- What is Dash (Dash) cryptocurrency?
Dash cryptocurrency (Dash) is one of today's most popular digital currencies. It features increased anonymity, fast transaction speed, an advanced mining system, and other features that allowed it to place on 11th place in the overall top of cryptocurrencies.
- What is Dash?
Dash is a cryptocurrency focused on the payment industry. In other words, the currency seeks to replace the usual fiat money by allowing users to make purchases directly with digital currency.
Cryptocurrency is based on bitcoin, but has a number of significant differences, which are its advantages:
- Increased anonymity. The way of transactions from point A to point B in the bitcoin network is easy to trace because all information is transparent and available to anyone. Dash, on the other hand, uses the PrivateSend algorithm, which makes it much more difficult to track transfers by crushing the amount and mixing it with other users' coins.
- Fast transactions. Transactions in the Dash network are almost instantaneous because without this feature the coin simply can not compete with fiat currencies as a means of payment.
Developed mining system. The complexity of Dash mining and the energy intensity of the process is much lower than that of bitcoin. Due to this, mining is available not only to owners of expensive equipment but also to ordinary PC users.
Masteinodes. The cryptocurrency network provides master nodes - servers that process transactions for a fee. Anyone who has 1000 DASH can open such a server. Owners of the master boards get about 45% of the rewards for mining coins in the network.
Fast block creation. If in bitcoin network it takes 10 minutes to create one block, in Dash network - 2.5 minutes.
Strong team. Bitcoin has the most extensive user base, but no particular organization is behind its development. In the case of Dash, developers are constantly developing, promoting, and maintaining the ecosystem. At the same time, users can still influence the decisions they make through a voting system.
dash logo png
- HISTORY OF THE DASH
Dash was created from bitcoin in 2013. The cryptocurrency was originally named XCoin (XCO), but after a failed launch in 2014, the developers renamed it Darkcoin. In 2015, it was decided to change the name again, and this time the cryptocurrency was called Dash (Digital - digital, Cash - cash).
As for the Dash team, in the past they proved to be not on the best side: at the first launch they made a mistake in the code of the mining protocol, due to which 32% of the maximum stock of Dash was mined in 2 days. After that, the developers began to disagree on the future of the coin, which led to the collapse of the team. However, in 2015, the network was re-launched, and real success came.
The Dash reached its peak at the end of December 2017: the coin soared to $1,642, and its capitalization exceeded $12.7 billion. Thus, the coin appreciated 164 times over the year.
The Dash exchange rate is currently down significantly: with a capitalization of $1.6 billion, the coin is trading at $194. This is due to a general decline in the cryptocurrency market.
WORKING PRINCIPLE OF DASH
Despite the fact that Bitcoin is the first and largest cryptocurrency, it has disadvantages that prevent it from becoming an everyday means of payment. Confirming transactions takes a long time and the cost of making them is high. It is these shortcomings in their cryptocurrency that the developers of Dash decided to fix. To achieve this goal, masterknots, PrivateSend, InstantSend and Dark Gravity Wave algorithms were implemented.
- DASH MASTER NODES
Masternodes are custom servers that process transactions on the P2P network. It is through them that almost instantaneous payment speeds and increased anonymity are achieved. Since servers must have high power to handle the network, the cost of maintaining them is high. It pays off by the fact that the server owner receives about 45% of the rewards for a block of DASH. You also have to have 1000 coins to open a masternode.
The PrivateSend protocol encrypts transactions on the network. To do this, information about the coins being sent is intermingled with information about other users' coins, making it very difficult to track the transactions. The coins themselves remain under the full control of the owner, eliminating any risk. The process of hiding information is broken down into several steps:
1) The total amount is broken down into values divisible by 10. This eliminates the possibility of tracking by transaction size.
2) The wallet, from which funds are sent, sends information about the transaction to the master note. MasterNode processes the request without passing information about the sending wallet to the network.
3) If the MasterNode receives two similar requests to process transactions, it mixes up the funds information, making it more difficult to trace.
An important factor is that all these actions do not require any action from the user - the system is fully automated.
- INSTANT SEND
The InstantSend algorithm is responsible for the speed of transactions, which in the Dash network is only 4 seconds. This is achieved due to the fact that the data of the sent funds is blocked by the masterminds, leaving only the possibility of transferring them to the specified purse. This method allows to secure bypass the need for multiple confirmations of transactions used in bitcoin.
In addition, InstantSend allows you to use Dash to make payments from devices of any power, and the speed of transactions will not change.
- DARK GRAVITY WAVE
The Dark Gravity Wave algorithm is used to increase the complexity of mining. It is based on doubling the power of the hardware every 2 years, based on the number of transistors. Due to this algorithm, Dash mining has little dependence on the amount of processing power in one hand, as is the case with Bitcoin.
- WHERE TO BUY DASH
Because Dash is currently one of the most popular cryptocurrencies, there is no problem to buy it: the coin is traded on the world's top exchanges such as Binance, Kraken, Bitfinex and others. The list of trading pairs is also extensive: you can buy Dash for rubles, dollars, USDT and most popular cryptocurrencies. If you are not used to working with exchanges, you can exchange Dash directly through cryptocurrency exchanges.
- WHERE TO STORE DASH
There are many wallets available for storing cryptocurrency: from mobile to hardware wallets. The differences between them are in the supported functionality and security. Below will be listed only those wallets that have been approved by the Dash team.
- DESKTOP WALLETS.
These wallets require a full blockchain download, which requires a lot of free space. They include wallets such as Dash Core, Dash Electrum, Exodus, Jaxx and Guarda. Desktop wallets are characterized by maximum functionality and a very high level of security.
- MOBILE WALLETS.
Their functionality is slightly reduced, as well as the level of security. However, they allow users to access cryptocurrency anywhere from their smartphone or tablet. These include Dash Wallet, Edge Wallet, Coinomi, Jaxx, Abra, Ethos and Evercoin.
- HARDWARE WALLETS
Are a secure vault for your coins that cannot be hacked remotely. Such wallets work in conjunction with special software on your computer. They include: Guarda, KeepKey Hardware Wallet, Ledger Nano S and Trezor.
- PAPER WALLETS.
An ideal solution for those who don't trust storing their assets digitally. When you create a paper wallet, the data is deleted from your computer, eliminating the possibility of restoring it electronically. You can create such a wallet by using the Dash Core Paper Wallet program.
- DASH PROSPECTS AND FORECAST
Based on the above advantages of Dash, we can conclude that the cryptocurrency has high chance of success in the medium term. One should not expect success in the near future, as the realization of the goal of replacing fiat money may take years.
The developers have shown themselves well after a series of serious failures. Dash is actively advertised, educational activities are being conducted, work on improving the code continues. Even after the strong fall since the end of last year, the coin is still one of the most expensive cryptocurrencies in the world.
It is to be hoped that in the future the developers will no longer make mistakes that can lead to the collapse of the network, as well as abandon the project due to disagreements. The latter is highly unlikely, as the capitalization of Dash exceeds $1.6 billion.
In the next 1-2 years, the price of Dash will directly depend on the mood of the market, as it happens now. This is due to the fact that it takes a long time for the fundamental reasons for growth to form. Developers need to create a whole infrastructure where users will want to pay for their purchases with their currency and stores will want to accept it. If this infrastructure gains international reach, the Dash will definitely renew its historical high and rush to new heights. All that remains is to follow the news of the Dash and wait for its infrastructure to develop globally.
Dash cryptocurrency is definitely an interesting project. Yes, in the beginning it was haunted by failures, but at that time the industry was not even born yet, and the developers had to rely a lot on luck. At the moment, Dash is a strong team, an extensive community, and a well-thought-out development strategy.
- How to reflash the Antminer S9?
- Equihash mining algorithm: an overview
- What is more profitable PPS or PPLNS?
- How to Know Mining: Key Terms
- Crypto A to Z: Cryptocurrency glossary of common terms
- What is a scam?
- What are parachains?
- What is NFT?
- What is Bitcoin?
- How to assemble a rig for mining with your own hands
- Hybrid cryptocurrency exchanges: what is HEX?