Cryptocurrencies

Are “anonymous” cryptocurrencies really private? – Cryptocurrencies

A few months ago I had a conversation with a friend of a friend who told me that the illegal substances he bought on the dark web could not be traced back to him because he had paid in Bitcoin (BTC). To his amazement, I explained to him that the majority of cryptocurrencies (including bitcoins) are not anonymous but in fact pseudonyms – a subtle but very important difference. Blockchain technology is the foundation on which cryptocurrencies are built. But it is also a large public ledger on which all transactions are recorded forever. For some, this is precisely what cryptocurrencies such as Bitcoin have proven to be limits. Indeed, on their respective blockchains, all the information relating to each transaction is accessible to anyone who wants to take the time to consult them. It was this so-called weakness that gave birth to true anonymous cryptocurrencies, paving the way for privacy-oriented crypto. In this article, we’ll take a look at what these so-called anonymous cryptocurrencies are and how, when buying them, you can avoid giving your personal data to an exchange.

Why do we need anonymous cryptocurrency?

To understand the importance of anonymous cryptocurrencies, you have to know how blockchains work. A blockchain represents the records of transactions issued on a crypto in a time-stamped register. These records are managed by several thousand interconnected computers called “nodes”.

A blockchain is not governed by any central authority – this is one of the main reasons Bitcoin was created. On the contrary, all information relating to a transaction, such as the identity of the two parties and the amount and / or value of a transaction, is accessible to anyone who knows the public address of the sender and / or the customer. recipient. This principle of transparency facilitates the verification process and ensures that the network remains decentralized at all times and free from any hacking.

The most famous cryptocurrencies, such as Bitcoin, Ethereum, Litecoin and Ripple, all work this way, as well as most other altcoins. They do not therefore guarantee the total confidentiality of a transaction, which means that they are available and visible to everyone, at all times. Thanks to this deliberately built-in flaw, anonymous cryptocurrencies were born with systems designed to provide complete anonymity.

What are these anonymous cryptocurrencies?

Although their common goal is to offer anonymity, anonymous cryptos do not all work the same. It all depends on their respective anonymization protocols. We will now present some of the most popular anonymous cryptocurrencies, starting with the best known, the Monero.

Monero (XMR)

Created in April 2014, the Monero is here anonymous cryptocurrency most used and has recently seen a sharp increase. It was created from a fork of Bytecoin and is so secure that it is impossible to know the value of transactions sent.

Monero uses very complex cryptographic systems such as:

  • The “circle signature” : to hide the sender’s address using mixed public keys
  • Stealth addresses : to hide the address of a recipient
  • The “confidential ring transaction” : to hide the amount of XMR transferred

ZCash (ZEC)

Zcash is also a anonymous cryptocurrency well known. Created by Zooko Wilcox, it ensures the confidentiality of transactions thanks to its protocol zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). More commonly called Zero-Proof Knowledge.

In fact, the protocol zk-SNARK allows a user to authenticate without username or password, what prevents verification nodes from accessing personal data when verifying a transaction.

Dash (DASH)

Launched in January 2014, DASHwhich was first called XCoin then Darkcoin – offers a optional anonymity mainly based on its PrivateSend functionality.

PrivateSend allows transactions to be “mixed”, which gives the user the same level of confidentiality as for withdrawing money from an ATM.

The mixture prevents others from seeing what you are doing with your DASH, which makes your future transactions anonymous. Additionally, Dash users can transact without creating an account and without authenticating.

Other lesser-known anonymous cryptocurrencies

Cryptocurrencies previously mentioned are among the market leaders. But of course there are several other anonymous cryptos.

Nevertheless, they deserve to be mentioned. These include the following:

  • Rod (XVG): Uses the Tor protocol and the Invisible Internet Project (I2P) network to remove direct connections between the parties of a transaction by passing them through relays, so that it is impossible to identify the recipient and the sender.
  • Horizen (ZEN): formerly known as ZenCash, it is also based on the “Zero-Knowledge” protocol.
  • Zcoin (XZC): was established in September 2016 and is also based on proof of the absence of knowledge.
  • NavCoin (NAV): was created in June 2014 and gives users the choice to accept or decline anonymity.
  • PVIX (Private Instant Verified Transaction): launched in January 2016, it uses the Zerocoin protocol to offer total anonymity.

How to buy and sell anonymous cryptocurrency… anonymously!

Not so easy…

The question may sound strange, but buying cryptocurrency with the fullest anonymity is more complicated than it looks.

Often this means using websites like Paxful to exchange cryptos in P2P (i.e. in person, peer to peer), which can be dangerous and is sometimes filled with crooks. Fortunately, there is an option which is not only anonymous, but also safe and very easy to use!

Evonax: simple, easy and secure

Sure Evonax, you can trade Bitcoins and over ten other cryptocurrencies for anonymous currencies like Monero, Dash, and Zcash. A new addition to the platform is USDT (Tether), which means you can receive and buy in US dollars now.

However, the most important thing is that it is no need to do KYC (Know Your Customer) or AML (Anti-Money Laundering) checks because you are simply exchanging one cryptocurrency for another. Unfortunately, that does not prevent many exchanges from acquiring other personal information about you. Evonax is different, you only have to enter your email address if you wish … there is no obligation.

Trading your anonymous cryptocurrency here is so easy that I don’t even have to explain how the platform works … just visit the Evonax website and choose the cryptos you want to trade. It’s as simple as that.

If you’ve never heard of Evonax before, check out this guide to find out more about the people behind this innovative European company and why you can trust them.

So there you go … My friend’s friend was shocked to learn the truth, but at least now he knows how to keep the authorities from knocking on his door for using the dark web. That said, don’t make the mistake of buying Monero or Zcash on an exchange that doesn’t respect your anonymity, be sure to pick one like Evonax. If you can find me a platform that’s easier to use and just as secure, I will be surprised. Good exchange, my friends in love with privacy!

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