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Privacy coins are the cryptocurrencies which are fully anonymous and untraceable. There are various privacy coins and the major ones includes
- Monero
- Zcash
- Zcoin
- PivX
1. Monero
Monero coin, originally forked from Bytecoin, is a secure private untraceable coin. Monero uses RingCT privacy technology. It provides privacy through unique features such as
- For senders (Ring Signatures)
- For receivers (Stealth address)
- For the transaction (Ring CT (Confidential transaction)
Monero, which was previously known as Bitmonero, is the first coin to use CryptoNote technology. Cryptonote is a next-generation platform for anonymous and secure cryptocurrencies.
Crypto Note:
It is an open-source technology and concept for the cryptocurrencies of the future. The main features are
- Untraceable payments
- Unlinkable Transaction
- Double spending proof
Untraceability:
Monero uses a special technology called ring signatures which shuffles users' public keys in order to delete the ability to identify a particular user.
Ring signatures:
Ring signature is a type of digital signature that can be performed by any member of a group of users. A ring signature is made of the actual signer. All members are considered equal and valid in this ring.
Stealth Address:
Stealth address is a technology used to protect the privacy of the receivers of cryptocurrencies. It requires the sender to create a random access to the same transaction.
RingCT: It is nothing but Ring Confidential Transaction (CT) used in Monero to improve transaction privacy by hiding the transaction amount sent.
Monero is fungible as the transaction is private by default. Monero hides the sender, recipient address and transaction amount.
In Monero, transactions are confirmed by distributed consensus and immutably recorded on the blockchain. Moniero safe (no trusted setup).
Monero has 2900 full nodes online – higher the number of nodes, more decentralized and secure network.
Monero Scalability and transaction costs:
On an average, Monero blocks are mined every 2 minutes and its transaction takes about 20-30 min on an average. Monero has implemented a dynamic size limit and it gets changed by itself. So do not be hard-coded.
Monero's higher transaction costs and their average transaction fee is $ 3.21.
Pros:
- It can give high privacy two to the ring signature feature.
- Transactions can not be linked and traced.
- No blocksize limit.
- Hides recipient, sender addresses and transaction amount.
- Private on default.
Cons
- It has only a few wallets support two to the high privacy feature.
- Transactions cost are very high.
- They are concentrated mining and almost 35% of mining is controlled by only four large pools.
- Monero transactions are significantly larger than other cryptos because of encryption involved. So, it has scalability issue.
2. Zcash
Zcash is a privacy protection, digital currency built on strong science. It is Bitcoin forked and uses zk-SNARKS (Zero knowledge Succinct Non-Interactive Argument of Knowledge proofs) for privacy.
Unique features of Zcash are
- Low transaction fees
- Optional privacy
- Z-addr to t- addr transactions
- t-addr to z-addr transactions
- Hides sender and receipt address
Zero-knowledge proof is a method or process where one person (the prover) can evidence to another party (the verifier)
There are four types of transactions in the Zcash network
- Public transactions – where all transactions and amounts are revealed.
- Shielded Transactions – Zcash supports two types of addresses "t-addr" or transparent address and "Z-address" or shielded addresses. Transactions between "t-addr" and "z-addr".
- Deshielded transactions – Private address to Public address, where the transaction is shown in the private address gets shielded.
- Private Transactions – z to z-addr where both addresses and transaction amount gets encrypted and not visible.
Zcash Scalability and transaction costs:
Roughly every 150 seconds and maximum block size 2 MB. The average time needed to create a private transaction is 60 sec. Zcash Transaction for second is 27 and the transaction cost is $ 0.001.
Pros
- Selective Privacy
- High anonymity
- Zcash has proper wallet support with Ledger Nano S and Trezer.
- Low transaction fees
Cons
- Requires trusted setup
- Proof size is large
- Takes more time to create a private transaction
3. Zcoin
Zcoin is an anonymity and privacy-oriented cryptocurrency which uses Zero-knowledge proofs via Zerocoin protocol.
Zero-knowledge proof or Protocol
It is a method by which one party (prover) can send and receive coins without disclosing which specific coin belongs to them. The term zero is proof, but the second party is called
Zerocoin works by allowing you to burn coins (otherwise known as Zerocoin mint) and later redeem an equivalent number of new coins (known as Zerocoin spend). It provides greater anonymity compared with other privacy cryptos. It is impossible to trace the newly minted coins to a particular user.
To mint to Zerocoin, a person generates random serial number This is a cryptographic function to generate value "V". From the change in the future.
Zcoin Scalability and TPS
Zcoin has high block time 10 min and maximum block size is 2MB. The average time needed to create private transaction is 2-3 sec. Zcoin Transaction per second is 14 and the transaction cost is $ 0.13.
Pros
- No need of mixer
- Does not require a trusted third party to provide anonymity
Cons
- Zerocoin does not hide transaction values.
- Requires trusted setup.
4. Private Instant Verified Transaction (PIVX)
PIVX is a privacy-focused cryptocurrency based on a fork of DASH v0.12.0x core with Proof of Stake with a focus on scalability and practicality.
Major PIVX features are
- SwiftTX: Transaction time is instant using "SwiftTX". Transaction confirmation is done by the masternodes instead of the network's approval. SwiftX transaction is confirmed and spendable within seconds.
- Zerocoin PIV (zPIV): This feature allows users to spend anonymously. It is a mix of POS and zerocoin protocol. 25% and increase the speed of verification and network performance. It helps to hide coin balance and transaction history. It takes 0.5 seconds to mint and 2.54 seconds to spend ZPIV.
- POS 3.0 Bitcoin Core 0.010x: PIVX is the first Proof of Stake cryptocurrency to be based on version 0.10 or higher Bitcoin codebase. PIVX in a wallet. Proof of Stake is a method of distributed consensus and rewards.
- Masternode: Masternodes are mighty elements of PIVX network. These are nodes running the same wallet software on the same blockchain to provide extra services to other networks. To run a masternode, we should dedicate 10,000 PIV as collateral. The major services provide by masternodes are anonymization, increased privacy of transactions, instant transactions, decentralized governance, and budgeting system.
- See-saw algorithm: PIVX has developed See-saw reward balance system. Higher the masternode, the smaller the portion of each. Conversely, when the masternode count falls, the masternode reward portion is increased.
PIVX Scalability and TPS:
PIVX has a high block time of 1 minute and maximum block size is 1MB. The average time needed to create private transaction is 2-3 sec. Transaction per second is 70 and the transaction cost is $ 0.003.
Pros
- It is fast and has low transaction fees. The instant transaction is possible using technology "SwiftTX"
- It uses Proof of Stake Consensus Mechanism So rewards and coin creation directly goes to PIVX owners not miners
- PIVX can be stored in Hardware wallet
- Passive income can be earned through its masternode system.
Cons
- Unlimited coin supply
- No trusted setup
- It does not hide transaction amount
Comparison of Privacy coin:
|
Monero |
Zcash |
Zcoin |
PVIX |
|
| Coin Economics and Scalability | ||||
|
Consensus Mechanism |
Proof of Work |
Proof of Authority |
Proof of Work |
Proof of Stake |
|
Mining Algo |
Crypto Night |
Equihash |
Lyra2z |
Proof of Stake |
|
Block time |
2 min |
2.5 min |
10 min |
60 seconds |
|
TPS |
Adaptive block size |
56 |
70 |
14 |
|
Private transaction time |
1 sec |
60 sec |
2-3 sec |
2-3 second |
|
Transaction cost |
$ 3.15 |
$ 0.0001 |
$ 0.13 |
$ 12 a.m. |
|
Instant Transaction |
No |
No |
No |
Yes |
|
Master Nodes |
No |
No |
Yes |
Yes |
| Privacy Specs | ||||
|
Privacy Tech |
Ring signature |
zk-SNARKS |
Zerocoin |
zPIV |
|
Accounts Viewable |
No |
"T" addresses viewable and "Z" addresses shielded |
visible |
visible |
|
Master Nodes |
No |
No |
No |
yes |
|
Optional Privacy |
Yes |
Yes |
Yes |
Yes |
|
Trusted Setup required |
No |
Yes |
yes |
yes |
|
Hides Sender and recipient address |
Yes |
yes |
Yes |
yes |
|
Hides Transaction amount |
Yes |
Yes |
No |
No |
|
Full Nodes Online |
2900 |
1200 |
1700 |
2100 |
|
Private By Default |
Yes |
No |
No |
No |
Scalability and coin economics.
Conclusion
Monero is a highly rated privacy currency, it is only currency that is untraceable, untrackable and unlinkable. Monero is scalability issues. The transaction size and cost are very high.
Zcash also hides transaction amount like Monero but it uses zk-SNARKS privacy technology which takes more time for private transactions.
PIVX is fast and has less transaction fees. It is the early adopter which uses the Proof of Stake Consensus Mechanism. It can privately send coins without being traced using Zerocoin Protocol (ZPIV). It uses "SwiftTX" to create instant transactions. But the only drawback is that it will not be able to hide transaction amount. But it is very much undervalued
Technical:
Monero (XMRUSD):
Monero was trading lower following the footsteps of Bitcoin and more than 50% in this month. The pair has hit a low of $ 38.80 and is currently trading around $ 41.50.
It has formed a temporary top around $ 379.90 Mar 5th, 2018 and shown a huge sell-off of more than 80%. The near-term resistance is around $ 52.10 (20-day MA) and any break above targets $ 63.40 (23.6% fib) / $ 73 (55 day EMA) / $ 83.70 (89-day EMA). The pair should break above $ 110 (200-day MA) for further bullish continuation.
In the daily chart, RSI is around 17 and is showing bullish divergence. I know there is a chance to be a show to bounce back till $ 73.
On the lower side, near-term support is around $ 38 and any violation below targets $ 30 / $ 16.
Zcash:
Zcash is trading weak for 6-month and lost 85% from high of $ 381.75. It hits low of $ 49 shown at lower recovery. It is currently trading around $ 53.60.
The near-term resistance is around $ 65.50 (20-day MA) and any violation above targets $ 79.90 (61.8% fib) / $ 87 (55-day EMA) / $ 97.It should break above $ 97.
On the lower side, you can buy $ 49 and any break below confirms bearish continuation. A dip till $ 40 / $ 30 is possible.
Zcoin:
Zcoin was trading weak and got more than 90% from high of $ 48.75 made on May 5th, 2018. It has hit a low of $ 4.21 and is currently trading around $ 4.39.
The pair is facing strong resistance around $ 5.45 (20-day MA) and any convincing break above targets $ 6 (23.6% fib) / $ 7.52 (20-day MA) / $ 8.80 (55-day EMA) / $ 10.18 (89-day EMA) .
The major support stands around $ 4.20 and any break below targets $ 3.57 / $ 3.
PivX:
PIVX Major resistance is around $ 0.65 (20-day MA) and any violation above targets $ 0.860 (55-day EMA) / $ 1.02.
On the lower side, support is around $ 0.4700 and break below that level.
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