In this article we will analyse and explain what is Dash, why it was created, and how it differentiates with other cryptocurrencies.
What is Dash?
The first thing to mention here is that Dash is one of the most established and important cryptocurrencies in the market. Dash is also known as Digital Cash, which is described by the company behind the cryptocurrency as a ‘revolutionary digital money system.’
Dash is a fully-incentivized peer-to-peer network in which miners are rewarded for securing the blockchain, while masternodes validate and store the blockchain to users.
This cryptocurrency has a specific and special characteristic and it is related to the fact that it has masternodes. They represent a new layer of network servers that provide a variety of services including instant transactions, privacy and governance.
The way Dash work is a little bit different to the way Bitcoin works. In the Dash ecosystem, there are two different kind of computers that secure the network, those are the nodes and the masternodes.
Nodes are in charge of creating new coins on the network, like miners. Masternodes, instead, perform specialized transactions including InstantSend and PrivateSend.
Normal nodes work mining cryptocurrencies, and once they get the reward, they sell the coins. That’s a very simple process. And this means that they are not loyal to the network if they do so. Why to sell the coins that you seem to like? Well, here is where masternodes appear.
Masternodes work as the responsible group of computers that is in charge of cultivating the network, helping it grow and taking the important decisions. It is not mine and sell. Furthermore, the ones that decide if they want to be masternodes or not are the people. Nobody elects them.
Compared to Bitcoin, this is a very important advancement. Bitcoin is not able to solve problems, decide what to do with the future of the virtual currency, or think about marketing campaigns. Everything is a little bit messier (which does not mean bad). It is just different.
In order to become a masternode it is necessary to buy 1000 Dash and hold them forever. This will give the user voting rights and other responsibilities. Of course, this is a very high price to pay just to be a masternode in the network.
Those who decide to invest an important amount of money in the masternode will currently receive $1,500 dollars per month.
Dash Around the World
Dash has different communities all over the world that are very active trying to spread the knowledge about this cryptocurrency.
Venezuela is one of these countries. The nation is suffering form hyperinflation and poverty rates rarely seen in other countries (90%). The minimum salary is just above $1 dollar per month, and it is almost not possible to make transactions using cash.
This is why Venezuela is one of the countries with important possibilities to embrace virtual currencies. Dash has been working in the country in order to offer shops the possibility to send and receive payments in an easy way. At the moment, and according to discoverdash, there are over 1,250 businesses around the world, and more than 270 are located in Venezuela. United States follows with 255 shops accepting Dash.
Dash Merchant Venezuela business development head, Alejandro Echeverría commented about it:
“We are very excited about our results. In the first month we tested our strategies and we made a lot of improvements, right now we are in our 2nd month and we are affiliating approximately 100 merchants per week. We are aiming to get approximately 200 per week by the next month.”
PrivateSend and InstantSend
These are two of the most important features of Dash as a cryptocurrency. PrivateSend, allows the user to have a similar level of anonymity as when it withdraws cash from an ATM. Behind it, there is a mixing process that is seamless, automatic and without intervention from the user.
The mixing process takes time and it is important to do it before the user wants to make a transaction.
With InstantSend the situation is different. The intention here is to instantly send funds to another person in the world.
The process works as follows:
“InstantSend functions by setting a flag on the transaction, causing deterministic selection of a quorum of 10 masternodes for each input spent in an InstantSend transaction. The masternodes examine the input, and if a majority determines it has at least six confirmations, they then accept the transaction.”
Dash in the Cryptocurrency Market
Dash has an important presence in the crypto market. As of June 2018, Dash is the 13th most important virtual currency in the market with $2.12 billion dollars’ market capitalization. Each Dash coin can be bought for $260 dollars.
Back in January 2017, each Dash could be bought for $11 dollars, and at the end of the year it reached more than $1,000 dollars per coin. In the future it can see a price surge if it proves out to be reliable and strong.
Dash has an important team of experts behind, including Ryan Taylor, its CEO, Holger Schinzel, Fernando Gutierrez, Robert Wiecko, Philipp Engelhorn, and more.
Dash is a revolutionary cryptocurrency that has succeeded with the idea of he masternodes. It has interesting features like InstantSend and PrivateSend and the developer team behind is very experienced.
In the future, Dash could be adopted in many different stores and help individuals transact money in a much easier way.