What is Dash?
DASH, otherwise known as Digital Cash, has a number of innovations that dramatically improve its ability to function as actual money. Formerly known as Darkcoin and XCoin, Dash is an open source peer-to-peer cryptocurrency that aims to be the most user-friendly, on-chain-scalable cryptocurrency in the world created by Evan Duffield.
Evan Duffield created Dash to combat three key issues he saw in the current Bitcoin (BTC) network: privacy, governance, and transaction speed. It’s made waves in the cryptocurrency space alongside competitors like Bitcoin, Litecoin, and Monero.
It started out with a forked Litecoin code base but later switched to the BTC code. It is similar to Bitcoin and Litecoin but offers many improvements and has a very active team of developers. Dash offers instant transactions (InstantSend), private transactions (PrivateSend) and operates a self-governing and self-funding model.
This enables the Dash network to pay individuals and businesses to perform work that adds value to the network. Dash’s decentralized governance and budgeting system make it a decentralized autonomous organization, or DAO.
With the growing popularity and uses for the digital currency, Dash achieved a $1 billion market cap in May 2017. Currently, Dash is the sixth largest cryptocurrency in terms of total market cap.
Subscribe to Blog via Email
- Solid professional, community – The Dash community on Reddit is filled with helpful users and information from the most technical jargon to understanding the basics.
- PrivateSend – Dash has a private send ability so that users can send transactions that are untraceable. It enables users to mix funds with each other. The user’s wallets always have control over the coins at all times during private send mixing. When users start the mix, coins are denominated into 10, 1, 0.1, 0.01 Dash. A masternode then helps wallets connect to other random wallets that have also denominated their coins. Then they all send some Dash to each other in turn receiving the same amount they originally sent. The mixing is repeated with new sets of users various amounts of times. The whole mixing process could take several hours up to a few days. This time variance depends on how many other users are mixing.
- InstantSend – Ability to instantly send a transaction. Instead of waiting around for a few minutes for a bitcoin or litecoin transaction, InstantSend can complete in a few seconds.
- Incentivized masternodes – The masternodes solve the issue of centralization because there’s no centralization when nodes are paid. Dash’s masternodes are rewarded for their service. The network can simply scale with larger blocks. Dash gets rid of the congestion and high fees that are associated with the bitcoin network. Also, Bitcoin, Litecoin, Ethereum network pay miners 100% but nodes and devs run for free. Dash pays the miners, the nodes, and users to run development.
- Self governance – 10% of each block reward is used to fund the treasury. Masternodes can vote on how to spend this money and spend on projects that increase the usage and value of the Dash network.
- A package that will render the Dash UX similar to Venmo or PayPal, which will harness a:
- Decentralized API – This leads to a myriad of apps that can be built on the Dash network.
Masternode votes – Users failing to understand what they are voting for in the network is an issue. Some may see this an issue, but most masternode operators have been in the network for a while now and may have the required knowledge to understand the network more.
Masternode price– To operate a masternode, it costs 1000 Dash. One year ago, a masternode was around 10k, which was very much attainable. Currently, it now costs around $1 million for a masternode. This prevents a large majority of new users to even attain one and start in the voting process. In addition, users who have two or more Masternodes have more say in the governance process simply because they had more money to put in.
Where to buy DASH?
Dash coins are currently being sold on many exchanges including Binance. I recommend this exchange because I personally use them. If you need additional help with buying Dash coins, check out my guide on how to buy ALT coins.
*NOTE* If you are looking for a cryptocurrency exchange providing the best crypto-to-crypto rates on the market, check out Changelly. Note that exchange times may vary depending on network congestion.
Dash can do all the same things as other coins and more. Many users see the value and potential Dash currently has and is developing. Major business deals have been made (payment company Alt 36, KuvaCash) Dash has made a stable position in the up and coming cryptocurrency market as being able to handle digital payments on a large-scale.
As the Sash community grows, it will roll out more developments and updates to further make fast and secure digital payments a reality in the near future. The Dash wallet is clearly one to keep your eye on.