Anonymous cryptocurrencies: rating of the best anonymous coins 2020
Some cryptanalysts say the 2020 trend of increasing interest in anonymous cryptocurrencies will continue into 2021
If we consider the statistics and graphs of the rate of popular anonymous cryptocurrencies for the outgoing year, we can see an increase in public interest in this category of projects
Modern users value privacy, especially in the area of financial transactions. Anonymous cryptocurrency algorithms offer mechanisms for adding new entries to the blockchain that will not be available to the general public. Thus, it becomes almost impossible to track transfers of tokens between wallets.
Top 6 anonymous cryptocurrencies at the end of 2020
Among the leaders of the anonymous cryptocurrency market, it is worth highlighting Monero, Zcash, Dash and a few more names, which will be discussed later.
The code designation of the cryptocurrency is XMR. The current rating among all cryptocurrencies according to the CoinMarketCap website is 14. The popularity of the coin is growing due to the ability to anonymize its owners.
Transactions in this currency cannot be easily tracked as XMR uses stealth addresses and a ring signature mechanism. The process of mining Monero takes place on the RandomX algorithm and XMR can be mined both on processors and on video cards.
Such precautions allow not only to hide information about the sender, but also about the recipient. Moreover, ring signatures also do not reveal the amount of the transfer, which adds bonus points to privacy.
The Zcash project was created with the aim of increasing the security and anonymity of users engaged in crypto trading. Thanks to the cryptographic tool Zero-Knowledge Proof ("proof with zero knowledge"), complete anonymity of Zcash transfers is achieved.
All transactions on the network are divided into two types: anonymous and regular. The user can choose which type to use. Anonymous transfers allow you to transfer tokens without disclosing your address to other participants in the transaction. Non-disclosure proof further obscures the details of the transaction, including the amount of the transfer.
Komodo cryptocurrency (KMD) started initially as a fork of Zcash. For this reason, some features of the mentioned coin are visible in KMD. For example, a zero knowledge proof protocol has been successfully used to ensure the anonymity of Komodo owners.
In addition, cryptocurrency developers strive to make transactions as secure as possible. For this, the Atomic swap DEX protocol was connected to the case, with the help of which P2P AtomicDEX exchange is implemented. Atomic swaps make it possible to exchange digital money without centralized control, which has a positive effect on privacy.
A kind of "conservative" cryptocurrency, as its developers prefer old proven technologies like I2P (Invisible Internet Project) and TOR to protect confidential data.
Thanks to TOR, the user's messages pass through an extensive network of repeaters around the world (provided by volunteers of the project), which makes it possible to prevent any attempts to find out the identity of the sender. Data is encrypted using I2P before being sent over anonymous or WAN.
This cryptocurrency is a fork of Zclassic. A zero-knowledge proof protocol is responsible for privacy, and increased anonymity is achieved through the use of a large node network.
Horizen owners have the ability to conduct transactions with public T-addresses and confidential Z-addresses, which work similarly to Bitcoin. The cryptocurrency has another interesting feature - its software base allows the coin to be used in the financial services sector, for example, for insurance or opening crypto exchanges.
One of the most anonymous cryptocurrencies on a par with Monero. In terms of capitalization, it is included in the Top 30 according to CoinMarketCap data. In January of this year, it experienced one of the most rapid surges among the popular altcoins. Then the price of Dash rose to $ 1,470 per unit, although just three months earlier (in October 2019) the coin cost less than $ 300.
The main features of Dash are the PrivateSend and InstantSend functions. The first allows you to hide data about the transaction, including the sender and recipient. This is possible due to the mixing of all transactions on the network, which greatly complicates the tracking of the money trail. With the InstantSend function, users can conduct transactions instantly, without waiting.
All cryptocurrencies on this list have various advantages to raise the level of owner anonymity to the maximum possible. Transfer data is encrypted, sent using a zero knowledge proof protocol, or shuffled to make it difficult to track. If anonymity is your first priority, we advise you to pay attention to the mentioned cryptocurrencies.