Satoshi Nakamoto created the first decentralized cryptocurrency named Bitcoin, one of the great promises of this technology is anonymity and transparency. Transparency in terms of having immutable open ledger in the blockchain that could be seen by everyone, the question is, is this anonymous enough for those people who want to use cryptocurrencies in their daily lives and still remain private?
There are no direct names attached to crypto wallets but because transactions are visible, it is possible to reveal crypto owners based on their spending. Some people want Privacy Coins and taking precautionary measures to protect themselves from hackers especially when they hold large amount of cryptocurrencies.
Privacy Coins might not be a thing on all of the community, but because of security risks on being your OWN BANK, it is a sure help for those who want to stay in the sphere for the long haul.
“Privacy coins must exist. It is not only for the protection of users identity, but of the adaption it could bring into the community”
What is a privacy coin?
Privacy coin is defined as a cryptocurrency that hides data about its users. At a minimum, privacy coins hide identities. They also often hide the amount of cryptocurency traded and held in wallets.
Different Privacy Coin, different blockchain. If differs because each privacy coin uses different consensus protocol, technology, mechanism, and many more to serve each coin its unique way of giving privacy to holders. Here is a comparison among old privacy coins, some of its flaws and what are Veil’s advantages.
Monero: A privacy coin that uses Ring Confidential Transactions Technology. It is a type of brilliant privacy feature that can help in keeping a transaction sufficiently protected. There can be a lot of cryptographic signatures and they may all look real. Hence, original one can be easily masked through this technique. Due to the ‘ring signature’ feature, many people like to use it so that it can offer much privacy.
Flaws
- There is not much hardware compatibility of Monero wallets.
- User friendliness may not be much compared to Bitcoin and therefore, acceptance rate is lower.
- About 43% of the cryptocurrency belongs to just three mining pools and that can be a centralization issue in spite of ASIC being in place.
Veil Advantages :
- Veil uses the X16RT hashing algorithm, only NVIDIA and AMD processors are allowed to mine Veil and provide security against 51% attacks.
- The team also points out on User-Focused approached making Veil wallets easier to use, user friendly interface, easy seed recovery/backup and storage space friendly. (See BIP 0039/BIP-0044 Deterministic Seed)
- Veil also uses the same RingCT technology combined with Zerocoin Protocol
Dash : Famous for its PrivateSend, a coin mixing technique that hides the identity of transactions for an extra fee. This is achieved by mixing at least 3 transactions together to confuse the true transaction trail.
With Dash Masternodes requires 1,000 DASH tokens at bare minimum and employ a static IP to maintain privacy and anonymity on every transaction.
Flaws
- Masternodes require 1,000 tokens to stake and earn.
- Abuse of power to acquire user information involved in transactions.
- Rumors say that substantial amount of masternodes are owned and operated by the core development team.
Veil Advantages :
- Unique consensus algorithm allowing both PoS and PoW
- No minimum amount of stake meaning more opportunities for holders
- Team transparency. Table below shows how funds are allocated
A declining and capped contribution to the founder, to recover the seed investment from which the project has been bootstrapped.
ZCoin : A cryptocurrency that utilizes the Zerocoin Protocol, transferring visible coins, minting another coin, dividing it into different denominations, then received by the receiver with no direct contact from the sender because it would come into your wallet in form of a different coin in different denominations BUT with the same value.
Flaws
- Does not hide transaction values but uses fixed denominations for minting (1, 10, 25, 50, 100)
- Proof of stake only
Veil Advantages :
- ZeroCoin protocol is best because of battle-tested RSA Factoring. Privacy is best with RingCT technology, Veil has both.
- To provide security against 51% attacks. Veil is a Hybrid Consensus algorithm (PoS and PoW) which uses Proof of Work on Nvidia and AMD processors.
CONCLUSION
Setting the right amount of anonymity, security, utility, and a user-friendly interface for all, Veil is a must have for crypto enthusiast this year . Simply saying, Veil is a combined Monero and ZCoin in terms of technology, PoW and PoS for its security and a user-friendly interface light wallet available on all hardware with easy to back-up keys. This coin serves a lot of potential, from the team itself whose specialty is on privacy, the coins technology RingCT and Zerocoin Protocol, and the opportunity every holder or community member monetarily could benefit in terms of mining or staking. To the moon potential!
Follow this link for a more specific, easy to understand introduction of Veil
https://medium.com/@aervinaervin/veil-project-introduction-what-you-need-to-know-ed746aa1381
Warning : This is not a financial advice. This is my sole opinion about this project and you are always welcome to ask me anything about it.
Basecoin Address (bv1): bv1qayw3v60mv4wrpsud7ejctppc80e437skz68z93
