Among some cryptocurrency investors live a big lie claiming that cryptocurrencies are a synonym for anonymity. We, however, know that this rumour is a big misconception as most cryptocurrencies keep transaction records on the blockchain that can be with proper resources easily tracked. That being said, there are coins with prime focus on anonymity that will keep your identity and transactions concealed. Here are the 5 top anonymous cryptocurrencies used by people who want their identity to stay hidden.
Without a shadow of a doubt, Monero is the number one coin when it comes to anonymity. This cryptocurrency is often regarded as the Drug Dealer’s Cryptocurrency of Choice as its privacy is so well protected that it is virtually impossible to track its users. To achieve the best possible anonymity, Monero stealths addresses of the senders by grouping it with over 100 other transactions. Additionally, it uses a technique called “ring confidential transactions“ which automatically hides the amount of every transaction.
The first privacy-centric cryptocurrency, Dash, uses coinjoin system called PrivateSend to secure the anonymity of its users. This system mixes transactions of multiple users and makes them look like one single transaction. It is, therefore, hardly possible to find out who send what amount or to whom. But as it is discussed at reddit.com, Dash has very far from achieving the same level of anonymity as Monero has.
ZCash offers an optional feature called Zero-Knowledge Proof that hides transaction information. Unlike Monero, this anonymity tool has to be activated and does not apply automatically. ZCash approach anonymity from a different perspective. While the number one anonymous coin, Monero, makes all the addresses and send amounts visible, but makes virtually impossible to track who owns which address or to whom one is sending XRM, ZCash hides all transaction information.
When we talk about cryptocurrencies with a strong emphasis on users’ anonymity we definitely have to mention Verge. Unlike most coins that focus on anonymity, Verge does not only mask transaction information but also IP addresses of its users. To do that it uses TOR and I2P services that stealth user identity and his location.
The name of the cryptocurrency PIVX stands for Private Instant Verified Transaction. Being the fork of Dash, PIVX offers most features as its forerunner. PIVX is the first proof of stake cryptocurrency that has implemented Zerocoin protocol which unlinks sender and receiver from each transaction to secure complete privacy. The cryptocurrency developers currently also work on deferred broadcasting which would mean that the transactions could first go through a tiered (delayed) pre-broadcast phase instead of being broadcasted unilaterally across the network.
Conclusion – 5 Most anonymous cryptocurrencies
If you are concerned about your privacy you should give a chance to one of the cryptocurrencies we have mentioned today. My most favourite anonymous cryptocurrencies is Monero as it has probably the most cutting-edge technology features to hide the identity of its users.
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