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DASH Explained: Brief History And How It Works
Dash cryptocurrency is mainly focused on providing fast transactions and much bigger privacy. The altcoin surpassed the $1 billion market cap when the cryptocurrency made big gains since in 2020 a single dash was worth only $11 by later in March it skyrocketed to the $100 price point. How did this cryptocurrency become big and what else do we know about it?
Multiple factors fuelled the growth of Dash such as bank partnerships and payment services but we’ll get to that later. First, let us explain what it is. Dash is a peer-to-peer decentralized electronic form of payment which is free from the centralized regulations such as government authority and banks. This altcoin allows the users to transact anonymously and it was initially inspired by the number one cryptocurrency Bitcoin but with a twist. The founder of Dash Evan Duffield explained that:
“Dash is built on the same technology that made Bitcoin successful. Besides, it employs a secondary network known as the Masternode Network. Masternodes are a new concept in digital currency, where users are incentivized to run full nodes and provide extra services to the network such as Darksend and InstantX. Put simply, they allow us to add features to Dash that are impossible in Bitcoin.”
Dash gathers a lot of attention in the past few months but very few people know that it has been on the market for quite some time now, more specifically since 2020. The renewed interest for the cryptocurrency is encouraging others to also have a second look at their crypto projects and find features that are not available with the other cryptocurrency options.
Brief History Of How All Started
Evan Duffield is the founder of Dash and he created the cryptocurrency just as many other cryptocurrency founders by studying and using Bitcoin. Duffield discovered the number one cryptocurrency back in 2020 and was impressed with its technology. However, after he used it for quite some time he discovered there are a few fundamental challenges that he felt needed fixing. At first, Bitcoin was not fast enough for him. Duffield found that the verifying process of the transactions took too long which slowed down the transaction times and resulted in nothing but frustration. Second, he also felt that the infrastructure needed a greater level of privacy because this is one of the key factors that attract users. However, he found out that privacy and anonymity are not the same things.
After long research and months of hard work, Dash was launched in 2020 and used the Bitcoin code but unlike Bitcoin, the new currency has different features that make it more private. During the first two days after it was launched, more than 1.9 million coins were mined which more than 10 percent of the total supply is alerting that something is wrong. Of course, a bug was found but the company still allowed the recipients to keep their coins despite the solving the bug problem and making sure not to occur again. Today, there are about 7.4 million Dash in circulation and the total number of coins in circulation is expected to reach up to 18 million.
Most recently, the coin also went through a name change from ‘’DarkCoin’’ to Dash because the company thought that the name associated the cryptocurrency with illegal activities which were not the initial intention.
Anonymity VS. Privacy: Key Differences
Duffield was very clear when he designed Dash saying that he wants to create a cryptocurrency that will have a new level of privacy. He explained that just because transactions are anonymous, does not mean that they are truly private. With Bitcoin, all of the transactions are shown on the public blockchain and though they are not linked to any specific individual, some argue that with good forensic research, you could eventually uncover the source. Dash was designed to provide optional privacy features for everyone concerned about keeping their transactions private. For example, Dash offers PrivateSend which is a feature that allows the users to send funds privately by using the coin-mixing service.
The company sees the financial privacy as a fundamental right so therefore Dash created an option for all of the users to make transactions with true privacy so that nobody can associate a person’s identity with an address or transactions. The users are now able to keep all their transactions private.
How To Mine Dash
The way that Dash is released into the system is through mining. Dash Mining works similar to other cryptocurrencies such as Litecoin and Bitcoin where the foundation is a blockchain which includes a decentralized ledger of all transactions that have happened. The transactions must be confirmed to ensure that no coin is double-spent so this is where mining comes handy. The confirmation process is accomplished via a consensus mechanism which is a proof-of-work concept and the miners use specialized Dash mining hardware and the computers to solve difficult math problems to confirm the transaction. Each solution earns the person a right to add a new block to the blockchain.
The average block-mining time is 2.5 minutes on the Dash blockchain which is faster about four times as much as Bitcoin. The cryptocurrency can be purchased through multiple exchanges and once purchased the money is put in a wallet that can be downloaded from the official Dash website.
In summary, three features make Dash unique. The altcoin is branded as ‘’Digital Cash’’ and there are a lot of legitimate merchants have started accepting it. Dash has a genuine potential of being accepted in the mainstream. The currency has demonstrated that it can fulfill the promises that it guaranteed. If adopted well, Dash could end up being an essential piece of the future of society. The cryptocurrency is increasingly adaptable and ready to use and has a strong framework that separates it from the other cryptocurrency worthy of the venture.
What is Dash (DASH)? A Project Deploying Masternodes but Some Question Its Decentralized Model
What are the key features of Dash?
Dash is a cryptocurrency focused on the payments segment of the market. Its name is portmanteau of “Digital Cash”. Dash was launched in January 2020 from Evan Duffield after a fork of the Bitcoin software. Its first name was actually Xcoin, later rebranded to Darkcoin and in March 2020 Darkcoin became Dash.
The most significant improvements of Dash over Bitcoin are related to transaction speed, anonymity and governance. Those key features are implemented on top of a network of dedicated servers known as masternodes. In short, their role is to provide consensus faster.
Dash goal is to be the most user-friendly and most on-chain-scalable cryptocurrency in the world, so transaction speed and low fees are a top priority for the development team. As of July 2020, Dash supports
56 transactions per second, the size of one block is 2MB with 2.6-minutes block time. However, one of its goals, written in their roadmap is for Dash to achieve on-chain scaling of up to 400MB blocks using custom-developed open source hardware.
In addition, a service called InstantSend allows transactions to be fully confirmed within 2 seconds. This is one of the functionalities which set Dash apart from every other blockchain. Most other digital currencies need to have several confirmations before a transaction is considered irreversible. All of this is made for security reasons but imagine a world where every time you buy your groceries in the supermarket, you have to wait for 30 minutes to make a successful payment. The awkward silence between you and the cashier will be the least of your problems.
Another key feature that differentiates Dash is the so called PrivateSend. As you may suggest it is made to give the users the ability to save their financial privacy. As a fork of Bitcoin, Dash’s digital ledger can also trace back the origin of every Dash in existence.
However, if you want to make an anonymous transfer you can set apart some funds for private transactions and then the PrivateSend feature in your Dash wallet will make it practically impossible for anyone to connect those funds to your public address. The innovative process mixes your inputs with the inputs of two random people and these mixing rounds can continue multiple times. The end result is a practical mathematical impossibility of tracing where the funds have gone.
Governance and funding in decentralized projects may be a serious challenge for cryptocurrencies because by definition they have to be autonomous, with no central authority on top. For example, all of Bitcoin Foundation income is donation based.
Dash vision is that there is a better way of funding a decentralized project and that’s why Dash became the first digital currency to create an explicit governance model with an associated self-funding mechanism. In other words, Dash decided to function as a Decentralized Autonomous Organization (DAO), which is basically a company that doesn’t have CEO but it is rather made from volunteers all over the world.
Just like Bitcoin, Dash uses Proof-of-Work (PoW) consensus mechanism, however, unlike Bitcoin when a block is created on the Dash blockchain the reward is splitting in three. A total 45% is paid to a miner, 45% goes to the masternode and 10% goes to the so called treasury.
This treasury fund covers all the expenses needed for Dash to continue to be a “money as a service” provider. This is how Dash achieves its self-funding and stays independent.
Masternodes – the decision makers in Dash
Masternodes are part of Dash’s solution to the scalability issue that cryptocurrencies face. Their role is to make fast decisions, such as locking transactions with InstantSend, coordinate mixing of coins, and voting on budget funding. Each masternode has 1 vote and this vote can be used on budget proposals or important decisions that affect the future of Dash.
The reason they are bestowed with authority to make network-wide decisions is primarily that each of them must prove ownership of 1000 DASH. As of July 2020 you will need USD 230 000 to become a masternode, because the price of one Dash is USD 230. Currently, the total number of masternodes across the Dash network is 4800.
In order to receive rewards, a masternode should stake those 1000 DASH. The coins can be moved at any time, but if a masternode decides to do so, this will result in lost earnings. The idea behind this method for decision making is that with this kind of wealth at stake masternodes will be the most incentivized to make good decisions, because if they don’t – they lose money.
In exchange for voting rights and rewards, masternodes must perform three tasks – to keep and update a copy of the blockchain 24/7, and to provide the network with the InstantSend and PrivateSend functionalities.
Dash main competitors
The main goal of Dash is to serve as digital cash, so it faces a lot of competition in this field. Bitcoin, Litecoin and Bitcoin Cash may be considered as some of the main competitors of Dash. Although all the projects use Proof-of-Work, we already learnt that Dash also has masternodes, which enables some features that none of the above have.
One of the key differences between Dash and the other three currencies is the InstantSend functionality of Dash which processes the transactions in seconds. In all other projects you have to wait for several confirmations in order for a transaction to be considered irreversible.
The other feature that masternodes enable – PrivateSend – may put Dash into the same category as Monero, Zcash, PivX and Zcoin – anonymity focused coins. However, Dash enables privacy through uncertainty, not through obscurity.
This means that in most of the privacy focused coins you can’t follow the origin of a coin through the blockchain at all, while in Dash transactions can be traced back to your input. However, the same transactions lead to many other user inputs. This way it is uncertain which wallet originated a transaction.
We may say that Dash PrivateSend is a good compromise between better privacy and usability because in order to use the other cryptocurrencies you need a full copy of the blockchain. The increasing size of every blockchain basically puts those currencies onto desktops and makes them unusable on mobile devices.
Dash sees this as a compromise which is in contrast with its goal to be the most user-friendly and most on-chain-scalable cryptocurrency in the world.
Dash increased its value 145 times in 2020
As of July 2020 the price of one Dash is USD 230, the circulating supply is 8,196,238, while the max supply is 18,900,000.
Dash was trading at USD 0.22 in February 2020 when it first hit the exchanges and in just three months its price surged to USD 15. However, shortly after that it suffered a significant correction dropping to around USD 2.
It reached USD 15 once again almost three years later – in January 2020. The cryptocurrency began the year changing hands for just USD 11.30 and reached its current all-time high at USD 1642 on December 20. This is 145 times increase.
2020 so far is bearish for the crypto market as a whole and Dash followed suit, dropping to USD 208 on July 13, which at the time of writing is the lowest trading price of Dash for 2020.
Controversy and speculation about Dash future
Dash innovation to the crypto market consists of the introduction of masternodes and the self-funding model of the project which allows Dash to stay independent.
However, as with most cyrptocurrencies there are people who believe Dash is not as decentralized as it is claiming to be. There is one main controversy surrounding Dash since its initial launch and I believe anyone who is interested in investing in Dash should know about it before making the final decision.
Many people doubt in the honest intentions behind the creation of Dash because within the first 24 hours of its launch, 1.86 million coins were mined, which is around 23% of the current circulating supply. This Fastmining was not intentional as the founder of Dash Evan Duffield said adding that it was because of a bug and it took him some time to adjust the difficulty and stop the process.
In short, the suspicions around Dash are that the founders knew about this bug and mined most of those coins. In addition, there are facts that some believe are proofs that the founders made it as hard as possible for random users to mine the coin during the first 2 days.
For example, at first, mining was available only on Linux, while most of the people used Windows to mine. No one can say with certainty who mined those 1.86 million coins and how many of them are still held by a few people.
There is no clear way to determine how many people are running those 4800 masternodes. As a response to the criticism Evan Duffield said in 2020 that he is holding 256 000 Dash and intents to distribute 80% of the coins back to the community through the treasury fund.
At the end of the day, I think if you are considering investing into a cryptocurrency, the smart thing to do is to put under question the official statements coming out from the founders of decentralized projects. Always make your own due diligence and never put your all your eggs in one basket.
Regarding Dash, in the mid-term I believe the project has its place in the crypto universe, despite all the controversy surrounding it. The project just became more successful than what probably its own founder imagined. Even if the conspiracy theory is true and the founders hold most of the initially mined coins, it will be more profitable for them to run masternodes than to dump them at once.
However, if I have to make pure speculation about the far future, I think Dash won’t have many competitive advantages over Bitcoin as a digital currency, once it resolves its scaling issues and there will be far better alternatives if you need to use a privacy coin.
Disclaimer: The views and opinions expressed by the contributor in this text should not be considered financial or investment advice, neither treated as an expression of Cryptovest’s view. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.
One of the most popular cryptocurrencies, Dash was built for instantaneous and private transactions. Originally a fork of the Litecoin protocol, it emerged as an attempt to correct what its creators saw as its weaknesses in terms of transaction speed, privacy protection and governance handling.
|Market Cap||Volume 24h||Circulating Supply||Maximum Supply|
|9,429,792 DASH||9,429,764 DASH|
What Is Dash Cryptocurrency
“Dash” is the word we associate with speed, but this platform and its coin (DASH) use it as a short form for “digital cash”. This is no coincidence, as Dash wants to become the platform of choice for fast digital payments. This means removing at least some of the key obstacles to this goal: speed of transactions and their high fees. In order to make its coins usable for smaller transactions, such as those at grocery stores or gas stations, the whole operation needs to be both instantaneous and cheap, with an anonymity option as an added bonus.
Evan Duffield, the creator of Dash, launched the platform in 2020 with the idea to resolve these issues with the help of innovative architecture. Back then, Dash was known as “Xcoin”, followed by being renamed to “Darkcoin”. In order to avoid associations with unsavory transactions, it changed its name in 2020.
In any case, its underlying technology uses two-tier architecture, relying on the combination of Proof of Work (PoW)/Proof of Stake (PoS) consensus mechanisms.
While miners use their computers (PoW) and compete with each other in order to receive the right to add a new block to the blockchain, the second tier is powered by masternodes (Full Nodes).
One of the main features of Dash, PrivateSend gives you financial privacy by obscuring the origins of your funds. Another feature, InstantSend will allow to compete with nearly instantaneous transaction systems such as credit cards for point-of-sale situations while not relying on a centralized authority.
Dash platform strives for more democracy in its governance model. Its miners get the 45% of the block reward, just as the masternodes. The remaining percentage is allocated for improving the Dash infrastructure, marketing and growth model. Decentralized governance makes it possible for everyone to propose changes to the system, with network participants voting on each proposal.
The maximum supply of DASH coins is capped at 18.9 million, with 8,317,621 of them already in circulation as of September 2020. Its market capitalization stands at USD 1.5 billion, with a historic high of almost USD 12 billion in late 2020. In addition to mining, DASH coins can be acquired through trading as they are listed on the major cryptocurrency exchanges such as HitBTC or Binance. Also, you can buy Dash via ATMs.
At the moment Dash has more than 3,300 merchants in its network.
What is Dash?
Future of DASH Cryptocurrency and know how to buy DASH
#1 – Dash: The Basics
What is Dash?
- Launched in 2020, and previously known as Darkcoin, Dash is a cryptocurrency that was created and designed to guarantee user privacy as well as anonymity.
- In fact, Dash’s whitepaper, which was co-authored by Evan Duffield and Daniel Diaz, describe Dash as “the first privacy-centric cryptographic currency” based off of Satoshi Nakamoto’s work. Dash is typically a blend-word for Digital Cash (DASH, being its currency symbol).
- Dash is one of the first of the digital currencies to exist with a decentralized blockchain governance system. It was created as a result of a fork of the Bitcoin, meaning that the creation of Dash was typically to improve bitcoin’s shortcomings. This means that flaws and weaknesses that existed in Bitcoin are absent in the Dash token, making it significantly different, especially in terms of efficiency, speed and anonymity. We’ll discuss this in detail below.
#2 – What are the benefits of Dash?
There are several features of the Dash technology that play an important role in attracting investors to it. Some of those benefits are:
- Popularity: Dash has developed a steady follower base, and in fact, many have also strung along with it through all of its challenges. And without disappointing them, Dash has made through its challenges and has entered into an “action-packed” stage, drawing attention to more investors.
- It isuser-centricc: Amanda Johnson, the Spokeswoman of Dash, said Dash’s target audience “is for the kind of people who are not interested in cryptocurrency”. Being a user-friendly currency, Dash has evolved as one of the masses’ favorite coin. This is because of its versatility, flexibility and its universal appeal. The makers of the Dash coin have not only focused on its users but have also thought ahead of other crypto coin makers.
- Fast speed: Dash’s lightening speed has turned out to be its highlight. Its transactions take place instantly, giving it a headstart on adoption over many other cryptocurrencies.
- Liquidity: Not only is Dash is listed on a very large number of online exchanges, but it also accepted in all affiliate online stores already. Adoption is ongoing!
- Cheap costs: Dash is one of those crypto coins that can be considered as a cheaper substitute to the bigger cryptocurrencies, which are all usually overpriced. Moreover, its transaction fees are also provided at low rates, making it profitable for an investor.
#3 – How to buy and store Dash?
Buying Dash Cryptocurrency
Dash can be bought through:
- Fiat money
- Other cryptocurrencies
These transactions can be performed using Bitcoin, Ethereum and more. Being the popular cryptocurrency that it is, it is listed with over 150 pairings across nearly as many exchanges – including Binance, OKEx, Cryptopia, Bittrex, and more.
- While cryptocurrency exchanges provide you a platform to buy or sell Dash tokens, CoinSwitch largest cryptocurrency exchange comes in to help you make the right decision by providing the prices for Dash on multiple crypto exchanges. It supports more than 140 coins and 45,000 pairs of cryptocurrencies. You can choose whichever pair you want with your token and compare the prices at exchanges. This way you can choose the best deal for you! You can buy Dash with Bitcoin from CoinSwitch at the best rate.
- What’s more – with CoinSwitch, you do not rely on a separate wallet from the exchange to store your DASH coins. Instead, all transactions happen to and from your own personal private wallets.
While there are various different Dash coin wallets for its storage, here a few that are most user-friendly:
- Ledger Nano S: Hardware wallet
- Dash Wallet for Android
- Dash Wallet for iOS
- Dash Wallet: Core
#4 – How is Dash different from other crypto coins?
Unlike other crypto coins, Dash provides its users with special features of its own.
One of them is called the InstantSend (previously called InstantX). This is beneficial in solving the problem of double spending (spending the same currency twice). This is done by barring the amount of money that is sent, without having to wait for a block confirmation.
Another interesting feature of Dash is a coinjoin mixing technique called PrivateSend (previously called DarkSend). This helps in providing anonymity to the transactions that are carried out by its users. Coinjoin mixes the transactions of multiple entities into a single transaction, instead of separating them into different ones.
Dash is also different from other cryptocurrencies due to its self funded structure. Dash mining works in unique ways. 45% of all Dash coins that are mined are earned by the miners. Another 45 percent are awarded to the masternodes running the network. The remaining 10 percent are sent to treasury that helps provides funds for its development team, for marketing purposes, and customer support centers.
#5 -What is the future potential of Dash
Being one of the most accepted altcoins in the cryptocurrency market, Dash has experienced a stable growth in the past years. Its valuation is as follows:
- This growth has come with its share of thrills. The coin went from barely $10 to over $1500 within less than a year between 2020 and 2020.
- Since then it has stabilized and trades between $300-$400 as of mid-2020 on the crypto markets.
- Moreover, it has effectively managed to break into a $1 billion market cap too. After April 2020, Dash’s market capitalization has hovered around $3.8 billion dollars.
#6 – Should you invest in Dash?
With the spotlight moving towards altcoins in the recent times, Dash coins have made it big in the crypto space. And for investors that are always vying for something new, the Dash cryptocurrency checks all the criteria, making it one of the most preferred altcoins to investors of all types around the world.
A word of caution: Like most other cryptocurrencies, the value of Dash fluctuates quite a bit – having fallen from $1500 to below $400 in 2020. It would be wise to observe market trends before entering into this coin.
But, if we’re looking at thlong-termrm, as per its value and price records, Dash has grown significantly from its former position, and should continue to be a champion of fast transactions and scalable cryptocurrency industries.
This makes it a strong contender for top currencies like BTC, especially after having being marked 12th in the market for its trading volume. Filled with investor friendly beneficiaries like rapid mining speed, secure and risk-free transactions, elevated liquidities, Dash has been internationally considered as “the coin of the future” by crypto-analysts.
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