Privacy Coins were created to serve only one purpose that is to protect and hide individual financial data during a transaction of both sender and receiver from any third party monitoring the blockchain.
Strategy used by Privacy Coins
In order to effectively preserve anonymity and untraceability, privacy coins employ a variety of different strategies to become the most private cryptocurrency, the most popular methods of which include stealth addresses, ring signatures, coinjoin and zk-snarks.
Stealth addresses require a sender to generate a new address for every transaction sent in order to avoid being linked to a receiver. Monero (xmr), one of the top privacy coins, uses a version of stealth address called the dual-key stealth address protocol (dksap).
Coinjoin is known as a coin mixer that merges transactions from various individuals into a single transaction and then disburses them to their respective users using new addresses.
Zk-Snarks (zero-knowledge succinct non-interactive argument of knowledge) allow cryptocurrency holders to prove a transaction's validity without divulging critical identifying information such as the parties involved and the account balances. This method is used in PIVX.
What is PIVX?!
PIVX is - Private Instant Verified Transaction - a privacy coin that is a fork from DASH and has lots of dash features but aslo brings in a privacy technology from ZCASH which is called zk-SNARKs.
PIVX is a decentralized, open-source blockchain project that is managed, developed and governed by a community a decentralized autonomous organization (dao). The native token of the untraceable cryptocurrency proof-of-stake blockchain is PIV.
PIVX is the first to apply The zk-SNARKs sapling protocol on an ECO-Friendly Proof of Stake - PoS - blockchain.
That method gives PIVX users to choose between two types of addresses:
- TRANSPARENT / where every user can generate an address that can be monitored on a blockchain explorer.
- SHIELDED / the generated address is completely Private and all DATA is hidden, no one can know whom, who, when or what the transaction is. This method makes PIVX SHIELDED work as efficient as MONEROS Stealth Address.
READ MORE / https://pivx.org
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