This post will be one of several to give you an overview of PIVX and illustrate several of its features and blockchain / distributed ledger technology mechanisms and how it compares to other cryptocurrencies today. In particular, this post will highlight the top three privacy oriented cryptos that all in their own way are not just advancing the security and privacy of transactions in cryptocurrencies, but developing their own unique ecosystems and solutions as well for its users.
Let’s take a look at the quick history of blockchain technology (starting with Bitcoin first) before we look at these three privacy-focused coins to explain why privacy (and the blockchain) matters, and what the differences are between these three projects.
Brief History of Bitcoin
Bitcoin was the original ‘blockchain’ exchange model for the purpose or transfer/store of value directly between peers designed by Satoshi Nakamoto with the following features:
- Through the invention of cryptographic proof of work mining, bitcoin is a positive medium, rather than debt and credit.
- As a public ledger, it is both verifiable and accessible to every user, in terms of coding, promotion, exchange, and all other forms of use.
- Bitcoin does not require the use of an escrow or trusted middleman
- Bitcoin provides the functionality of simple contracts.
- As internet currency, bitcoin operates internationally
Limitations & Issues of Bitcoin
- One of the big misconceptions about Bitcoin is that it was/is “private” and that transactions were completely hidden. In fact, it’s already been proven by various entities that data held on the Bitcoin block-chain, linked to a wallet key, may be combined with additional internet data, linking a wallet key to its owner, to track all of their transactions.
Privacy & The Blockchain
Since Bitcoin, many alternative cryptocurrencies have been copied from Bitcoin. Despite this, only a few cryptocurrency projects have endeavored to provide tangible solutions when it comes to privacy. Why? There are many reasons, one of them being blockchain technology, in general, is designed so that all transactions are transparent on the blockchain, and with that, the supply of coins thus can be verified by anyone. Thus, blockchain privacy techniques should work in conjunction with maintaining public verifiability of amounts and thus total coin supplies as well.
We chose to highlight PIVX, Monero, and Zcoin—three cryptocurrency projects that have provided unparalleled blockchain privacy mechanisms for the public and have been vetted to provide privacy for their users. All three have their unique aspects as well that extend beyond their privacy technology. Take a look at the chart below for a quick side-by-side comparison of those privacy features and more.