TOP 6 Privacy Coins 2021

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In the future, privacy coins can go up in price and we will say that below. Then if someone wants to make money on that he can pack his things and get ready to take off. As most altcoins do, privacy coins usually go in price by the end of the cycle. So if you think that you are late to buy bitcoin, have a look at the following ones.

What is a privacy coin?

A privacy coin may be defined as a cryptocurrency that confuses a transaction link. So that wallet activity cannot be seen. The transaction history is not possible to find. In this report, one can discover the main privacy coins in 2021 with a capitalization of over $1 billion.

How does privacy coins work?

The cryptocurrencies as Bitcoin appear to be pseudonymous.  This denotes that one fails to find a person by his public wallet address. But you can track how many cryptocurrencies are there in a wallet and its transaction history. It is important to say that your identity cannot be seen and be connected to your wallet address. Still, everyone may track your transactions.  But there are some coins like Monero and Pirate that are completely private.

Why should be privacy coins used?

The demand for decentralization and total privacy triggered the acceptance of cryptocurrencies. Anonymity and disability of external controls were introduced by blockchain technology. Cryptocurrencies have become a reasonable store of value. This was justified in 2020 when COVID-19 ravaged the cost of fiat currencies.

But as was mentioned before, most of the cryptocurrencies are not totally private, and they are pseudonymous. And with DeFi being introduced, cryptocurrencies are widely used in financial transactions. Countries are generating their own type of cryptocurrencies, which will not be pseudonymous. Governments are eager to control everything connected with cryptocurrency and especially the profit they get from data. Nowadays, we live in the information era and data are being monetized and often weaponized. Moreover, absolute privacy is required now with the growing menace of authoritarian countries.

That is why Privacy coins flourish. They suggest you the same benefits and store of value as other cryptocurrencies, but they are totally private. Privacy is considered to be a human right, and Privacy Coins provide you with financial privacy.

The best 6 privacy coins in 2021

Dash (DASH)

The first privacy coin is thought to be Dash. In 2014 it was invented from a hard fork of Litecoin. First, it was called XCoin, then changed into DarkCoin, and then in 2015, it became Dash. Nowadays there is 10.12 billion Dash in stock costing $4.23 billion. Later it increased up to 376 %.

A two-tier architecture is applied in Dash that brings into action the blockchain. There are miners in the first layer that protect the ecosystem and verify the transaction on the internet. Masternode is in the second layer. The network in Dash is subdivided into the miner’s nodes, that figure out keys and verify transactions by miners, and master nodes, whose main tasks are controlling, safely keeping user data, organizing transactions for light wallets, and promoting instant and private transactions.

The database of transactions is held by the master record. The technology for mixing payments is supplied by the master node. To raise the anonymity of the transaction, the payment can submit to several master nodes. Any community member can have a master node if he has a balance over 1000 DASH. InstantSend and PrivateSend are considered to be the most significant features of Dash.

Due to the master node network, users are able to perform immediate transactions with InstantSend. In other blockchains, you are to wait for transactions to be verified in a block. With Dash to avoid double-spending, master nodes confirm that the funds haven’t been spent and block them until the transaction is finished. But using InstantSend you have to pay an increased commission.

Dash also has a PrivateSend that is an upgrading on CoinJoin. Here there is an opportunity to divide Dash transactions into different denominations and combine them with other transactions in the network. This guarantees that nobody can see either transactions or their amount. Using PrivateSend means combining different wallets into one. That kind of technology is thought to allow you to conceal the series of payment transactions thanks to the intricacy of their analysis. It is impossible to determine where the money goes from the wallet if a transaction is divided into equal parts.

Pirate (ARRR)

In 2018 Pirate Сhain was developed. Between January and May 2021, ARRR got over 4400%. Nowadays, there are 181.12 million ARRR in stock and their capitalization is $1.528 billion. Pirate chain transactions are totally pseudonymous and private. When using the Delayed Proof of Work (DPOW) concept, one can exclude the problem of double-spending. This concept also protects the Pirate Chain from more than half of attacks, using the Bitcoin blockchain as a backup for the ARRR.

A block explorer is also used in the Pirate Chain. It means that observers see the transactions, but the senders and the addresses are anonymous.

ZCash (ZEC)

In October 2016 ZCash was invented as a hard fork of Bitcoin. And from January till May 2021, it gained 471 % and now it has a market capitalization of nearly 3.617 billion dollars. ZEC also has zero proof of action (zk- SNARK). Funds may be either seen to the public or not.

In Zcash, it is possible to select from two types of transactions. You can have the ordinary publicly available one, or you can have a protected transaction. A protected transaction is absolutely private. The transfers are shielded as transactions are registered in the blockchain. All payments can be seen, but the sender stays pseudonymous.

Users have a special key to see the content. A “spend key” and a “view key” are special features to be used in each ZEC transaction. When transferring ZEC from your wallet the spend key should be used and when you intend to see the details of the transaction the view key can be used. A user would give a person the "view key" if he has had a protected transaction but would want him to see the details of this transaction.  Moreover, ZEC users can use the “memo field” to share information they want others to see. These abilities let a user prove that transfers or transactions have taken place.

Verge (XVG)

Verge was created in 2014 as DogecoinDark but later was rebranded into Verge in 2016. In 2021, XVG has got over 765% of its profit. And now there are over 16.4 XVG in stock costing nearly 1.1 billion dollars.
The main feature of Verge is to obfuscate the users' IP addresses, ensuring information privacy. It suggests absolutely pseudonymous transactions by hiding the place and IP address of transaction recipients. “Simple Payment Verification” is used in transactions, making processes very fast.

XVG has a Wraith protocol that ensures anonymity. Due to Wraith protocol, one can quickly change from private to public registers on the Verge blockchain. All transactions and transfers cannot be tracked then. Many mining algorithms are applied on the Verge blockchain. There are several ways to extract XVG: Scrypt, X 17, Lyra2rev2, Elder, and Blake2s. Almost none of them use ASIC hardware.

Monero

Monero was launched in 2014. There are 17.91million XMR in circulation with a market capitalization of about $8.592 billion. From January to May 2021, it has gained over 207%.

When you transact using XMR, both the identity of the sender and the recipient are cloaked using “Ring signatures.” When the transaction is initiated, it is signed by a group of random signers hiding the identity of the actual sender. Think of this as buying a gift for a colleague but instead of signing just your name on the card; you have the entire office sign it. They will not know who gifted them unless you say it is you. That's how Monero works – the recipient won't know you are the originator of the transaction unless you reveal your identity.

A Monero sender will generate a one-time ‘spend key' that the recipient can only detect. The recipient is the only person who can spend the crypto using that key. Monero also uses stealth addresses which generates a one-time public key for recipients. It ensures that the fund being received is not directly connected to your wallet, but miners can verify that this transaction occurred, preventing the double-spending problem. More so, the Ring Confidential Transactions (RCT) masks the amount being sent and received. RCT is used as proof that Monero is not being used fraudulently.

Horizen (ZEN)

It was developed in 2017 and nowadays it has a capitalization of nearly $1.58 billion and over 11.06 million Zen in stock. The profit has reached over 1100% from January to May 2021.

Horizon works on a decentralized hub infrastructure. It is a totally decentralized and entirely customizable sidechain on the market and it suggests scaling solutions. The Horizen platform assists businesses in creating real-life Blockchain applications at a lower price. Zendoo, an exceptional sidechain technology, is used in the Horizen sidechain platform to let businesses make private or publicly available blockchains. The ZeroCash protocol is applied in Horizen like Zcash and Zclassic.

The main contrast between Horizen and Zcash is that Horizen also carries out “Secure Nodes” and “Super Nodes” besides mining. There are many dedicated nodes in this industry with a multi-level node system. Moreover, the Horizen project not only endeavors to develop cryptocurrency but maintain a lot of blockchain-based services through sidechains.

Decentralized finance (DeFi) is thought to be the future of finance for sure. With the boosting demand for total privacy, privacy coins are the right decision and they obviously are the center of DeFi transactions.

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