What is private cryptocurrency? here’s all you need to know

The news that the Indian government would introduce a new Bill in the winter session of Parliament to restrict all private cryptocurrencies in India, with a few exceptions to advance the underlying technology of cryptocurrency and its purposes, sent crypto markets into a spiral. All major cryptocurrencies have shown a downwards trend in the last few hours suggesting a crash like situation. The central government announced the plan to ban private cryptocurrencies in India with the agenda to build their own version of cryptocurrency.

The Centre is now in plans to build a conducive framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is planned to be introduced in parliament in the forthcoming winter session. The session beginning on November 29 will discuss the bill, which would, in turn, ban private cryptocurrencies in the country. With the plans to ban the tokens happening, it is the perfect time for investors to learn more about the private coins in the market.

Private cryptocurrency tokens

Cryptocurrency has been on the surge recently. While a large number of fresh crypto investors came into the market in 2021, several coins like Ethereum, Bitcoin and Shiba Inu took advantage of the name they held. However, only so many sold based on its privacy factor. Although the blockchain technology that coins like Bitcoin use is meant to be secure and anonymous, some coins are more private in terms of transactions. Here are some of the major private coins which host several built-in privacy features and even keep users’ identities and activities concealed.

Monero (XMR): Monero is a popular token primarily known for its ability to help anonymize users. Transactions in XMR are difficult to trace compared to several other tokens as they use ring signatures and stealth addresses it. These methods conceal the identities of the users providing a secure bubble for any form of transaction. XMR was trading at USD 240.68 as of 9:30 AM on November 24 according to CoinMarketCap.

Dash coin: Dash is yet another cryptocurrency that offers anonymity to its users. Dash coin allows its traders to choose whether or not their transactions are private using its PrivateSend feature. The unique feature allows users to stay secure while using coins against certain countries’ regulatory standards. The private send feature charges a certain fee for each transaction. Dash was trading at USD 192.56 as of 9:30 AM on November 24 according to CoinMarketCap.

Zcash (ZEC): Zcash claims to be a more enhanced token than market leaders Bitcoin itself. Underlining its enhanced security and privacy features, ZEC claims to be the safest form of digital currency in the world. Having implemented a cryptographic tool called Zero-Knowledge Proof and granting participants an option to shield transactions, ZEC rightfully is considered one of the best private cryptocurrencies. Zero-Knowledge Proof obfuscates the transaction amount as well as the address of the traders. Zcash was trading at USD 256.42 as of 9:30 AM on November 24 according to CoinMarketCap.

Verge (XVG): Verge is yet another private coin that hides the user’s identity. However, XVG uses the existing and tested technology of The Onion Router (TOR) and the Invisible Internet Project (I2P) instead of cryptographic techniques to protect users’ identities. Verge had earlier caught eyes after a popular adult website started accepting payments in XVG. Verge was trading at USD 0.02464 as of 9:30 AM on November 24 according to CoinMarketCap.

Beam: This is a token focused heavily on security with core features that include complete control over the user’s privacy. All transactions on Beam are claimed to be private by default. The blockchain stores no address or other private information.

More private cryptocurrencies

Grin

Horizen (ZEN)

ByteCoin (BCN)

Firo (FIRO)

Super Zero Protocol (SERO)

BTCX India

UCoin

Delta

While larger coins like Bitcoin have become easily traceable by authorities, private coins like the ones mentioned above claim to keep data secure. All top private coins fend off numerous hacking attempts too. However, law enforcement agencies and regulators are more likely to investigate people with large transactions of such coins as keeping identity hidden while carrying out big transactions raise concern. In India, the government will now look to ban these coins and establish digital money of the RBI. The move comes as investor money security and deceptive media promotions about investment potential and risks have long been seen as a source of concern.

Image: Shutterstock


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