Monero (XMR) is the 2nd Best Performing Cryptocurrency of 2020, Having Risen 57% Since the Turn of the Year

Cryptocurrency Monero is the 2nd best performer of all coins listed on CoinMarketCap and the best performer of the top 50 coins, having risen 57% since the turn of the year. It has outperformed Bitcoin during the given period, and it is the leading privacy coin.

Privacy coins are cryptocurrencies that are designed to enhance privacy and anonymity for their users by implementing strategies like ring signatures to obfuscate individual transactions and keep users’ details hidden. Monero isn’t popular with banks and governments, but it has become popular with investors as well as users looking to protect their privacy.

At the same time, many gamers and online gamblers have shifted their attention to sites that enable them to play with crypto, rather than traditional payment methods. As well as the use of cryptocurrency, which naturally offers greater privacy than bank and credit card payments, these crypto casinos typically dispense with the need for users to register their details, further enhancing their privacy.

However, not all online users are concerned about general online privacy. Data suggests that only around 30% of Internet users aged 16 or older are worried about the potential misuse of their personal data online.

Social Media Anonymity

Social media websites connect users with one another. In these cases, anonymity is not typically something users are looking for. They want friends, family, and even colleagues to be able to find them. Some social media sites require the use of real names and addresses, although verification processes can be limited as sites don’t want to lose users by placing heavy restrictions on access.

There are ways to remain anonymous while still providing personal credentials when necessary. For decades, writers and journalists have worked under aliases and pseudonyms. In some cases, this has been necessary to help protect them from real danger. This is especially true of investigative journalists and those who work in challenging environments.

Blockchain also offers the opportunity for improved anonymity. Blockchain records naturally do not contain any personally identifiable information, such as names and addresses. They do not contain personal financial information, either, other than crypto wallet addresses.

It is possible with extensive analysis and the use of appropriate tools to identify some crypto users by tracing their wallet addresses, and the fact that all blockchain records are accessible makes it possible to trace all activity to and from a wallet. However, there are steps that can be taken to further ensure the anonymity of users.

Privacy Coins

Privacy coins use techniques like zero-knowledge proof, ring signatures, and stealth addresses to further obfuscate transaction details. These methods combine transactions with one another and with fake transactions. They use proofing methods that do not require the submission or verification of details, and they use one-time wallet addresses that are effectively disposed of after use.

Messaging Apps

Most people use messaging apps to communicate with one another. They’re quick, easy, and convenient, and many of them offer additional features and functions that make them appealing. Messaging apps represent another area where anonymity is deemed important.

In 2021, WhatsApp lost millions of users when poorly updated terms led those users to believe their information and data would be shared more freely with Facebook. Signal gained around output:7.5 million users while Telegram gained 25 million, at least partially as a result of WhatsApp’s move.

Both Signal and Telegram have continued to see their user base increase as people look for more anonymity and privacy. Telegram is the more popular of the two, thanks to its offering of third-party and internal apps, as well as its strong community within the cryptocurrency space. But Signal is arguably the more secure solution. Messages are secured using end-to-end encryption, and the non-profit does not harvest or share user data with other parties.

However, despite the increase in popularity of these more secure apps, WhatsApp still has the largest user base. It is deemed the more user-friendly option, and many people continue to use it because they are accustomed to the platform, highlighting that anonymity takes a back seat to convenience for most people.

WhatsApp has 2 billion monthly users, which is nearly a quarter of the world’s population. WeChat has the second largest userbase. Facebook Messenger has roughly the same number of users, approximately 950 million, and it is another app that is not known for its anonymity or privacy features.

Anonymity Vs Convenience

While anonymity does matter to users in certain circumstances, it is fairly clear that a lot of people are willing to sacrifice some privacy for the sake of convenience, and others will continue to use technology and methods they have used in the past. However, as apps and other technologies offer greater anonymity, users may continue to demand it.