3 Under-the-Radar Privacy Coins to Keep an Eye On After Zcash’s Rally
In recent times, Zcash’s notable price rally has cast a spotlight on the privacy coin sector, reminding investors and enthusiasts about the unique value proposition these cryptocurrencies offer. Privacy coins prioritize user anonymity, offering concealed transaction details that differ significantly from the transparent nature of many conventional cryptocurrencies like Bitcoin and Ethereum. While Zcash is a familiar name in this space, several other privacy-focused cryptocurrencies, although less known, hold significant potential for growth and innovation. Here’s a look at three under-the-radar privacy coins to watch following Zcash’s surge.
Key Takeaways
1. Beam (BEAM)
Beam is a privacy coin that operates on the Mimblewimble protocol, a blockchain protocol created to enhance privacy and scalability. Unlike Zcash, which allows users to choose between private and transparent transactions, Beam transactions are private by default, using no addresses but transaction kernels for validation purposes.
What sets Beam apart is its approach to scalability and privacy, which stems from pruning old data that is no longer needed once transactions are closed. This makes it not only a privacy-oriented option but also a lean one, ensuring that the blockchain remains efficient and streamlined as it scales. Furthermore, Beam introduces a feature called ‘Confidential Assets,’ which allows the creation of multiple asset types (such as tokens) on its blockchain, all while maintaining transactional privacy.
2. Firo (formerly Zcoin, FIRO)
Firo is another intriguing project in the realm of privacy coins, using the Lelantus protocol, which introduces ‘on-by-default’ privacy. Firo’s Lelantus protocol significantly enhances the anonymity set and completely breaks transaction links between coins without compromising trustlessness in the system. This feature is a step up in privacy, as it allows users essentially to ‘burn’ their coins and redeem them later for new ones, minus any transaction history.
An additional notable aspect of Firo is its commitment to decentralization and user governance. Firo has implemented a system where proposals can be funded directly by the blockchain, subjecting them to community voting. This not only supports the development of the coin but also allows for a more democratic and decentralized model of governance, aligning with the core ethos of the cryptocurrency movement.
3. Horizen (ZEN)
Originally starting as ZenCash, Horizen has expanded its scope to become a privacy-centric network for dApps and sidechains, making it much more than just a cryptocurrency. Horizen uses a sidechain model that is fully decentralized and is powered by its main cryptocurrency, ZEN, which supports private transactions.
What makes Horizen particularly interesting is its massively scalable network, termed as Zendoo. Zendoo facilitates the creation of secure and anonymous blockchains either public or private without compromising on performance. This ability to create sidechains is a huge plus for enterprises that need specific implementations of blockchain technology while maintaining the privacy of their data.
Conclusion
As regulatory and public scrutiny surrounding data privacy tightens, privacy coins such as Beam, Firo, and Horizen could become increasingly important. They offer not only the benefits of cryptocurrency – decentralization and security – but also the critical layer of privacy that many users and businesses value. As demonstrated by Zcash’s recent rally, the interest in privacy coins is real and growing. Whether for ethical, personal, or business reasons, the evolution of privacy coins will undoubtedly be a key area to watch in the ever-evolving cryptocurrency arena.
