What is Dash (DASH) Crypto Beginner’s Guide
When it comes to finding better alternatives to the current financial system, many people will often look to Bitcoin or Ethereum for refuge. Sadly, each of these cryptocurrencies has their own drawbacks. Ethereum is more focused on developing dApps and other smart contract technology whereas Bitcoin has stayed its course as a digital payment currency.
Bitcoin might seem like the knight in shining armor in the cryptocurrency world, but things aren’t entirely as they seem. Bitcoin suffers from a myriad of issues such as slow transaction confirmation times, lack of privacy, inflexibility to change without creating a new altcoin, funded by outside sources, high transaction fees, and so on.
There has been a rise in other altcoins being developed to help counter the privacy issues within Bitcoin, but many either fail or are limited in how they can be used. On top of privacy and anonymity, many altcoins have also made strides to become the next big payment currency. But very few altcoins have managed to succeed in this mission.
One cryptocurrency that has managed to come out on top is Dash.
Dash: The Fast and Secure Future of Digital Cash
Using Core coding and a dead altcoin, the developers of Dash created the best solution to almost all of Bitcoin’s troubles. What was once known as Xcoin and later DarkCoin became the modern day Dash. Dash has taken on the challenge of giving cryptocurrency users a reliable digital currency that is private, fast, and offers low fees.
Dash is open-sourced and operates on a voting-based governance system so that any changes can be implemented quickly. This governance is what allows Dash to be flexible without having to make the same mistakes that Bitcoin made. This means Dash won’t have to make hard forks, such as creating a new altcoin, like Bitcoin just to solve a problem within the cryptocurrency.
Basically, Dash gives users almost all the benefits of Bitcoin with some extra features on top.
How Does Dash Work?
Dash uses a proof of work system to conduct its main features InstantSend and PrivateSend. Dash uses blockchain technology in combination with masternodes to conduct all transactions between users. To put it simply, Dash is a hard fork off of the Bitcoin protocol.
These nodes are used to provide consensus and validation of all transactions conducted with Dash. This is where miners will do their mining for Dash coins as they process all transaction blocks into the blockchain network.
If a user has at least 1000 Dash coins in their wallet, they can run one or more masternodes (see: What is a Masternode)as a form of shares. These users will then gain a certain percentage in interest for running and maintaining these masternodes. Basically, 45% of the rewards from mining go to the person running the masternode, the other 45% goes to miners.
Masternodes are responsible for hosting a verified copy of the blockchain, validating transactions on the blockchain network, and relaying messages.
The remaining 10% goes to the Dash developer team.
The X11 chained hashing algorithm
This algorithm uses a sequence of eleven different hashing algorithms for the proof of work method to work. This algorithm allows Dash to remain decentralized and makes it resistant to ASICs. This algorithm is less taxing on GPUs and doesn’t require as much wattage.
This means a Dash users’ computer won’t heat up or use excessive amounts of energy to process transactions and run masternodes.
This is where Dash coins are pre-mixed and denominated within a Dash user’s wallet. The pre-mixing is what allows users to use their Dash coins instantly whenever the users desire. This process simply takes all unmixed Dash coins and puts them through an anonymization phase.
During this phase, the Dash coins will be mixed within various masternodes and then broken down into denominations. Once the coins have passed through at least two to eight masternodes it will then return back to the user’s wallet.
At no point do the users lose their Dash coins, they are simply mixed within the network and can be easily accessed at any point in time.
What are the Benefits of Using the Dash cryptocurrency?
Users can keep all of their exchanges private and anonymous. To do this Dash uses its PrivateSend feature which basically swaps the coins among various users. This massive swap breaks the traceable history of the Dash coins before they reach their intended final destination.
Dash also utilizes a decentralized peer to peer network which ensures that there are no middlemen such as banks.
Instant transactions and payments
Dash uses InstantX to certify and affirm installments on the blockchain in a matter of four seconds. This by far one of the quickest transaction times compared to Ethereum and Bitcoin which can take anywhere from a couple of hours to even days to process.
Low transaction fees
Dash made it a goal to not charge excessively for users to utilize their own money. They also made sure to keep fees low for those who want to make cross-border transactions anywhere around the world. The fees are lower than banks, visas, and even Bitcoin for comparison.
Proof of work rewards for miners
All miners receive at least 45% of the transaction fee for every block that is processed. This proof of work system is randomized so that everyone gets a fair chance to process blocks.
Uses a defined governance model
This decentralized governance model is what allows Dash to grow and fix itself. All users who run a masternode get to vote on any projects or new developments for the Dash networks. If the proposal receives at least 10% approval, then the proposal is considered accepted by the shareholders.
Final Thoughts on DASH
The only real drawback to Dash is it is not as widely accepted as Bitcoin. However, Dash does have a list of advertisers, casinos, and other businesses that do accept Dash as a payment digital currency. If you are someone who wants to invest in something that gives anonymity, privacy, security, and the perks of Bitcoin, then Dash is definitely a reliable altcoin to use.