Become a ZoinCoin Ninja: Privacy Vs Anonymity

Still confused if Zoincoin is "anonymous" or just "private"? Answers to all your questions are here.

1. It's like any another currency, but untraceable.
2. Every transaction is entirely private, so only you understand you're making it.
3. There's no way to track you when you're using zoincoins. It's anonymous.

With Zoincoin climbing cryptocurrency Olympus higher and higher, I hear explanations like these everywhere in town: from bartenders to children, from musicians to police officers. 

In addition to being fundamentally wrong, such statements raise one of the most important security questions — what is the difference between privacy and anonymity. How does Zoincoin find itself in this field?

In this post i would love to explain the difference between privacy and anonymity/pseudonymity that zoincoin gives and how it relates to other financial transaction we might make.

What is Anonymity?

Anonymity can be correlated with thimblerig — we all aware of that there's a pea in one of the thimbles, but no one identifies which one. In finance, anonymity indicates the bank doesn't gather the data from its clients, doesn't document transactions and enables anonymous deposits/withdrawals. 

It appears to be legit if you take explanations presented at the beginning of this article for granted.

The truly anonymous cryptocurrency or a financial system would require such a significant amount of trust that has never existed between humans.

What is privacy?

If something is private, it doesn't necessary mean it's anonymous. Everyone knows banks are processing clients' data, but only the least know they do it differently. 

Compare two options: private Swiss bank and an unknown service on the internet - which do you think is more likely to spread your personal data through public?

Of course, with a Swiss bank, you're confident that nothing ever happens with your data. Besides, you also know there will be no leaks on your transactions destinations, sums or recipients. 

You have your personal private manager, who's in charge of all transactions and data, while the unknown service may disappear the same way it has appeared.

Privacy in finances means all your moves fall under the record, but only the law enforcement can retrieve.

Anonymity and privacy have two distinct meanings:

1. A transaction is “anonymous” if no one identifies who you are.
2. A transaction “private” if no one knows what you purchased, and the cost. 

How does zoincoin stack with privacy and anonymity

First of all, all zoincoin transactions are recorded for life. This huge log is called the ledger, and it registered in the blockchain, wallet identification, other metadata and the transaction sum. All transactions are available for the public. 

If you followed the article, this could define it as a private currency. The system is related to Swiss bank manager - he aware of all your transactions, but not willing to give your integrity and private details without a private request.

The second, it also acquires traits of the true anonymity, which is the toughness of the verification process. If you didn't attach your identification to the wallet anyway, this currency grows more anonymous and less private. 

But even in this case, it doesn't mature 100% anonymous as your payments can be tracked.

Considering all said above, zoincoin is now in the middle of the road combining some features of the private banking system with limited internet-style anonymity, but tending to be more a private solution.

Decentralized, but not anonymous:

Now you understand how the privacy is distinct from anonymity in the cryptocurrency world and where's the room for a zoincoin in this ecosystem.

 Remember, when you buy zoincoins by your debit card, you automatically tie your identification to the deal.

So, when you face an explanation of a blockchain similar to these I gave in the commencement of the article, just point them this article and see their eyebrows move up.