Your Ultimate Guide for Privacy Coins

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Before I get into describing some of the better known privacy coins, perhaps you’re wondering why you should care.
There are reasons that you should be at least aware of these coins, they include but are not limited to:

  • You are interested in keeping your investment in crypto as safe as possible. Using the privacy features of these coins can limit your exposure to hackers.
  • You want to ensure the fungibility of your cryptos.

There are a few aspects in regards to making transactions with crypto that will determine the level of your privacy:

  • The address the funds are coming from,
  • the address the funds are being sent to,
  • the amount being sent,
  • and the IP addresses of the parties involved

The more effectively each of these items are randomized the more private your transaction activity will be.

With this in mind let’s take a look at some of the more popular privacy focused cryptocurrencies and their privacy protocols.

Monero

Makes privacy features default, and gives you the option to make your transactions and wallet balance semi-transparent. You’ll notice that this is one of the few coins featured in this video that makes their privacy features default, most of the others mentioned today require you to take the time to run your coins through their privacy protocols.
Monero’s privacy features include:

These produce random addresses for senders and receivers of Monero. They keep you from having any one traceable address.

These group together receiving signatures of an amount of Monero so that others will not be able to identify which signature is the actual receiver.

  • RingCTs (or ring confidential transactions)

These make the amount being sent anonymous.

They are working on implenting Kovri, a method for removing IP addresses from transactions. This is important because at this point, unless users are using some other form of anonymity(ANN-on-NIM-ITY) like Tor or I2P, their IP addresses can be traced back to them.

Zcash

This is another very well known privacy coin that had some crazy price movements when it was first released onto exchanges.
The team behind zcash gave us:

It’s a form of zero knowledge cryptography that stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge”
Which basically means it’s a way you can prove that you indeed own a key or other information without actually revealing the information in question.
Furthermore, there’s no need for actual interaction between you and the one who is doing the verifying.
zkSNARKs are beneficial for more than just privacy,Ethereum has chosen to implement this protocol because it also brings speed and efficiency for verifying complicated smart contracts.
If this seems like a type of dark magic to you, I can’t say I disagree, so I’m including a whole bunch of links down below in the description so if you’re so inclined, you can go ahead and dive deeper into how this protocol works.

Dash

Dash is that one coin that offers masternodes which are now super expensive and also profitable.
Dash also is a platform that is focused on being user and learner friendly. Their website is organized very well and is full of links that are educational tools.
It has the privacy protocol called:

It’s a modified version of CoinJoin and since Dash is a forked version of Bitcoin it makes sense that they would modify this privacy protocol to better work for their network.

PrivateSend is a coin mixing service that involves:

  • your own wallet (including an input address that includes the amount of coins you’d like to mix, along with an output address which is where the freshly mixed coins will be sent to)
  • a masternode
  • and 3 others who want to mix a matching amount of coins
    Once all of these parameters are met the masternode will begin the process. Once it is finished and each party is satisfied that the process was done correctly and honestly, the transactions will be broadcast to the network and the funds will be transferred to the ending output addresses.
    The great Amanda B. Johnson explains this in a bit more detail and with a visual aid in one of her Dash Detailed videos, of course I’ll include a link to this down below.

Komodo

If you haven’t taken a better look at Komodo then I hope that after watching this video (reading this post) today you’ll find the time to learn more about the platform and the impressive tech being built on it.
I covered this one a few months ago but I wanted to mention them again for the sake of their privacy features and their methods of applying them on their platform.
Komodo was first designed with privacy at it’s core, they use zkSNARKS as well as:

Jumblr is described as: "a decentralized, coin-agnostic tumbler built into the Komodo platform..."
This one is unique in that it will work by performing atomic swaps via the BarterDEX (which is Komodo’s future decentralized exchange) and their Iguana Core wallet.
This means that Jumblr will not require any centralized servers or masternodes to tumble coins.

Verge

Verge is a coin that has received an awfully lot of attention lately with its dramatic rise in price and endorsement by John McAfee.
This one gives its users the option to partake in a public or private ledger of their blockchain. Also users can download their wallet which has integrated Tor and I2P networks. This obfuscates the users IP address and data.

PIVX

PIVX is a relatively new coin compared to the others on this list, but like it’s counterparts here it was designed with privacy in mind.
They recently implemented a form of zero knowledge proofs called:

This is the similar to zcash and Komodo in addition to enabling you to keep your coin balances private also. This can help you from becoming a target for hackers.

zPIV is also enabled by default which is great, and they also allow you to choose the transparent transfer option if that’s what you need.

Additional Reading/Sources:

Monero
Stealth Addresses
Ring Signatures

Zcash
zkSNARKs
zkSNARKs and Ethereum

Dash
CoinJoin
Private Send

Komodo
Jumblr

Verge

PIVX
zPIV
Zerocoin

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Excellent explanation for such a complicated subject @heiditravels.

I want to mention that Dash/Zcash use optional privacy, so only a small part of their transactions are private, while Monero uses mandatory, protocol-based privacy in every transaction.

Hi @ebarakos Thanks for pointing that out, I mentioned it in the beginning but I agree that this is a major aspect to consider especially since the whole idea of privacy on blockchains has to do with the transactions. The less transactions that are private compared to the majority, the easier they will be to track! WTF mate. lol

It's at least as important to talk about the way they implement their privacy protection. Dash is basically implementing "coin join", operated by their masternodes, which does not offer strong privacy protection.

Also might be good the mention that Bitshares has a privacy feature called 'confidential transactions'. http://docs.bitshares.org/bitshares/tutorials/confidential-transactions.html

The grandma freindly User Interface for this is being developed by @kencode and his team @agorise. This will give bitshares the abilities to do Blind and Stealth transactions. And have Stealth accounts.

So hard to decide which privacy coin to get into ... but for the price, I might try Pivx and Komodo. I've also heard of ZClassic being a good choice. Otherwise I might get in on Zcash since it's run off of Ethereum platform. Dash is too expensive at moment for me.

Great video as always! I think SmartCash could be included on this list very soon! Very promising!

How abt XDN, isnt it all started with that?

Privacy will become paramount. One could argue that the entire DLT revolution will be driven by privacy moving forward, especially as the backlash against the tech titans of Facebook, Google, Apple, Amazon, etc. continues to heighten.

This is a trend I am following closely from a macro perspective, and I think paired with your micro analysis of the specific privacy functionality of the tokens it makes for a compelling argument. Please visit my post here to get a glimpse of my thought process, Heidi. Best to you!

Quick video to understand complex info thanks to you @heiditravels keep up the good work!

Can't forget about CLOAK! They just released a full audit yesterday. It's proof-of-stake and might be worth checking out @heiditravels

Love all of these videos and refer to them often as I tried to wade through all the noise. Thanks so much. On a side note would love to hear where you are creating video's from as the backdrops sure do look appealing!

Its really amazing artical

Wahhh so many coins! I'm glad the crypto world has you on its team to make it all easier.

I have heard about Komodo but never really looked into it. I will do that. You should check out Nav Coin. I think it is a super undervalued privacy coin that has a big future, especially compared to Verge.

Really hope for good things regarding pivx in the future

PiVx is my favourite one as well... Most promising imho. Thanks Heidi for your great review !

These coins are really important when it comes to Privacy :)
Thanks for sharing @heiditravels!
Getting more anonymous.

Thank you for doing this! Private/privacy currency might not be at the forefront of the general philosophy of blockchain but not only does it have its place, it will sooner be adopted and accepted by those who don't yet understand that this is the future!

Thank you very much for your valuable post sharing.......
i like this cryptocurrency, and also good your blog.
i wait next post, all the best my dear.......

@heiditravels be careful up there on this roof with your hand busy holding this camera :-D lol . Great post as usual! Kind regards :-)

Im glad to hear that you safe :) lol

Are a lot of these features just a moot point if certain groups have enough control over endpoints to view all the traffic when a user tries to use certain versatile tear-making vegetables? Then you'd find yourself in a smaller pool of less total data that needs tracking, and it would be trivial to discover the user's identity.

I do think that privacy coins are going to be highly sought after commodities when big crackdowns do occur, but that timeline is a bit further in the future when fiat starts to really descend rapidly in strength, imo.

And isn't John McAfee's total level of control over what he is able to say or do regarding what he truly thinks kind of in question considering he's returned back to the US?

@heiditravels you did an awesome job going into detail with this post. Greatly appreciated. I think with all the issues coming up these days with cryptocurrencies the privacy ability is becoming more and more important? Thanks for the great share as always.

Thankyou for this very informative post @heiditravels. It really helps me alot because im just new in the platform. You help me to understand more about it and help answer the questions in my mind and i cant thank you enough. Im looking forward to your next blog. goodluck :)

Wow man, this crypto thing is very diverse....

I really like your videos. They are always on point and with minimal fluff. Your presentation is refreshingly upbeat and optimistic. Keep up the good work! Cheers!

About Dash - using Bitcoin with JoinMarket (working implementation of CoinJoin) will give you more privacy. And, in addition, you can earn passive income by running JoinMarket yield generator bot, which will basically do a passive CoinJoin (you are market maker, market takers, who want immediate CoinJoin's pays for it).

thanks ^^

Thanks for the good info Heidi. Have you come across Shield Coin at all? I believe its the same developers as Verge, is that correct? Thoughts?

I think Zencash (ZEN) should really be in this conversation. It's still small compared to the others, but the dev team is looking to build a solid foundation before a big marketing push.
Unlike the others, the Zen system is putting together an entire platform built around privacy, from payments to publishing and messaging.

I’m definitely going to be making a video that spotlights zencash. I agree it deserves a spotlight.

I love VERGE, Holding on to that bad boy!

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there is one coin that you are missing that ZENCASH!!! https://zencash.com/

Thank you for your video for getting quick information @heiditravels

what are the new privacy coins which are new in the market

Electroneum (ETN) is also a privacy coin with a team focusing on mobile mass adoption through ease of use via their mobile app. Say what you will it being a shitcoin, but it keeps proving people wrong.

Hi Heidi. I like your nice and simple post.
I would like to point Komodo wallet is called Agama as Iguana Core name is not in use any more. The rename came in March as devs had built a new Bitcoin protocol implementation called 'Iguana Core' which is the other thing powering Agama apart from Komodo. Because these two things had very similar names it caused some problems, and they had to rename Iguana.

Cheers

Wow =) Very interesting post ) Thanks a lot @heiditravels=)

nice post you have here, I love cryptocurrency,thank you for your wonderful information, I would have given you 100% if I had enough

Very informative as always. It would be nice if we got some feedback on the locations you are filming.

thank you for your video, I watched and I learned a lot. I new about some those coins but I was surprised to find out that Zerocoin, Jumblr, Privatesend, zkSNARKS protocol were privacy coins. Thank you for the content. Do you have any of those coins? did you get into their ICOS?

Thinking about selling my PIVX.. Zcash or Dash seem to be the industry leaders.

Great post. Zcash is craZy! It’s a crypto that you can hodl and earn some money easily!

Imporant info, thank you for sharing!

Dont Forget DEEP ONION !

I love the way you structure your posts, it makes it so easy to read and access.
Privacy coins are really dear to me, although I just feel like most of them are not as good as they should be, also can't there is so much more to learn about these.
Dash is my favorite from all these, while Monero is one of my favourite to use on the web with their security features that I find really creative and useful.

Another great video.

I am delighted with all your publications, I like to travel and to know the cultures and the foods, I wish you the best of the successes thanks for teaching such beautiful places that there are in the world, a greetings and a lot of success

Wooooow that's a goold informations ! :-)

Thanks for the great breakdown @heiditravels. I really appreciate the PIVX shout out. Have a purple day!

That is a great job you have done, thank you heidtravels

Nice article Heidi! What are your thoughts on Wanchain and Bitcoin Private?

I prefer Monero, I also mine it, as it is one of the most profitable coins to mine.

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