What is an anonymous cryptocurrency?
The anonymous cryptocurrency is a peer to peer payment system with its own internal unit focused on ensuring the full privacy of financial transactions through a cryptographic protocols that significantly complicate or make it impossible to audit the data network.
Among the largest by market capitalization anonymous digital currencies: Monero, Dash and zcash for.
What is Monero?
Monero is a peer to peer payment system of the same unit of account on the basis of cryptographic Protocol for CryptoNote, ensuring the anonymity of transactions through ring signatures and stealth addresses.
The CryptoNote Protocol was created by a person or group of people under the pseudonym Nicholas van Saberhagen and implemented for the first time in Bytecoin cryptocurrency, which is a fork of Monero [April 2014].
Initially, the obfuscation of data in the network Monero was carried out by mixing the inputs of a transaction different senders generating one-time addresses for each transaction and concealment of the amount transferred.
In October 2018, the Monero developers have successfully implemented hardwork activation Protocol Bulletproofs aimed at a significant reduction in the amount of anonymous transactions and commissions by replacing the mechanism RingCT [circular confidential transaction] requiring a lot of computation on the side of full nodes.
Network Monero involved the consensus algorithm Proof-Of-Work-oriented GPU-miners. In April 2018, the developers carried out aimed at countering ASIC devices hardwork.
Despite the high level of privacy, if the attack an attacker can seize control of the greater part of the network, deanonimizatsiya transaction possible.
What zcash for?
Zcash for is developed by company Zerocoin Electric Coin Company peer-to-peer payment system is open source and the eponymous calculation unit on the basis of the Zerocoin and ZeroCash protocols from cryptography from Johns Hopkins University, focused on maintaining the confidentiality of the transaction by means of the Protocol of the proof with zero disclosure of the zk-SNARK.
zk-SNARK allows users to check the validity of the so-called secure transactions without disclosing the parties and the amount, leaving the public only the timestamps. All the coins are interchangeable and trace the history of their origin is impossible.
Users can also carry out transactions with public outdoor locations, if you want to save on commissions, but information on the balance sheet will be hidden if the recipient is a protected address.
Note that at the end of October, the network held a zcash for hardwork Sapling, aimed at a significant reduction in the size of the transaction, their acceleration, the transition to the new format of addresses and achieve privacy by default. The update allows users to make secure transactions with lightweight clients.
The network involved zcash for the consensus algorithm Proof-Of-Work-oriented GPU-miners, but the developers have not yet implemented protection against ASIC devices, although the software is developed by a nonprofit organization zcash for Foundation.
What is Dash?
Dash is a peer to peer payment system of the same unit of account, which appeared under the name of XCoin as a fork of the bitcoin Protocol in January 2014. Until March 2015, was also known as Darkcoin.
A distinctive feature of the Dash is not only anonymization of transactions, but use of mastered, sharing equally with the miners, the fee for servicing a network. Owner masternode must pay a Deposit of 1000 DASH, so he doesn’t have any motivation to act hostile towards the network.
To ensure privacy of the transaction in Dash mechanism involved mixing “PrivateSend” based on the technology of CoinJoin [read “Top 8 new technologies for protection of anonymity in the bitcoin network”]. Mixing coins carry out random masternode during a certain number of rounds [recommended — 4], hiding the communication between sender and receiver.
Users Dash is also available the mechanism of “InstantSend” for instant payments with a higher Commission. Inputs transactions using “InstantSend” evaluates a quorum of 10 mastered who decide to confirm or reject the transfer.
In Dash involved a consensus algorithm Proof-Of-Work on the basis of a hashing algorithm X11, and a special algorithm for computing the complexity of Dark Gravity Wave, based on Moore’s law.
Why anonymous cryptocurrency is often criticized?
Developments in the field of web extensions and malicious software allow you to use the computing power of personal computers and mobile devices for mining, anonymous cryptocurrency in the first place — Monero. Some of these tools also cause significant harm to the exploited device.
Anonymous cryptocurrencies allow attackers attacking the trading platform or extort funds by means of specialized software [e.g., WannaCry], to hide the movement of the stolen money. The financial services Agency of Japan (FSA) has ordered the bitcoin exchange to withdraw Monero, zcash for and Dash. On countering the anonymous cryptocurrency also said the U.S. Secret service.
From the point of view of technology criticism basically comes down to the size of anonymous transactions that require a lot of memory from full nodes, but are referred to the updates in the networks of Monero and zcash for gradually solve this problem.
What other cryptocurrencies allow for anonymous transactions?
The BitShares platform offers users a confidential transaction in conjunction with stealth addresses [read “Privacy in cryptocurrency: the basic methods and their application”].
Network ZenCash or Horizen, the branches of one of the forks of the zcash for also involved Protocol zk-SNARK with the possibility of sending private messages along with protected transaction. Note that ZenCash has become the object of a successful attack re-spending.
Network Verge involved anonymizer IP addresses and Protocol Wraith for the implementation of the private transaction. Fork Dash network PIVX also uses the Zerocoin Protocol to hide all metadata transactions.
Subscribe to the news Forklog in Facebook!