Far as I know, it uses acid, which acts more strongly on the normal surfaces than on the more compressed ones, making the date stand out.
Its Ferric Chloride solution, used to etch copper for printed circuit boards. There is a physical reaction to minting that hardens the nickel and allows dissolution of the copper portion, often making the impression more identifiable. You used to be able to buy it at radio shack type of stores. Dangerous, read the labels. Jim