Cryptocurrency Anonymity: Comparison of Dash, Zcash, and Monero
At the beginning of Bitcoin’s development, many believed it to be a completely anonymous currency. However, over time it became clear: BTC transactions can be traced, and users can be deanonymized. In response, privacy-focused cryptocurrencies emerged. Today, the three most well-known anonymous cryptocurrencies are Dash, Zcash, and Monero. Let’s explore how each of them ensures privacy.
Dash and the CoinJoin Method
In Dash, you can choose: make a regular transaction or use the PrivateSend option. This feature is based on the CoinJoin method, which mixes transactions from different users. Coins are split into parts, shuffled, and sent to recipients, making tracking more difficult.
The unique aspect of Dash is that CoinJoin is built into the protocol, unlike Bitcoin, where third-party mixers are used. But it’s important to understand: CoinJoin obscures the path of coins but does not make them fully anonymous.
Zcash and Zero-Knowledge Proofs
Zcash was the first cryptocurrency to use the zk-SNARK protocol, based on Zero-Knowledge technology. It allows the sender, recipient, and transaction amount to remain hidden. Only the fact of the transaction is recorded on the blockchain, without revealing any data.
Zcash has two types of addresses:
- t-address — public, like in Bitcoin.
- z-address — anonymous, protected by Zero-Knowledge.
Transactions can occur between any types of addresses: z→z, z→t, t→z, t→t. However, when coins are transferred between z- and t-addresses, the level of anonymity decreases. Studies show that in such cases privacy drops to 69.1%, especially when user behavior is analyzed.
Monero and the CryptoNote Protocol
Monero (XMR) is considered the most anonymous cryptocurrency. It uses the CryptoNote protocol, where every transaction is completely hidden: the sender, recipient, and amount are unknown.
Monero’s technologies inсlude:
- Ring Signatures — mixing the sender among a group of participants.
- Stealth Addresses — invisible recipient addresses.
- Fungibility — all coins are interchangeable and have no history.
Monero has no public transactions at all, unlike Dash and Zcash. To date, there have been no successful hacks or decryptions of XMR transactions.
Comparison and Conclusions
Each of these cryptocurrencies offers its own methods of privacy protection:
- Dash: partial anonymity through CoinJoin, not full privacy.
- Zcash: high privacy level with z→z transactions, but risks with mixed operations.
- Monero: complete anonymity by default, with no public transactions.
If you need maximum privacy — Monero remains the leader. Dash and Zcash are suitable for those who want the option to choose between privacy and transparency.
Remember, anonymity is not absolute protection. Every technology requires responsible use. AlwaysMoney.org recommends exploring the features and risks of each cryptocurrency before making a choice.
