Since the close of December 2016 when Bitcoin hit the landmark $1000, investments in cryptocurrencies have gone up by a huge margin. Between December 2006 and July 2017, Bitcoin Cryptocurrency grew with more than 500% to hit $110 billion.
The same way that information and content got decentralized is the same thing happening to the money. However, Bitcoin was only the pioneers in digital currency, and therefore depicted major flaws. The core flaws that Bitcoin has failed to adequately solve are anonymous and private transactions. These flaws have given rise to new breed of cryptocurrencies such as Dash. In this post, we bring you a comprehensive review of Dash.
What exactly is dash? Why was it started?
Dash is engineered on the Bitcoin’s core design and code but features special additions especially meant for enhancing faster transactions and privacy. Therefore, like Bitcoin, Dash is an open-source platform that features own blockchain, community, and wallet infrastructure. However, it differs greatly with the former because it has a negligible transaction fee. Its decentralized budgeting and governance model has made it the first platform with a fully decentralized and autonomous structure.
Dash was founded in January 2014 by Evan Duffield. Duffield, an app developer, used the experience and knowledge from Bitcoin to craft a more robust platform. At first, he released the Cryptocurrency with the name XCon that later transformed to Darkcoin before taking the current name, Dash.
Duffield got fascinated by Bitcoin in 2010 and developed a special connection to the inherent blockchain technology. However, he discovered that Bitcoin was extra slow and not as private as many clients anticipated. Though he had great ideas for enhancing privacy and speed of Bitcoin users, the core developers would not allow him.
The core target of Dash is to supply 18 million coins by the year 2300 (these are about 5-6 generations from now). At the moment, Dash circulation has reached 7.4 million. Dash blockchain has a mining time in two and half minutes that makes it about 4 times faster compared to Bitcoin.
The market capitalization of Dash reached $1.5 billion by mid-2017 making it the 7th most valuable Cryptocurrency.
How does Dash work?
Dash utilizes a two-tier model to power the network.
- The 1st tier: These are miners who are responsible for writing transactions and securing the network in the block chain.
- 2nd tier: These are masternodes that help to drive the advanced Dash features which differentiate it from other networks.
To start using Dash, you have to signup and download the blockchain in your system. Unlike the miners, you will operate on a new layer of the network (quorums) that allows you to trade on the different assets (coins). While other networks require people to have advanced knowledge of computing, it is different at Dash. More people prefer to simply join and make transactions to enjoy the profits that come from the ever rising demand for cryptocurrencies.
The transactions in Dash network are fully decentralized on a peer-to-peer network. This means that you no longer have to trust the bank that does not have absolute control on the respective country’s economy. Every transaction is strictly and anonymously based between you and the selected party.
As a user running a specific unit of the Dash blockchain, Dash considered you as an asset rather than a simply as a client. On top of the traditional proof-of-work benefits, you will also be rewarded for maintaining the Masternode (special server/ block chain).
The core features of Dash
Dash is differentiated from other cryptocurrencies because of its unique features that include the following;
- Application of masternodes: Dash strongly relies on Masternodes or special servers that are maintained by users. The masternodes are individual blockchains that host all transactions. When a new masternode is added in the blockchain, it is considered a confirmation but will only be complete/cleared and entirely irreversible after receiving 6 confirmations.
Dash incentivizes users to run masternodes by rewarding them every time miners discover new blocks. 45% of the benefit is credited to the masternodes while Dash retains 10% as Miners take the remaining 45%. By mid-2017, Dash had 3400 masternodes.
- X11: X11 is the most applied hashing algorithms in Dash developed by its top developers. It uses 11 hashing algorithms to generate proof-of-work and advance decentralization. While helping to advance decentralization and address shortcomings of Bitcoin, the algorithm comes with a different advantage; making CPUs operate about 30% less wattage and operate 50% cooler compared to Litecoin algorithm.
- Private send: This is one of the unique features that allow users to send funds privately. The feature mixes different services to make tracking impossible. Private send has a cap requirement of 1000 dash for users to use this feature.
- InstantSend: This feature allows users send their dash transactions immediately (less than 2 seconds). It solves the issue of double-spending that has persisted in other cryptocurrencies.
- Masternodes: Unlike other cryptocurrencies such as Bitcoin that equalize every note, Dash allows all users to form masternodes as long as they have 100 dash as collateral.
Benefits of using Dash
- Enhanced privacy: When you use Dash, all the transactions remain private such that no one can track them. Using ahead-of-time anonymization, only you who can access personal info on the financial transaction.
- All transactions are prompt: By utilizing the power of Masternodes to drive InstantX (latest technology), users can now complete transactions from their wallets within 4 seconds. This makes Dash among the fastest platforms in the market.
- Enhanced security of every transaction: Dash utilized the highly advanced Bitcoin technology but took the encryption and trustless protocol for enhanced security in personal payments. The progressively mutating blockchains makes your data, cash, and transactions extra secure from access by unauthorized parties and even hackers.
- It is cheaper compared to other financial services: Most transactions in Dash only cost several cents which is far less compared to other services such as MoneyGram, PayPal, Western Union, or Wire Transfers.
- Easily transferable: Dash can easily be transferred all over the world as far as you have the internet connection.
Disadvantages of Dash
- Dash lacks a critical mass of users.
- Dash operates fixed accounts with a total of about 19 million coins. However, only a few are in circulation.
- Though there are great efforts to make the system in Dash more secure, the Masternodes remain prone to DDoS attacks.
Where to Buy and Sell Dash in Australia?
Crypto Currency for Fun recommends buying Dash at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Dash and they offer Instant Delivery or your coins right into your account.
Dash is one of the most promising cryptocurrencies in the world. By adopting some of the latest technologies are filling the gaps created by other cryptocurrencies in the world, more people are finding it easy to apply and use Dash without worrying about conventional currency fluctuations. Despite this, it is important for the blockchain to address the DDOs attacks that regularly attack the masternodes in order to win greater affection.