Dash is a virtual currency based on the Bitcoin and Litecoin blockchain, but many upgrades were made to its network throughout its history. Evan Duffield founded Dash in 2014 to correct 3 issues that he saw in the Bitcoin blockchain: Privacy, governance and transaction time.
Despite the extremely competitive market, Dash has managed to stay in the top 10 cryptocurrencies throughout the last 3 years.
Dash’s objective is to ameliorate the virtual peer-to-peer transactions by reducing the transactions fees and the transaction time, to make it the most convenient way to make a transfer of value between individuals and between a business and its customers.
At the beginning, Dash had a reputation to be only useful for illegal transactions because of its emphasis on privacy.
The name of the cryptocurrency went from XCoin, to Darkcoin and finally ending up with the name we know today, Dash.
It uses a decentralized governance system that allows large users of the platform to vote on the direction the cryptocurrency is going.
Dash uses a blockchain with a two-tiered system (two different consensus mechanisms). The first one, similar to Bitcoin, is a Proof-of-Work (PoW) system where miners validate the transactions on the network in order to obtain DASH. With the mining of Dash, miners only receive 45% of the block reward. The remaining 45% goes to the users of Dash who own masternodes, the remaining 10% goes for the development of the Dash ecosystem.
The second consensus mechanism is called masternodes. These masternodes process instant transactions, vote on governance proposals and facilitate coin mixing (for privacy).
Anyone can create a masternode on the Dash network. The only thing you need is 1,000 Dash coins (Currently worth 595,480$).
One of the key features of the Dash ecosystem is InstantSend. Although Dash’s regular transactions currently take around 2.5 minutes, which is much faster than Bitcoin, it is still much to slow to process payments in store on in real time.
Dash addresses this situation by introducing InstantSend. The way this feature works is when a user wants to send a transaction, the funds are sent directly to a masternode which locks the amount. The transaction is then confirmed to the receiver and the marsternode makes the confirmations before sending the coins while the transaction is already confirmed and good to go.
Dash’s answer to the privacy and anonymity issues encountered on the Bitcoin network is a coin mixing strategy that they call PrivateSend. This built-in feature on the Dash network makes it nearly impossible to retrace a transaction.
Although Dash’s PrivateSend feature is good for any basic privacy or anonymity concerns, their are better options out their like Monero and ZCash if you are strictly looking for privacy capabilities.
Dash has a long (in the cryptocurrency market) and prolific history. Its community is large and implicated. The coin has been increasingly gaining popularity and strength since its inception in 2014. It is available on most exchanges, including Binance.