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What is Dash? Learn more about Digital Cash!

What is Dash? Dash is a blend word for “Digital Cash”.

This cryptocurrency appeared under the name of Xcoin in 2014, but it was later renamed DarkCoin. In 2015, it got its current name, Dash.

Dash is based on the original Bitcoin code. It is an attempt to improve Satoshi’s currency essentially at two points:

  • Anonymity;
  • Transaction Speed

In its six years of existence, Dash has managed to build a strong community of supporters around its project. Currently, as this article is being written, this currency is in the tenth position in terms of market capitalization, with an approximate value of 1.150 million USD.

Next, we will explain in detail what Dash is, the features of this cryptocurrency and its future prospects.

What is Dash: Origins

Dash was created by American developer Evan Duffield. In 2010, Duffield was delighted with the Bitcoin project and the possibilities that Blockchain offers: fast, cheap and independent transactions from traditional financial institutions.

However, Duffield soon realized Bitcoin’s weakness: slow transactions. This hinders Bitcoin’s adoption by a wider audience, as a transaction time may vary depending on the demand of the network and its size. The average transaction time is 10 minutes.

Another weak point Duffield spotted was the fragility of Bitcoin’s anonymity properties. Bitcoin wallet transactions are available in a kind of public spreadsheet. Although the creation of a virtual wallet does not require any type of registration, it is not difficult to track a user’s identity through their IP address and thereby learn their identity.

Dash was created to avoid these two problems. In order to do this, some modifications to the original architecture of BTC were implemented.

What is Dash: Architecture

Dash Mining

Just like Bitcoin, Dash works through a mining system with Proof of Work (PoW), from which new cryptocurrency units are generated. It uses an algorithm called X11, which was developed by Duffin himself.

The maximum number of Dash coins that will be available is 18 million. It has been estimated that this number will be reached in 2300. Currently, there are around 9.2 million Dash in circulation.

Dash Masternode

Masternodes are one of the main innovations that this altcoin brings in relation to Bitcoin.

Bitcoin network transactions go through Full Nodes. They are the ones verifying transactions, and their main role is to create and verify new blocks. Without Full Nodes, the Bitcoin network simply wouldn’t work.

Anyone with a reasonably good computer can make it a Bitcoin network Full Node. There is no compensation for this (unlike with mining). Some advantages are related to greater anonymity and speed in transactions.

Dash enforced Masternodes, which are quite similar to Full Nodes. However, investment in Dash is a precondition to becoming a Masternode: along with having a powerful computer, a Masternode must have 1000 DASH.

As a reward, the Masternode receives a percentage for each mined Dash block: 45%. This makes the investment in Masternodes extremely attractive for both individuals and companies.

From the network’s point of view, this innovation is extremely beneficial. As there are many Masternodes, with powerful computers, Dash’s transaction speed is much faster.

In addition, Masternodes have voting power over network update decisions. A vote is taken each time developers want to implement changes to the Dash network. This makes decisions about Dash cryptocurrency more democratic.

Dash PrivateSend

With the PrivateSend system, Duffield and his team managed to create complete anonymity for DASH transactions.

As mentioned above, Bitcoin individual transactions are stored in a kind of public spreadsheet, and tracking the owner of digital wallets is not a difficult task.

Dash works differently. Instead of individualizing transactions, as in Bitcoin, the altcoin system makes a “mix” between various transactions, which are all performed at the same time.

This makes it impossible to know from which wallet each transaction started, thereby ensuring complete anonymity.

Dash InstantSend

Another innovation of Dash is the InstantSend system. In this mode, transactions take a few seconds to be confirmed. This system allows Dash to compete with fiat currency transaction speeds and be easily used on a day-to-day basis.

As it was mentioned, in the PrivateSend mode there is a “mix,” so that the anonymity is complete. However, the waiting time is a bit longer: transactions are stored in a kind of “waiting room” (the so-called mempool), in which they await validation by miners and Masternodes. This can take a few minutes.

In the instant delivery mode, transactions do not wait in the mempool. This is a special type of transaction, which is sent directly to one Masternode. In turn, it sends copies of the transaction to ten other Masternodes, which verify that there is no error or attempted fraud.

Dash InstantSend transactions are executed in a matter of seconds. The only drawback is the somewhat higher cost per transaction, a few cents, which are paid to the Masternodes. In any case, it is a low-cost alternative.

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For the followers of this cryptocurrency, we offer a commission rate of 0% in exchanges with DASH.

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