There are many myths about cryptocurrencies. This is not strange, because the topic is complex. Many people believe that Bitcoin is an absolutely anonymous coin and that it leaves no traces. In fact this is not true. The statement is partially true: if you try and associate the address in the blockchain with a real person, all his transactions will be clearly visible. But this can not be done with all cryptocurrencies. Let's get to know those who hide the identity of users best.
Recently, a famous member of the cryptocurrency community Andres Antonopoulos called Bitcoin cryptocurrency "pseudo-anonymous." According to him, you can keep your identity secret for some time, but you will have to make a lot of efforts to do this. In general, Bitcoin is "not the best thing for anonymity." But there are other cryptocurrencies that hide transaction volumes and interacting addresses, which is why it is unrealistic to go to the sender or recipient.
Grin is the new anonymous currency on the MimbleWimble protocol. The main cryptocurrency network was launched on January 15, but already during this time it won first place among the most promising altcoins with an emphasis on privacy. Grin hides addresses and transaction amounts that are transferred privately.
An important clarification - Grin was launched without an ICO, and the developers didn't put part of the coins into their wallet before the start of mining. In this regard, the developers have hopes for donations and often remind about this.
If you forget about Grin currency, Monero remains the leader among anonymous coins. Privacy here works by default and is achieved through the use of "ring" signatures, stealth addresses and confidential RingCT transactions. Transaction data is only visible to participating parties.
Dash is one of the most famous and oldest cryptocurrencies. In the world ranking of CoinMarketCap, data on it has been available since February 2014. Then they asked for 21 cents for a coin, and today it cost 67 dollars. The highest price for Dash was at the end of 2017 and amounted to $ 1,500. Additional functions help her to stay in the top of the rating by capitalization. PrivateSend protects the confidentiality of transactions and balances in wallets, and InstantSend spends no more than a second to confirm payments. In addition, Dash was the first to receive masternode support.
Zcoin is the first full-fledged implementation of the Zerocoin protocol, which is responsible for anonymity. The system creates the sequence number "R" and the secret number - "s". They are then used in a cryptographic function to create a “V” value, which falls into the blockchain and guarantees the validity of the data. It turns out that everyone can see the “V”, but nobody can find the ends.
Zcoin chip - support for CPU mining like Monero. It’s possible to ensure the operation of the blockchain even with the help of a computer processor and it’s not necessary to spend money on farms.
Zcash runs on the zk-SNARK protocol, also known as zero knowledge proof. It allows you to confirm the correctness of the information sent to the other party without displaying the data itself. By default, Zcash is not anonymous. Creating transactions with zk-SNARK requires at least 4 GB of RAM and the launch of a full-fledged node as a prerequisite.
This is a new project based on MimbleWimble - all network data is hidden from prying eyes. There are no addresses and other private data in the blockchain, there is support for offline operations and the integration of hardware wallets. The developers did not conduct ICOs and premines, so everything is honest and transparent.
The scheme of work is quite simple: the user's wallet creates a transaction in a secure channel and sends it to the node. The purses of the sender and the recipient participate in the signature, the Schnorr protocol is used. The node confirms the transaction and sends it to the miners, and the confirmed transaction block extends the longest chain. The case ends with synchronization.
ZenCash / Horizen
ZenCash has survived rebranding and is now called Horizen. He was born in the form of a Zclassic hard fork and uses the “advanced form of zk-SNARK technology” with end-to-end network encryption. The coin was marked by the presence of Transport Layer Security (TLS). Two types of masternodes also help to operate the network: Secure Nodes and Super Nodes. Each of the varieties receives 10% of the block reward. 60% fall to miners, and 20% go to the development fund.
Cryptocurrencies are the money of the future. With their help, you can send value to anywhere in the world, not paying attention to borders and established rules. Is there enough potential for changing the world? Will it be for the better? We will find out very soon.