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Dash—short for digital cash—is an open-source blockchain and cryptocurrency that is focused on facilitating fast and cheap global payments in a decentralized manner. The goal is to not only provide faster transactions with stronger privacy than Bitcoin but also to become the most user-friendly and scalable payments-focused cryptocurrency in the world.
Dash was founded in 2014 as a fork of Litecoin by Evan Duffield, who wanted to increase privacy in crypto transactions. The original name of the coin was "Darkcoin" before the cryptocurrency got rebranded in 2015.
What Does the Dash Blockchain Offer?
Dash is a proof-of-work cryptocurrency, and the network relies on normal miners and masternodes, which are special miners that hold at least 1000 Dash and are designed to provide a second layer with advanced services and governance within the Dash system. Masternodes run the features InstantSend, PrivateSend, and Chainlocks.
If you want to send your Dashcoin very quickly, you have the option to let your transaction be processed by the masternodes, which are much faster than the miners. Such an InstaSend transaction needs only a few seconds to be processed. In comparison, a Bitcoin transaction needs about 10 minutes on average.
Bitcoin offers anonymity to a certain degree, but all transactions are traceable on the public blockchain. That means that everyone who knows your BTC address can trace back what you are buying. This is a problem because most people wouldn't feel comfortable if all their friends could see that they are spending money on adult entertainment, for example. PrivateSend is Dash's way to solve this issue. It is a privacy feature that gives you the option to make a transaction untraceable on the blockchain. This is also done via the masternodes. These two features are what make Dash equivalent to digital cash.
Masternodes also run the ChainLocks feature, which protects the network from 51% attacks. Blockchains need a consensus to confirm transactions. When a person or group controls more than 50% of the mining power, they are the majority of the network and can disrupt the blockchain by modifying the order of transactions, preventing transactions from being confirmed, or letting people double spend their crypto. This is referred to as 51% attack. ChainLocks prevent this by rotating the masternodes that observe and confirm all new blocks added to the blockchain every 12 hours.
The Dash system has a treasury that gets 10% of the block rewards, which can be used for the development of the project in a competitive and decentralized way. This allows for the creation of funded institutions that improve the technology of Dash, try to advertise the network, get new users, or help other institutions integrate the network as a payment method.
How Will Dash Perform Over Time?
Dash coins have a max supply of 18,921,005. They are mined with a proof-of-work protocol, and just like Bitcoin, the number of newly mined coins will decrease over time. The limited supply allows Dash to serve as a store of value, and lowering the number of newly mined coins adds more scarcity to the coin over time.
Of course, the value of a currency depends on how many people use it. More users drive more demand. Since the goal is to become a global and user-friendly payment network, it is strongly marketed to both individual users and institutions like merchants and financial services. According to the developers, the objective is not only to advance the Dash ecosystem with better technology but also to build a strong brand.
One problem that Dash has is its competition. Dash is a jack of all trades but a master of none. Nano is a cryptocurrency that is also instant and also free of transaction fees, while Monero is currency where transactions are by default absolutely private. Dash offers both instant and private transactions that are cheap, but so do many other projects—like Litecoin, for example. On the other hand, Dash is well established in the crypto world and is already accepted at almost all cryptocurrency exchanges.
Dash seems like a promising alternative to Bitcoin and has a chance to grow in value over the next few years. However, at the moment there are many other projects in the crypto world that have more going on than simply being used as a currency and seem like better investments in the crypto world. For example, Ethereum, Polkadot, and Cardano all probably have better chances than Dash.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Krypton Currency