Two new portfolios, one for Bitcoin and the other for Bitcoin Cash, implement advanced privacy features similar to those implemented by Dash.
Wasabi Wallet 1.0 has recently been released, which offers a process of mixing coins for privacy for Bitcoin, just as CashSuffle offers the same service for Bitcoin Cash. On the gitub page of the Wasabi wallet, it is said that "at the Blockchain Wasabi level it now helps its users to achieve the desired level of privacy in three main ways: mixing, coin control and clustering within the wallet". The description goes on to say that "the coin coin is via Chaumian CoinJoin, as described in the ZeroLink protocol". So "Wasabi users record their transaction inputs and desired outputs with a coordinator, and the collaboration of these users translates into a large coinjoin transaction: and" the coordinator can not steal nor deny users ".
CashShuffle describes itself as "both a protocol and an implementation for transactions with the privacy privilege of Bitcoin Cash, based on the CoinShuffle protocol." They differ from the combination of coins, which "commonly refers to the use of services that allow a user to replace their coins with a different set of coins." They underline that "Cash Shuffle uses a client-server model. servers coordinate the users who are mixing ".
Both solutions provide their own privacy implementation, but they all vary from Dash's PrivateSend. Pasta, a developer and developer of Dash Core Group of Dash Core, explained that both are likely to be solid approaches, that "due to the encryption used, there are no major risks to the privacy of the centralized server, assuming that the implementation be without errors. "
Both approach Dash's privacy, albeit in a limited, less decentralized way
Although these services look somewhat like Dash's privacy offerings, there remain several differences. Dash PrivateSend allows users to combine transactions autonomously with other users through a decentralized Masternode network. This allows more privacy because there are no centralized servers that shine like a honey pot for hackers or inspectors who want to monitor transactions. Dash Core UX / UI engineer Joshua Seigler explained that "all three solutions are based on CoinJoin", adding that "in all cases, wallets prepare mixing transactions, coordinated by central servers that match to participants (and probably transmit their mixing transactions) without taking their funds or transmission operations (which is carried out by the participants) into custody. "
However, Pasta highlighted one of the biggest differences between the services:
"Both CashShuffle and Wasabi rely on a single central server (although many servers are available for CashShuffle.) This has negative sides in terms of uptime and availability, whereas Dash relies on the distributed set of 4000+ masternodes ".
Pasta further underlined how Dash's solution implies a more rigorous approach, resulting in greater privacy:
"Dash PrivateSend uses multiple mixing shifts that should ensure better privacy … CashShuffle and Wasabi use an improved version of CoinJoin which allows improved privacy on a single round compared to Dash, however, Dash's multiple approach, based on on multiple masternode, it offers a better general privacy ".
Furthermore, both Bitcoin-based approaches rely on external services to power privacy, which may eventually go offline or become compromised in the future (or have performance problems), while Dash implements its proprietary masternode network, which is forever an integral part of the system. Finally, Dash is working to increase the speed of PrivateSend and reduce the cost by adding additional mixing names. This will make PrivateSend more accessible to everyday users, which is part of Dash's strategy to be digital money in daily transactions. These features of PrivateSend help to make it more decentralized and anonymous than its peers without sacrificing its usability and scalability.
Importance of maintaining privacy, in balance with transparency
Coin mixing is becoming increasingly popular as it has been realized that most cryptocurrencies, including Bitcoin, are only pseudo-anonymous because normal transactions and wallet addresses can be traced through chain analysis. of the publicly available blockchain. However, privacy is increasingly at risk as researchers are finding ways to link portfolio addresses to real-life identities, which destroy the whole concept of pseudo-anonymity and privacy of cryptocurrencies. The transaction mix is an attempt to find a solution by making the transactions too difficult to track down in the original spender.
PrivateSend and other mixing services also differ from other crypto-based coins such as Zcash or Monero making sure that all transactions are still displayed on the blockchain. This transparency helps the network maintain public trust in its ease of auditing, while allowing transactions to be blurred when desired.