The Importance of a Privacy Coin and Their Real-life Application in the Crypto Space
The adoption of privacy coins is seriously on the rise even with a lot of contentions by major players in the cryptosphere. The anonymity level of some cryptocurrencies is under question as it is possible to trace transactions profiled on the public ledger “Blockchain”. Crypto developers thus created privacy coins to combat this transaction security loophole.
What Are Privacy Coins?
Privacy coins are special types of cryptocurrencies that utilize special cryptographic functionalities to hide one’s identity when making transactions. With privacy coins, investors in the cryptosphere would have no worries about their identities been revealed to a third party as it’s possible to hide wallet addresses as well as balances on the blockchain. Privacy coins are innovative milestones that gear towards restoring the complete anonymity of cryptocurrencies.
3 Unique Examples Of Privacy coins
PIVX coin is an advanced cryptocurrency project that helps facilitate private, instant and verified transactions. PIVX is said to be the world’s most advanced privacy enabled proof of stake cryptocurrency using the Zerocoin protocol, an advanced zero-knowledge proof privacy protocol for utmost transaction anonymity and zPoS, a world’s first privacy enabled proof of stake technology. From these descriptions by PIVX developers, it is obvious that the coin was built with privacy in mind.
Apollo coin is generally described as the fastest private coin available. Apollo is a new cryptocurrency built off the NXT platform. The coin has been commissioned to become the most advanced, feature-rich cryptocurrency available. Its main goal is to provide users with an effective all-in-one currency with which they can buy and sell with complete assurance of privacy. The developers of Apollo coin boast that even if all cryptocurrencies lose their relevance or banned, their coin would never follow suit due to its privacy deployable in any business transaction.
Digibyte offers a more secure, faster and forward thinking blockchain technology. Digibyte uses five secure and advanced cryptographic mining algorithms to prevent mining centralization compared to single algorithm blockchains and has its blockchain spread over 200000+ servers on computers, phones, and nodes worldwide. the creation and implementation of Digishield and Multishield also help guard the Digibyte blockchain from attacks reinforcing better security guarantees
These three are just a few out of the numerous private coins making ways out there right now. Even though they all deploy various technologies in their development, they are all similar in that they help attain user-bound anonymity. The two points below are some of the relevance of Privacy coins in the cryptosphere;
Owing to the fact that most cryptocurrencies like bitcoin, ethereum, etc. are used for financial payments, most businesses financial record always remain unhidden on the blockchain and can pose potential risks for a business who wishes to keep a high level of transactional discretion. With privacy coins, this fear is now been allayed
Financial Data protection
Alex Lielacher wrote in btcmanager.com “Financial data is, of course, at the forefront of interest for corporations and government agencies to gauge the financial behaviors of individuals. Hence, citizens who want to prevent their financial data from being harvested and potentially misused, anonymous digital currencies offer a great alternative to all existing payment methods”. As a result, with privacy coins, users in the cryptosphere would have nothing to worry so much about.
There is a strong regulation against the introduction of privacy coins due to there potential threats in helping to serve as an anchor to financial frauds. The talks on general cryptocurrencies usually create a buzz and louder the buzz is the subject matter of privacy coins, however the tide flow in the future, privacy coins offer opportunities that help propound the original intentions for creating Bitcoin, the world’s first and most acclaimed cryptocurrency