Digital Cash (DASH)
Cryptocurrencies have been the talk of investors, traders, and developers for the past ten years. Since the appearance of Bitcoin in 2009, cryptocurrencies have revolutionized the financial world and the Internet in general. People are now using them as payment methods or as platforms where they can develop new decentralized applications immunized to censorship and shutdown.
The open-source nature of the majority of the cryptocurrencies allows the members to suggest or make changes to the original code and create another currency if necessary. For example, if a particular group of people doesn't agree with how the Bitcoin runs, they can rewrite the code and include the new features. The new platform will split from the Bitcoin blockchain and run on its own; this process is called a hard fork.
A similar scenario took place at the creation of the Dash cryptocurrency. Evan Duffield, the founder of Dash, was a big fan and user of the Bitcoin cryptocurrency and the blockchain technology in general. However, he felt that the network was not fast enough and also needed to improve its privacy features. Dash is a Litecoin’s hard fork meaning that it was built using the same code.
Litecoin, itself was forked from Bitcoin. Duffield wanted to solve the slow transaction speed and improve the privacy feature. Compared to Bitcoin and Litecoin, Dash offers its users the ability to make transactions faster and in a more private manner.
Like Bitcoin and Litecoin, Dash is a decentralized electronic payment solution. Dash uses a proof-of-work consensus mechanism like Bitcoin and Litecoin, but both cryptocurrencies don't match up when it comes to privacy. Dash wanted to focus more on providing users with faster transactions and better privacy than its predecessors.
Bitcoin’s transaction confirmation time makes it non-viable for day-to-day transactions. The wait can be long for your transaction to pass through, especially if you are paying low transaction fees. Dash cryptocurrency offers instant transaction time, better privacy, and low costs. On average, the platform executes more than 18 thousand transactions per day. Nonetheless, the Bitcoin network is working on how to improve their confirmation time for faster transaction.
Dash was introduced to the world on January 18th, 2014. The cryptocurrency went through several name changes. Originally named Xcoin, it later became Darkcoin and finally rebranded to Dash. Dash is a mixture of Digital and Cash. Untraceability and speediness are the main advantages that Dash crypto offers over Bitcoin and Litecoin.
Dash is a medium for daily transactions. Individuals and businesses can use Dash coins to shop, pay bills, accept payments, or pay employees anytime and anywhere for less than a cent.
More than 4800 merchants and services now accept Dash. Furthermore, Dash is traded on over 200 brokers and exchanges.
At its launch, Dash was priced at $0.3. The price started to increase at the beginning of 2017 and reached an all-time high of over $1500 on December 20th, 2017.At that time, the cryptocurrency offered its early investors an enormous return. Dash's rapid growth was fueled by its mass adoption in small and underdeveloped countries and partnerships with other payment systems.
Nevertheless, the cryptocurrency later experienced a price decline.As of December 24th, 2019, the Dash market cap is around $394 million and ranks 26th. One Dash costs $42.74.
Currently, the circulating supply of Dash is approximately 9.2 million coins.The network has fixed a maximum supply of 18.9 million tokens ever to be mined.
The Dash cryptocurrency funds its own growth and advancement. Each participant on the Dash network has the right to propose ideas on the usage of the funds. However, Masternodes reserve the right to vote on the various proposals.
The platform developed three essential elements to provide its users with a private and speedy decentralized currency:
Masternodes are the backbone of the Dash network. Their job is to ensure that transactions are quick and to improve the security on the Dash network. On the Bitcoin blockchain, new coins are created by miners who compete to solve complex puzzles. The first miner to solve the problem would send the solution to other participants on the Bitcoin network for verification. Once validated, a new block containing new transactions will be added to the blockchain, thus the creation of new coins. Miners will get rewarded for their efforts and the energy used to maintain and secure the network.
The Dash network, on the other hand, is run by both miners and masternodes. Masternodes are a network of powerful and dedicated servers working to ensure governance, anonymity, and transaction speed on the Dash blockchain. The servers host full copies of the blockchain, while other users will only have access to a small part. Dash requires its users to own at least 1000 Dash coins and use the platform’s software to become a masternode. There are currently over 4750 nodes operating the Dash blockchain.
There are two types of masternodes, including hosted and self-operated:
- If you have little knowledge of the blockchain concept, but you believe in Dash's mission and want to be part of the voting network, you can pay hosting fees to have someone else manage your server.
- Self-operated masternodes require an in-depth knowledge of blockchains and operating systems like Linus. A user of a self-operated masternode is responsible for setting up, maintaining, and securing the server.
On the Bitcoin blockchain, a miner will receive 100% of the reward for the used energy and effort in creating a new block. But, since the Dash is a self-governing and self-funding blockchain-based platform, things are done differently on the network. 45% of the reward goes to the miners, the other 45% goes to the masternodes, and the remaining 10% goes back to Dash to fund future researches and improvements of the network.For instance, if 10 Dash coins get mined, 4.5 Dash will go to the masternodes, 4.5 will go to the miners, and 10% (1 Dash) will go to the network treasury.
2. PrivateSend is the tool that adds privacy features to the Dash cryptocurrency.
The Bitcoin network runs on a decentralized network, meaning that any owner of BTC coins takes part in securing the network. This system incentivizes participants to be more vigilant, knowing that their coins are also at stake. As a decentralized system, all transactions happening on the blockchain are made public for anyone to see. When you send money on the Bitcoin network, anyone on the network can see your public address and the address of the receiver. Although your public address is encrypted in a set of letters and numbers, scammers can still take an interest in you, especially if you move significant amounts of money. Malicious people can trace transactions back to a person’s real address by analyzing them. The blockchain also displays the amount involved in each transaction. Plus, it will show the previous transactions in which each coin was involved. Thus, if you send a friend a BTC coin that was previously engaged in illegal activities, the transaction won't be accepted.
However, people want to be cryptocurrencies like fiat currencies where a transaction is only known to the parties involved. Some individuals don’t want the rest of the world to know about their transactions, even when they are legal.
Transactions on the Dash network cannot be traced. PrivateSend is a coin-mixing service where your operation is mixed with other people's sending/receiving Dash coins at the same moment. This technique helps to cover any trail back to the fund's source.
What more, Dash coins are fungible, which means that they can replace each other. All Dash tokens are equal; it doesn't matter whether a Dash currency was used in illegal activities or not.
When you send your friend money using your MasterCard, it will only take a few seconds for the funds to reach his account. However, if you send him some BTC, it will take approximately 10 minutes for your transaction to go through. And that is outside busy hours.
InstantSend is a unique feature on the Dash platform that allows faster confirmation. On average, it takes 2.5 minutes for transactions to get cleared on the Dash blockchain. However, if you use InstantSend service, you can request masternodes to speed up the process for you and execute your transaction almost instantly. Although the service requires an extra cost, it will save you some time.
how Does it work and benefits
Let’s suppose that you already own Dash coins in your digital wallet and want to send some tokens to your vendor. Both you and the merchant need to have a public and a private key/address. A public address is a set of randomly generated numbers and letters that you can share with anyone so that they can send you money. In cryptocurrency, your public address is more like your bank account number.
You can think of a private address as your PIN that you use to withdraw money at the ATM. It is also a random combination of numbers and letters that cannot be shared with anyone. You need a private address to access your Dash coins from the wallet.
Let’s say you want to send 10 Dash to the vendor. You would need to enter your private key to access your funds. Next, you would send the money to his public address. When you enter a transaction, the Dash network will notify the miners by sending a difficult math problem to be solved. Miners are nodes or computers spread across the globe in charge of creating new coins and secure the network. Dash miners will compete to confirm your transaction in exchange for a reward. The first miner to solve the algorithm will get to add the transaction to a block. The block will also contain other operations taking place in a similar timeframe. On average, it takes 2.5 minutes for a miner to confirm a transaction on the Dash system. Once approved, the rest of the miners on the Dash network will verify and make sure that the transaction is valid. At this stage, ten coins will be sent to your vendor. It costs less than 1 cent to execute transactions on the Dash network.The average transaction fee on the Dash platform varies between 0.2 and 0.3 cents.
Here comes the uniqueness of the Dash platform. If you don’t have the patience to wait for the 2.5 minutes’ confirmation time, you can opt for the InstantSend service. This way, your transaction will be confirmed by a masternode within seconds.
Dash is a secure platform where you can execute your transactions for low fees and without any third-party intermediary. Dash is a blockchain-based platform, meaning that all the functions are decentralized. The transactions are verified and validated by members of the Dash network, working hard to keep it safe. The Dash system is secured by more than 4000 serves hosted around the world.
Where to Use Dash Coins and How to Store Them
1. where to use Dash coins
Dash is a global digital payment, meaning that you can use them to purchase goods and services in accepting stores. For instance, you can spend your Dash to buy products online in the US. In Venezuela, people can Dash coins at their local grocery store or in restaurants.
Furthermore, you can use Dash tokens to book your next plane ticket on CheapAir.com or Travala.com. More stores are now accepting Dash as payments such as La Maison Navarre, Laci Cloud, Viking VPN, Dash Giftcard Store, Church Chicken Venezuela, etc.
You can find more places where you could use Dash tokens through the website “discoverdash.com.” You can also list your business on the same site and start accepting Dash as payment.
Besides, you can trade Dash against other cryptocurrencies or fiat currencies on different exchanges such as Kraken, Binance, Coinbase, etc.
You can buy Dash coins from exchange platforms in exchange for USD or other cryptos. You can also mine new Dash coins in exchange for a reward.
2. How to store your coins
Dash gives you complete control over your coins through their digital wallets. Digital wallets come with the public address to receive funds, and a private one to sign transactions or withdraw your money. If you lose the keys, you may never reaccess your coins. Luckily, many digital wallet’s providers offer users the possibility to set up backups in case of loss. Even in that case, make sure to set strong passwords.
After you download the Dash app, you can choose between desktop, mobile, web, paper, or hardware wallets. The app is compatible with Windows, Linux, and macOS.
- Desktop wallets: You can download a digital wallet on your PC and access your funds. However, you will have to make sure that your computer is secure because if it gets a virus or hacked, you may lose all your coins. Dash offers a wide range of desktop wallets that you can select from, including Dash Core, Dash Electrum, Coinomi, Jaxx, Exodus, and Guarda. On an important note, you can only access your funds from the same computer in which you downloaded the wallet.
- Mobile wallets: You can carry your digital wallet everywhere you go on your phone or tablet. All you need to is download the mobile wallet app of your choice on the following platforms: The Dash Android, Coinomi, Dash Electrum, Edge, Jaxx, Abra, Spend, etc.
- Hardware wallets: They are secured devices where users can store their private keys. You will need to plug your hardware device into an internet-enabled computer, enter your private key, and execute your transaction. They are the most secure wallets and can support multiple cryptocurrencies. You can purchase a hardware wallet directly from the Dash platform. Some of the wallets available on the platform are Trezor, Ledger, SafePal, and KeepKey.
- Web wallets run on the cloud, and you can access them from anywhere on any device. You can get your web wallet from My Dash Wallet, Guarda, and Magnum.
- Paper wallets: Users can also opt for the Dash Paper Wallet generator that enables you to print out a piece of paper containing your public/private keys. The good thing about paper wallets is that you don't need to be connected to the Internet to receive your keys. Paper wallets are perfect for users who want to keep their coins stored for the long term but less ideal for active users.
- SMS wallets give crypto users without internet access or smartphones a chance to send receive coins. People can now transact Dash coins using text messages. Users in the USA can use the CoinText wallet, while The Dash Text is available for Dash owners Venezuela.
1. During the first 48 hours after Dash launched, it suffered a technical error. The bug resulted in the mining of 1.9 million Dash coins, 10% of the total Dash coins to ever exist. The issue was solved immediately, but the developers still didn't know what to do with the mined coins. In the end, the majority of the mined tokens were distributed on exchanges for low prices.
2. Regulators fear that Dash’s privacy features would attract illegal traders. They advance that multiple darknet sites are using the Dash cryptocurrency because of its anonymity and untraceability features.
3. Many people argue that the Dash cryptocurrency isn't decentralized since Masternodes execute the majority of the functions. As mentioned above, Dash requires masternodes to have at least 1000 Dash tokens to exercise the functions. At today’s value, a person would need to stake over $42.000 to become a masternode. With that in mind, people fear that the platform risks being controlled by a handful of riches.
Briefly, Dash aims to create a cryptocurrency as fast and as liquid as the traditional currencies that can be accepted by the mainstream.
Despite being around since 2014, Dash currency only started to attract people’s attention in early 2017.The cryptocurrency's improvements on privacy and speediness are what made it so famous. Dash is still one of the preferred coins for transactions in South America. Further, Dash payments are accepted in over ten countries, including the US, Venezuela, Germany, Nigeria, Spain, Thailand, Canada, etc. However, Dash faces fierce competition from other privacy cryptocurrencies like Monero , Ripple, Z-Coin, etc.
When you look at Dash crypto’s past price, it is easy to conclude that it is highly volatile. Nevertheless, according to trading experts, investing in Dash for the long term is promising. Many predict that by 2025, Dash has the potential to surpass its all-time high of $1500.
The Dash team is continuously improving the network to provide its users with a flexible payment platform. Also, they encourage the Dash owners to suggest new ideas for better governance.
What more, Dash cryptocurrency is investing in blockchain development. The team has partnered with numerous universities like Arizona State University, where they are funding blockchain-related researches.
The cryptocurrency also entered a partnership with FanDuel , a fantasy sport. Also, the Alt Thirty Six, an e-commerce payment system, offers Dash electronic payments for firms in the legal cannabis industry .