Opinion Piece: The Case for Privacy Coins
THE CASE FOR PRIVACY COINS Writ t e n by: D ani e l R us s o
It has been a massive bull run for cryptocurrencies throughout 2017, with the only major selloff occurred around Christmas. We also saw a massive influx of retail investors near the year end who were also inexperienced and sensitive to price volatility. Quite frankly, I believe many of them would be bag holding for some time. For this reason, the trend for cryptocurrency in 2018 is uncertain. My belief is that privacy coins like Monero, Verge and PIVX would be more than likely to see a rise in this coming year. Monero runs an open-sourced protocol known as CryptoNote, which is its primary source of anonymity. Most cryptocurrencies use an unchanging signature when verifying transactions, whereas Monero’s CryptoNote uses ring signatures, which is similar to a joint bank account with multiple signers, but with the actual signer remaining unknown. A one-time spend key -- officially known as a stealth address -- is generated by the sender of XMR (Monero’s coin), with the recipient being the only party who can detect and spend those funds. In other words, the transaction isn’t linkable to the sender, making it an attractive option for those seeking anonymity and privacy.
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