What is a Privacy Token?
Privacy is a human right that authorities guarantee to protect, but only to a certain extent. Most are left to fend for themselves. Individuals, including groups, companies, corporations, industries, and the like, will do everything within their power to uphold this human right. It is like holding a secret formula that is kept from the knowledge of others. Privacy covers many bases such as but not limited to personal information, private data relating to transactions, deals, lifestyles, preferences, choices, habits, relationships, medical problems, locations, insurance, and other confidential records and sensitive documents, most especially, wealth and finances. The dawning of the Internet left many to vulnerable attacks that protecting privacy is becoming too costly a commodity to handle.
Follow The Money
As have mentioned, one that is commonly breached is the records of payments. That is why maybe the phrase, ‘follow the money” was concocted because payments history reveals a lot about a person’s what, where, when, and how, thereby exposing the individual to danger and uncertainties. It is mainly due to these factors that cryptocurrencies and the blockchain technology came into being. The possibilities of allowing for anonymous person-to-person transaction without meddling intermediaries was a welcome sigh. It is not begging for illegal activities to prosper but the mere fact that an individual’s protection of privacy is guaranteed, matters.
The Idea of Bitcoin
Anyone who is into Bitcoin will realize that the world’s first cryptocurrency is not that private, only decentralized. The Blockchain can only conceal some but not all of your sensitive data. Because of the Distributed Ledger Technology that it employs, the ledger is distributed among all participating nodes and open to public scrutiny. Transactions are actually pseudo-anonymous, not anonymous per se. and because of the law of KYC, that is, the Know-Your-Client procedure, it is easy to trace back participators in any transaction occurrence.
The Idea of Privacy Coins
Privacy coins take the idea of Bitcoin to another level. It allows for the complete anonymity of account holders, and the origins of their transactions are concealed in their entirety. Privacy coin transactions keep participators in complete anonymity with their wallet addresses, balances, and payment records. There are more than 60 different kinds of privacy coin projects currently floating in the crypto market. They have various approaches to privacy that a shopping user can choose from. Some of the most popular are Monero, Dash, and Zcash.
- Monero (XMR)
The world’s number one privacy coin is Monero. It renders users complete anonymity while transactions are left untraceable and unlinkable by utilizing ring signatures and stealth addresses. Ring Confidential Transactions, or RingCT, also provide additional privacy by concealing the transaction amount.
Monero currently trades at $165.32 with a $2.94 billion market cap, making it the 15th most valuable token by overall market value.
2. DASH (DASH)
Dash is widely considered the first-ever privacy coin in the world. It is a derivative of Litecoin, a derivative of Bitcoin. Created in 2014, it was then known as Darkcoin but was later rebranded as Dash in 2015, meaning, digital and cash. Masternodes stake a minimum of 1000 DASH in cold storage to ensure network security. Transaction validators include a mix of masternodes and miners, in which transaction speeds up when miners are excluded in the validation. Dash allows its users to remain anonymous or not according to their country’s regulations, using the PrivateSend feature. This feature can also conceal the origin of funds and bundle separate transactions into one. Dash promotes a voting system of quick changes in governance to prevent hard forks.
Dash currently trades at $129.84 with a $1.29 billion market cap, placing #31 in overall market value.
3. Zcash (ZEC)
Zcash implements Zero-Knowledge Proof, a cryptographic tool that allows users whether or not to conceal their transactions, that is, the option to reveal or not to reveal addresses to one another in the transaction. Other projects do not serve that feature. ZKP can also hide the transaction amount.
Zcash currently trades at $108.85 with a market cap of $1.17 billion, ranking #37 in the overall market value in its category.
The biggest tech giants of today like Amazon, Facebook, Google, Microsoft base their success on the value they place on user data, leveraging it to an endless cashflow. Their domination stretches far as to work beyond the edges of privacy and using algorithms and technology in the service of commoditizing vast populations of their ideas, thoughts, habits, and actions.
The role of cryptocurrencies, especially Bitcoin and privacy coins, is to give back to the person the power to control their money and wealth, most especially their treasured privacy.
eQapital is relevant now more than ever in catering to the present needs of the digital investor. Financial services from Trust, Custody, Exchange, Transfer to Asset Management needs are strategized on blockchain to empower you to control your funds, whether fiat or crypto. Security is in place with AML/KYC/CFT procedures. Our friendly eQapital Team is always ready to assist you 24/7. Give us a call now and be partners towards your progressive financial health goals.