We all have heard of Bitcoin, but it is not a truly anonymous cryptocoin. Anyone can see your public address and get to know the transactions associated with that account. A bitcoin is basically a pseudonymous currency. It is the lack of total anonymity that has issued several troubles for bitcoin, some even causing a rise in the inception of many new crypto currencies resulting in bitcoin forks like BTD and BTG.
With every passing thing, an evolution takes place in the form of a change, we have seen how Orkut was taken over by Facebook and the same goes with Yahoo answers which has been taken over by Quora. In both cases, the intent remains the same, what changes is the approach. The rise in the private currencies could well be a sign of crypto revolution 2.0.
The developers behind bitcoins are still struggling with scalability issues; they don’t have time or resources to figure out a feasible solution for it. Every other day, we have more and more different cryptocoins coming forward to resolve the issue of privacy. Currently, we have 9-10 cryptos based on various technologies that are publically listed and ensuring the investors of a truly private coin.
Here is a list of top 5 private cryptocurrencies to invest in:
Team: Pseudonymous author Nicolas van Saberhagen
Objective: Privacy should be maintained in a transaction between two parties
Launched in: 18 April, 2014
The first in the list is Monero. It is one of the most secure crypto currencies that one can find on the list of top cryptos according to coinmarket cap. It pays a lot of attention to maintaining the privacy of the user. Unlike bitcoin, in monero you can’t see how and when two parties did a transaction. Just recently in a case where the law wanted to know the amount involved, no one could find even a trace of how much monero the owner had. The currency uses complex on-chain cryptographic methods such as ring signatures, Kovri and stealth addresses to protect the privacy of users.
Team: Zooko Wilcox-O’Hearn
Objective: Maintain anonymity of Bitcoin users
Launched in: 28 October, 2016
Every crypto has some or the other protocol over which the entire foundation is based. In Zcash, the protocol is a zk-SNARK protocol, also known as zero-knowledge proof. Although they are yet to implement the entire tech, for now, they operate on the same blockchain technology as bitcoin. The only limitation is, to fully realize the potential of the privacy feature in Zcash, you will require a system with 4GB RAM.
Team: Multi-cultural team with pseudo identities
Objective: Proof of stake currency
Launched in: 1st February, 2016
PIVX recently became the first proof of stake cryptocurrency to implement the zero protocol. This implementation will give them an edge over other currencies which are yet to implement the foundation required to have privacy inbuilt. Any stake coin merged with the capability of the zero protocol is a great thing and a matter of competition for other currencies focused towards privacy issues. The devs are working hard and we are sure going to see an improved PIVX. It is known as Private Instant Verified Transaction and was the first proof of stake currency.
Objective: Perform transparent, anonymous, private, and fungible transactions
Launched in: October 15, 2016
Another cryptocurrency focused towards implementing the zk-SNARK protocol is komodo. It is a coin that forked out of Zcash due to reasons such as Komodo had a better security system and an optimized algorithm. For now, the devs behind komodo are moving towards decentralized exchanges and cross chain auto swaps. Considered an underdog, it is surely going to the moon very soon.
Team: All star team led by Craig MacGregor
Objective: Make online payments easy to do, at low cost, and all the while making sure to protect your privacy
Launched in: April,2014
Navcoin is a very undervalued currency at present. They are yet to witness a proper bull run. Navcoin is also a crypto currency that works on the fundamental of privacy. Lately they have been suffering through a lot of centralization issues. Even though NAVcoin is a crypto currency, it doesn’t use any crypto approach to remain private, instead it uses a obfuscation technology with a sub-blockchain that goes in parallel to the main blockchain to become fully private.
Every other private crypto currency is trying hard to gather the maximum amount of market cap but very few will succeed. It remains to be seen how they come up with innovative approaches to please the investors.