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What is private cryptocurrency? Here's everything you need to know.

What is private cryptocurrency? Here's everything you need to know.

Although the blockchain technology used by currencies like Bitcoins is supposed to be safe and transparent, certain coins have more private transactions.

The announcement that the Government of india would present a new Act in the winter session of Parliament to ban all private cryptos in India, with some exclusions, in order to promote the core technology of cryptocurrencies and its goals, threw crypto marketplaces into a tailspin. In the previous few hrs, all major digital currencies have displayed a declining trajectory, implying a fall.

With plans to prohibit currencies in the works, now is the ideal opportune moment to learn much more about industry's private cryptocurrencies.

Cryptocurrency coins with a private address:

Cryptocurrency has recently experienced a boom in popularity. While a big number of new crypto investors entered the market in 2021, other coins, including as Ethereum, Bitcoin, and Shiba Inu, capitalised on their brand names. However, because of the privacy aspect, just a few were sold. Even though the blockchain technology used by coins like Bitcoin is designed to be protected and secret, certain coins have more private transactions.

Here are amongst the most popular private cryptocurrencies with built-in privacy features that hide user's identification and operations.

Monero (XMR):

Monero is a prominent cryptocurrency that is most recognised for its ability to enable users remain anonymous. Because XMR operations use ringed signatures and stealth identities, they are hard to track comparable to other coins. These approaches hide the users' identification, creating a safe shell for any type of transaction.

Dash Coin:

Dash is an another virtual currency that works seamlessly with secrecy. With Dash coin's PrivateSend function, users can choose whether or not their exchanges are hidden. The one-of-a-kind function allows users to stay safe when using currencies that are illegal in some places. Each transfer with the private send option incurs a cost.

Zcash (ZEC):

Zcash is a cryptocurrency that claims to be more advanced than industry leader Bitcoin. ZEC promises to be the safest virtual currency in the globe, owing to its improved user privacy protections. ZEC is deservedly regarded as one of the best private digital currencies, having adopted a cryptographic mechanism known as Zero-Knowledge Proof and allowing participants to protect transfers. The transaction amount as well as the dealers' addresses are obfuscated via Zero-Knowledge Proof.

Verge (XVG):

Verge is another anonymous cryptocurrency that shields the identity of the user. XVG, on the other hand, protects users' identification using existing and well-tested technologies from The Onion Router (TOR) and the Invisible Internet Project (I2P), rather than cryptography algorithms. Verge had previously attracted attention after a major adult website began accepting XVG transactions.

Beam: 

This is a security-focused currency with fundamental characteristics such as total control over the person's identity. By default, all Beam operations are stated to be confidential. There is no address or other personal data stored on the blockchain.

More cryptocurrencies that are private:

  • Grin
  • Horizen (ZEN)
  • ByteCoin (BCN)
  • Firo (FIRO)
  • Super Zero Protocol (SERO)
  • BTCX India
  • UCoin
  • Delta

While bigger currencies like Bitcoin have grown easier for experts to track, private cryptocurrencies like the names featured above seek to keep information safe. All of the best private currencies are also resistant to hacker efforts. However, law enforcement organisations and authorities are more likely to monitor those who transfer huge amounts of such coins, as keeping one's identity secret while transacting large amounts of money raises concerns. In India, the government plans to outlaw these coins and replace them with RBI-issued virtual currency. The action comes at a time when investor capital protection and misleading media advertising regarding investment opportunities and threats have been a cause of concern for some time.

Credit - Kunal Thakur