Privacy Coins: A Dilemma in Crypto-Winter!
christyolivia last edited by
The ideology behind Bitcoin and the subsequent rise of cryptocurrencies arises from the need for decentralizing current banking and financial system. The intention was to shift the power, control and virtual monopoly by the centralized authorities such as governments, banking, and financial institutions to the masses. Distributed Ledger Technology aimed at empowerment through financial inclusion of the society into the financial system in free, secure and transparent methods via the usage of complex cryptographic technology. Blockchain and its features of encryption ensure reasonably high degrees of security and more importantly privacy.
The common perception and the narrative spun around Bitcoin and other cryptocurrencies is the fact that enhanced privacy immediately points to criminals using this platform. However, embracing privacy and anonymity doesn’t lead to one becoming a criminal. It means that the user values data ownership and privacy more and that he/she prefers not sharing the information with a third party.
Comparing Privacy & Anonymous Cryptocurrencies
With a market cap exceeding $800 billion in its peak years, the market is made of a myriad of coins and tokens and their availability on the open market has become easier. Every torch bearer of privacy is judged upon three factors on the privacy coins :
Privacy: The number of coins owned, bought or sold by the trader is not traced by a third party making the transactions entirely anonymous.
Fungibility: Every coin in the ecosystem is fungible thereby enhancing the interchangeability between the users. The coins potential for blacklisting or debasement due to predicaments in transaction history reduces drastically.
Decentralization: All the blockchain nodes have identical power and control thereby reducing the chances of a node having more influence than others, i.e. masternodes. There is no central authority that controls the cryptocurrency and does not represent a single company or person......Read More