Bitcoin, which in the early years of its existence, many users perceived as an anonymous currency or payment method, is not really a completely confidential cryptocurrency. But at present, Bitcoin Core developers are not paying attention to this problem. As a result, more and more creators of the best cryptocurrency exchanges are trying to fix the situation with the confidentiality, anonymity and interchangeability of the digital currency, trying different approaches.
We present you the top 5 most popular of anonymous cryptocurrencies in the world for 2018. The indicated volume of their market capitalization was taken from coinmarketcap.com.
5. ZCash
Capitalization - 1.17 billion dollars.
Cost 1 ZEC - 304 dollars.
Our cryptocurrency rating opens, which ensures the confidentiality and selective transparency of transactions. As an independent virtual currency, ZCash was launched in 2016 and uses a zero-disclosure proof protocol called zk-SNARK (Succinct Non-interactive Argument of Knowledge) to ensure anonymity for its users.
This protocol allows you to verify data without revealing key information about users. It is used to encrypt addresses and the transfer amount for both parties in a transaction. That is, the only thing an outside observer can see is that the translation was completed.
However, ZCash cannot boast of complete anonymity. The IP addresses of users of this cryptocurrency are not completely hidden if they do not use the routing service. And in order to use the privacy function zk-SNARK, your computer must have at least 4 gigabytes of RAM.
4. Verge
Capitalization - 1,119 billion dollars.
Cost 1 XVG - 0.80 dollars.
The release of one of the best anonymous cryptocurrencies took place in February 2016. She officially renamed herself Verge from Dogecoindark and works as a decentralized, open-source virtual currency with its own platform. Coins called XVG cannot be centrally controlled and fully tracked.
Verge uses several anonymity technologies, such as the Tor proxy system and the I2P add-in. This allows you to hide IP addresses and user transactions. In addition to this, the Verge platform has unique features, such as atomic swaps (direct exchange for coins with other blockchains) or fast transactions. Despite the low price of this cryptocurrency, Verge has excellent potential for the future, including an excellent development team and a large community of users.
3. Bytecoin
Capitalization - 1.31 billion dollars.
Cost 1 BCN - $ 0.007.
Bytecoin, introduced to the online miner community in 2012, has one significant difference from other cryptocurrencies. This is the first altcoin based on CryptoNote technology. It is often called a “completely anonymous cryptocurrency.” The main advantages of this cryptocurrency include the use of ring signatures, as well as one-time address keys. Ring signatures use data from a whole group of users, which makes it impossible to identify a specific person. Also, this algorithm is complemented by code obfuscation to make transaction analysis difficult.
This platform supports unlimited instant international payments. It takes a little time to process them, while they require cryptographic confirmation. Bytecoin developers claim that transactions are processed in about two minutes.
2. Dash
Capitalization - 3.91 billion dollars.
Cost 1 DASH - $ 495.
This is one of the most popular cryptocurrencies with high anonymity. Dash provides private transactions and transparent payment methods. And by capitalization, it is about to overtake the leader in the rating of the best cryptocurrencies in terms of confidentiality.
The Dash privacy feature is a coin exchange service called PirvateSend. Thanks to the decentralized mixing system implemented in PrivateSend, transactions are generated by several parties and can be paid to several parties. That is, the funds are “mixed” together, and then divided into parts so that an outsider could not determine the sender, the amount of the transfer and its recipient. Successfully mixing payments using PrivateSend requires at least three participants.
In the second half of 2018, developers promise to release a Dash Evolution update, which should increase the convenience and speed of transactions.
1. Monero
Capitalization - 3.92 billion dollars.
Cost 1 XMR - $ 245
This is the best cryptocurrency in the world, if privacy is your main concern.
It was launched in April 2014 as an alternative to bitcoin and has since established itself as a reliable digital currency with an exceptionally high level of privacy and anonymity.
Transactions in Monero use ring signatures and code obfuscation, which hide all the details associated with the transfer of funds, including the address and the amount of sending or receiving.
When you send Monero coins, the transaction is signed with a ring signature, which is verified by a group of public keys without revealing the private key of the actual user. This happens by default, and therefore transactions in Monero cannot be tracked or linked to the user and his real identity. Blockchain analysis of this cryptocurrency is almost impossible.
Monero's privacy features are so good that not even law enforcement can get around them. When the Alphabay market on the darknet was closed, law enforcement could not find how many Monero coins belonged to its owners at that time.
Digital assets with high anonymity, despite their popularity with users, cause dissatisfaction with law enforcement agencies and regulators. After all, anonymity in the world of cryptocurrencies can be an excellent tool for criminal schemes. Will the governments of different countries find mechanisms to open the curtain of confidentiality on cryptocurrency exchanges - time will tell.
