In a market practically drowned in offers and variety, the names that manage to become symbols of the industry are few and valuable. This stays true especially in an industry so crowded as the cryptocurrency community. However, Dash is a coin that has made it to the top of the options available, and it has established itself as one of the best cryptocurrencies when it comes to instant and private payments.
Read on to learn about why this crypto coin is deemed as one of the most important today, and discover if you should invest in it.
- What Is Dash?
Dash was launched in January 2014 under the name “Darkcoin” by developer Evan Duffield. It is re-branded as Dash which refers to “digital cash”. The blockchain of Dash is secured through a consensus mechanism called “Proof of Work” (PoW).
Dash is just like bitcoin a digital currency. It’s even forked of the Bitcoin protocol. That means that the code base is from bitcoin which makes it compatible with almost all the applications that are made for bitcoin e.g. digital wallet software.
The participants of the network are the wallet holders, people who send and receive Dash coins, the miners who create blocks and verify transactions and master nodes which are unique to Dash and providing an extra layer of functionality.
Dash perspective is a little bit different from Bitcoin. Dash main focus is on privacy and self-sustainability. Their intention is to create a self-sustainable system which can fund the further development and progress of Dash.
Dash is a blockchain-based cryptography system. More specifically, it is one of the type of coins deemed private currencies, which were created as a response to Bitcoin’s perceived lack of anonymity.
However, that is not the only difference it has with the biggest coin.
Firstly, running a master node and receiving an income from it is not hard. Transactions fees are not only lower than other cryptocurrencies, but they are also lower than many credit cards and banks!
However, the main difference it has with Bitcoin—apart from its instantaneity—is a stronger privacy, as Dash makes it so that the identity of a user is impossible to associate with a particular operation even if it becomes known.
- How Does Dash Work?
As a DAO a “Decentralized Autonomous Organization” it needs to have a way of funding certain aspects of the development of Dash, such as marketing and technical development.
Therefor Dash is splitting the block rewards.
So normally the block rewards will go in full to the miners. But with Dash the block rewards are split up in three different parts.
- 45% will go to the miners
- 45% will go to the master nodes
- 10% will go to the treasury
Miners attempt to solve difficult problems with specialized computers, and when they solve the problem, they receive the right to add a new block to the blockchain. If all the other people running the software agree that the problem was solved correctly, the block is added to the blockchain and the miner is rewarded.
The Master nodes are the decision makers. The reason why they are trusted with making decision is because they prove ownership of 1000 Dash. Decision are being made through voting.
For a master node to vote they need a full copy of the blockchain at any time, they need to provide the network with instant send functionality and they need to provide the network with private send functionality.
And the 10% will go to code developers, code auditors, marketers, translators. And because of this system it allows the Dash organization to be independent and self sustainable. They don’t rely on for example sponsorships or donations.
The reason for the stronger privacy comes from the advanced encryption used. The source code for the platform is viewable by anyone, which keeps transactions secure, but it is also highly private.
Instant send and private send are Dash unique points.
How does that work?
The Dash platform employs something called “Private Send” which functions my mixing transactions together. Similar to the mixing service, CoinJoin, Private Send lets users mix their operations with others’ so that the details and addresses are merged and telling which belongs to which is impossible.
Other features of Dash include an option to instantly send money in less than two seconds. However, this function is charged a higher fee by master nodes, which takes us to the last key feature.
Instant send allows almost instant transactions by locking transactions inputs while they await being recorded on the blockchain. Locking the inputs prevents double spending of transactions.
Instant sends are enabled by master nodes and can provide an irreversible transaction confirmation in about 1.3 seconds.
Master nodes are nodes formed by holding at least 1,000 units. Those running nodes are tasked with verifying and processing transactions, and are entitled to 45% of block rewards, as well as fees charged for the previous two services.
Master nodes also enable private send which means that it is swapping coins among other users which makes it almost impossible to trace Dash coins.
So let’s say I want to private send 0.1 Dash to another address the master nodes will mix multiple transactions into a single transaction with several outputs.
The amount of the transaction send must be multiples of predetermined amounts for efficient mixing.
Transactions amount send must be multiples of predetermined amounts to allow for efficient mixing :
x 0.01 Dash
x 0.1 Dash
x 1 Dash
x 10 Dash
- The DASH Community.
Today, the Dash community is one of the largest in the entire crypto industry.
This comes from the fact that Dash has existed for a very long time, more so than most currencies today. Therefore, it reputation has been well-established, and any fear of it being a scam or fraud is completely unfounded.
Not only that, but it has remained as one of the most trustworthy and efficient cryptocurrencies today, and it wishes to remain that way.
- Should You Invest In Dash?
Dash is one of the safest investments in the industry. Its growth rates are low, but that also means that its price falls are similar.
Regardless of value, if you are looking for a way to send value anywhere instantly and almost for free, this is your best bet.