The bitcoin is a pseudo-anonymous peer-to-peer payment network since the transactions under are not absolutely private. For this reason, other options have emerged where privacy is the pillar. In many of them, it is impossible to identify the sender and receiver of a transaction, since they are impossible to trace. We present a short list with the most important anonymous cryptocurrencies.
If you really care about the issue of anonymity, Monero (XMR) is one of the most robust currencies in this field. The cryptocurrency puts privacy as the pillar of your project. It is also a decentralized digital currency, that is, it is digital money managed by a network of users around the world. And although it uses a blockchain scheme and logic similar to bitcoin, Monero transactions can be considered as one of the most private. Your XMR is one of the pioneers among anonymous cryptocurrencies.
To provide privacy to your network use confidential signatures and transactions “in ring”. In addition, use stealth or stealth addresses to hide the origin, amount and recipient of a transaction. Thus, the entire flow of the operation is private. By default, the issuing and receiving addresses of the funds are hidden when using a monero wallet. As explained on its website, the transactions in the XMR blockchain are not linked to any user or entity.
Although not as popular as Monero, ZCash offers almost the same features as the latter. ZCash is a decentralized and open source cryptocurrency, which offers protection in terms of privacy. The transactions are “shielded”, since the sender, the receiver and the value of the transaction remain hidden.
On the ZCash website, they make an interesting analogy: bitcoin is like the money http, while ZCash adds an additional layer of security, being the equivalent of https. Thus, the anonymous cryptocurrencies ZEC become another of the private means to trade in the cryptographic world.
NAVCoin is one of the least known cryptocurrencies with anonymous focus. This is demonstrated by its capitalization, which places it at 214th place in the CoinMarketCap. It is also a digital currency for P2P transactions and a blockchain that gives it a decentralized sense. Use the PoS participation test instead of the bitcoin PoW, so it cannot be mined. As with Dash, anonymous transactions are optional. If you decide to activate the option, a secondary blockchain is used: the “Subchain”. This hides the sender and receiver of the transaction.
But NAVCoin goes a little further: through the Polymorph project (still in development), NAV seeks to also be able to trade between different block chains anonymously. Thus, it becomes a very interesting option and demonstrates the possibilities in this niche.
Like bitcoin, cryptocurrency Dash seeks to transfer digital value from one place to another. Although in the background are very similar ideas, the ways of carrying them out differ significantly. The P2P network of Dash incorporates the master nodes along with the miners. But also, Dash incorporates 2 optional tools when making a transaction:
InstantSend: It’s an option that enables very fast processing of transactions. Transactions with bitcoin, Ethereum or Litecoin can take several minutes, depending on the network congestion. In the case of activating the Dash snapshot operations, the funds are processed in less than one second.
PrivateSend: If we normally transact with DASH, we will not obtain any anonymous element in the operations. However, there is another box that allows us to hide our identity: PrivateSend. This feature grants complete privacy by hiding the origin of your funds. Its website is very clear: a Dash wallet is made up of different “tickets”. PrivateSend uses a very innovative process to combine your inputs with those of two other people, without the funds leaving your wallet. Thus, it is impossible to determine who sent these funds.