Anonymity is one of the major reasons why people started adopting cryptocurrencies because it doesn’t involve any centralized organizations. But the fact is that anyone can easily access information about transactions processed by different wallets over time. It’s quite alarming for people who want to keep their information private.
Blockchain developers started introducing Anonymous Cryptocurrencies after identifying this problem. Dash is one of these cryptocurrency projects designed to protect users’ information about governments and other centralized authorities.
What is Dash (DASH)?
Dash is a fork of the Bitcoin protocol’s fork, Litecoin. This project is designed to provide fast transaction speed with a very low fee. The network is primarily focused on securing the user’s anonymity. Dash uses two different features for transaction processing.
InstantSend – As the name suggests, this feature instantly processes transactions without having to wait for any confirmation.
PrivateSend – This feature is designed for users who want to keep their transactions private.
What makes Dash Unique?
Anonymity – The users can transfer funds to each other anonymously using this network. Dash mixes transactions into each other making it difficult for anyone to identify a particular transaction.
InstantSend – This feature enables users to transfer funds from one wallet to another within 1.5 seconds.
Decentralized Governance – Dash gives governance rights to its token holders so they may participate in certain decisions about the project’s development.
Dash Vs Bitcoin
As it’s mentioned, Dash is a fork of Bitcoin’s fork called Litecoin. So, it shares several features with Bitcoin. But it also has a few unique features that make it a prominent choice for most users.
Like Bitcoin, Dash offers an excellent standard of decentralization. Furthermore, it has a limited supply like Bitcoin. However, Bitcoin has a limited supply of 21 million tokens whereas Dash has a limited supply of 18.9 million tokens.
Network Control – Dash has a Decentralized Autonomous organization that controls the network whereas Bitcoin is controlled by node operators who are part of the network.
Transaction Cost – Dash has a relatively low transaction fee than Bitcoin while Bitcoin’s transaction fee increases depending on the traffic.
Transaction Speed – Dash can process transactions within a few seconds while Bitcoin may take a few hours and even a few days to complete a bigger transaction.
Privacy – Dash keeps the transaction history private by incorporating the PrivateSend feature while Bitcoin’s transaction history is easily accessible by anyone.
Consensus Protocol – Bitcoin uses a Proof-of-Work consensus protocol for processing transactions while Dash uses a combination of Proof-of-Work and Proof-of-Stake for completing the transaction.
Mining – Bitcoin transfers rewards to the node operator who verifies the transaction. Dash, on the other hand, transfers 90% of the rewards to the node operators and the 10% is stored in the network treasury. Dash upgrades node operators to the Masternodes if they have more than 1000 DASH tokens in their wallet.
Dash Brief History
Dash was launched by Evan Duffield, a soft engineer, in January 2014. It was initially introduced as XCoin and was rebranded Darkcoin after a few days of its launch. And it was finally rebranded Dash (Digital Cash) in March 2015.
The project became controversial right after its launch because it had a bug in its code due to which 1.9 million tokens were mined within two days. Many people raise their concerns that the Dash coin is being used for illegal transactions in black markets. However, the team resolved this issue in August 2016.
Dash is widely adopted in countries like Zimbabwe and Venezuela because these countries are experiencing serious inflation issues. Dash became the largest cryptocurrency in Venezuela in 2019.
How Does Dash Work?
Dash network’s infrastructure is quite similar to Bitcoin. The network generates a question whenever a user requests a transaction. The node operators need to verify the transaction by finding the most accurate answer to the question.
The miners play a vital role in preventing double spending while consistently maintaining the transaction history. These node operators only receive 45% of the minted tokens while the other 45% tokens are transferred to Masternodes. It has an average block time of 2.5 minutes.
Masternodes
The node operators can qualify for this program if they have more than 1,000 DASH tokens in their wallets. These node operators don’t just support instant transactions but they also help with processing private transactions. They’re also responsible for monitoring the blocks created by miners.
They have the right to reject a block if it doesn’t comply with the network’s policies. These node operators receive an additional 45% of the minted tokens for their participation. They also have governance rights within the platform which means they can use their voting power to decide where the remaining 10% of the block reward needs to be allocated.
DASH is the largest crypto project among anonymous cryptocurrencies because it has more than 5,000 Masternodes.
Dash Tokenomics
DASH is the native token of this platform that is used for the transfer of value. With a circulating supply of 10.9 million tokens, DASH has a market cap of $493 million. It has a maximum supply of 18.9 million tokens that will be released over time. DASH ranks among the 100 best cryptocurrencies in terms of market cap.
Conclusion
Dash is a fork of Bitcoin’s fork, Litecoin. It shares some features with Bitcoin but it provides a number of unique features that make it a better choice for most users. It provides fast transaction speed with lower transaction fees. Furthermore, it offers anonymity to secure the users’ information.
If you need more information about how Dash works, feel free to get in touch with us.
