Top 5 Privacy Tokens in 2023 [By Market Capitalization]

Check out the tokens that keep your anonymity paramount!

18 Apr 2023 | 8 min read

Table of Contents

Introduction

In the world of cryptos, privacy has become an increasingly important concern for users. With cybercriminals becoming more and more sophisticated, and surveillance techniques becoming more bleeding edge, more and more people are looking for ways to protect their financial privacy and keep their transactions confidential from malicious eyes. This need for increased privacy of financial information led to the development of privacy crypto tokens and platforms, which use blockchain technology to offer advanced features to keep user data and transaction details hidden from prying eyes.

On the other hand, privacy tokens have been facing a lot of flak from governments across the world. This is primarily because while the intention behind privacy tokens is noble, the people using them the most aren’t so much. Private crypto tokens have been facing criticism and scrutiny from governments around claims of money laundering, terrorism financing, and tax evasion. Due to its features, it makes it difficult for law enforcement agencies to track and monitor suspicious transactions. Thus, while privacy tokens offer a very good solution to a real-world problem, it attracts a lot of backlash on that front.

So these are a category of tokens that have found it more difficult to find mainstream adoption and governmental backing – but there is a very strong community of backers in this sector as well and it is yet to be seen how that pans out. In 2023 so far, this category of crypto tokens has been one of the poorest performers, and hence also has the potential to show real gains if the overall positive sentiment in the market continues. In this article, we will explore some of the biggest and the most well-known privacy tokens by market cap that you need to know about in 2023!

Privacy Token	Market Cap	Price	% Change in 2023
Monero (XMR)	$2.98 billion	$163	+9.5%
Zcash (ZEC)	$680 million	$41.8	+12.2%
Dash (DASH)	$670 million	$59.6	+41.2%
Oasis Network (ROSE)	$420 million	$0.07	+110%
Decred (DCR)	$330 million	$21.9	+16.4%

Top Privacy Tokens by Market Cap [2023]

Monero (XMR)

Monero (XMR) is one first privacy-focused crypto that was launched back in April 2014. It was created to address the privacy concerns associated with Bitcoin and other crypto assets, which have transparent blockchain ledgers that publicly record all transactions. To achieve this objective, Monero uses a series of advanced cryptographic techniques obscure transaction details and protect the identities of the parties involved. The technology behind Monero is known as “Ring Confidential Transactions” (RingCT), which uses a technique called “ring signatures” to mix transaction inputs and outputs and essentially obscure the trail of funds on the blockchain network.

Thus, unlike most other crypto platforms out there, transactions made on Monero are completely private and the amounts transferred are also hidden completely. This makes it nearly impossible to trace transactions occurring over the Monero network, making it an ideal choice for individuals who value their financial privacy and security. Monero is a project that has a strong backing of developers and supporters who are committed to maintaining its decentralization and privacy features – and it is the biggest privacy-focused crypto project by market capitalization, thus featuring on the top of the list of privacy tokens in 2023.

Zcash (ZEC)

Up next on the list of top privacy tokens in 2023 is Zcash. This privacy token project was launched back in 2016 and it was created with the aim to provide users with a high level of anonymity and privacy in their financial transactions. Zcash uses its own set of advanced cryptographic techniques such as zk-SNARKs (zero-knowledge proofs) to shield transaction details, including the sender, receiver, and amount sent from prying eyes.

While Monero offers similar features, Zcash has the added benefit of giving users the option to choose between two types of transactions: private and transparent. Private transactions use their zk-SNARKs technique to obscure transaction details, while transparent transactions are similar to Bitcoin and other cryptocurrencies, and publicly record transaction details.

Thanks to its additional features, Zcash has become very popular in terms of usage across various platforms in the Web3 ecosystem and is being actively used in various applications, including payments to content creators, tipping on social media platforms, and other use cases where privacy is important – making it a very pertinent part of the list of top privacy tokens in 2023.

Dash (DASH)

The third on the list of top privacy tokens one needs to know about in 2023 is Dash. This was a project that was launched around the same time as Monero in 2014, and was originally called XCoin then changed its name to Darkcoin two weeks later before rebranding again to Dash in March 2015 in order to have a more positive nomenclature. This is another privacy-focused crypto project that aims to provide users with enhanced anonymity and privacy in their financial transactions. Dash uses its unique “Masternode” system to validate transactions and provide an extra layer of security and privacy to its users.

While privacy is a feature that a few other projects are offering, Dash is more known for its ability to process transactions at a much higher speed than others, and also charging lower transaction fees that are practically unmatched by other privacy-focused crypto projects out there. Thanks to these features, Dash has been adopted by various merchants and businesses as a payment method, including some travel and hospitality companies. Outside of its privacy crypto project, It has even launched various other products and services such as a mobile wallet and a debit card.

Oasis Network (ROSE)

Up next is Oasis Network (ROSE). This is one of the more recent entrants into the privacy-focused crypto sector with its launch in 2018 and it was also designed to provide users with a decentralized, secure, and privacy-focused platform for building and deploying applications. Oasis Network uses advanced privacy technologies such as “confidential computing” to keep data private and secure, even when it is being processed by third-party applications.

One of the key differentiating features of the Oasis Network is its ability to support smart contracts that are both privacy-preserving and scalable at the same time. This allows developers to build decentralized applications (dApps) that protect the privacy of their users while maintaining high levels of performance and scalability. Thanks to these functionalities, Oasis Network has been adopted by various businesses and organizations as a platform for building decentralized applications and has received support from various investors and venture capitalists and thus is well-positions to meet the growing need of users and various businesses across the world for DeFi focussed dApps.

Decred (DCR)

Last but not least, in the list of top privacy tokens for 2023 is Decred. Decred is a privacy-focused crypto project that was launched back in 2016 and one of its unique features is that it was created as a hybrid between proof-of-work (PoW) and a proof-of-stake (PoS) consensus mechanisms, which allowed for increased security and decentralization in the network. It was designed to be a self-governing and community-driven cryptocurrency, where stakeholders have a say in the decision-making process.

One of the most differentiating features of Decred is its governance system. It allows stakeholders to vote on proposals and changes to the network. This ensures that the network remains decentralized and transparent, with decisions made by the community rather than a central authority. Decred also prioritizes security and privacy, with features such as privacy-preserving transactions and atomic swaps that allow for cross-chain interoperability. Thanks to its unique approach to governance and security and its laser-sharp focus on transparency, decentralization, and security – it features on the list of the top privacy tokens one needs to know about in 2023.

So, how can you invest in these privacy tokens?

Today investing in privacy tokens is extremely simple with the CoinDCX App! Just download the CoinDCX crypto investing app, enter the details required, and wait for your profile to get verified. Once done, fund your wallet and you can now invest in any privacy token of your choice!

Read more: Top Platform Tokens in 2023

Conclusion

There you have it! A compiled list of the top 5 privacy tokens that you need to watch out for in 2023. However, before investing in any of these projects, one must do thorough research and analysis on the token. This is a category that is slightly more vulnerable to governmental scrutiny and sanctions and thus can result in major losses. That being said, these projects are trying to solve a very real issue in the financial world and do hold the potential to change the future for good!

Values as on April 17, 2023.

FAQ

Why are privacy tokens important?

Privacy tokens are important in the world of crypto because they attempt to solve the problem of financial privacy by safeguarding one's financials from malicious prying eyes, sophisticated surveillance, and cyber criminals.

Isn't Bitcoin already private?

No, Bitcoin is a crypto that runs on an open public ledger, meaning transactions happening on the blockchain are viewable by anybody and everybody.

What are privacy tokens and are they legal?

Privacy tokens are a category of cryptos that use blockchain technology to offer advanced features to keep user data and transaction details hidden from prying eyes. While the legality of cryptos is in question, it is one of the most scrutinized sectors of the crypto industry, thanks to claims of money laundering, terrorism financing, and tax evasion happening over these platforms.