How anonymous is Cryptocurrency?

How anonymous is Cryptocurrency?

In cryptocurrency, due to a lack of technical understanding, there was a misconception about blockchain that it is anonymous. Furthermore, blockchain-based crypto was only seen to be helpful to criminals, so this status quo has led to a smear campaign through the media. However, most cryptocurrencies in the crypto world are currently not completely anonymous. While BTC (Bitcoin) and ETH (Ethereum) are the two largest cryptocurrencies, both of them do not allow their users to hide their identities completely.

However, there are many different areas where these currencies can be used. In addition, cryptocurrencies include some anonymous currencies like Zcash, Dash, and Monero. These coins are occult-oriented and were developed sometime later. However, in this modern digital world, it may seem difficult to declare them completely anonymous as the last transaction can be de-anonymized by the user. If you are interested in bitcoin trading use the most trusted trading platform online like The News Spy.

Anonymous cryptocurrency transactions

Are crypto transactions anonymous?

Generally speaking, four types of crypto transactions have emerged. Where you can either buy or sell coins or send or receive coins. When it comes to buying and selling these are usually done in an exchange where you have to pay fiat money if you want to receive crypto coins. However, currently, the exchanges have implemented stricter rules such as Know Your Customer (KYC), which requires you to share your government ID and some other identification information as well.

Concerns like privacy and transparency

As seen in blockchain crypto consists of a trusted public. Also, you will get to see the history of all the transactions on the blockchain. Every wallet transaction can be tracked. As a result, if you use cryptocurrency, anyone should be able to easily access your transaction history, but they cannot change it because the blockchain is in a volatile state. Your name will not be revealed through these details, but identification cards and numbers associated with the account may be revealed. This is one of the perils of why some experts believe that cryptocurrencies are pseudo-anonymous. However, there are also some highly privacy-focused cryptocurrencies available, with currencies such as DeepOne, Monero, ZCash, Dash, and SmartCash. Compared to others, these currencies are available in the market as more secure and anonymous.

Which crypto is anonymous?

As can be imagined, no one is happy about this situation. Everyone wants their digital assets to be private. Many interpret this anonymity as a means to keep away from criminal activities and some follow it in the name of the ethical principle of privacy. However, whatever the reason, many cryptos offer greater privacy. They may all sound a bit obscure, but Bytecoin, Zcash, and Monero are among the biggest names. Typically, all they share is that they have found several ways to otherwise encrypt or obfuscate transactions on their respective blockchains. For example, Monero helps you randomize your address for each transaction as well as hide the amounts changing hands. A whitepaper has been written by Zcash in which it has detailed all the maths behind its technology. The crypto note is used by Bytecoin. It is a technology that effectively adds another layer to the blockchain, making it impossible to see any transaction or activity of any kind.

Final thoughts

The existing structure of cryptocurrencies leaves little to no room for privacy sans adding another layer. Maintaining transparency was the major motivation behind the development of blockchain technology, so maintaining anonymity in transactions can be considered completely against its nature. Even then you can, with some engineering, make crypto difficult to trace, and maybe even impossible.

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