In the ever-evolving world of cryptocurrency, privacy coins stand out by offering enhanced anonymity and security, shielding transaction details from prying eyes. As data privacy becomes a growing concern, these coins have surged in popularity. In this article, we rank four leading privacy coins—Monero, Zcash, Pirate Chain, and Ryo Currency—based on four critical criteria: Privacy-by-Default, Anonymity Set, No Trusted Setup, and Decentralization. By evaluating their performance across these factors, we provide a clear ranking to help you decide which privacy coin best suits your needs.
Evaluation Criteria for Privacy Coins
To fairly assess each coin, we use a consistent set of criteria that reflect their ability to deliver privacy and security. Below, we explain each criterion in detail.
Privacy-by-Default
This criterion measures whether a coin ensures privacy for all transactions automatically, without requiring users to opt in or configure settings. Coins that enforce privacy by default score higher because they guarantee consistent protection across the board.
Anonymity Set
The anonymity set is the size of the group in which a user’s transaction is hidden. A larger anonymity set increases privacy by making it harder to trace individual transactions. Coins with mandatory privacy and higher adoption typically excel here.
No Trusted Setup
Some privacy technologies rely on a “trusted setup”—an initial process that, if flawed or compromised, could undermine the coin’s privacy and deanonymize the entire blockchain. Coins that avoid this requirement are inherently more secure and score higher in this category.
Decentralization
Decentralization assesses how distributed a coin’s network is, factoring in mining algorithms and coin distribution. Highly decentralized networks are more resistant to control or manipulation, earning them higher marks.
Ranking the Privacy Coins
Now, let’s dive into the rankings. Each coin is scored out of 5 for each criterion, and a final average score determines its overall rank.
| Coin | Privacy-by-Default | Anonymity Set | No Trusted Setup | Decentralization | Final Score |
|---|---|---|---|---|---|
| Ryo Currency | 5/5 | 3/5 | 5/5 | 5/5 | 4.5/5 |
| Monero (XMR) | 5/5 | 3/5 | 5/5 | 2/5 | 3.75/5 |
| Pirate Chain (ARRR) | 5/5 | 5/5 | 2/5 | 1/5 | 3.25/5 |
| Zcash (ZEC) | 2/5 | 4/5 | 5/5 | 2/5 | 3.25/5 |
Monero (XMR)
Monero is a household name among privacy coins, celebrated for its robust privacy features and widespread use. Here’s how it stacks up.
Privacy-by-Default: 5/5
Monero ensures all transactions are private by default, leveraging technologies like ring signatures and stealth addresses. Users enjoy automatic privacy without extra effort.
Anonymity Set: 3/5
Recent analyses suggest Monero’s effective anonymity set is smaller than ideal, with a real ring size of about 4.2 due to emerging deanonymization techniques. This limits its score here.
No Trusted Setup: 5/5
Monero’s privacy doesn’t depend on a trusted setup, making it free of this potential vulnerability and earning a perfect score.
Decentralization: 2/5
Monero faces challenges with decentralization. Botnet activity, such as that exposed in Operation Endgame, once controlled 40% of its hashrate, posing a centralization risk.
Final Score: 3.75/5
Calculation: (5 + 3 + 5 + 2) / 4 = 3.75
Zcash (ZEC)
Zcash offers optional privacy through shielded transactions, but this flexibility comes with trade-offs. Let’s break it down.
Privacy-by-Default: 2/5
Zcash’s privacy is not mandatory—users must opt into shielded transactions, and most don’t, leaving the majority of activity transparent. This weakens its privacy-by-default standing.
Anonymity Set: 4/5
With low adoption of shielded transactions, Zcash’s anonymity set is limited, reducing its ability to obscure user activity absolutely.
No Trusted Setup: 5/5
Zcash has upgraded to Halo 2 zk-SNARKs for privacy and no longer requires a trusted setup.
Decentralization: 2/5
Its ASIC-dominated mining concentrates power among those with specialized hardware, undermining network decentralization.
Final Score: 3.25/5
Calculation: (2 + 4 + 5+ 2) / 4 = 3.25
Pirate Chain (ARRR)
Pirate Chain takes an uncompromising stance on privacy, mandating it for all transactions. But how does it fare overall?
Privacy-by-Default: 5/5
Pirate Chain enforces privacy across all transactions using zk-SNARKs, ensuring no transaction is ever transparent.
Anonymity Set: 5/5
With mandatory privacy, every transaction contributes to a large anonymity set, making it nearly impossible to trace individual activity.
No Trusted Setup: 2/5
Like Zcash, Pirate Chain’s use of Groth16 zk-SNARKs relies on a trusted setup, introducing a potential point of failure.
Decentralization: 1/5
An ASIC-friendly mining algorithm and a front-loaded emission schedule concentrate power and coins, severely limiting decentralization.
Final Score: 3.25/5
Calculation: (5 + 5 + 2 + 1) / 4 = 3.25
Ryo Currency
Ryo Currency is a lesser-known gem that emphasizes privacy and decentralization. Here’s its performance.
Privacy-by-Default: 5/5
Ryo enforces privacy by default with ring signatures, ensuring all transactions are private without user intervention.
Anonymity Set: 3/5
Ryo’s smaller user base restricts its anonymity set, reducing its privacy strength compared to coins with larger networks.
No Trusted Setup: 5/5
Ryo avoids a trusted setup, bolstering its security and earning a top score in this category.
Decentralization: 5/5
With a GPU-friendly mining algorithm and an egalitarian emission schedule, Ryo ensures broad participation and fair coin distribution.
Final Score: 4.5/5
Calculation: (5 + 3 + 5 + 5) / 4 = 4.5
Final Ranking of Privacy Coins
After evaluating each coin, here’s how they rank based on their combined scores:
- #1 Ryo Currency – 4.5/5
- #2 Monero (XMR) – 3.75/5
- #3 Pirate Chain (ARRR) – 3.25/5
- #3 Zcash (ZEC) – 3.25/5
Conclusion: Which Privacy Coin Is Right for You?
Each privacy coin shines in different areas. Ryo Currency tops our ranking with its stellar decentralization and solid privacy features, making it ideal for those who prioritize network security. Monero holds strong as a popular choice with reliable privacy, despite some decentralization hurdles. Pirate Chain offers unmatched anonymity but falters in decentralization, while Zcash trails due to its optional privacy and centralization. With the coming transition to Halo 2 ZK Proofs, we have listed projected changes in total score and rankings.