Cryptocurrencies have shaken the way people think and act in the business world. The global finance market took a new leap in its functions and operations. Digital currencies eased out the complex, lengthy, and mundane duties of finances. Click at this link https://bitcoinpower.app/ for more info.
The establishers of cryptocurrencies tried to accommodate every possible need of humans and their finances. With the growing adaption of cryptocurrencies, many developing firms like Bitcoin Trading Platform have started their financial operations and incorporated cryptocurrencies.
As cryptocurrencies are still new and still evolving, many aspects are changing. Even though the main objective of cryptocurrencies was to offer privacy and anonymity, a new class was introduced to the world as private cryptocurrencies.
Understanding private cryptocurrencies
The most obvious question arises here: cryptocurrencies already have anonymity and privacy features, so why develop private coins? What do they offer? And how are they more private and different from traditional cryptocurrencies?
Cryptocurrencies regulate based on non-private blockchains, meaning that even though they offer a good level of security and privacy but their transactions are still traceable. In contrast, private cryptocurrencies are, as their name suggests, such private coins based on private blockchain networks, offering full-proof privacy to their users. In the case of private cryptocurrencies, transactional history is concealed by using multiple techniques.
The regulators conceal an individual’s wallet, keys, addresses, and transaction details and also use techniques by mixing several transactions to hide the details. This feature provides zero traceability to other networks, making it difficult to trace the transaction details.
All the features mentioned above add to the usability and uniqueness of private cryptocurrencies. Today, many private cryptocurrencies are regulated in the global financial market daily. Here is a list of the top six private cryptocurrencies
Top three private cryptocurrencies
Bytecoin is one of the pioneers of this new class of private cryptocurrencies. Byetcoin was founded on Crypto technology, and they claimed that they are the first private currency established and announced in the global market.
Today, the total market value of Bytecoin BCN is around $30.2 million. Likewise, on the micro level, if observed daily, the total volume derived from Bytecoin is $30,695.
They aim to build an undetectable and separate transaction that cannot be linked to its sender. Several techniques are used to reach this objective, including ring signatures.
Ring signature is a procedure that obscures the full transaction details, including the information about the sender, how much was sent, and who the recipient is. The method involves mixing multiple transactions so that information is unclear to the viewer. This way, transactions become untraceable.
Furthermore, another core feature of bytecoin, using Crypto technology, is its unlinkability. This goal is accomplished by offering one-time encryption codes. If an individual sends a bytecoin, the sender can send the coins through an exclusive, one-time code that enables undetectable transactions. It looks like coins are delivered to separate crypto links in every transaction.
2. Monero XMR
Another popular private coin is Monero (XMR). Like Bytecoin, Monero progresses on the crypto technology mentioned above, like ring signatures and stealth addresses. Although the regulating procedure is almost identical, Monero is, in fact, a hard fork of Bytecoin.
When the majority of the Bytecoins were supplied to the market, workers introduced a hard fork known as Bitmonero, which later changed to Monero. The global market cap of Monero XMR, observed latest in May 2022, is above one million dollars.
Another popular and known private cryptocurrency is Zcash (ZEC). Unlike the above two private cryptos, Zcash uses an encrypted technology known as Zero Knowledge, succinct non-interactive arguments of Knowledge. The technology enables users to conceal and protect their exchange details, including the amount.
The technology sounds complex, but the main objective is to prove the transaction’s quality without revealing any identity. Therefore, keeping this in mind, Zcash offers four kinds of transactions with different privacy features and significance.
Hence, by offering such high-tech services, Zcash has become the most substantial privacy holder and owns the 2nd highest market value compared to other private coins. The market value held by Zcash is $1.5 Billion, as observed in February 2022, and on a day-to-day, the value calculated is almost 265 million dollars.