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Author: Admin | 2025-04-27
Heard of, including Bitcoin, Dogecoin, and Ethereum, are not totally anonymous. But are there exceptions to this rule? Which Cryptos Are Most Anonymous? Flickr""> Image Credit: FXTM Thailand/Flickr While cryptocurrency isn't entirely anonymous, there are assets designed to prioritize privacy above all else. These are known as privacy coins; the most common example is Monero (XMR). Monero (XMR) Monero is a proof-of-work cryptocurrency created in 2014 via a Bytecoin hard fork. Monero obfuscates transactions using an array of technologies, namely ring signatures and stealth addresses. Monero's stealth addresses are essentially one-time burner addresses that a sender can use for a single transaction. This allows the recipient to display a public address that cannot be used for identification. In short, only the sender and recipient know where the transaction funds end up. In addition, ring signatures are used to sign Monero transactions. A typical ring confidential transaction consists of a group of users, one of which provides the ring signature. All the members of the ring transaction have unique private keys and public keys, so by coming together in a ring transaction, it becomes difficult for anyone to determine who signed and conducted it. Alongside ring signatures, Monero uses Ring Confidential Transactions, or RingCT, which hides the amount of XMR sent in transactions and has allowed the basic ring signature model to be improved. Today, Monero's ring signatures are more officially known as Multi-layered Linkable Spontaneous Anonymous Group signatures, which allows for anonymity across the board, be it the amount sent, origin address, or destination address. Using this technology, each Monero transaction is untraceable, maintaining user anonymity. However, Monero has been heavily criticized in the past. Firstly, it has been speculated that Monero transactions may not be totally untraceable. In a 2018 Wired piece, it was reported that a team of researchers within the US founds flaws in Monero's privacy model that may make it possible for wallet addresses and identities to be determined from transactions. However, these vulnerabilities have long since been resolved. On top of this, Monero has been criticized for not complying with the Know Your Customer (KYC)
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