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What Is DASH?
DASH cryptocurrency is a cryptocurrency that operates on a peer to peer open source format. It offers users instant transactions and private transactions. DASH coin operates as a self-governing and self-supporting structure. This means that the users who make payments with the DASH coin network are able to use and increase the value of the network. Dash coin operates using a decentralized government and budgeting system making it a Decentralized Autonomous Organization (DAO). The DASH coin was created by Evan Duffield in 2014.
History Of DASH
DASH cryptocurrency was originally created on January 18th, 2014 as XCoin (XCO), however, 10 days after its release the name changed to Darkcoin. By March 2015, it got rebranded and renamed to DASH which was shortened from Digital Cash. The DASH coin is a minable cryptocurrency, with a few days of its released 1.9 million coined were mined. Mining is the process by which transactions are tested and added to the public register, known as the blockchain, and also the means through which new bitcoins are released. Although there had been some errors in the release, most miners didn’t want a change so the founder Evan Duffield left the initial distribution as it was and continued to develop the project.
As of recent, the DASH Cryptocurrency Core team, responsible for currency development has increased to 30 full-time employees, 20-part-time employees and many unpaid volunteers. DASH coin has become the most dynamic altcoin community on Bitcoin Talk with more than 6400 pages, 133k replies, 7.9M views. 1 bitcoin (BTC) is worth about 13.7 DASH coin. According to coin market DASH coin has a market cap of $10,123,322,645 USD (625,797 BTC), a 24-hour volume of $236,085,000 USD (14,594 BTC) and a circulating supply of 7.804Million DASH.
Technological Features Of DASH Crypto
Due to the Decentralized governance by blockchains, master node owners are able to vote on budget proposals and decisions that affect DASH cryptocurrency. These Budget Proposals fund the development of DASH cryptocurrency and are directly gotten from block rewards. This means that the development of DASH cryptocurrency is self-funded by its own blockchain.
DASH uses the X11 which is a windowing system for bitmap displays on UNIX computer operating systems. It provides a basic framework for a GUI environment. The average block time is 2.5 minutes.
Master Node Network
DASH coin uses special servers called master nodes to enable Private Transactions (PrivateSend), Instant transactions (InstantSend) and the governance and treasury system. Users that run master nodes are usually rewarded with 45 percent of the block reward assigned to pay the master node network.
Master node allows the following services:
- InstantSend – an almost immediate transaction. The service can be confirmed in 4 seconds
- PrivateSend – this allows for anonymity by hiding the origin of the funds on the blockchain.
- Governance and Treasury – this enables stockholders in DASH cryptocurrency to determine how the development progresses and to spend 10 percent of the block reward on development of DASH cryptocurrency and the ecosystem
- Evolution of DASH – help make cryptocurrency become as easy as using PayPal.
Master node owners must own a minimum of 1000 DASH, which they have to prove by signing a message and broadcasting it to the network. These coins can be moved at any time, but a short will cause the master node to fall out of the queue and stop earning rewards. The 1000 DASH is a collateral to prevent Sybil attacks.
Masternodes cost money and effort to host so they are paid a share of the block reward to incentivize them. With current masternode numbers and rewards, people operating masternodes earn approximately an 8% return on 1000 DASH (which means 6.97 DASH or USD1360 a month) for the year. These rewards shrink by 7% each year, but the rising value of DASH should counterbalance these shrink. In truth, masternodes were receiving 140 DASH per month at the beginning of 2016 but they were actually less money than today: USD 600 per month. There is also the possibility for masternodes to earn money from fees in the future
Master node users gain voting rights, each master node has one vote and it can be used in voting for budget proposals and decisions that affect DASH crypto.
The X11 is the algorithm that is used to create DASH coins. It has numerous pros and cons that should be noted and first off are the pros
- Effectiveness – X11 algorithm produces fast hashes for CPUs and GPU’s. It can also allow the GPU to maintain a 30 percent cooler atmosphere reducing graphics card overheating. This is because less processing power is required to mine coins on this algorithm.
- Mineability – it allows mining for longer periods when using CPU’s or GPU’s, this is because it does not require ASIC miners.
- Power Cost – due to its level of effectiveness, much power is not required to mine it. Therefore, lower electricity cost. This makes DASH crypto the best choice in places where electricity cost a lot.
- Security – X11 uses eleven hashing function (Blake algorithm to Keccak algorithm) making it very secure.
- Botnet Attack – there is a chance that the X11 might fall victim to a botnet attack, this is due to the fact that the CPU’s mine at the same hash rate of GPU’s on SCRYPT and this makes it susceptible to botnet attacks.
- Network Effect – it is might not be so welcoming to mining newcomers as they might be ill-equipped to handle it.
Advantages of DASH coin
- One of the biggest advantages of the Dash coin is the anonymity it provides its users. Unlike other cryptocurrencies that have been found to leak data, dASH provides complete anonymity.
- It is more decentralized than most other cryptocurrencies due to having over 4,500 different decision makers.
- It is aiming for mass adaptation to society. When the plans are all implemented DASH aims to be like PayPal and be easily used for transactions.
- It has a large monthly development budget that is used for creating and nurturing the DASH ecosystem with outside influence.
- DASH solved the bitcoin consensus problem by using a voting system to choose what gets implemented and what doesn’t.
Buying DASH Crypto
DASH can be bought via several methods and equally sold in several ways. Each of these methods has different pros and cons. The main methods are exchange, peer-to-peer and ATM.
This is the most popular method for trading cryptocurrencies. There are large numbers of exchanges available, each of them offers slightly different features and services. Some are more expensive than others, some are stricter and have more regulations than others, while others are less strict. The majority of exchanges are centralized, this means rather than an individual owing it they are owned by a company and have to follow the laws of the country in which they operate in and thus collect data from its customers.
The others are decentralized as a result of this escrow requirement is increased as it is peer-to-peer instead of a trusted identity. There are two main types of exchange categories, there are certain exchanges that accept fiat money (national currency) and exchanges that are dealt with cryptocurrencies only. Examples include Bittrex, Poloniex, Kraken, Huobi and more.
There is also another form of exchange known as instant exchanges. It is similar to a regular exchange the only difference is that there is no log in required. The currency s converted but there are some limits to this method such as the amount that can be exchanged and the rates are usually disadvantageous. Credit card purchase is also possible. Examples include Changelly, We Sell Crypto, Liberal Coins etc.
Certain sites enable customers to trade DASH crypto between individuals, however, the volume is low and the individual normally maker a request at a price that they are willing to pay and wait for another user to contact them and formalize the details of the sale. Advanced peer-to-peer sites offer escrow services for a fee to prevent cheating during an exchange between two users that have never met.
ATM (Automatic Teller Machine)
There are ATMs available that accept card and cash payment in exchange for crypto, and it is becoming more widely spread. To get the specific location of these ATMs mapping services can be used or it can be found at businesses that accept them. Examples include General Bytes, Tigo CTM, and TroveMat.
How To Store DASH Coin
DASH coin is stored on wallets with varying standards and details, the most commonly available ones on the market are desktop wallets, paper wallets, hardware wallets and web wallets. Each of them will be discussed to give an insight as to how they function and can benefit you to allow you pick which is the best option for you.
DASH coin Wallet
DASH coin wallets are very different from the money that we use for national currency. DASH coin wallets is a software that allows people to send, receive and store DASH crypto. These wallets help to keep DASH coin safe from hackers, thieves, and other threats. However, it can not eliminate all risk as the different types of wallets differ and the level of risks depend on the type of wallet in use. These wallets are similar to the wallets used for other cryptocurrencies and passwords are not recoverable if you forget to be careful.
Software wallets have to be downloaded in form of software into the users’ laptop or pc (desktop wallet), iOS or Android device. They are the most expedient type of wallet available. They are regarded as hot storage.
- Very handy
- Easy to use
- Always available
- They can be hacked
- If something happens to the device, the DASH coins will be at risk
Rahakott wallet is a unique cryptocurrency wallet that supports Dash Coin. It is unique in a sense that it is a rare wallet with its sign up the process as it simply requires a mnemonic phrase and no other additional details. The people behind the wallet are professionals who try to increase the customer value and continuously improve the wallet itself. The wallet is a relatively new one as it was launched on the 12th of November, 2017.
They are usually regarded as cold storage. It is a very common method of storing DASH coin and they seem to be safe wallets. The major function they provide is keeping the user’s private details and keys on paper
- They are safe as long as they are hidden properly
- They are accessible
- If the paper is not stored properly can be stolen
- If the paper goes missing DASH coin details cannot be recovered.
Hardware wallets are also considered as cold storage and they are also regarded as the safest because they are offline and cannot be hacked.
- Safest type of wallet
- Hardware is portable
- Not convenient and easily accessible
- Can be quite costly
How To Store DASH Coin
Wallets should be secured with strong passwords and wallets should also be backed up regularly and several copies should be kept in different places to reduce the chances of losing them. If you are using a wallet that produces seeds – a long series of random words – ensure that you take note of these seeds and keep them safe in multiple safe locations. You can restore your account using seeds if anything goes wrong. Also, the usage of passwords makes it hard to hack wallets.
For more information on choosing a wallet, check our dash wallet guide.
DASH VS. BITCOIN
DASH may have been created based on the structure of bitcoin, and the fact that bitcoin came first does not mean they similar and function the same way. There are different types of difference structurally, usage wise etc. Here are some of these differences:
- DASH crypto uses master nodes to create incentives for the users and also create additional transaction features such as instant send.
- DASH has an average block time of 2.5 minutes while bitcoin has an average of 10 minutes.
- In terms of privacy, dASH coins have PrivateSend which allows for total anonymity while bitcoin uses pseudonyms which does not guarantee total privacy.
- Bitcoins have a year to date (YTD) performance of 1500% while DASH crypto has a YTD performance of 10,000%
- Bitcoin fees of recent have increased while dASH fees are comparably lesser. For sending approximately $10 worth of bitcoin you have to pay $3.
- The DASH crypto community is a bit more welcoming than the bitcoin community. The bitcoin community is having arguments that are causing rifts in the community.
DASH coin is a cryptocurrency that has the potential to overtake the market. It is also easier and more effective to be used if you are a beginner as the requirements are not as expensive. The fact that it is relatively young means that those new to cryptocurrencies have a chance to catch up and not get left behind and there are many people to grow along with. Also, it should be noted that DASH is a young cryptocurrency and still has a lot of room for more improvements. I hope that after reading this article you would have understood the basics about DASH. Thanks for reading, until the next time.