PrivateSend

PrivateSend is a coin-mixing feature implemented in the Dash cryptocurrency designed to improve on-chain privacy by breaking the link between senders and recipients. It originated as Darkcoin’s anonymization technique in 2014 and was later rebranded as PrivateSend as part of Dash’s feature set.

Operation relies on Dash’s network of masternodes. PrivateSend uses fixed denominations to mix coins. Users initiate a mixing session by providing inputs of the same denomination. Masternodes coordinate a series of anonymized transactions, pooling inputs from multiple participants and distributing new outputs of the same denomination. After completion, the original inputs are mixed with others, and the resulting outputs are indistinguishable from one another, making it difficult to trace the provenance of funds.

Process details: PrivateSend is optional and requires a sufficient number of participants to complete a round. It does not rely on a single party; rather, it works through the masternode network. The final outputs can be spent in normal Dash transactions, but they originate from the mixed pool rather than a specific input, improving privacy for subsequent uses.

Privacy considerations: PrivateSend enhances on-chain privacy by obscuring input-output links, but it does not guarantee complete anonymity. If participation in a round is small or external metadata is available, deanonymization could be possible. Users should not rely on PrivateSend as their sole privacy mechanism, as it does not hide transaction amounts or addresses from all observers.

Governance and requirements: Dash’s privacy functionality depends on the masternode network, which requires collateral to operate (traditionally 1,000 DASH) and participation in the network’s governance. PrivateSend is integrated into the Dash wallet software, with availability depending on the wallet version and settings.