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What Are Privacy Coins?

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Blockchain-based cryptocurrencies allow users to conduct financial transactions in a decentralized manner. Beginning with Bitcoin (BTC), the first peer-to-peer (P2P) cryptocurrency, there are now more than 2,000 digital assets that may be exchanged between two different parties – without requiring an intermediary to settle the transactions. 

The blockchain, which is a type of distributed ledger technology (DLT), is used to share transaction data among a crypto network’s participants. Unlike the money transfers recorded on a bank’s ledger, which may only be viewable to the institution’s employees, the transaction details of most crypto transactions conducted on public blockchains are accessible to everyone.

Transactions Made with Most Cryptos Are Pseudonymous 

Block explorers, such as those provided by Blockchain.com, let users check transaction logs for bitcoin, bitcoin cash (BCH), ether (ETH), and other cryptoassets. However, block explorers only display limited information which includes the amount of cryptocurrency transferred between two (or more) parties and the public address of both the recipient and the sender. 

Timestamps, which record the exact time and date when a crypto transaction was made, are also viewable on block explorers like Etherscan. Transactions involving bitcoin, litecoin (LTC), and other decentralized digital assets are pseudonymous – meaning that they allow users to maintain a certain level of financial privacy. 

Using Personal Crypto Wallets Is Somewhat Similar to Operating An Email Account

For example, bitcoin transactions made between two different personal user wallets do not require that users submit identify verification documents. In most cases, opening a crypto account (by creating a wallet) can be as straightforward and simple as opening and operating an email account. 

Users may send and receive crypto through their wallets without sharing personally identifiable information or needing third-parties to finalize transactions. In order to make cryptocurrency transfers more private, digital assets such as Monero (XMR) and Zcash (ZEC) may be used to reliably conduct P2P transactions.  

Monero-based Transactions Shield Addresses of Senders and Receivers

Monero is a leading privacy coin that uses advanced cryptography techniques to shield the addresses of both the sender and the recipient in an XMR-based transaction. When making transactions on the Monero network, the amount of cryptocurrency transferred is also shielded (not publicly viewable). 

As explained by its developers, all XMR transactions, by default, obfuscate (or hide) both sending and receiving addresses and the amount exchanged between different Monero accounts. Referred to as “always-on” privacy, Monero’s development team notes that every XMR user’s activity “enhances the privacy of all other users.”

Monero Is Fungible, XMR Transactions Will “Always Be Accepted”

By design, Monero is fungible, which means that all XMR coins are interchangeable and they are also indistinguishable from each other. Fungibility is an important property as some cryptocurrencies including bitcoin may become “tainted” if certain BTC coins are used in illicit transactions such as money laundering. Merchants might refuse to accept these coins, however this might not affect XMR transfers since they are untraceable.  

As noted by its developers, by “virtue of obfuscation,” XMR-based transfers cannot become tainted due to “participation in previous transactions.” This means that transactions made through the Monero network are uncensorable as they will “always be accepted,” the privacy coin’s developers claim. 

Launched in April 2014 as a fully open-source cryptocurrency, the obfuscated Monero blockchain uses the proof-of-work (PoW)-based consensus algorithm to secure its platform and validate transactions. 

Zcash Transactions May Be Private or “Transparent”

Other major privacy-focused coins such as Zcash also let users perform shielded transactions which are controlled through a “z-addr.” The Zcash network also provides the option to conduct “transparent” transactions with its native ZEC cryptocurrency. 

Transparent ZEC transactions are similar to how bitcoins are transferred between two different crypto addresses. In these types of transactions, the amount of cryptocurrency sent and the addresses of the sender and recipient are shared publicly.

Disclosing Transaction Details for Auditing Purposes or Publishing Financial Statements

Launched in October 2016, the Zcash platform allows users to “selectively disclose” transaction details in order to prove that certain payments were made – which may be required for auditing purposes or preparing financial statements. Disclosing information related to ZEC transactions may also be required when filing taxes or complying with regulatory guidelines. 

In order to conduct private Zcash transactions, the cryptocurrency’s developers use a type of zero-knowledge proof (ZKP), known as zk-SNARKs. ZKPs only share certain details about crypto transfers that are required to prove whether a transaction meets a particular set of conditions. For instance, it may be possible to determine whether the transaction amount falls within a certain range, such as between $1,000 to $10,000, by using (implementing) zk-SNARKS – without knowing the exact amount.

Performing Untraceable Transactions with Dash

Dash (DASH), an open-source cryptocurrency that is managed by a subset of its network participants, called masternodes (or transaction validators), also allows users to conduct fast and untraceable transactions. 

Programmed in the object-oriented C++ language, Dash was initially released in January 2014 via a fork of the Bitcoin protocol. Dash platform’s governance is facilitated through a decentralized autonomous organization (DAO) that allows network participants to reach consensus regarding matters related to the ongoing development of the cryptocurrency.

Using “PrivateSend” to Conduct Private Dash Transactions

The Dash cryptocurrency can be mined via the PoW algorithm which uses the “X11” hash function. However, Dash’s masternodes may let users perform “InstaSend” transactions that can be carried out quickly – without requiring mining

Additionally, the “PrivateSend” option may be used to conduct confidential or untraceable Dash-based transactions. The Dash protocol “mixes participating users’ unspent [cryptocurrency]” – before performing a transaction. By mixing the transaction details of multiple DASH transfers, it becomes practically impossible to determine the source or origin of a transaction.

Privacy Coins Market Cap Surpasses $1 Billion Mark

The market capitalization of Dash, at the time of writing, stands at nearly $1.4 billion with each DASH coin trading at around $155.89, according to CryptoCompare data. Meanwhile, Monero’s market capitalization is currently around $1.5 billion – with XMR coins currently trading at $88.22. Zcash’s market cap is valued at $716 million – with ZEC coins presently trading at $104.07.

While Monero, Zcash, and Dash remain the most widely used cryptocurrencies that allow private transactions, there is a growing list of other privacy-oriented cryptos such as Grin and Pirate Chain (ARRR) that have introduced a new approach to implementing untraceable crypto transactions. 

Financial Privacy vs. Regulatory Requirements Aimed at Preventing Financial Crimes

Although many crypto enthusiasts prefer conducting private transactions, regulatory authorities are concerned that confidential digital currency payments may be used to conduct illicit activities including drug trafficking and money laundering. 

On June 21, 2019, the Financial Action Task Force (FATF), an intergovernmental organization that focuses on investigating financial crimes, announced that virtual asset service providers (VASPs) such as crypto exchanges must share customer account details with each other when funds are being transferred between different digital asset platforms.

The post What Are Privacy Coins? appeared first on Crypto Core Media.

Source: https://cryptocoremedia.com/what-are-privacy-coins/

Blockchain

Kraken Daily Market Report for October 29 2020

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Overview


  • Total spot trading volume at $274.1 million, the volume is slightly up from the weekly average of $245.8 million as Bitcoin went up and down 2% in the second half of the day.
  • Usually one of the least traded coins, REPV2 trading volume was up over 1872% against USD. Similarly, REP was up +158% in terms of trading volume. REPV2 closed the day with only 0.17% returns, while REP closed with a 10% return.

October 29, 2020 
 $274.1M traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$13452. 
↑1.3% 
$172.3M
ETH 
$387.02 
↓0.5% 
$37.9M
USDT 
$1.0004 
↓0.01% 
$28.4M
LINK 
$11.276 
↓1.6% 
$9.45M
BCH 
$267.53 
↓0.3% 
$5.01M
DOT 
$4.0543 
↓7.0% 
$4.39M
XRP 
$0.2424 
↓1.3% 
$3.68M
USDC 
$0.9998 
↓0.03% 
$3.23M
LTC 
$54.885 
↓1.7% 
$2.88M
XMR 
$124.49 
↓1.7% 
$2.2M
ADA 
$0.0953 
↓3.6% 
$1.79M
FIL 
$32.572 
↓3.0% 
$1.52M
XTZ 
$1.9325 
↓3.5% 
$1.31M
REP 
$13.564 
↑10% 
$1.0M
ATOM 
$4.6354 
↓3.5% 
$908K
PAXG 
$1875.0 
↓0.9% 
$869K
TRX 
$0.0265 
↓1.3% 
$645K
XLM 
$0.0773 
↓1.2% 
$592K
ALGO 
$0.2572 
↓6.9% 
$582K
GNO 
$45.600 
↑12% 
$582K
MLN 
$20.173 
↓4.7% 
$564K
CRV 
$0.4434 
↓9.9% 
$474K
EOS 
$2.6388 
↓0.6% 
$448K
YFI 
$10776. 
↓14% 
$409K
OMG 
$2.8883 
↓5.9% 
$406K
COMP 
$96.937 
↓10% 
$405K
DAI 
$1.0083 
↓0.12% 
$394K
KAVA 
$1.4592 
↓7.4% 
$390K
ETC 
$5.4040 
↓1.9% 
$390K
REPV2 
$12.438 
↑0.17% 
$300K
OXT 
$0.2131 
↓6.4% 
$299K
ZEC 
$56.884 
↑0.06% 
$295K
DASH 
$67.069 
↓1.4% 
$286K
WAVES 
$3.0221 
↓0.8% 
$275K
BAT 
$0.1892 
↓3.1% 
$219K
ICX 
$0.3379 
↓0.27% 
$171K
UNI 
$2.5392 
↓5.0% 
$170K
STORJ 
$0.3382 
↑2.2% 
$122K
SNX 
$3.2352 
↓10% 
$117K
QTUM 
$2.0339 
↓2.4% 
$117K
SC 
$0.0025 
↑2.2% 
$95.6K
XDG 
$0.0025 
↓0.29% 
$86.4K
KSM 
$30.019 
↓4.7% 
$78.9K
NANO 
$0.7723 
↑1.3% 
$73.0K
LSK 
$1.0491 
↓1.6% 
$59.5K
KNC 
$0.8161 
↓4.8% 
$53.7K
BAL 
$10.380 
↓4.2% 
$28.7K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (October 29 2020)



Figure 2: Mid-size trading assets: (measured in USD) (October 29 2020)



Figure 3: Smallest trading assets: (measured in USD) (October 29 2020)



#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (October 29 2020)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (October 29 2020)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (October 29 2020)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (October 29 2020)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/6715/kraken-daily-market-report-for-october-29-2020/

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Blockchain

TA: Bitcoin Regains Strength, But Break Above $13,700 Holds The Key

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Bitcoin price is up over 3% and it gained strength from the $13,000 support against the US Dollar. BTC is now facing a heavy resistance near the $13,650 and $13,700 levels.

  • Bitcoin remained well bid above the $13,000 level and it started a fresh increase.
  • The price broke the $13,500 resistance and settled above the 100 hourly simple moving average.
  • There is a connecting bullish trend line forming with support near $13,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must settle above $13,650 and $13,700 to continue higher in the near term.

Bitcoin Price Starts Fresh Increase

Yesterday, we saw a sharp downside correction in bitcoin price below the $13,500 support level. BTC even broke the $13,200 support level and spiked below $13,000.

However, dips were limited below the $13,000 support and the price bounced back sharply. It broke the $13,200 and $13,380 levels to move back into a positive zone. There was also a break above the $13,500 resistance and the price settled nicely above the 100 hourly simple moving average.

Bitcoin is now facing a heavy resistance near the $13,650 and $13,700 levels. It already made two attempt to gain strength above $13,650, but failed.

The recent high was formed near $13,672 and the price is currently correcting lower. It broke the $13,500 level, plus traded below the 23.6% Fib retracement level of the upward move from the $13,976 swing low to $13,672 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

There is a major support forming on the downside near the $13,330 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the upward move from the $13,976 swing low to $13,672 high. There is also a connecting bullish trend line forming with support near $13,050 on the hourly chart of the BTC/USD pair.

On the upside, the bulls need to clear the $13,650 and $13,700 resistance levels to continue higher. In the stated case, the price could easily drift towards the $14,000 resistance.

Downside Break in BTC?

If bitcoin fails to clear the $13,650 and $13,700 resistance levels, there is a risk of a downside break. The first key support is near the $13,330 level and the 100 hourly SMA.

A downside break below the $13,330 level and the 100 hourly SMA could spark a fresh increase in selling. In the stated case, the bears may perhaps attempt a bearish break below the trend line and $13,000.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Levels – $13,330, followed by $13,000.

Major Resistance Levels – $13,650, $13,700 and $14,000.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-regains-strength-13700-key/

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Fidelity’s Crypto Subsidiary Targets Asian Investors To Buy Bitcoin

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  • Fidelity Digital Asset Services (FDAS) has partnered with Stack Funds to enable Asian investors to purchase and store cryptocurrency assets more freely and securely. 
  • Based in Singapore, Stack Funds is a regulated fund manager focusing on Bitcoin and other digital assets.
  • According to the Bloomberg report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. The company outlined that the Asian market has been continuously growing in demand towards the cryptocurrency industry, especially from high-net-worth investors and family offices.
  • Stack further explained that all assets under its management will be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  
  • Stack’s co-founder, Michael Collett, said that Fidelity’s involvement will enable its company to attract even more investors from the region. 
  • On the other hand, Christopher Tyrer, head of Fidelity Digital Assets Europe, believes that “there’s a critical need for platforms which have a deep understanding of what local and regional investors are looking for.” However, he admitted that the digital asset space has “historically lacked” such platforms. 
  • After its success in the US, Fidelity Digital Assets expanded its cryptocurrency services to Europe last year. The company aims at entering the Asian market as well now with the Stack Funds partnership. 
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Source: https://cryptopotato.com/fidelitys-crypto-subsidiary-targets-asian-investors-to-buy-bitcoin/

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