DeepOnion or Dash - Which Is the Better Anonymous Cryptocurrency?
The Blockchain is a public ledger where transactions are recorded and confirmed in an anonymously way. It’s a record of events that occur between multiple parties. After the information is recorded, it cannot be altered or deleted.
A cryptocurrency is a form of digital money created to be secure and, in many cases, anonymous. It operates exclusively online and uses cryptography, a process that was born from the need of securing communication during the Second World War, and it has evolved throughout the passage of time. It converts easily to access information into an almost uncrackable code to track transfers and purchases.
Dash is an open source cryptocurrency that aims to be the most user-friendly and the most scalable cryptocurrency in the world. On top of Bitcoin's feature set, Dash offers private transactions (PrivateSend), instant transactions (InstaSend) and it operates a self-governing and self-funding model that enables the Dash network to pay individuals and businesses to perform work that adds value to the network.
DeepOnion is a hybrid cryptocurrency that includes a broad range of upgrades and unique features, such as The Proof of Stakes (PoS), the X13 Proof of Work (PoF) algorithm, and a full integration with The Onion Router (TOR). These features provide a long-term economic development and stability thanks to The Proof of Stakes and hiding your original IP so it won't be shown thanks to The Onion Router.
Dash's PrivateSend is a coin-mixing service based on CoinJoin, an anonymisation method for bitcoin transactions based on the idea "When you want to make a payment, you can find someone else who also wants to make a payment and then make a joint payment together." Dash's PrivateSend uses the CoinJoin service with numerous modifications. These include using masternodes instead of a single website, chaining by mixing with multiple masternodes, and restricting the mixing to accept only certain denominations. The maximum allowed for a PrivateSend transaction is 1000 Dash.
The PrivateSend does have a potentially dangerous flaw. Each CoinJoin requires a server to facilitate the mixing. This requires users to trust that the server is not recording details on where each user's outputs are ending up. Dash attempts to mitigate this risk using the "masternodes", servers that coordinate PrivateSend, but these servers require a deposit of 1000 Dash to run.
DeepOnion operates over The Onion Router (TOR) which hides your IP completely. No one can identify where are you trading from and therefore no one monitors your financial transactions. The TOR software makes it impossible for anyone to watch or follow your virtual life by protecting your connectivity, and it also allows you to trade hassle-free using different browsers to open and maintain wallets for Windows, Linux, and Mac.
Also, with the Invincible Payment and with the use of hidden addresses, DeepOnion payments are invincible and cannot be traced by anybody or agency ensuring that the transactions will remain untraceable by any legal or illegal body making DeepOnion 100% anonymous.
Here is a better example showing how TOR-Based coins work:
Here is an image explaining how NON-TOR-Based coins work: