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What Are Privacy Coins?

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Blockchain-based cryptocurrencies allow users to conduct financial transactions in a decentralized manner. Beginning with Bitcoin (BTC), the first peer-to-peer (P2P) cryptocurrency, there are now more than 2,000 digital assets that may be exchanged between two different parties – without requiring an intermediary to settle the transactions. 

The blockchain, which is a type of distributed ledger technology (DLT), is used to share transaction data among a crypto network’s participants. Unlike the money transfers recorded on a bank’s ledger, which may only be viewable to the institution’s employees, the transaction details of most crypto transactions conducted on public blockchains are accessible to everyone.

Transactions Made with Most Cryptos Are Pseudonymous 

Block explorers, such as those provided by Blockchain.com, let users check transaction logs for bitcoin, bitcoin cash (BCH), ether (ETH), and other cryptoassets. However, block explorers only display limited information which includes the amount of cryptocurrency transferred between two (or more) parties and the public address of both the recipient and the sender. 

Timestamps, which record the exact time and date when a crypto transaction was made, are also viewable on block explorers like Etherscan. Transactions involving bitcoin, litecoin (LTC), and other decentralized digital assets are pseudonymous – meaning that they allow users to maintain a certain level of financial privacy. 

Using Personal Crypto Wallets Is Somewhat Similar to Operating An Email Account

For example, bitcoin transactions made between two different personal user wallets do not require that users submit identify verification documents. In most cases, opening a crypto account (by creating a wallet) can be as straightforward and simple as opening and operating an email account. 

Users may send and receive crypto through their wallets without sharing personally identifiable information or needing third-parties to finalize transactions. In order to make cryptocurrency transfers more private, digital assets such as Monero (XMR) and Zcash (ZEC) may be used to reliably conduct P2P transactions.  

Monero-based Transactions Shield Addresses of Senders and Receivers

Monero is a leading privacy coin that uses advanced cryptography techniques to shield the addresses of both the sender and the recipient in an XMR-based transaction. When making transactions on the Monero network, the amount of cryptocurrency transferred is also shielded (not publicly viewable). 

As explained by its developers, all XMR transactions, by default, obfuscate (or hide) both sending and receiving addresses and the amount exchanged between different Monero accounts. Referred to as “always-on” privacy, Monero’s development team notes that every XMR user’s activity “enhances the privacy of all other users.”

Monero Is Fungible, XMR Transactions Will “Always Be Accepted”

By design, Monero is fungible, which means that all XMR coins are interchangeable and they are also indistinguishable from each other. Fungibility is an important property as some cryptocurrencies including bitcoin may become “tainted” if certain BTC coins are used in illicit transactions such as money laundering. Merchants might refuse to accept these coins, however this might not affect XMR transfers since they are untraceable.  

As noted by its developers, by “virtue of obfuscation,” XMR-based transfers cannot become tainted due to “participation in previous transactions.” This means that transactions made through the Monero network are uncensorable as they will “always be accepted,” the privacy coin’s developers claim. 

Launched in April 2014 as a fully open-source cryptocurrency, the obfuscated Monero blockchain uses the proof-of-work (PoW)-based consensus algorithm to secure its platform and validate transactions. 

Zcash Transactions May Be Private or “Transparent”

Other major privacy-focused coins such as Zcash also let users perform shielded transactions which are controlled through a “z-addr.” The Zcash network also provides the option to conduct “transparent” transactions with its native ZEC cryptocurrency. 

Transparent ZEC transactions are similar to how bitcoins are transferred between two different crypto addresses. In these types of transactions, the amount of cryptocurrency sent and the addresses of the sender and recipient are shared publicly.

Disclosing Transaction Details for Auditing Purposes or Publishing Financial Statements

Launched in October 2016, the Zcash platform allows users to “selectively disclose” transaction details in order to prove that certain payments were made – which may be required for auditing purposes or preparing financial statements. Disclosing information related to ZEC transactions may also be required when filing taxes or complying with regulatory guidelines. 

In order to conduct private Zcash transactions, the cryptocurrency’s developers use a type of zero-knowledge proof (ZKP), known as zk-SNARKs. ZKPs only share certain details about crypto transfers that are required to prove whether a transaction meets a particular set of conditions. For instance, it may be possible to determine whether the transaction amount falls within a certain range, such as between $1,000 to $10,000, by using (implementing) zk-SNARKS – without knowing the exact amount.

Performing Untraceable Transactions with Dash

Dash (DASH), an open-source cryptocurrency that is managed by a subset of its network participants, called masternodes (or transaction validators), also allows users to conduct fast and untraceable transactions. 

Programmed in the object-oriented C++ language, Dash was initially released in January 2014 via a fork of the Bitcoin protocol. Dash platform’s governance is facilitated through a decentralized autonomous organization (DAO) that allows network participants to reach consensus regarding matters related to the ongoing development of the cryptocurrency.

Using “PrivateSend” to Conduct Private Dash Transactions

The Dash cryptocurrency can be mined via the PoW algorithm which uses the “X11” hash function. However, Dash’s masternodes may let users perform “InstaSend” transactions that can be carried out quickly – without requiring mining

Additionally, the “PrivateSend” option may be used to conduct confidential or untraceable Dash-based transactions. The Dash protocol “mixes participating users’ unspent [cryptocurrency]” – before performing a transaction. By mixing the transaction details of multiple DASH transfers, it becomes practically impossible to determine the source or origin of a transaction.

Privacy Coins Market Cap Surpasses $1 Billion Mark

The market capitalization of Dash, at the time of writing, stands at nearly $1.4 billion with each DASH coin trading at around $155.89, according to CryptoCompare data. Meanwhile, Monero’s market capitalization is currently around $1.5 billion – with XMR coins currently trading at $88.22. Zcash’s market cap is valued at $716 million – with ZEC coins presently trading at $104.07.

While Monero, Zcash, and Dash remain the most widely used cryptocurrencies that allow private transactions, there is a growing list of other privacy-oriented cryptos such as Grin and Pirate Chain (ARRR) that have introduced a new approach to implementing untraceable crypto transactions. 

Financial Privacy vs. Regulatory Requirements Aimed at Preventing Financial Crimes

Although many crypto enthusiasts prefer conducting private transactions, regulatory authorities are concerned that confidential digital currency payments may be used to conduct illicit activities including drug trafficking and money laundering. 

On June 21, 2019, the Financial Action Task Force (FATF), an intergovernmental organization that focuses on investigating financial crimes, announced that virtual asset service providers (VASPs) such as crypto exchanges must share customer account details with each other when funds are being transferred between different digital asset platforms.

The post What Are Privacy Coins? appeared first on Crypto Core Media.

Source: https://cryptocoremedia.com/what-are-privacy-coins/

Blockchain

Opinion: Can Uniswap’s UNI Break Into the Top 10 Cryptocurrency Token Rankings?

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The launch of Uniswap’s governance token UNI caught the cryptocurrency market left, right, and center. Some folks who received the airdrop for being a loyal Uniswap user before September 1, dumped it on the market to avail their free helicopter money. Some held on.

Nonetheless, UNI got listed on Coinbase Pro, Binance and it’s price shot through the roof. It’s now on number 32 as per CoinGecko. But can it break into the top 10?

UNI Token Price Pumps, Dumps Then Again Pumps

As reported by CryptoPotato, the listing of UNI on Coinbase and Binance led to a massive pump in the token’s price. UNI surged 300 percent from $1 to $4 before dropping to the lower $2 levels later in the day.

Then, the token went on a rampage and reached a high of just shy of $9 before retracing to where it’s currently trading at around $6.7. But the explosive price action has generated tremendous enthusiasm amongst traders and DeFi fans who are calling for UNI’s break into the top 10.

So much is the frenzy that users were found to buy ETH to collect their ‘UNI helicopter money’ despite surging gas prices on the Ethereum network.

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Can Uniswap’s Governance Token Break Into Top 10?

Since the launch and a super volatile bout of trading activity, Uniswap’s governance token is already a number 32 cryptocurrency according to data from CoinGecko.

Uniswap is currently the top DeFi project according to DeFi Pulse. And has assets with a total USD value worth $1.8 billion docked up in the DEX. An increment of 90 percent in the last 24 hours.

UNI has a $720 million market cap and is handling a $4.5 billion daily trading volume. Something which is unusual for a digital asset at such lower rankings. But according to hopium laced optimistic predictions on Twitter, the token will actually be a ‘unicorn’ cryptocurrency with its entry in the top 10.

And actually there may be some substance in such a claim as out of a maximum supply of 1 billion, only around 106 million UNI tokens are in circulation. The coin is trading currently for a price of $6.7.

It must be taken into consideration that Coinbase has an equity stake in Uniswap’s parent company Universal Navigation Inc and also holds a sufficient number of UNI tokens, as mentioned in their UNI token listing blog post.

This imparts a certain dose of legitimacy to the decentralized token swapping protocol. As per CoinGecko with current prices, UNI would have a ‘fully diluted valuation’ of more than $6.5 billion. That would be enough to push it comfortably amongst the top 10 cryptocurrencies.

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Source: https://cryptopotato.com/opinion-can-uniswaps-uni-break-into-the-top-10-cryptocurrency-token-rankings/

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Cardano, Ontology, Crypto.com Coin Price Analysis: 19 September

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Cardano formed a bearish pattern on the charts as it braced for another dip in its price. The bearish pressure on the crypto-asset abated briefly, but sellers once more stepped in at a level of resistance to effect a slide for ADA. Crypto.com Coin, on the other hand, formed a bullish pattern. Ontology also displayed signs of bullishness.

However, since major altcoins seem to bleed whenever Bitcoin makes a move to the upside or down, another move could invalidate altcoin chart patterns.

Cardano [ADA]

Cardano, Ontology, Crypto.com Coin Price Analysis: 19 September

Source: ADA/USD on TradingView

Cardano appeared to form an uptrend from its recent lows as it briefly rose past its resistance at $0.097. However, sellers have prevailed since and the price was forming lower highs over the past week.

ADA formed a descending triangle pattern, as shown by the white line. This was accompanied by falling trading volume, also highlighted by the same. Such a bearish pattern signaled an imminent drop in the asset’s price.

The next level of support for ADA, beneath $0.091, lay at $0.085.

Cardano was in the news recently when IOHK announced a $250K public fund for Cardano community innovation, Project Catalyst. “Anyone can bring their idea and create a proposal,” the announcement said. “Through a public vote” winning proposals will begin a development process, it added.

Ontology [ONT]

Cardano, Ontology, Crypto.com Coin Price Analysis: 19 September

Source: ONT/USD on TradingView

The 20, 50, and 100 SMA (white, yellow, and pink respectively) showed that the past couple weeks have seen an uptrend. Their crossovers also indicated bullishness in the near-term.

Further, the MACD was forming a bearish crossover over the past few days. And yet, the previous week saw every price drop beneath this support being bought up as many candles near the $0.78-support level had significant tail wicks.

The outlook for ONT remained bullish, but a close beneath the support might suggest short-term bearishness.

Crypto.com Coin [CRO]

Cardano, Ontology, Crypto.com Coin Price Analysis: 19 September

Source: CRO/USDT on TradingView

Crypto.com Coin was forming a bull pennant on its 4-hour charts. The same was evidenced by the white lines which formed the pennant, while the yellow line formed the flag pole of the pattern. The height of the flagpole is generally the upside target for this pattern. Here, the target would be $0.19.

The Parabolic SAR also gave a buy signal. The dots formed by the indicator would be a good place to set a stop-loss, as the pattern would be invalidated if the price closes beneath the pennant.

Source: https://eng.ambcrypto.com/cardano-ontology-crypto-com-coin-price-analysis-19-september

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Blockchain

MyCoinStory is the 1st exchange to list SUN and KLAY derivatives

MyCoinStory is the first cryptocurrency exchange to launch SUN and KLAY tokens derivates SUNUSDT and KLAYUSDT future contracts are the first MCS’s “Colorful Quanto” products This comes as a part of expanding MCS’s portfolio of products Today comes the news of the world first. MyCoinStory (MCS), a global exchange specialized for trading cryptocurrency derivatives, has […]

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  • MyCoinStory is the first cryptocurrency exchange to launch SUN and KLAY tokens derivates
  • SUNUSDT and KLAYUSDT future contracts are the first MCS’s “Colorful Quanto” products
  • This comes as a part of expanding MCS’s portfolio of products

Today comes the news of the world first. MyCoinStory (MCS), a global exchange specialized for trading cryptocurrency derivatives, has listed SUNUSDT and KLAYUSDT future contracts.

Both of these products are the very first of their kind in the world. They are also among MCS’s first two offerings in what they call the “Colorful Quanto” group of products.

SUN token in SUNUSDT futures is widely considered to be the most acclaimed experimental Decentralized Finances project run by the TRON Foundation. As a reminder, TRON Foundation is the company behind TRON Protocol.

KLAY token is the native currency of the Klaytn blockchain behind which is the Ground X. This company is the subsidiary of the largest South Korean mobile platform, Kakao Corporation.

MyCoinStory offers quanto futures

Quanto contracts are special derivative instruments that are not settled in either base or counter currency of the pair. Instead, they are settled as a different asset. In the case of these two products, settlements are in bitcoins.

MyCoinStory has announced that it will continue to focus on introducing new unique quanto contracts products. This they hope will preserve their position as leaders in the market.

There is a wealth of different cryptocurrencies on the market, and often they show a high frequency of fluctuations. With quanto features, MCS is striving to increase the diversity of products they offer on their trading platform.

What is MCS?

MyCoinStory or MCS is a brainchild of financial and blockchain experts. It’s a trading platform centered around bitcoin derivative products.

As their mission, MCS states the curation of a democratic trading platform for cryptocurrency derivative. One where anyone can trade with disregard for their location of level of expertise.

For this purpose, MCS has partnered with custodian BitGo, one of the leaders in the digital assets custody industry. Based on the customers’ feedback, MyCoinStory continually improves its trading platform and diversifies its products’ offer.

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