What is Dash PrivateSend?
PrivateSend is a way for an individual to send Dash funds in a way that is (for all reasonable intents) untraceable.
The exact details on how the PrivateSend function works are found here.
A private send transaction is a lot like a cash transaction in terms of privacy, if someone were somehow monitoring your account it would be clear that £100 had been transferred somewhere, however, from this point there is no way of telling where that £100 has ended up.
When we talk about privacy the first thing we need to do is establish why privacy is desirable.
In the modern world privacy is very hard to come by and almost every detail of your life is recorded somewhere; whether on Google’s servers, Facebook’s, in your credit history or in the databases of many different websites that you may not have even realised were storing your data. Companies hold vasts amount of data on everyone mostly we assume that our data is held securely and the company holding it will act in our best interest and, with modern EU Data Protection laws, this is improving. The issue is that even with EU Data Protection laws breaches will still occur, whether it is advertisers purchasing your details in order to sell you products, companies scraping your details and views to better manipulate you and your social circle for political gain or just your data being leaked due to incompetence or complacency.
Simply put; in the current financial system you have to trust banks and are completely reliant on them for your privacy in a world where data is bought and sold regularly and big businesses, including banks, are hacked.
One of the goals across a lot of cryptocurrencies is to allow individuals the option of privacy and allowing you to choose who can see into your bank account and what they can see. Even without taking into account the PrivateSend feature of Dash cryptocurrencies are much more private than existing banking systems.
Please see our article on privacy in cryptocurrencies for more details on this.
PrivateSend provides an extra level of privacy from the “standard” privacy level of cryptocurrency.
The obvious reason someone might want this is for illegal or embarrassing transactions, but there are many more uses than this.
Firstly if you are very concerned about your privacy then this does add a further level of obfuscation from just using multiple wallets as it allows you to fund them anonymously and have private purchases. This would mean you could have your “main” wallet or wallets that hold a large portion of your funds and you have a smaller wallet that you use for day to day purchases which is funded by daily/weekly PrivateSend transactions.
If you are a high net worth individual and are concerned for your security it could well be prudent to have your “main” wallet fund a “spending” wallet via private send, this would mean that you could pay for normal day to day purchases via normal or InstantSend without having to be concerned over your payee knowing how much Dash you hold.