Dash is a protocol born in 2014 from a fork of Bitcoin, with the name of Darkcoin. Since then, a lot of water has passed under the bridge, but the token has never managed to free itself from a bad reputation.
Due in particular to the fact that it was the first cryptographic project to adopt CoinJoin mixers, considered a real weapon against anyone trying to gather KYC (know-your-customer) information. A move from which Dash it has never been able to untie itself, despite its developers assuring that it is no longer one privacy coin.
The statements of Ryan Taylor
Dash Core Group CEO, Ryan Taylor, commented on this point in an interview with decrypt. Affirming in particular that the working group has always pursued a policy tending to the launch of one blockchain completely in the sunlight, with all inputs, outputs, amounts, addresses completely transparent.
He then added that there is no legal basis that allows Dash to be treated differently from Bitcoin. A claim based on the fact that the transaction protocol would be identical to that of BTC.
The node is represented by PrivateSend
More than the adoption of CoinJoin, however, the problem lies in the launch of DarkSend, hereinafter referred to as PrivateSend.
This is a process devised by Evan Duffield, the creator of Dash, who left the company in early 2017, which users can implement before a transaction in order to confuse wallet availability. Thus an outside observer is unable to determine the source of funding.
According to Taylor, however, it would not be a tool capable of escaping the tracing tools recently launched by Cipher Trace or Chainalysis.
The delisting from ShapeShift
Recently, however, Dash was also banned from ShapeShift transactions, in the same way as what happened for Monero e Zcash. A decision which has caused quite a bit of controversy and very surprising in light of the libertarian past of Erik Voorhees, the founder ofexchange.
He ruled on this exclusion Glenn Austin, Dash Core Group CFO, who speculated that a key role in the ShapeShift provision may have been played by Department of Justice Cryptocurrency Enforcement Framework.
What the Department of Justice Cryptocurrency Enforcement Framework says
The document, released last month, says that money services firms should consider getting one network aimed at isolating projects that aim to guarantee levels of privacy that can even reach anonymity. These tokens, in fact, could prove to be ideal tools for money laundering and terrorism.
Precisely to avoid problems with state organizations to oppose activities of this kind, ShapeShift has therefore removed Dash. As eToroX had already done in 2019. A measure against which Dash continues to protest as it does not accept the equation with Monero and Zcash.
In fact, according to Ryan Taylor, transaction information is clouded at the blockchain level. Which would not happen in Dash's case. For now, however, it seems that this approach has not succeeded in affirming itself. If things stay the same, the future could turn out to be very disappointing for Dash. currently in 29th place in the crypto industry market capitalization ranking.