Introduction to Privacy Coins (DASH, Monero, Zcash, Pivx, Bytecoin)

what’s up everyone today I want to talk about privacy based coins I want talking about why do you want privacy based coins first kind of do ideas behind that then I’ll cover a few basic concepts behind the privacy based coins and finally we’ll cover up you know – my narrow D cash pif X and some of these coins and cover them in a very brief detail this video is not meant to be a full comprehensive coverage but rather a broad overview off this topic in general so if you want to research a little bit more I highly recommend that and we’ll put an article down below as well where you can see a little bit of different coins as well so let’s start off with why we want privacy first of all so with cryptocurrencies some people feel that it’s quite private already because we whilst we have an address that addresses don’t match our names and unlike a bank account where you can find the name of the owner of that bank account Bitcoin addresses don’t really have to link up with a real name identity however there are some rules about cryptocurrencies that’s very transparent because let’s start with Bitcoin first of all with Bitcoin all transactions on Bitcoin network are actually recorded and you can trace that transaction history all the way back to when this point was first even just made so that means if you receive Bitcoin from someone you can trace back to where they even got that Bitcoin in the first place how much they have in their Bitcoin wallet and even where the funds are going to whilst that might not sound that scary it’s extremely scary if they actually find out that you have a lot of Bitcoin maybe you’re gonna be more vulnerable to hacking or if you’re our business then you may be potentially reveal who you’re trading with how much receiving your income profits and this might be extremely detrimental or might reveal some trade secrets and also just just keeping your private safe while it safe is quite important I mean if you send some Bitcoin to a friend and now they can suddenly see how much money you have and how much you make you know that might be a weird conversation to be having so in that sense a lot of people want some privacy I dunno that’s just ways around they can use different wallets and stuff but it’s really complicated the end of the day people who might want to use cryptocurrency might just prefer not to give that information away and that’s why we have different solutions for those different ways to keep transactions private and there’s no best solution I want to point this out Street out at the start of the video there’s no best solutions there’s various different solutions they all try to solve this problem but they have advantages and disadvantages and we look at that so let’s talk about – first because it uses something called coin join which is something that has can be done on Bitcoin so with coin join what you’re trying to do is you get a bunch of people who are trying to do a transaction the same time and then you tumble that you mix those up so now you have no idea who really sent what to where it’s kind of like linking these people up and just pulling the money together and just mixing that together so that’s kind of what coin join is and that’s what – users when it’s doing a private transaction there are some limitations to – transactions in terms of this it can only be used in stem nominations certain denominations like 0.1 – so your point 5 – but it can’t be in between so it must be this a certain round number and when you do it you can actually set how many times you want that to tumble around to mix together so the more mixing you have the more privacy you keep one thing about – is that it uses Bitcoin technologies uses block normal blockchain technology in which case it can be audited which means you can actually scan where that how much money is on a network and the amount of supply of – is can be audited so this is not the same if this is not always the case because with cryptocurrencies and private transactions if you don’t know how much is being sent or where it’s going – then you have the risk of actually not being able to audit the whole system and you might have more cryptocurrency out there than you already think and that’s one of the things I’m gonna bring up next I want to say there’s a lot more to these coins than just privacy but I’m just gonna proper privacy here and pivot has this cool sea salt we work with a stake mechanism that I’m not gonna cover but I’m definitely in another video so let’s move on to money row because money Row is something that’s very very special Manero doesn’t use normal blocking technologies not based on Bitcoin it’s rather based on something called crypto note and as a fork off bike coin so they have they share some similarities there so when narrow uses something called emissions and they use ring signatures and the kind of basic explanation for that is every time you send a mineral transaction it creates a lot of dummy accounts it just sends all these kind of fake transactions accounts to try to mix up the signal a bit to spice it up a little bit so that’s what happens from the narrow you create lots of dummy accounts you send lots of dummy transactions aren’t real and confuses a signal and that’s why you can keep your privacy I like Cointreau and it doesn’t require a mixer and also hides the transaction amount there are a few weaknesses though recently Manero discover a bug with crypto node so this affects almost every single coin using crypto known technology and that was with what being able to create coins out of thin air so that was a huge huge book that was covered by their own money wrote they actually found out about this bug before it went public they scanned the network it doesn’t seem to have hackers didn’t seem to have breached and created coins out of nothing but apparently other coins might be slow to respond to that so that was of criticism of other crypto i’m crypto no technologies from an arrow and you can find that on an article when i post below so there is a risk with Manero and these coins because things are so private that it’s hard to audit the whole network r is the supply of mineral really how what we think it is are there two secret stashes of coins somewhere those are kind of problems that these things potentially face because we don’t know and we it’s hard to track Manero there’s one also the issue where many were in the past because of the way they sent dummy transactions they send it to empty wallets so apparently was actually easy to track where the transactions came from so it wasn’t as private as people think it is these bugs have been fixed now and these security flaws have been patched so the good news is that Manero is quite private right now next up when we talk about z cash because that’s the newest currency the newest kid on a block and i uses something called zero cash technology or zk snarks so they use this usually shielded transaction that she’ll both the amount transferred and also the sender’s the interesting thing about this is that you can actually give a key and you can actually start auditing this so if in the worst case scenario you don’t want it to be private anymore you can actually start revealing information about that transaction another interesting thing about Z cash is that when I was first founded it was there was eight keys that need to be private and destroyed and it made me this huge inauguration ceremony to create these keys and then destroy them so no one can track the network and now I’ll figure out where the transactions are so it kind of requires this security theater to work unfortunately you can’t audit the supply of Z cash I also want to say that Z cash has been forked a few times to create other points as just n cash so it’s interesting to look into that another interesting thing to cover is ie theorem is truncating corporate Z cash technology into their a theory of network so eventually you can have ZK snarks coming up and some privacy features Arni theorem as well and that’s an impressive work and it’s unknown when a theorem is gonna get this technology so this is a brief summary of all these privacy based coins I would love to hear what questions you have to ask and I’m gonna put answers to that on the article below I’m gonna write a full article right up on my website and that way we can communicate about this and add more information on I know this is a very very brief summary because there’s a lot to talk about here and I don’t think I’ve done all the justice to these coins I dunno if there’s a lot of other coins that you guys want me to talk about I’ll definitely try to cover more privacy based coins in the future I just wanted to do this brief coverage of the top three different technologies and give you an oversight on why we need privacy coins guys thank you so much for watching this video I love to hear the comments below and I love to have a conversation with you guys about this thank you for watching remember to subscribe to my channel see you next time

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