Privacy in cryptocurrency
The growth of cryptocurrency and blockchain within the past few months has been significant. A lot of contrasting opinions have been aired on the reliability, legitimacy and future potentials of crypto currencies and the possible spread in use. However, one important fact that almost everyone agree on is the ability of cryptocurrency and blockchain to protect the data of users from governments and organizations.
Privacy in transactions is a huge part of our digital lives, personal privacy and even physical security. You use very similar technology when you make a purchase online or use your online banking. Without these protections criminals could steal your banking info, your savings, ship packages you purchased to themselves, know where you and your family live, sell your information to other criminals etc.
As Horizon builds our telecommunications network, privacy is one of the upmost concerns we take into account.
Privacy Coins
Anonymity and privacy are two of the most important reasons why blockchain and cryptocurrency have received huge attention within the last few months. Interestingly, Bitcoin, which is the most famous of the crypto coins does not presently have much privacy, which many assume is the opposite. Because Bitcoin addresses are generated wallets with a hexadecimal address assigned to it, there was assumption from many people this made Bitcoin anonymous. However that is not the case, as Bitcoin addresses and transactions can be traced if someone knows who own’s the particular wallet address.
Privacy coins add layers of detailed protection to enable the owners of the coins use and complete their transaction without any security threat or traceability. Due to the fact that Bitcoin is used on public block chain ledger, anybody who has access can view every transaction and the location where the transaction is coming from. The address, also called the wallet address is a group of alphanumeric ID consisting of about 26 to 35 characters. In itself, the code does not reveal any information on the amount of money sent or to the address where it was sent. However, if the alphanumeric ID code is linked to an organization or a person, it can easily pose privacy threat to the sender and the receiver.
How Privacy Coins can hide the Identities of Users?
There are quite a number of methods that the privacy coins can be used to hide the identities of transactions and users. Majority of the techniques use some kind of encryption such as Tor, which encrypts traffic between “nodes”, where the data enters and exits the Tor system. Others engage cryptography techniques such as address scrambling and zero knowledge proof to preserve privacy and anonymity. The top privacy coins that are gaining popularity include DASH, Monero, Zcash, Verge, and PIVX.
Dash (DASH): Dash is both a platform and a currency. The core of Dash is a distinctive fully incentivized peer to peer network where miners are rewarded for providing security for the blockchain, and masternodes get rewarded for storing, servicing, and validating blockchain to users. Masternodes are new layer of network servers working in highly secured clusters known as quorums. They offer a wide range of decentralized services such as privacy and governance, instant transaction, while removing the threat of low cost network attacks. Dash allows users to make instant and private purchases directly from their Dash wallet.
Monero (XMR): According to market capitalization, Monero is the ninth cryptocurrency. Monero is private, untraceable, and secure cryptocurrency. Unlike many digital coins, Monero utilizes a unique technology known as ‘ring signature’ which makes it impossible to identify a specific user. It is cryptographically secure, making it impossible to break into your wallet.
Zcash (ZEC): Zcash is an open source and decentralized cryptocurrency that provides privacy and selective transparency on transactions. The Zcash payments are usually published on the public blockchain, however, the recipient, sender, and the amount of a transaction remain secure and private. Zcash is founded on peer reviewed cryptographic research and created by a security specialized engineers on open source platform based on the Bitcoin Core’s strongly protected codebase.
PIVX (PIVX): PIVX is another form of digital online currency that uses blockchain technology. It is a multifaceted community centric venture in the blockchain technonology and the cryptocurrency world. PIVX is the lowest cost and fastest privacy focused digital money using PoS (Proof of Stake) consensus system algorithm. This allows owners of PIVX to participate in receiving block reward when securing network with full node wallets.
Verge: Verge utilizes multi anonymity centric networks like I2P and TOR. The Core QT wallet features an SSL encryption and a built-in TOR integration which makes for additional level of security. Usually, the IP addresses of users are totally concealed when making transactions on the platform.
The Place of Blockchain for Data Security
According to the Economist, the cryptographic technology, which is the bedrock of Bitcoin, is the blockchain. The applications of the blockchain are absolutely beyond currency and cash. Many grass-root organizations can take advantage of the blockchain to challenge giant data companies like Facebook and Google.
Gilbert A Darrell is the Founder of Horizon. He has 18 years experience in information technology and telecom solutions, a veteran in Fire and EMS Services, a crypto enthusiast and a member of the Bermuda Government’s Cryptocurrency Task Force.
Horizon Communications is an upcoming fixed wireless internet and cellular service provider looking to provide services in Bermuda, the Caribbean, and Central America before expanding internationally. While utilizing 4th generation and soon 5th generation wireless technology,it will also heavily incorporate blockchain and cryptocurrency technology.
More information can be found on their website — www.HorizonComm.co
