An introduction to the popular privacy coins Monero, Dash and ZCash and how they compare to Bitcoin and other forms of cryptocurrency
Privacy coins are cryptocurrencies designed to hide the identity of their user and provide the anonymity that so many misattribute to Bitcoin. This list barely scratches the surface of the available privacy-focused coins on the market which will be covered in future articles.
Related: Setup Ledger Hardware Wallet
There is a common misconception about bitcoin that never seems to go away: “Bitcoin is anonymous, that’s why criminals love it!” You’ve probably heard your Senator or Member of Congress say something similar. But Bitcoin is not anonymous. It’s a public, permissionless ledger.
Monero is a popular privacy coin released in 2014. Monero uses Ring Signatures, Stealth Addresses, and Ring Confidential Transactions to keep Monero transactions hidden. Any previous Monero transactions hide a transaction initiated from a Monero wallet as all Monero wallet addresses can be used, making it impossible to know which address is involved in the transaction.
Wallets for Monero include Cake Wallet, Edge Wallet, Trezor, and Ledger Nano S, and Ledger Nano X.
Launched in 2014 as XCoin as a fork of Bitcoin, Dash is another popular privacy coin. XCoin rebranded to Dash in 2015. Dash uses an optional PrivateSend feature to provide increased privacy.
Related: Beginner’s Guide to Blockchain
Wallets for Dash include The Dash Core Wallet, Edge Wallet, Trezor, and Ledger Nano S, and Ledger Nano X.
Zcash is another privacy-focused cryptocurrency based on the Bitcoin codebase. Launched in 2016, Zcash uses cryptography for enhanced privacy. Zcash addresses are either private or transparent. Private addresses are known as z-addresses, and transparent addresses are known as t-addresses.
Wallets for Zcash include ZecWallet Lite, Atomic Wallet, Trezor, Trust Wallet, Ledger Nano S, and Ledger Nano X and Exodus.
This list only scratches the surface, but future articles will focus on Grin, Komodo, PIVX, and more.