Welcome back guys, today in this article we will discuss about important aspect of blockchain and crypto space, that is privacy coins. Why we need privacy coins and about a perfect privacy coin. So let's gets started!
Why we need privacy on blockchain?
Well, we all know that blockchain technology is the revolutionary technology in the history of mankind. It's immutable, unhackable and transparent nature makes it more superior. The transparency provided by blockchain at highest level and no other technology can beat that. The blockchain derivative cryptocurrency is known as the future of financial transactions. And guess what they provide transparency in financial transactions. But, there are many people who doesn't like too much transparency in every part of the life.
We humans try to be open minded but at the same time we don't want to reveal everything about us. That's why we create social media accounts with nicknames or fancy names rather than with our real name. We try to keep some information secret such as our financial details, business ideas and etc etc. It is applicable to even Institutions, businesses and companies, they also want transparency in their work process but not in financial details and businesses partnerships; Here they want complete privacy. We make many financial dealings or settlements very anonymously.
Public blockchains offers complete transparency. Just like Bitcoin and Ethereum, they work on public blockchain network. Every transaction done is completely transparent and is visible to all through block explorers. Here we can track which is the sending address, the amount being sent and the receiving address. And even with the help of nodes IP address which are used to complete the transaction we can track the transaction flow. Moreover, if we are on centralized exchanges where it is mandatory to provide KYC. Then they can know our public blockchain address and how much amount we have in it, thus they can link the public address with our real name. So the point I wanted to make here is that by just little effort anyone can not only track our transaction details but also know who we are. So we can say that public blockchains make invasion of our privacy. That's why we need anonymity in blockchain networks. And this can be provided by Privacy coins.
Importance of privacy coins
So, privacy coins provide complete anonymity on blockchain network and helps to perform anonymous transactions. The main objective of privacy coins is to hide the sender address, the sending amount and the receiver address. With these features no one track our transaction history and who we are. These features are not available on Bitcoin and Ethereum networks. In the recent years we have seen many privacy coins like Monero, Dash, Zcash and other coins. They provide complete privacy for our transactions. Every privacy coin uses different cryptographic protocols such as Monero uses Ring signature, RingCT and stealth addresses. Zcash uses zk-snarks & zk-starks and Dash uses trusted Masternodes to provide completely anonymous payments. But one thing to note that in order to perform a completely anonymous transaction with these coins, requires some sort of technical knowledge. Without which you end up performing publicly visible transactions. So without being said these are not perfect privacy coins.
A perfect privacy coin
Veil is a true privacy based cryptocurrency which is designed to provide user-friendly and simple privacy focused solution to every individual without compromising the privacy. It is designed in such a way that the privacy is always on and every transaction done will be completely untraceable.
Technology behind Veil privacy coin
The sole working principle of privacy coins is complex and uses different protocols. Let's begin to understand how Veil project works.
Veil project utilizes Bitcoin's core technology version 0.17.1 along with Zerocoin protocol. Veil's decision to implement Zerocoin protocol is because of its proven technology and its security. Zerocoin has two distinct variables which are Basecoin and Zerocoin. Here both coins are used to perform transactions but there is a slight difference, that is Basecoin does not offer confidential (private) transactions. For this you need to convert Basecoin into Zerocoin through a process called minting. It is a very rigorous process and consumes lot of time that's why people prefer to use Basecoin itself for performing transactions. In order to solve this problem Veil has adopted RingCT (Ring confidential transaction) feature. With the addition of RingCT with Basecoin, Veil makes even Basecoin transactions also private. This potentially removes complex process of minting Zerocoin to perform private transactions. This is a major advantage of Veil over other privacy coins. With this simple way you can able to perform private transactions.
Veil also implemented Dandelion protocol , it is a sophisticated network layer protocol which helps to maintain IP address annonymity. It changes the transaction flow in the network to eliminate the possibility of tracking the transactions. One of the best feature is that it doesn't require TOR network to maintain IP address anonymity. Thus, Veil can perform private transactions without relying on third party. To maintain the network scalability Veil uses Bulletproof* mechanism which reduces the data volume during each transaction. This also helps to reduce the cost of transaction as it is dependent on data size.
Veil uses hybrid consensus algorithm of POS (proof of stake) and POW (proof of work) to attain complete decentralization. It is worth noting that only Zerocoin denominations are used to stake in POS consensus algorithm, this helps to enable always on privacy by default. It also enables to make transactions without any limits through multi block Zerocoin transaction.
One of the best feature of Veil wallets is that you can restore the complete wallet with all transaction details through a single Deterministic Seeds. This helps to eliminate backing of wallet files into the system.
Veil token emission
About Veil team
It is worth to note that Veil is a self funded project and it does not hosted any ICO or IEO to raise funds. It is led by the founder of PIVX coin. The Veil team includes blockchain developers, cryptographic security experts, researchers and development team, together all called as Veil Labs.
Final wordings
As you already know why we need privacy in this world today. One can find various reasons to have privacy or anonymity for various cases. Privacy is our right and it is a fundamental need of everyone. Most of us have know about the dictatorship of present financial model and the government. And it becomes necessary for us to maintain privacy in our financial transactions. Without being said, Veil provides complete anonymity in every transactions. And to perform these transactions we don't required high skills and execute complex operations. Veil makes it very simple that anyone can make private transactions. Veil is much more superior in technology than any other privacy coins out there in the market today.
Learn more about VEIL:
Website: https://veil-project.com
ANN thread: https://bitcointalk.org/index.php?topic=5065331.0
Telegram: https://t.me/VEILProject
Facebook: https://www.facebook.com/projectveil/
Twitter: https://twitter.com/projectveil
Discord: https://discord.veil-project.com
LinkedIn: https://www.linkedin.com/company/project-veil/
Reddit: https://www.reddit.com/r/veil
GitHub: https://github.com/Veil-Project
About Author:
Bitcointalk username: Abhijeetcg
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1676105;sa=summary
Veil address: bv1q9rausk3vmzjr63x4kqnp7kw6f6tdmkxglwuxap