Bitcoin, which in the early years of its existence was perceived by many users as an anonymous currency or a payment method, is not really a completely private cryptocurrency. But Bitcoin Core developers are currently oblivious to this issue. As a result, more and more creators best cryptocurrency exchanges trying to fix the privacy, anonymity and fungibility of digital currency by trying different approaches.
We present you the top 5 most popular anonymous cryptocurrencies in the world for 2018. The indicated amount of their market capitalization is taken from coinmarketcap.com.
5. ZCash
Capitalization - $ 1.17 billion.
The cost 1 ZEC - $ 304.
Our rating opens with a cryptocurrency that provides confidentiality and selective transparency of transactions. As a standalone virtual currency, ZCash was launched in 2016 and uses a zero knowledge proof protocol called zk-SNARK (Succinct Non-interactive Argument of Knowledge) to ensure anonymity for its users.
This protocol allows data validation without revealing key user information. It is used to encrypt addresses and transfer amounts for both parties to a transaction. That is, the only thing that an outside observer can see is that the translation has been completed.
However, ZCash cannot boast of complete anonymity. The IP addresses of users of a given cryptocurrency are not completely hidden unless they use a routing service. And in order to take advantage of the zk-SNARK privacy function, your computer must have at least 4 gigabytes of RAM.
4. Verge
Capitalization - 1 19 billion dollars.
The cost 1 XVG - $ 0.80.
One of the best anonymous cryptocurrencies was released in February 2016. It officially renamed itself Verge from Dogecoindark and operates as an open source, decentralized virtual currency with its own platform. Coins named XVG cannot be centrally controlled and fully tracked.
Verge uses several anonymity technologies such as the Tor proxy system and an add-on from the I2P network. This allows you to hide the IP addresses and transactions of users. 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 user community.
3. Bytecoin
Capitalization - $ 1.31 billion.
The cost 1 BCN - $ 0.007.
Bytecoin, introduced to the online miner community in 2012, has one significant difference from other cryptocurrencies. It is the first altcoin based on CryptoNote technology. It is often referred to as 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 it difficult to analyze transactions.
This platform supports unlimited instant international payments. They take a little time to process, and they require cryptographic confirmation. Bytecoin developers claim that transactions are processed in about two minutes.
2. Dash
Capitalization - 3.91 billion dollars.
The cost 1 DASH - $ 495.
It is one of the most popular cryptocurrencies with high anonymity. Dash provides private transactions and transparent payment methods. And in terms of capitalization, it is about to overtake the leader in the rating of the best cryptocurrencies in terms of privacy.
Dash's privacy feature is a coin exchange service called PirvateSend. Thanks to the decentralized mixing system implemented in PrivateSend, transactions are generated by multiple parties and can be paid to multiple parties. That is, funds are "mixed" together, and then divided into parts so that an outsider cannot determine the sender, the amount of the transfer and its recipient. Mixing payments successfully using PrivateSend requires a minimum of three participants.
In the second half of 2018, the developers promise to release the Dash Evolution update, which should improve the convenience and speed of transactions.
1. Monero
Capitalization - $ 3.92 billion.
The cost 1 XMR - $ 245
It 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 exceptionally high levels of privacy and anonymity.
Monero transactions use ring signatures and code obfuscation, which hide all the details associated with the transfer of funds, including the address and the amount sent or received.
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 traced or tied to the user and their real identity. Blockchain analysis of this cryptocurrency is almost impossible.
Monero's privacy features are so good that even law enforcement can't get around them. When the Alphabay darknet market was closed, law enforcement could not find how many Monero coins belonged to its owners at the time.
Digital assets with high anonymity, despite their popularity among users, cause discontent among law enforcement agencies and regulators. After all, anonymity in the world of cryptocurrencies can be an excellent tool for criminal schemes. Whether the governments of different countries will be able to find mechanisms to open the veil of confidentiality in cryptocurrency exchanges - time will tell.