Dash is one among the top 15 most notable cryptocurrencies in the world. It was created by Evan Duffield in 2014. Initially, it was named as Xcoin (XCO) and late it was rebranded as Darkcoin. This darkcoin was labelled as the cryptocurrency of the dark web. Because Dash can be used to buy and sell illegal items due to its ‘private send’ feature (more about this in the article below). Then in March 2015, it is finally rebranded as the Digital Cash of 21st century, hence DASH. Ever since its inception, there has been some keen interest in this crypto in the crypto community. This is because of the amazing features DASH has promised. In this article, let us discuss those features that are significantly different from the other cryptos out there in the market. Let us also talk about the problems that Dash could solve, Pros and Cons of this crypto etc.
What is Dash?
Dash is an open-source cryptocurrency just like Bitcoin. In fact, the source code behind this crypto is taken from Bitcoin and altered. The ideology behind Dash is to make it work just like Bitcoin but with a lot more privacy. Even the transaction speed of this crypto is way faster than that of Bitcoin. Hence we can say that this crypto is forked from the original Bitcoin protocol.
Although Evan Duffield (the founder of Dash) is a big fan of Bitcoin, he felt that the entire system could be more privatised and fastened. Evan saw that it is practically impossible to make day-to-day transactions using Bitcoins because of the time it takes to confirm the transactions (~13 minutes). Also, he was interested in creating a genuinely anonymous coin rather than pseudonymous like Bitcoin. Evan thought that there should be at least one cryptocurrency in the market that could solve both problems. Hence he created this fantastic crypto called DASH.
There is a lot of research and development that has been done to make this cryptocurrency real. The result of this intense R&D in creating this crypto resulted in a lot of innovation. This can be seen in the consensus method that Dash follows. Primarily, the consensus of this crypto is based on Proof of Work. The coins are mined using the hash function called ‘X11’. On average, it takes around 2.5 minutes to mine a Dash coin. That is four times faster than mining a Bitcoin. However, Dash also utilises some of the concepts from Proof of Stake consensus in order to reward its miners for hosting, updating and maintaining the blockchain.
What are Masternodes?
A node is nothing but an electronic device which is attached to a network. These nodes are capable of receiving, transmitting and even creating information over a communications channel. Node just implies that your computer is a part of a vast computer network. But in Dash network, there are two types of nodes that host, secure and maintain the blockchain. One being just nodes which will help miners to mine more Dash coins while the other being Masternodes. These Masternodes perform transactions that are specialised to Dash network. These transactions include InstantSend and PrivateSend features, which are the USP for this cryptocurrency.
Hence masternodes can be considered as powerful servers that are made to provide advanced services that no other cryptocurrency could offer. These masternodes will have the full copies of blockchain while the nodes have partial copies. To host a masternode, volunteers are supposed to provide a collateral of 1000 dash.
PrivateSend & InstantSend
This is a function that users can use to hide their identity while transacting DASH. The technology behind this function essentially takes a lot of completely different transactions of approximately similar sizes and then mix them together. This will result in completely disguising the source account and the receiving account of the funds. Hence making the transactions anonymous.
This is one of the most significant features of Dash, making it a real-time currency. InstantSend, just like it sounds, enables the users to send and receive Dash instantly without any time lag. This will also allow the users to pay Dash to that merchants instantly for the purchases they made. Hence this technology will enable crypto transactions seamless and more real-world ready.
To know more about these technologies, continue reading here.
Dash has a different way of rewarding its miners and the volunteers who host the masternodes. 45% of the reward goes to the miners for adding blocks. 45% goes to the volunteers who host the masternodes, and 10% is set aside for the budget system to support the community projects. Keep in mind that Dash is a Decentralized Autonomous Organization, and all the mentioned process occur without any human intervention.
DAO (Decentralized Autonomous Organization)
DAO is fundamentally a company that works based on the pre-coded rules that are defined by the makers and the shareholders of an organisation. The decisions are made electronically by the code itself or by the voting of the shareholders. This is a revolution in businesses as there would be no scope of fraudulence and all the activities that happen in the company are 100% transparent. Dash is such an organisation. For example, we just discussed the 10% budget that is set aside to support community projects. Members of the DAO network decides on what this 10% should be spent on by a voting system and the system analyses the votes and takes the decision.
Market Capitalization (As of 08.27.2019)
Currently, DASH (XRP) is trading at $92.52. The market cap of Dash is $832,601,855 and has a 24-hour trading volume of $158,155,102. Out of the maximum supply of 18,000,000, the current circulating supply is 8,999,580 DASH.
Not just the technology but also the marketing campaigns of Dash are incredibly innovative. These marketing campaigns are partially the reason why this crypto is widely known and this popular. Keeping all the doubts aside, if the Dash payment platform does become what it promised to be, it could be far closer to mass adoption than any other crypto at this point. We can already see it being one of the most popular cryptos out there. For instance, according to the most popular Der Spiegel magazine, Dash is the most popular crypto in Venezuela. So this explains the rate at which this crypto is expanding in the real world.