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Hello everyone,
Thanks to @levycore for this wonderful lecture and I'm grateful to the #steemitblog for this on-going great opportunity to learn more about Cryptocurrencies.

This article is created based on the homework task given:

• Choose a privacy Coin and perform a fundamental studies of the coin in detail.
• Explain the step in creating the wallet for the privacy Coin of your choice.
• State the advantage and disadvantages of the privacy Coin
• Conclusion.

PRIVACY COIN

In terms of privacy, it simply refers to be anonymous and not transparency. Such contexts promote security and checkmates the governmental influences.

Privacy Coins can be termed as "hidden coins" and improvement of the basic protocols of the well-known and highly dominant cryptocurrency known as Bitcoin whose wallets and transactions is highly transparent because of it's visible data.

Privacy Coins hide the data of their users like the amount of the cryptocurrencies held and traded in their wallets. It obscures the identities of the owner and hide it's transactions.

However, like Bitcoin, privacy Coins runs their transactions on blockchain technology but uses various types of cryptographic means to shield the identities of their users from the prying eyes of external parties thereby maintaining the privacies and uniqueness of the user's details.

HOW DOES THE PRIVACY COIN WORKS?

There are various ways and methods adopted by the several types of privacy Coins to obscures the identities of their users during transactions just like the conventional Fiat currencies but the approaches resulted in the unique aim of promotion of privacy.

There are five basic methods that have used by privacy Coins. They includes:

• STEALTH ADDRESS
  Privacy Coins create a new and single-use address called "stealth address" for every transactions on the blockchain. This #stealth address can't expose the identities of the users and prevent the link up of multiple transactions on the single source.

• zk-SNARK METHOD
  This approach Comes from ZERO-KNOWLEDGE SUCCINCT NON-INTERACTIVE ARGUMENT OF KNOWLEDGE. This approach used a superb cryptography to encrypt the identifying information on it's transactions.

• RING SIGNATURE
  Monero, One of prominent privacy Coins uses this approach by combining multiple users' addresses into a single anonymous verified transactions without disclosing their identities and details of the address that verified the transaction too.

• Mimblewimble
  This is also known as HARRY POTTER SPELL . This is an advanced and specially designed blockchain that can keep more files and runs them effectively. It's does not reveals the #identities of transaction details too.

• COINJOIN METHOD
  This approach is specially designed in which the multiple transactions from various senders are centralized and verified but it's funds are distributed to various receivers.

Many types of privacy Coins are traded and held in several wallets and users worldwide. They includes Monero, DASH, Zcash, and others. My attention is focused on DASH

DASH

Dash is the first Cryptocurrencies built on the works and protocols of Bitcoin from Satoshi Natamoto with specially designed built-in privacy functions. There's an improvement in the Bitcoin's protocols to be decentralized, strongly anonymous coin, highly scalability and enhanced peer to peer transactions networks.

The project runs as a highly decentralized anonymous system with the interconnectivity of several subunits known as the masternodes. It is written in C++ from a wonderful set of software technicians headed by Evan Duffield and Daniel Daiz. It's first release was on 2014, subsequently on 2020 was another release. The smallest subunits is called duff.

The consensus mechanism is the proof of work (POW) algorithmically. Just like Bitcoin, the mining is highly energy consumption with the hashing function called X11 due to it's eleven hashing rounds. It's average mining time is one minute and two seconds for a coin.

In terms of transaction, in order to promote Fungibility and privacy which will not obscure the workability of the entire blockchain. Dash provides improved means for transaction like

• PRIVATESEND
• INSTANTSEND

PRIVATESEND

In this approach, it employed the principle of COINJOIN Methods, where there's an improvement of decentralized means with chaining function, denomination and passive ahead time-mixing but strong anonymously.

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In this system which involves three participants or users, For example, as shown in the picture above, the three users send their denominated fund into a common or central transaction and they are rewarded randomly in the forms of the new output.

INSTANTSEND

In INSTANTSEND, the masternodes qourum as the Dash's protocols as known, can send and receive irreversible transaction at a very fastest rate, averagely four seconds. Once the spendable inputs of the transaction is locked or established, a consensus will be reached and the matched identities verified. Transaction is done instantly.

EXPLAIN THE STEP IN CREATING THE WALLET FOR DASH.

There are several ways of achieving this feat. One ways is by downloading their application, which can be launched on Android phones and others gadgets. I will explain this process in steps:

STEP ONE

Locate and Download the app from a Google play store for Android platforms.

STEP TWO

Create a wallet by clicking on the pointed button.

STEP THREE

Set the PIN to secure your wallet and confirm it.

STEP FOUR

Secure the wallet with the recovery phrase. This is a helpful in terms of forgotten #pin or change of gadgets.

STEP FIVE

Successfully your wallet is ready to use. It have several important features and the highlighted box show that the owner can still hide his assets thereby promoting privacy.

STATE THE ADVANTAGES AND DISADVANTAGES OF DASH, AS A PRIVACY COIN.

Dash, like all other privacy Coins have improved the world of commerce and enhanced the performance of the Blockchain ecosystems but with disadvantages. Let me explain it's uniqueness and demerits therein further:

FOUR MAIN ADVANTAGES OF DASH

• IMPROVED SECURITY.
  Due to it's built-in privacy functions and COINJOIN mannerisms, it's highly secured from theft and tempering of the user's personal and transactions details.

• Highly scalability.
  It's transactions time taken is below four seconds thereby making it a very fast medium of financial transaction bridging the wide gap between blockchain technology and conventional financial systems like PayPal etc.

• Decentralized transaction system.
  Dash adopted various improved decentralized means like privatesend and instantsend which enhances the peer to peer financial transaction medium of the crypto-world in terms of fast, reliable and dependable means and very anonymously.

• DAILY TRANSACTION MEDIUM
  Dash is being used for payment of several goods and services like flight, hotel, real estate investment and other transaction purposes. It's unique because of it's fastest and privacy encouraged.

MAJOR DISADVANTAGES OF DASH

• FOR RANSOMWARE PAYMENT.
  Dash and other privacy Coins are well-known digital coins for payment to software hackers and attackers on basis that their identities can't be trackable.

• MONEY LAUNDERING
  Enemies of the civil rules can transfer huge amount of money between individuals or organizations over countries and continents instantly and anonymously whereby civil authorities can't trace or held them for this heinous crime.

• DARK WEB
  Dash, whose former name is Darkcoins are used extensively by criminals in the dark web for their nefarious activities.

• Governmental and agencies attacks
  Many government of the world and their agencies have attacks this beloved coin due to it's high level of privacy and excessive use for criminal offences. Rather than it's popularity to decline, it continues to raise higher and it's used enhanced.

CONCLUSION

Although having multiple serious demerits, privacy Coins, Dash included have enhanced the performance of blockchain technology in terms of high scalability and privacy.