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Dash privacy features deserve the same regulatory treatment as Bitcoin

Discussion in 'General Discussion' started by tungfa, Aug 8, 2019.

  1. tungfa

    tungfa Administrator
    Dash Core Team Foundation Member Masternode Owner/Operator Moderator

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    https://blog.dash.org/dashs-privacy-features-and-compliance-c27d79254ff1?gi=b55310dd3ce
    by @Ryan Taylor

    [​IMG]

    Dash Core Group has received inquiries from exchanges seeking support for their compliance efforts with regulators. In particular, regulators are concerned that exchanges may be unable to comply with KYC / AML regulations when transacting coins with privacy features. Because Dash is often found on lists of coins with privacy enhancements in the press and online, Dash is at times a topic of regulator concerns.

    To address these concerns, Dash Core Group has supported exchanges in their interactions with regulators. Through a process of education, we have been effective in explaining the technology and convincing regulators that accepting Dash poses no incremental risk compared to Bitcoin. The required processes and compliance tools for Dash are identical to those required to support Bitcoin.

    We are making this information available on our website in an effort to educate regulators, exchanges, money service providers, and lawmakers to make sure service providers can continue servicing our users. We plan an information campaign with compliance officers and regulators over the coming month to dispel all concerns that Dash may pose an unmanageable risk.
     
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  2. Pietro Speroni

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    I'm unconvinced, sorry.

    Even though you can make the same transactions in Bitcoin and in Dash, making them in bitcoin would cost much more and would be much slower. As such they are not really available, while in Dash they really are available.

    Regards,
    Pietro
     
  3. GrandMasterDash

    GrandMasterDash Well-known Member
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    So the question is, when bitcoin becomes a more private blockchain, will all the big exchanges drop it because of incremental risk?
     
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  4. JoeF

    JoeF New Member

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    Yes, agree that Dash needs more regulatory type controls, but I would not use BTC as a basis of comparison. BTC is the "Model T Ford". Do not establish highway specifications based on the Model T.
     
  5. GrandMasterDash

    GrandMasterDash Well-known Member
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    The bitcoin comparison is made because dash fundamentally uses the same UTXO model as bitcoin. And nearly all exchanges accept bitcoin. Of course dash is superior but the comparison was made on a technical level to prove how misinformed the regularators are.

    Going forward, the big problem exchanges and regulators have is that bitcoin will technically evolve outside of their control. I realize technical advancement of bitcoin is very slow and not the best, but it will happen, fungibility will improve. It's the age old race between good and evil, those trying to stifle progress and those trying to innovate. Chain analysis companies and governments will always try to insert themselves into the gears of progress.

    There are better privacy solutions than dash. Dash has a very narrow view of what privacy is i.e. tries to obfuscate transaction history. Private Send is clunky and it's operation is not invisible to the end user, it takes effort and understanding to use effectively. The comparison is easier to make with bitcoin than other privacy solutions.
     
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  6. camosoul

    camosoul Grizzled Member

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    While it was a nice read... It seems almost like DASH has accepted the losing position, and has no intention of even trying to win anymore.

    What's the point? Why does DASH even exist? If you're just going to sit around waiting for BTC to maybe, slowly, someday steal your code, and you actually want it this way... Why not just quit now?
     
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  7. camosoul

    camosoul Grizzled Member

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    What's wrong with privacy enhancements? Isn't a lack of privacy one of the things that was cried about the most during the Libra tribunal?

    How is privacy, a fundamental human right, even a debatable topic? How can it be bad? How can it be argued to be good and bad at the same time?

    Attack Coin A because it lacks privacy.

    Attack Coin B because it has privacy.

    ...my ability to even is severely compromised...
     
  8. Pietro Speroni

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    We are facing an unsolvable situation. We have
    1. Privacy,
    2. Know Your Costumer
    3. Social Symmetry (Not having a Big Brother)
    And basically so far it seems it is only possible to have systems that have 2 of those 3 fundamental qualities. And depending which of the three you drop you have a different system.
    • If you have Privacy and Know Your Costumer, you basically have a social asymmetry with a class of people who know things about you and you know the same about them. This is where bank are, but also the centralised blockchains (Some told me EOS can block some transactions).
    • If you have Privacy and you don't have a Big Brother you are basically in the world of the completely anonymous blockchain. This is where Monero is.
    • If you have Know Your Costumer and you do not have a big Brother, you basically have a completely transparent system. This is where Bitcoin is.
    Now where is Dash? Possible answers:
    1. it's a centralised blockchain. I personally do not believe it (especially after Ryan answer on Twitter), but many do.
    2. it's an anonymous blockchain. Well this document seem to clarify that it's not.
    3. It is fully transparent like Bitcoin (which is what this document seem to suggest)
    4. It is actually possible to have all three qualities by...
    And maybe it is possible to have all three qualities by rising the cost of gathering information about someone. I personally do not believe it if you consider computational exponential growth. Also even if it was possible, it would de facto move us back into the asymmeticy situation where there is a bitcoin.

    Maybe the only solution would be to clarify with the regulators that it is NOT possible to have a system that is private, and permits KYC, without generating a Big Brother as a side effect.
     

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