Recently, many people pay attention to anonymous coin. Is it a good area to invest in? Do you really know anonymous coin before investing in? Let’s take a look.
What is anonymous coin?
Anonymous coin is a kind of cryptocurrency that is completely anonymous and untraceable. There might be a question: isn’t Bitcoin anonymous? Yes, the Bitcoin address is not tied to the user’s identity, so it’s anonymous in that sense.
But Bitcoin’s entire accounting records are open and transparent, with every transaction traceable. Once you get an address, you can see its every transaction.
Therefore, anonymous coin appeared. How do investors decide between “old anonymous coin” and “new anonymous coin” ? Here are brief introductions of major anonymous coins.
XMR is an open source cryptocurrency created in April 2014 that focuses on privacy, decentralization, and extensibility. The algorithm is based on the CryptoNote protocol, and its price increased significantly in 2016.
XMR can be said the ancestor of anonymous coins, which uses the same Proof of Work(PoW) mechanism as Bitcoin, and only through hashrate mining can new coins be produced.
What’s different is that XMR uses asic-resistant algorithm. Unlike Bitcoin that specialized mining machines are more efficient than home computers, which guarantee decentralization.
Originally known as Darkcoin, DASH is a technological improvement on Bitcoin, with good anonymity and decentralization. It is the first digital currency that protects privacy, which name is welcomed by the black market.
DASH is the most widely used anonymous coin, and its price increased significantly During the Venezuela Crisis. Many Venezuelans bought the DASH to avoid devaluation.
But it also leads to a paradox, which is that the more people involved, the slower the speed but the more secure, and the fewer people involved, the faster the speed but the less secure.
Zcash is a decentralized and open source cryptocurrency. It is created based on the paper Zerocash Protocol published at IEEE in 2014. Zero-knowledge proof and multi-account mechanism are adopted to guarantee the anonymity of transactions.
Compared with Bitcoin, ZEC more focus on privacy and control over transparent transactions: the public block chain encrypts the sender, receiver and trading volume; users have the discretion to provide secret key to others, and only the owner of secret key can see the transaction.
ZEC is the famous founder of zero knowledge proof technology. What is zero knowledge proof? For example:
A wants to prove to B that A is the owner of a room. B knows that something exists in the room. So A only needs to go into the room, take this thing and show it to B.
In this way, ownership can be confirmed without providing transaction information.
Cryptozoic(VCC) is a new anonymous coin that just came into the market in July 2019. It adopts the original consensus of POW+MPOS+Cryper, and under the premise of high anonymity guaranteed, the Cryptozoic(VCC) pays more attention to the security of privacy network and the value of practical application.
Privacy Network Security
Cryptozoic VCC is an end-to-end completely anonymous basic protocol based on network layer and application layer. It adopts privacy domain management, one-time ring signature to achieve privacy transaction sending mode that the sender is completely anonymous. Multiple cryptography technologies are used to ensure hidding node IP, transaction address and encrypting key information. It provides top-secret support for anonymous asset issuing, private transmission and interoperability, which is an anonymous privacy protocol for application service support.
Practical Application Value
Cryptozoic VCC uses different miners to deal with different types of transactions in order to speed up the transfer transactions, increase transfer TPS and reduce gas fees. Transfer transactions miners: regular VCC transfer transactions. Contract processing miners: transfer transactions of smart contracts and all kinds of ERC tokens.
At the same time, it is compatible with all ETH smart contract DAPP and all contracts of ETH(ERC20,ERC721) tokens.
In addition, its distributed anonymous computing system transcends BTC and ETH. The anonymous blockchain system adopts UTXO model & DAG virtual machine program to write and execute smart contracts.
Conclusion: the above are the four main anonymous coins in the market. In addition to these four, there are many small-scale anonymous coins with lower market acceptance. But anyway, anonymous coins have their own necessity: solving the privacy problem of transactions from different technological means, and perfected the whole development of cryptocurrencies.
However, the advantages and disadvantages of anonymous coins are also obvious. The transaction records and financial information of users are completely hidden, which well protects the privacy of users but is popular in the underground market and results in countless evil transactions.
Because of such long-time demand, the value basis of the anonymous coin is constructed with no risk of returning to zero. However, the government will also strengthen the supervision of anonymous coins. In fact, appropriate supervision can solve the current problem of technology abuse.