If you are already familiar with the Dash cryptocurrency, you probably already know that its main purpose is to allow transactions to be made securely and above all anonymously. But why am I telling you about Dash if the topic of this article is ‘PrivateSend’? If you want to find out, read on.
As Dash explains on its official website, PrivateSend is a trustless, non-custodial method based on a decentralized coin mixer in the Dash protocol that is designed to enhance the user’s financial privacy and hide the origin of funds.
It does this by executing a sequence of transactions (known as a “CoinJoin“) that makes it virtually impossible to trace the history of transactions.
The purpose of PrivateSend is to maintain the fungibility of Dash cryptocurrencies by eliminating their history on the network and completely hiding the origin of users’ funds.
This functionality is available in both Dash Core and Dash Electrum wallets and allows processing any amount of Dash.
PrivateSend’s performance is due to the innovative two-tier network that characterizes the Dash protocol.
Like Bitcoin and many other cryptos, Dash works through the Proof of Work consensus protocol and, when mining DASH tokens, users are rewarded not only for validating transactions but also for running and maintaining their special servers called Master Nodes.
Among the most innovative services guaranteed by Dash master nodes are the following:
The PrivateSend process works like this:
A user’s wallet must repeat this mixing session (round) several times to ensure that the origins of the funds are completely anonymous.
It is very important to note that all PrivateSend transactions will be rounded up so that all transaction entries are spent.
Finally, it is important to know that the funds involved in the commingling process never leave a user’s wallet, which ensures that the entire process can remain secure and reliable.
Like any functionality, PrivateSend also has its advantages and disadvantages. Let’s quickly see what they are.
Although the advantages of PrivateSend are many and make this tool an almost unique technology, there is also a disadvantage because this process is deficient in comparison to other processes such as Monero or Zcash as they offer a much greater level of anonymity than PrivateSend.