Dash (DASH)

What is Dash?

Dash is an open-source cryptocurrency project that was created as one of the many hard forks of the Bitcoin blockchain. The cryptocurrency of the same name has gained notoriety due to its focus on the speed and privacy of transactions. DASH appeared on the market to provide coin users with more functionality than its predecessors. Today it is one of the most recognizable cryptocurrencies, how did its beginnings look like?

Well, this project was launched in 2014. Due to the fact that it took a completely different approach than the existing cryptocurrencies, it was quickly appreciated by the community. It can be said that DASH plays a pioneering role in the group of coins aimed at the confidentiality of transactions.

Fun fact: The name Dash comes from two words: digital and cash. This, in turn, is related to the main goal of this cryptocurrency, which is to become the default currency of the Internet and one of Bitcoin's biggest competitors.

The founder of DASH is Evan Duffield - a developer who has had a strong interest in BTC since 2011. In his opinion, the lack of anonymity was a weakness of this cryptocurrency, which is why he decided to create an altcoin that would eliminate this problem.

How does DASH ensure the privacy of its users?

The DASH cryptocurrency uses the Privaty Send protocol. It allows you to conduct transactions that are impossible to track. It looks like this: the user wants to transfer funds anonymously, the platform takes the cryptocurrencies and then mixes them with other users' coins. The rest of the process occurs automatically in a relatively short time.

It should be mentioned here that everything is the responsibility of a decentralized autonomous organization (DAO). Smart contracts play a major role on such a platform. DASH also uses masternoode - what are they and what is their function? Simply put, these are servers designed to provide advanced services and block chain management.

On the official website of the project, the role played by masternoods is explained this way: “They host full copies of the blockchain and provide a unique second service layer on the web, facilitating advanced features such as InstantSend and PrivateSend.

Masternood operators are regularly remunerated for the services they provide to the network. They also have the opportunity to vote on a monthly basis to fund projects that support the DASH community. 10% of the reward for the mined block is allocated for this purpose. A masternood operator can be a user who has at least 1,000 DASH coins in his wallet and meets the technical requirements related to the processor type, RAM, disk space and network bandwidth.

Potential uses of the DASH cryptocurrency

Although this virtual coin follows in the footsteps of Bitcoin, it is not a replica of it. DASH aims to improve transaction speed and privacy. This cryptocurrency aspires to become a viable alternative to fiat currencies.

Good to know! DASH has not always had such extensive aspirations. Initially, it focused mainly on anonymous transactions. Interestingly, its name was changed twice, it was known as Darkcoin and later Xcoin.

The DASH cryptocurrency has evolved over time. Its founder realized that privacy is not the only important feature that a cryptocurrency should have. While DASH has many practical uses similar to Bitcoin, it offers many more to its users.

It can be said that the main application of DASH is focused on four areas: global transfers, payments for purchases in stores, online sales and anonymous transactions.

Advantages and disadvantages of the DASH cryptocurrency

This cryptocurrency has many advantages and a few disadvantages that should be mentioned. Its advantage is certainly the function that allows you to send and confirm transactions in a few seconds, for other coins it takes much longer. Another feature is the ability to send and receive funds in a completely anonymous way. Another significant advantage is the management system in DASH, which allows you to achieve consensus in a much faster and easier way than in the case of other cryptocurrencies.

The disadvantages of this project include focusing only on the vision of being a digital currency. For example, Ethereum has a much wider application. Next to that, there is also a growing competition. Due to the fact that this cryptocurrency changed the name twice, you can get lost in it. Some also consider 1,000 DASH coins to be a low threshold to become a masternood operator. There is a concern here about the lack of sufficient knowledge and giving away the so-called deaf voices in decision-making matters.

How to mine DASH?

The so-called DASH mining follows the same rules as in the case of Bitcoin. this cryptocurrency uses the Proof of Work (PoW) consensus model. DASH miners use special equipment to solve complex puzzles with its computing power and get paid for attaching a block to the chain.

The difference between BTC and DASH that should be mentioned here is the algorithm. While Bitcoin uses SHA-256, the latter cryptocurrency relies on the X11 algorithm. So DASH uses a lot less energy and focuses on fair distribution in the early stages of this virtual currency's life.

DASH and Bitcoin - basic differences

How much is DASH? On which exchanges is it listed?

The current price of the DASH cryptocurrency is around $ 86.58. Its market capitalization is USD 838,421,005. In terms of positions in the CoinMarketCap ranking, this project is currently in 28th place.

Its ATH - the highest price level, this cryptocurrency recorded on December 20, 2017. It was then $ 1,642.22. DASH is listed on many cryptocurrency exchanges, their full list can be found here.

Cryptocurrency wallets for DASH - which one to choose?

A special cryptocurrency wallet is needed to manage DASH cryptocurrencies. Before choosing it, however, you should familiarize yourself with all security issues. First of all, it is worth knowing about the functions of the public and private keys. While the former is the address to which the cryptocurrencies are assigned, the latter plays the role of the password to the user's wallet. If the private key falls into the wrong hands or is lost, the cryptocurrencies may be permanently lost.