The Zcash foundation takes 1.44%, and 1.19% goes to the strategic reserve of the Electric Coin Company. Consultants and workers get 5.72%, while investors take the remaining 1.65%.
- Processing of transactions: There are two types of trading, private trades and transparent ones; users can choose either. For transparent trades, data is visible; for private trades, data isn’t visible.
- Unique identifiers: “Rho” is the unique identifier for commitments and payment certification.
Zk-SNARK stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. It is the cryptographic proof that allows users to prove their possession of information without disclosing it. It’s possible thanks to the secret key, which is developed before initiating the transaction.
A criticism of this technology is that if someone finds a way to access the secret key used for creating the protocol for a transaction proof, he/she would be able to build fake proofs, which verifiers will think are valid.
Where to Buy Zcash
There are exchanges that allow you to trade and buy Zcash with a BTC to ZEC calc. Some of these are Godex, Coinbase, Binance, Bitfinex, Kraken, and OKEx.
The success of privacy coins rests on them maintaining anonymity. The most popular ones are XMR, Dash, and Zcash.
Zcash blockchain is independent and decentralized. It’s also open-source, which allows safe mining. Buying Zcash is easy as it is available on many exchanges, like Godex, and Bitfinex, etc.