Most people crave anonymous transactions, and that is the reason cryptocurrencies like Bitcoin became popular. They want to carry out private transactions that are not linked to their real-life identities. Typical privacy coins like Zcash and XMR allow users to carry out private and anonymous transactions.
See also: Is Bitcoin Anonymous?
What coins are anonymous?
1- Monero XMR
Monero is one of the private coins that allow users to enjoy anonymous cryptocurrency transactions while allowing the latter to be their banks. XMR is different from cryptocurrencies like Bitcoin that is highly transparent and allows others to see the transaction record of others. Immediately users make transactions within this ecosystem, they enjoy default anonymity through stealth addresses.
XMR is one of the best anonymous and untraceable cryptocurrencies because it uses features like Ring Signatures, RingCT, and Stealth Addresses. With these privacy features, users can enjoy ring confidential transactions.
2- Zcash ZEC
This is one of the best privacy cryptocurrencies and is loved by those that crave intense anonymity. This cryptocurrency became quite popular when Edward Snowden mentioned that he fancied the crypto. Zcash caters to users that want either a private transaction or a transparent one. For the anonymous transactions, Zcash uses shielded addresses thereby giving the user the anonymity they crave. One of its anonymity features is the “zk-SNARKS,” which means zero-knowledge succinct non-interactive arguments of knowledge. By the zero-knowledge proof of identity feature, this cryptocurrency offers a better level of security, high scalability, anonymity, and cheap transaction fees.
It was previously called Zcoin, and it offers anonymity by shuffling the IP addresses of the user through Dandelion Technology. It makes transactions untraceable and ensures that the IP address of the sender of the money can’t be found. During a transaction, the link to the coin holder is burnt. This is different from what is available in currencies like Bitcoin and Ethereum.
This digital cash allows users to carry out a transaction without it being linked to them. It sees itself as the first privacy coin in the market. To do this, ByteCoin uses CryptoNote Technology that makes transactions untraceable. Every IP and transaction address is hidden, while the outputs linked to transactions are mixed through Ring signatures. With this coin, users can create one-time addresses, thereby improving anonymity.
When it comes to untraceable cryptocurrencies, this is one of the best, as it uses MimbleWimble technology that doesn’t include addresses or amounts of transactions. It makes the transactions untraceable by moving with other peers, thereby making every transaction look randomized.
The MimbleWimble mechanism also ensures that finished transactions are removed, thereby reducing the chances of the chain being clogged.
Verge was created in 2014, but it was called something else then, DogeCoinDark. It uses TOR to shield the IP addresses of transactions, thereby ensuring that they are secure. Security and anonymity transactions are big aspects of the ecosystem, and they are made possible by the different hash functions that Verge has, as well as its Proof of Work feature.
Anonymous transactions can be achieved with these aforementioned coins, and every one of them has different mechanisms that they use to make this possible.
Also read: Does An Anonymous Trading Platform Exist?