Beldex-Blog

privacy coin

What are privacy coins and why you need them

  Privacy coins are simply coins that let you transact privately. Peer-to-peer transactions (transactions without an intermediary) are not   always private. Blockchain transactions had a connotation of being anonymous. But is that always true? 

With a public ledger like Bitcoin or Ethereum, transactions are open for the world to see. Anyone who knows your public address knows how much crypto you hold and where you’ve sent them. Privacy coins help address this problem by hiding 3 key information: the sender address, the receiver address, and the amount of transaction. 

But it doesn’t stop there. As technology advances to provide greater security and privacy, so do the threats to privacy. And the corporate world is not helpful either. Major corporations have built their businesses centered around user data as they greatly benefit from them. Governments have laws in place to protect the privacy of their subjects, but only to a certain extent. When it comes to finances, these laws only take away whatever privacy is left for the user. Thus, there is a growing need for an ecosystem that focuses on privacy.

Ethereum’s announcement of implementing a second privacy layer using zk-rollups has also resulted in a lot of attention to privacy. Ethereum, the second-largest coin in terms of market cap, is looking to apply the zk-SNARKS protocol by way of a second layer. This is a strategic move to make the coin more scalable, fungible, and private. 

Beldex’s Privacy Architecture 

Beldex privacy coin utilises the Cryptonote privacy protocol to anonymize transactions. It uses three key elements of cryptonote namely,

Ring Signatures: Ring signatures are used to obfuscate the sender, where the sender’s input is mixed with inputs from many others. Thus the sender’s identity is obfuscated. 

RingCT: Ring Confidential Transactions make it possible to verify the inputs and outputs in a ring transaction. Thus, the amount sent by the sender is obfuscated. 

Stealth Addresses: Stealth addresses protect the identity of the receiver. The stealth address is an integrated address that can be shared with the sender to receive funds, but doesn’t compromise the receiver’s identity. Funds sent to the stealth address are received at the main address.

How does privacy add fungibility? 

Fungibility is the property of any fiat currency that maintains the same value between all of its equal denominations. In cryptocurrency, fungibility is termed as the ability of a coin to maintain the same value between all of its fractions, that is, 0.1 BTC = 0.1 BTC, regardless of market dynamics. No one coin or fraction of a coin will value less than their counterparts. However, Bitcoin and other digital currencies run the risk of an individual coin losing its value over being ‘tainted’ – coins that are stolen or used in illegal activities. But privacy coins are inherently fungible, meaning, no single coin or their units will lose their value against their counterparts within the same network. This is because there is no history that can be traced back to the coin’s origin.

No matter the era, threats to privacy have always been toe-to-toe with developments in privacy-preserving technologies. Beldex’s blockchain-based private ecosystem is aimed at providing absolute privacy to its users. Join our community to know more about the recent developments!!

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Beldex: What’s Next?

       Awareness and adoption of digital currencies are increasing by the day. Institutional interest in cryptocurrencies has risen tremendously this year as several publicly traded companies, institutions, MSMEs, and even startups have accepted and acknowledged the potential of crypto.

Regardless of what crypto dissidents might say, it is clear as day that cryptocurrencies hold the key to overcoming inflation. For example, scores of Venezuelans keep hodling crypto as currency devaluation and subsequent inflation follow several months of civil unrest and political turmoil. Ecuador has legalized Bitcoin while Twitter’s CEO Jack Dorsey said that Bitcoin will be a major part of the social network in the future. His payment’s company, Square, has heavily invested in Bitcoin. Similar cases could be seen across the world. One of the largest publicly traded companies, Amazon, is reportedly hiring digital currency and blockchain experts. 

All this still accounts only for measly adoption by the public and institutions. Yet, 1 Bitcoin trades for $38,926.25 USD, according to data shown by CoinMarketCap. A single Ethereum trades for $2,375.15 USD, while the Beldex privacy coin trades for $0.09671 USD at the time of writing. This is the result of adoption by 29 publicly traded and 3 private institutions. Close to 6000 companies are traded on NYSE and Nasdaq alone. 

A lot of crypto enthusiasts and new entrants to the crypto market feel that they’ve missed out on buying Bitcoin. But it’s not too late. While the common man still has the opportunity to buy Sats of Bitcoin, they can also buy high-potential, low Satoshi altcoins. Though, it may not be as easy as it sounds. The 2017 ICO boom and the 2020 DeFi boom have resulted in the hyper-saturation of the altcoin market. With more than 11000 altcoins currently being listed on CoinMarketCap, the market overflows with crypto coins and tokens. 

New entrants to crypto are told to DYOR, and there’s a challenge ahead of them. What should one consider before buying a coin? How to identify the right project and the right high-potential, low-satoshi, utility-based altcoin – one that serves a real-world purpose and has the necessary developmental framework to drive large scale adoption? Though there are a lot of factors to consider, Beldex believes privacy to be the most important factor that will drive large scale adoption in the future. 

What is the Future of Beldex?

Privacy of transactions. Private ecosystem. True financial freedom. 

Future of Beldex is an ecosystem with which you can carry on with your everyday activities privately. When we say that, we mean it. You can send a text to your friend and not have a third party snoop-in on your conversation. You can search for something online without ads following you around. You will have the liberty to remain truly anonymous. Beldex anonymizes transactions through cryptographic protocols that conceal the transactors’ information. 

Nobody ever has to know what you spend your money on – good riddance to those phone calls, and ads that keep tracking you on the internet. Anonymizing transactions also go a long way in giving back control to the people and letting them make surveillance-free financial decisions. 

Now, you could transact peer-to-peer with just about any crypto, however, with non-privacy coins, it doesn’t necessarily mean your transactions are 100% private. Metadata accompanying your transactions usually leaks information such as time-stamps for blockchain analysis firms to track your spendings. 

How Beldex Plans to Maximize Adoption? 

  • In order to maximize adoption, Beldex plans to increase the utility of the BDX coin. For example, in the future BDX will be utilized for subsidized fees on the Beldex private ecosystem – messenger, browser, dVPN, etc. 
  • The major deterrent to any crypto adoption today is scalability. The Beldex POS implementation seeks to solve this by 2021.
  • BDX will be listed on many centralized and decentralized exchanges in Q3 & Q4 2021.

Privacy and privacy -preserving applications are of essence in today’s digital age. We value your privacy. It’s time you do too.

Join our community to know more about our recent developments. 

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