Let's look at some of the most popular privacy-focused cryptocurrencies, all of which come equipped with several different privacy features out of the box. These purport to provide heightened levels of security in the form of features or settings that assist users in keeping their identities and activities hidden.
1. Monero
The capacity of Monero (MXR) to assist users in remaining anonymous is largely responsible for the growth in popularity of this cryptocurrency. Due to ring signatures and stealth addresses, Monero transactions are far more difficult to track than other digital currency transactions. These approaches make it possible to conceal both the sender and the recipient's identity. In addition, Ring Confidential Transactions, also known as RingCT, make it possible to disguise the value of a transaction, hence enhancing users' level of privacy.
2. Zcash
Zcash (ZEC) touts itself as "If Bitcoin is like http for money, Zcash is HTTPS," highlighting the cryptocurrency's greater privacy and security. Zcash offers its users the ability to conceal their transactions via a cryptographic method called Zero-Knowledge Proof, which has been deployed. Transactions may occur without any of the parties exposing their addresses to the other participants (s). Additionally, the transaction value is obscured via Zero-Knowledge Proof. Zcash now has a market value of $1.49 billion and is trading for $122.68 per ZEC as of July 4, 2021. This places it at position number 60 on the list of cryptocurrencies.
3. DASH
DASH is a cryptocurrency introduced in 2014 and has a function called PrivateSend, which gives users the ability to choose whether or not their transactions would be anonymous and private. Users interested in adhering to the regulatory norms of their nations can do so thanks to this feature. This function will operate by hiding the origin of your cash from other people. If you want to keep your transaction confidential, you'll have to pay an additional price for that privilege. DASH can accomplish this goal by adopting a mixing protocol that uses an innovative decentralized network of computers referred to as controller nodes. Dash has a total worth of approximately $1.46 billion as of the 4th of July, 2021, placing it in the 61st position by market cap. At the time of writing, it is trading at roughly $142.60.
4. Horizen
Horizon (ZEN) provides users with privacy-protected Z-Addresses and public T-Addresses that function like that of Bitcoin. Sending money from a Z-Address to a T-Address, on the other hand, will reveal the total amount that was received. The extensive node network that Horizen has also contributed to the cryptocurrency's high level of anonymity. On the 4th of July, 2021, the price of Horizen was $68.93, and the company's entire market value was around $776.56 million. This positioned it as the 83rd most valuable coin.
5. Verge
Verge (XVG) is an alternative cryptocurrency that protects users' identities not through the use of cryptographic methods but rather using the tried-and-true technology of projects such as The Onion Router (TOR) and the Invisible Internet Project (I2P). By routing a user's communications via a decentralized network of relays and tunnels managed by volunteers located in different parts of the world, TOR can conceal the user's identity. I2P, on the other hand, takes precautions to encrypt the data of its users before transmitting it via a peer-to-peer, anonymous, and volunteer-operated worldwide dispersed network. It is possible to conceal the physical locations and the Internet Protocol (IP) addresses of those participating in the transaction.
Verge gained a lot of attention in the media because it was adopted by a well-known pornographic website so that it could begin taking bitcoin payments. The emphasis on privacy offered by Verge was a significant motivation for the creation.
6. Beam
The beam is a token that prioritizes security and has basic features that include full control over your personal information and privacy. Every transaction is anonymous by default, and the blockchain does not record any addresses or other information that may be considered private. It promises to have improved scalability due to its small blockchain size, suitability that users may opt into, support for online and offline transactions, atomic swaps, and integration of hardware wallets.
Beam tokens were selling at $0.43 as of July 4, 2021, and the cryptocurrency has a total market value of $39.77 million, placing it 462nd among the most valuable cryptocurrencies. Speculative investments, such as those made in initial coin offerings (ICOs) and cryptocurrency, come with significant risk. Neither Investopedia nor the author of this article endorses purchasing private cryptocurrencies or participating in initial coin offerings (ICOs). Before making any choices with money, one should always discuss their options with an expert first, since each person's life circumstances are unique. Investopedia does not make any claims or guarantees about the information provided herein, including but not limited to whether or not it is accurate or up to date.
