The Anonymous Cryptos
There are a lot of different digital currencies on the market.
In fact, there are thousands, and that number is growing by the day.
And all of those cryptocurrencies do different things. There are currencies that were intended to act solely as currencies, and tokens that are used to power strong decentralized networks.
And then there are the anonymous cryptocurrencies.
Anonymous cryptocurrencies have attracted a lot of attention from the blockchain world.
These currencies use various cryptographic methods to keep transactions private, protecting individuals in a largely transparent world of blockchain.
In today's feature, we're going to take a deeper look at a few of these anonymous cryptocurrencies.
Let's kick things off with Monero.
Monero is a peer-to-peer digital currency that has been attracting investors and users since 2014.
Back in 2013, the protocol that Monero would be based on was launched by an anonymous individual named Nicolas van Saberhagen.
The digital token and associated blockchain were later launched by a Bitcointalk forum user named “thankful_for_today.”
At the time of launch, Monero’s name was BitMonero. The community decided to change the name five days later.
Despite its murky origins, Monero has enjoyed upward growth over the course of 2016 and into 2017. A portion of this growth hinged on Monero’s adoption as the currency powering darknet market AlphaBay.
Like Silk Road before it, AlphaBay allowed users to buy and sell illegal goods anonymously by accepting digital currencies as payment.
And when it comes to being anonymous, Monero beats Bitcoin every day of the week.
While digital currencies like Bitcoin grant users transparency, they do not grant anonymity.
The Bitcoin blockchain records the electronic addresses associated with each transaction. While your name and personal details aren’t recorded, if someone does make the connection between you and your electronic wallet address, they can see a detailed history of all of your market transactions.
Monero seeks to utilize blockchain while fixing the anonymity problem. It does so through a cryptographic method called “ring signatures.”
A ring signature is a unique digital signature that can essentially be done by any member of a group.
That member simply has to have the correct keys. The benefit here is that it's impossible to tell which member of a group the signature actually came from, allowing the original sender to remain anonymous.
Monero is available on multiple exchanges, including HitBTC, Bithumb, Poloniex, and Binance.
Zcash made headlines recently by becoming the third digital currency available for trading on the Gemini digital currency platform.
That said, Zcash has a lot more to it than simply being on a main exchange. Zcash is also one of the market's most famous digital currencies. Let's take a look.
Zcash was introduced to the world in 2016.
It was based on the Zerocash system, which was developed from the Zerocoin protocol.
The founder and CEO of Zcash is Zooko Wilcox-O'Hearn. Other notable members include Matthew Green, the team's leading cryptographer, and Roger Ver, who was one of Zcash’s famous first investors.
But unlike Bitcoin, transactions recorded on the Zcash blockchain aren't available to the public.
With Zcash, users are able to use an optional privacy feature. This feature can not only conceal the sender but also hide the recipient and the exact amount of money being moved.
Beyond this, transactions also have the ability to be transparent.
This essentially means the transactions are like those on the Bitcoin blockchain, but they remain shielded by zero-knowledge proof (zk-SNARKs).
This means all Zcash coins are in one of two pools: the transparent pool or the shielded pool. As of the most recent update, only 4% of all Zcash tokens are in the shielded pool.
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The final digital currency on our anonymous cryptocurrency list is Dash.
Dash came onto the market in 2014. That means it's the oldest digital currency in our list. And being an early mover has had some advantages.
Today, Dash is one of the largest digital currencies by market cap. It attracts investors from all over the globe.
That said, what is it that makes Dash different from other peer-to-peer currencies and anonymous digital currencies on the market?
Well, one of Dash's benefits, outside of being anonymous, is that it's fast. The average transaction fee is also significantly lower at $0.04 per transaction.
And then there is Dash's anonymity.
When you use Dash, you don't have to share any personal information like your name and address.
Like Bitcoin and Ethereum, Dash is created through a network of miners.
These miners use special hardware and software to solve computer algorithms that maintain the Dash network.
Another key strength of the Dash network is established governance.
When it comes to decentralized projects, governance can be tricky. Dash hurdles this issue by making sure decisions are made by the network. The people who participate in these decisions are owners of masternodes.
And owners of masternodes can vote for or against proposal.
That's all we have for our anonymous digital currency feature. If you'd like to learn more about digital currencies, make sure to check out our FREE Coin Index educational feature.
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