But some cryptos take things a step further, taking their focus on privacy to the next level.
This is where privacy coins come into play.
Two of the most popular privacy coins are Monero and ZCash, but which is best?
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What Is Monero?
Monero is an incredibly popularprivacy coinlaunched in 2014.
This came in the form of the CryptoNote whitepaper, which many saw as a good foundation for cryptocurrency.
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The CryptoNote whitepaper was used to found Bytecoin, but this cryptocurrency failed amid a supply scandal.
The next year, Monero was launched.
Then, in the crypto boom of 2017, Monero’s price soared.
But Monero’s price doesn’t stand at the core of its appeal.
Rather, the crypto’s enhanced privacy elements outshine all else.
So, how can Monero achieve this?
How Does Monero Work?
There are several technologies that Monero employs to provide its users with privacy.
Let’s start with Ring Confidential Transactions (RingCT) and ring signatures.
RingCT is what Monero uses to keep transactional information private.
This was first used in 2017 and was quickly adopted by the rest of the connection.
RingCT encrypts transaction amounts, which is now standard practice on the Monero blockchain.
As you may have guessed, RingCT and ring signatures are associated.
It sounds a little complex, but don’t worry.
These aren’t too difficult to understand.
Monero’s Multi-layered Linkable Spontaneous Anonymous Group signatures work by using a group of people to sign each transaction.
This real signature is combined with other signature fragments from the rest of the group to form a ring.
Using this technology, the true sender of the funds cannot be determined.
Lastly, Monero uses stealth addresses.
These are essentially burner addresses provided to senders on a one-time basis which the recipient can publish.
However, the sender’s transactional history will be linked to one unique address that remains private.
This conceals the destination of the funds in a given transaction and provides users with further privacy.
Bitcoin and Litecoin are two popular choices in dark web transactions, but these are not privacy coins.
Both blockchain ledgers are public, meaning anyone can view the addresses and transaction amounts.
The ability to conceal identity and activity far more effectively makes it somewhat perfect for cyber criminals.
What Is ZCash?
ZCash is another popular privacy coin that shares offers its users a level of anonymity.
Developers changed the name of Zerocoin to ZCash in 2016.
ZCash is a Bitcoinhard fork, though the two cryptocurrencies have different intentions.
Namely, ZCash is designed to be private.
ZCash provides anonymity through the use of shielded addresses.
ZCash’s shield addresses encrypt transactional data to anonymize senders and receivers.
ZCash’s use of the Zk-Snark zero-knowledge proof protocol allows shielded addresses to exist.
But because ZCash is a Bitcoin fork, private transactions are optional, not mandatory.
On top of this, ZCash has been in some hot water in relation to its privacy.
As perBlockonomi, controversy arose when rumors about a possible ZCash backdoor surfaced in 2018.
A back door."
This also triggered questions surrounding just how private ZCash was.
But unlike Monero, ZCash doesn’t have much presence on the dark web.
Time will tell on this one.
Monero vs. ZCash: What’s More Private?
If this isn’t something you want, both Monero and ZCash could be right for you.
