Dash has become one of the world’s leading cryptocurrencies, alongside Bitcoin, Ethereum, Litecoin, Cardano, and other high-flying cryptocurrencies. Its market capitalization has led Dash to position itself among the top 20 currencies in a market that stands out for being highly competitive.
The world of cryptocurrencies does not stop growing, and more and more companies and entities or institutions make transfers using digital assets and the Blockchain chain.
Due to the increase in their usefulness, we must be prepared to know how to handle them and move our digital currencies with knowledge. Therefore, from Money Investors, we want you to know the peculiarities of each of the cryptocurrencies on the market, as well as the operation of the blockchain.
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In this article, I will tell you about Dash, a semi-private cryptocurrency based off the base of Bitcoin and Litecoin.
Table of Contents
What is Dash
Dash is a cryptocurrency that is hosted on a semi-private blockchain network. Dash is hosted outside of the Bitcoin and Litecoin code and includes several changes and enhancements that have managed to differentiate the coin since its debut in 2014.
A semi-private Blockchain is a network managed by a single company that grants access to any user they deem appropriate. These strings are typically targeted at business-to-business users.
The cryptocurrency Dash was created by Evan Duffield, who focused on creating the cryptocurrency to address 3 key problems that he detected within the Bitcoin network: lack of privacy, low transaction speed, and lack of governance.
This cryptocurrency is among the top 20 digital currencies with its market capitalization, making it one of the top digital assets.
The main goal of the creators is to make cryptocurrencies more useful. Currently, Bitcoin or Altcoin can be sent, for online transactions of value. However, Bitcoin has a transaction timeout that makes it impractical to use the cryptocurrency for in-store payments or other transfers of value that need instant confirmation.
Bitcoin’s high fees are also a handicap for small transactions, limiting its usefulness as a digital currency for purchasing goods and services. Dash seeks to solve these problems with the innovative design of its architecture.
How Dash works
Dash shows its innovation through the creation of a two-tier blockchain structure.
The first level is known to anyone who has studied Bitcoin, Litecoin, and other standard cryptocurrencies. At the first level of Dash, miners are responsible for creating new blocks and securing the chain. In exchange for creating new blocks, miners in Dash receive 45% of the cryptocurrencies that a block reward, as opposed to 100% that they reward in Bitcoin. The remaining 55% of the reward per block is assigned to another interested party.
This network has a time of 2.5 minutes per block, four times faster than Bitcoin. For mining, the network’s development team created a proprietary algorithm known as X11. This algorithm has been shown to require 30% less power than, for example, the Litecoin algorithm.
At the second level of the system, we find the servers configured by advanced users, which are known as masternodes. These masternodes are mainly in charge of processing instant payment transactions, facilitating the mixing of cryptocurrencies and voting on the governance of the network. In exchange for this work, they receive 45% of the block reward, leaving only 10% to be awarded.
The network has a requirement to be able to create a Masternode, the creator must own 1000 Dash. This minimum of coins is a security measure that prevents attacks on the network, mainly the Sybil attack. The Sybil attack consists of the creation of fake accounts with pseudonyms to be able to influence the network when a considerable number of accounts is reached.
How payments are facilitated in Dash
The instant transaction is one of Dash’s key features. The Dash network wants to create a form of payment through cryptocurrencies so that anyone can pay in stores. To make instant payments or InstantSend a reality, masternodes intervene.
When you make a transaction it is sent to a masternode. The masternode locks the funds so that they cannot be consumed twice, and sends a confirmation once the funds are locked. The transaction is added to the general ledger as part of a future block, but with the funds being blocked, payment is ensured. Instant payments through Dash can be verified in just seconds.
Mix of coins in Dash
The Dash network has a combination of cryptocurrencies that makes the tracking of transactions almost impossible, increasing user privacy.
This service from the Dash network is known as PrivateSend. When you want to send a private transaction, the request is fired to the masternodes. The masternode in charge, I broadcast your merge request and add it to other transactions occurring at the same time, which helps to hide it alongside other users. When the first masternode passes the transaction to another masternode, the mixing process is performed again, further hiding the user’s trace.
Although the masternodes are in charge of hiding the identity of the user who carries out the transaction, the masternode can learn the details directly, which implies the user’s trust in the Dash network.
Dash Evolution
Dash is developing an update to the architecture known as Dash Evolution. Because the network aims to make instant digital cash payment possible and easy to use, you need a clearer way to make payments with Dash.
The project website outlines the challenge of making transactions so easy that your grandmother can understand what she’s doing.
With this objective, Evolutión is a mobile application that allows the consumer to make payments in web stores without having to interact with the blockchain client. The creators consider this to be the next level of usability for cryptocurrencies.
Where to buy and store Dash
Dash has a high volume of operations on the lesser-known sites. To get a high volume, you have to go to Bithumb and buy the coin with KRW. You can also get Dash with USD on Bitfinex or with Bitcoins or Ethereum on Binance.
To store this cryptocurrency there are Wallets, digital wallets or cryptocurrency wallets. The wallets that support Dash is almost infinite, for example, Exodus and jaxx, in addition to the core wallet they support the currency.
If you prefer cool wallets, Trezor, Keepkey, and Ledger are compatible with Dash.
Conclusion
Dash is a network that focuses on allowing payment with cryptocurrencies in the standard trading of goods. We will have to closely monitor the cryptocurrency to see if they succeed, but it may be a good investment with the project under development.
Cryptocurrencies are here to stay and are increasingly involved in transactions between companies or institutions. We must know them well to know how to handle them, since it may be the standardized payment method tomorrow.
Probably wanna read:
- Cryptocurrencies: What are they, when they appeared and how do they work
- Blockchain: What it is, how it works, types and benefits for cryptocurrencies
- Altcoins: What are alternative cryptocurrencies and how do they work
