Repost - Crypto Academy Week 16 - Homework post for @levycore - PRIVACY COINS - By @danimarvalentina
Hello everyone, this time I will be doing the assignment of the task of professor @levycore, who this week told us about private currencies, to start with this task I will explain a little about what private currencies are and later I will explain in detail about one of them, which in this case my choice was Dash Coin.
Privacy coins use advanced encryption methods, which allow users to send and receive money anywhere in the world, protecting their identity. The creation of privacy coins is due to the fact that cryptocurrencies in general have become a means to acquire goods and services, but they have an error and that is that the transactions are not completely anonymous and the privacy of the users can be exposed.
Therefore, private currencies have been created, among the most common are: Monero, Dash, Zcash, Verge and Zcoin. Which offer a technological alternative that promises privacy, offering numerous benefits to the world in which we live.
1. Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.
Dash turns out to be one of the most popular coins on the market, ranking 15th among the most valuable in the world. The privacy of Dash is given by the mix of currencies that is carried out by the master nodes, which are known as Private Send.
The creation of Dash arises from the Bitcoin protocol, although improving scalability and anonymity of transactions, which is what is sought when choosing a private currency to operate through it. Only the operations carried out with Dash private send are private operations, since the algorithm groups the information of different transactions that have been carried out at the same time, making it impossible for users to trace the original source of the operation.
Dash coin encompasses many privacy features, however its creators have made it clear that it is not a privacy asset, but rather has selectable features to add anonymity to operations. Dash offers users operations focused on usability, thus influencing speed, cost and ease of use, while offering protection through optional privacy.
Compared to other coins, Das has become very popular due to its main characteristics, explained below:
In the screenshot taken on Wednesday, June 2, 2021 at 1:44 p.m. Venezuela, the Dash is priced at $ 205.20, with a market capitalization of $ 2,085,582,055 according to CoinMarketCap statistics.
2. Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)
To create a Dash wallet, the following steps must be followed:
Step 1: Download and install a Dash wallet, in this case I will do it from playstore, since I am using an android device. To locate the wallet application, I typed dash wallet in the playstore search engine and the application appeared there and then I selected the install option as shown in the screenshot.
Step 2: Once the download is finished, we open the application on our device and when the welcome appears. We slide to the right and then select where it says it begins.
Step 3: We can see that they show us three options, among which are to create a new wallet, restore wallet from the recovery phrase and restore wallet from a file. We select the option to create a new billboard, as shown in the screenshot.
Step 4: set a PIN, which will be required to unlock the app every time you use it.
Step 5: Confirm the PIN you just set.
Step 6: select the option to secure now, in this way you can secure your wallet through a recovery phrase, with which you can restore your wallet from another device.
Step 7: select the option show recovery phrase. This recovery phrase will be your access to the funds in your wallet, and as I mentioned earlier, you will need this phrase to access your funds if for any reason you lose your device or if it is damaged or the application is accidentally uninstalled.
Step 8: Write down the recovery phrase that is displayed on the screen, click where it says I already wrote it and proceed to select the continue option.
Step 9: verify your recovery phrase. In this option you will have to select the words of your recovery phrase in the correct order to confirm it.
Step 10: once the phrase is verified, you will be able to enter your wallet with the PIN that was created previously.
And so we have finished with the creation of our wallet, now we can pay, send, buy, sell and receive payments with our Dash currency.
3. Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)
Dash is a currency that was created from the Bitcoin protocol but with features that speed up payment processing and with a great advantage over the privacy of Bitcoin. It is very cheap to carry out transactions in dash, pennies are paid per operation, regardless of the amount thereof, all operations carried out in dash are secure and private since no data of the transaction is revealed to the public.
| Private transactions | The fact that they are private transactions may allow them to be used for illegal purposes. |
| Secure transactions | Doubtful decentralization |
| Low transaction fee | High competition |
| Transaction speed | Little use currently |
Conclution
Dash is a great cryptocurrency that offers the opportunity to make payments for goods and services easily, quickly and safely. Countries like mine, Venezuela, have adopted this currency as a form of payment in a large number of businesses, due to the great devaluation that our currency has suffered in the last decade, which in turn has brought us one of the highest inflations of the world. Dash has become an excellent option thanks to its anonymity and speed to carry out transactions, advantages that have positioned it before other privacy currencies.
All images used are copyright free
All screenshots belong to me