http://dashpaymagazine.com/index.php/2016/07/07/dash-privatesend-what-makes-digital-cash-fungible/
PrivateSend is a term used to describe both the mixing technology of Dash and the private sending of dash. The main Dash wallet includes this functionality as an option.
If you want to send a payment privately or erase all previous history, you need to mix your coins prior to sending. First go to your wallet options and select the amount of coins and how many rounds you want to mix. 2 rounds is minimum and 8 rounds is still unbreakable. You select Mix at the lower left of the wallet. It will deduct a 0.01 Dash fee to start mixing. The mixing process can take several hours to days depending on rounds and network traffic.
With your coins mixed you can still send a normal transaction, but it can be traced back to your wallet with the change address. To get around this there is a private send box that can be selected. This rounds up your payment to the lowest denomination (currently .1 Dash). Then when the payment is sent only a set of common denominations are sent 10s, 1s, .1s. It is not possible to determine which address the funds originally came from.
So why is this an important feature?
Fungibility! What is that you say? If certain coins have a history linked to people, organizations, or activity, then the value isn’t the same. Some entities may not accept coins based on past history. The term fungibility ensures that all coins are the same value. The way Dash makes this happen is by mixing the coins in the same denomination with other wallets. This effectively erases all history and ensures they are worth the same value. As far as I know, Dash is the only crypto that is truly fungible.
How much does it cost to use PrivateSend?
PrivateSend doesn’t add an extra fee over the minimum transaction fee around .0002. The final transaction + fee needs to be rounded up to the nearest 0.1 Dash. Here are two examples.
The first transaction is a standard 0.2 Dash send. The fee of .0000200 is added, which forces it to round up to 0.3 Dash. [0.2 + .0003 = .2003 rounds up to 0.3 Dash] Actual fee is .1 Dash or about 70 cents.
Now if you do the same transaction with .1999 Dash, it still adds the .00002 fee. But only rounds to .2 Dash. [0.1999 + .0000200 = .199902 rounds to .2 Dash] Actual Fee is .0001 or .07 cents.
So the transaction can either have a 70 cent fee or a .07 cent fee depending on how the 0.1 rounding occurs. So we see the benefit of selling things for .1999, I guess somethings carry over from prices in fiat.
PrivateSend is a term used to describe both the mixing technology of Dash and the private sending of dash. The main Dash wallet includes this functionality as an option.
If you want to send a payment privately or erase all previous history, you need to mix your coins prior to sending. First go to your wallet options and select the amount of coins and how many rounds you want to mix. 2 rounds is minimum and 8 rounds is still unbreakable. You select Mix at the lower left of the wallet. It will deduct a 0.01 Dash fee to start mixing. The mixing process can take several hours to days depending on rounds and network traffic.
With your coins mixed you can still send a normal transaction, but it can be traced back to your wallet with the change address. To get around this there is a private send box that can be selected. This rounds up your payment to the lowest denomination (currently .1 Dash). Then when the payment is sent only a set of common denominations are sent 10s, 1s, .1s. It is not possible to determine which address the funds originally came from.
So why is this an important feature?
Fungibility! What is that you say? If certain coins have a history linked to people, organizations, or activity, then the value isn’t the same. Some entities may not accept coins based on past history. The term fungibility ensures that all coins are the same value. The way Dash makes this happen is by mixing the coins in the same denomination with other wallets. This effectively erases all history and ensures they are worth the same value. As far as I know, Dash is the only crypto that is truly fungible.
How much does it cost to use PrivateSend?
PrivateSend doesn’t add an extra fee over the minimum transaction fee around .0002. The final transaction + fee needs to be rounded up to the nearest 0.1 Dash. Here are two examples.
The first transaction is a standard 0.2 Dash send. The fee of .0000200 is added, which forces it to round up to 0.3 Dash. [0.2 + .0003 = .2003 rounds up to 0.3 Dash] Actual fee is .1 Dash or about 70 cents.
Now if you do the same transaction with .1999 Dash, it still adds the .00002 fee. But only rounds to .2 Dash. [0.1999 + .0000200 = .199902 rounds to .2 Dash] Actual Fee is .0001 or .07 cents.
So the transaction can either have a 70 cent fee or a .07 cent fee depending on how the 0.1 rounding occurs. So we see the benefit of selling things for .1999, I guess somethings carry over from prices in fiat.
