Cryptocurrency is a digital currency whose security is mainly based on public-key cryptography. Anonymity is a desirable requirement to preserve users’ privacy in cryptocurrency transactions. Anonymity makes investigating illegal transactions more difficult. Anonymity in cryptocurrencies provides a cover for various illegal activities such as money laundering and adversaries are hard to identify and punish. With the rise of privacy coin users can make transactions securely and anonymously.
Top 7 Privacy-focused Cryptocurrencies
Monero (XMR)
Monero is a privacy-focused coin where every user is anonymous by default. The sender, receiver and the amount of every single transaction are hidden. Monero uses Stealth Addresses, Ring Signatures and RingCT technologies to make the transactions confidential and untraceable. Its main goal is to provide privacy and security to users.
Zcash (ZEC)
Zcash is a decentralized cryptocurrency focused on privacy and anonymity. Zcash is built to empower economic freedom. It is similar to Bitcoin in its design and it was created from the original Bitcoin code base, but it uses a privacy technology that encrypts transaction information and allows users to shield their assets.
Dash (DASH)
Dash is an open-source blockchain and cryptocurrency focused on offering a fast, cheap global payments network that is decentralized in nature. Dash includes InstantSend which allows for fully confirmed transactions within two seconds and CoinJoin, a method of running a sequence of transactions and making them harder to trace.
Oasis Network (ROSE)
The Oasis Network is a Layer 1 decentralized blockchain network designed to be uniquely scalable,privacy-first and versatile. The Oasis Network is the first-privacy-enabled blockchain platform built to scale for open finance, a responsible data economy and web 3. ParaTimes on the Oasis Network can leverage privacy-preserving technology enabling users to share their data to earn income while keeping it totally confidential.
Decred (DCR)
Decred uses proof-of-work and proof-of-stake consensus mechanisms. It is designed to develop technology for the public benefit. Decred’s security, privacy, scalability and decentralized treasury empower stakeholders and provide them with the tools needed to enhance their financial sovereignty.
Worldcoin (WLD)
Worldcoin Network was built with the mission of building the world’s largest identity and financial network as a public utility, giving ownership to everyone. The Worldcoin revolves around World ID, a privacy-preserving global identity network. World ID enables users to verify their humanness online while maintaining their privacy through zero-knowledge proofs.
Mobilecoin (MOB)
Mobilecoin is a decentralized platform. A privacy-focused cryptocurrency MOB was created to be used as digital cash on mobile. Secure and easy payments, along with fast and encrypted transactions are claimed to protect personal data. Mobilecoin is an open-source platform where users have the option to verify the programming techniques.
| Cryptocurrencies | Market Cap |
| Monero (XMR) | $2.5 billion |
| Zcash (ZEC) | $407 million |
| Dash (DASH) | $294 million |
| Oasis Network (ROSE) | $269 million |
| Decred (DCR) | $198 million |
| Worldcoin (WLD) | $182 million |
| Mobilecoin (MOB) | $111 million |
Related: 5 Under-the-Radar Non-Fungible Token (NFT) Projects to Watch
Conclusion
Balancing users’ privacy and accountability remains a major challenge in decentralized cryptocurrencies. The above listed are the cryptocurrencies that use various techniques to enforce privacy and protect users’ identities. With the rise of privacy coins users can make transactions securely and anonymously.
Frequently Asked Questions (FAQs)
Which cryptocurrency is known for its focus on privacy and anonymity?
Monero is one of the best privacy-focused coins offering users a high level of security and anonymity.
What are the privacy coins?
Privacy coins are cryptocurrencies designed to protect the privacy of users and their transactions.
Which Crypto is not a privacy coin?
Bitcoin is not a privacy coin as its blockchain is public, you can view all the transactions.