Quick Facts

Approximate Market Cap$1,422,709,230
Year Established2014
FounderEvan Duffield
Symbol/AbbreviationDASH
UtilityUtility Token

Dash is one of the first notable alternative cryptocurrencies. It was one of the early initiatives that copied and modified Bitcoin’s code in a bid to reach a larger market. Yet, Dash has significantly distinguished its technology following its 2014 launch. It introduced features designed to make transactions function more like standard online payments.

Dash aspires to be a channel for daily transactions, and it has extended a broad net to achieve that goal. The cryptocurrency’s first venture into an economically troubled country occurred in 2018 when the digital cash firm expanded into Venezuela.

What is Dash – Definition

Dash is a cryptocurrency that is open-sourced. It uses a P2P decentralized network. Like many digital currencies, its intention is to allow for quick, simple, and low-cost internet payments.

Dash is a fork of the Bitcoin project. It shares the main characteristics with other prominent cryptocurrencies, such as decentralization and cryptographic security. It does, however, have several noteworthy distinctions, particularly its speed.

Dash is a self-governing and self-funding cryptocurrency. It can be mined by using the PoW protocol.

Dash governance is carried out by a decentralized autonomous organization (DAO). This implies that in a blockchain, decisions are taken by masternodes. Unlike Bitcoin, Dash’s network may finance itself in order to enhance the DASH technology.

Dash unique features are:

  • Masternode
  • InstantSend
  • PrivateSend

Pros and Cons

Pros

  • Secure
  • Fast transactions
  • Enables anonymous transactions

Cons

  • No smart contracts
  • Privacy issues
  • Decentralization issues

The History

Evan Duffield launched Dash as “Xcoin” in January 2014. It is a cryptocurrency that was created as a fork of the Bitcoin protocol. Xcoin was renamed Darkcoin to emphasize its privacy and anonymity qualities. In March 2015, Darkcoin rebranded to Dash, which means ‘digital cash.’

Until the end of 2016, the DASH cryptocurrency was priced at less than $10 since its introduction in 2014. The price of Dash began to rise at the beginning of 2017 and hit a peak of $1540 on December 20th, 2017.

Dash has a market value of about $4.3 billion in April 2018, making it one of the top 12 cryptocurrencies. Dash was the most popular cryptocurrency in Venezuela as of February 2019.

How Dash Works

Dash’s distinct structure is based on a two-tier network known as the masternode network. Dash engineers describe the network as an “incentivized full-node operation.” 

The initial tier of the Dash network is made up of nodes. Masternodes make up the second layer. 

Dash may be utilized to make transactions that are more private and faster due to these three features:

  1. Masternodes

The system is separated into two parts: masternodes and miners. Masternodes are unique servers that carry out crucial operations on the Dash network. They are in charge of PrivateSend, InstantSend, as well as the governance and treasury system. Masternodes increase network security and are awarded by the community.

  1. PrivateSend

Dash provides a feature called PrivateSend that enhances transaction privacy. As a result, Dash transactions cannot be linked back, nor can the identities of users be exposed to the public.

  1. InstantSend

Dash overcomes the scalability issue by offering a unique feature called “InstantSend.” Dash transactions are nearly instantaneously verified by the Masternode network when using InstantSend.

Advantages & Disadvantages

Advantages

Security

Dash’s algorithm is known as X11 because it encapsulates 11 forms of encryption in one and is among the most complex to break or abuse, along with Bitcoin’s Shadow56 method.

DAO

DAOs act as a treasury and earn 10% of mining rewards. These organizations provide funding for projects that serve the Dash network or the community as a whole.

Instant transactions

Dash has a feature called InstantSend. It guarantees that the transfer of Dash from one wallet to another takes between 1 and 3 seconds.

Disadvantages

Market needs

The technology’s creators see DASH implementation into a variety of merchants throughout the world. Modern investors seek cryptocurrencies that are supported by smart contract chains.

Privacy issues

The privacy function operates through a technique known as MIXING. If someone owns the masternodes of such a transaction runs through, the MIXING process might be reverted or tracked.

Dash in the Global Crypto Market

There are more than 10.18 million Dash circulating with a maximum quantity between 17.74 million and 18.92 million. Unlike Bitcoin, whose miners receive the whole return, roughly 10% of the incentive for mining Dash coin flows towards funding suggestions for the Dash project’s design.

Because these future budget ideas are susceptible to future voting behavior, it is impossible to predict how much Dash coin will be used for this purpose, making the maximum supply of currency unknown.

FAQ

Who controls Dash?

Dash is an open protocol that is not controlled by any single entity. Anyone can create applications to operate on the Dash network with no need for approval from a central authority.

Can Dash scale?

Dash was derived from Bitcoin in an attempt to address scalability concerns. By generating a new block every 2.5 minutes rather than every 10, it allows transactions to be processed more quickly.

How many Dash coins are there?

Dash has a maximum supply of 18.9 million coins. Every 210240 blocks, the quantity of Dash mined is cut by 7.14 percent.