Private Cryptocurrency: What Does It Mean? Types Of Private Cryptocurrencies
There are some selected privacy-oriented cryptocurrencies that promise to offer enhanced security features, such as hiding the identities of the person transacting as well as hiding the transactions entirely, making them untraceable.
Such cryptocurrencies use proprietary technologies to completely eliminate any traces of the transaction, the participants or the amount transacted.
Examples of private cryptocurrencies
Some examples of popular private cryptocurrencies include Monero — a crypto that uses ring signatures and stealth addresses that hide identities of sender and receiver and even has abilities to hide transaction amount, or ZCash that uses a crypto tool dubbed Zero-Knowledge Proof allowing participants to hide their online address from others, along with hiding transaction amounts.
Some other examples of private cryptocurrencies offering similar services include DASH, Horizon, Beam and Verge.
Private cryptocurrencies can cause trouble
The completely private nature of such cryptocurrencies means that it can be used by criminals for tasks such as money laundering or making illegal transactions, allowing authorities to have absolutely no control over it, and this could, by extension, be a threat to national security.