What is Dash?
The more you to get know about cryptocurrencies, the exciting it gets! You must have heard about bitcoin that surpassed the $1,000 US dollars mark on January 2017 making its value higher than three years, with that the cumulative value of crypto-market became $110 billion dollars and this is over 500% growth in a span of three months. The blockchain of bitcoin is able to decentralize money, however, this is the first-ever from of digital cash, so precisely it may have certain fundamental flaws that need to be rectified. One such drawback is anonymous and private transactions.
The problem with bitcoin led to the development of a range of cryptocurrencies that were altogether termed as anonymous cryptocurrencies and Dash currency is one of the contenders on the list. Unlike the common cryptocurrency projects such as Straits or Ethereum, which are focused towards being development platforms- dash is an exclusive peer-to-peer electronic currency that works with an aim of being liquid as real money which is used in various countries such as GBP, INR, USD, AUD, CAD, EUR or JYP. The core code of the currency is framed out of Bitcoin’s code with the addition of unique features such as quick and private transactions.
Like any other cryptocurrency, even Dash operates as an open-source software and comes with its one set of blockchain, community and wallet. However, compared to Bitcoin the transactional fees involved are almost negligible. In addition to that, from the perspective of developers, Dash will stay as digital cash on the internet and this is a great thing for investors.
Idea Behind The Making of Dash
Earlier known as XCoin and Darkcoin, Dash software works to be scalable, user-friendly and faster than its fellow cryptocurrencies. In fact, the word “dash” itself translates to a blend of two words cash and digital. This indeed defines the creation of the currency, and how it turns out to be a much usable version of Bitcoin. The current position of dash stands at the top 10 with market capitalization exceeding over $ 5.2 billion. When it was launched in the beginning of 2017, the dash price was close to $11 per coin and this took a significant turn by the end of the year and now the price has skyrocketed to $800 dollars.
Considering the technological advancements, ease of use and exposure, without a doubt dash holds the potential to make its presence count in the cryptocurrency market. Thus, three pillars that have shaped the idea of dash are:
- Privacy: Marketers who manage cryptocurrency understand how critical security and privacy can be. Almost a year has passed, and dash has successfully established itself as an anonymous currency, yet it may not be completely private. The developers are working on methods to provide 100% privacy for the users of the currency.
- Decentralized: Similar to other currencies, there are no third-parties involved and the users are able to receive or send funds without relying on any financial institutions such as government or central banks.
- Effective & Fast: The slow confirmation time of bitcoin can turn out to be quite daunting, while Dash currency is built upon the principles of fast and quick transfer. With this, you get the benefits of cryptocurrencies but without their drawback.
The Fundamentals of Dash
Dash operates using a two-tier structure within the Masternode network. This network is nothing but full-node incentivized function, which basically means the first tier is packed by nodes (computers that are meant for communicating with other members of the network, miners make use of them for verifying particular transactions), while the second tire is enabled with masternode (full-node that contains blockchain and enforces rules and regulations). The Masternode aid in specialized operations which are InstantSend and PrivateSend, further they control the development of the network. This means unlike Bitcoin, the user will only have a username and is never going to be confronted with any sort of address or associated cryptographic nuances.
The basic free distribution paradigm of dash is:
- Dash maintenance funds 10%
- Masternode operator fees 45%
- Miner rewards 45%
Why Should Dash Matter For You?
If you look at the present dash price trends, the currency has come a long way. As said before, in January when it was launched, the price was mere $11, then in mid-march the price went up to $100 dollar mark and in late June it crossed $200 dollars, soon in August the value tripled and went over $300, finally by the end of the year the worth of 1 coin is equivalent to $800. Most of the experts believe that growth seen in dash was out of speculations of trading on currency exchanges. However, here are the four things that really made the difference:
Optional Payments Made Instantly
With the help of InstantSend, users are able to send their payments for confirmation in no time. At such a speed, you can process a large volume of transactions to the Masternode or the device that verifies the different transactions. As per the developers, the high-speed of dash enables more users to use the dash wallet, as transactions get confirmed instantly and thus the currency is preferably the best for transactions with the point of sale (the instant ones like shopping for clothes, buying drinks or other items from retail stores). On the contrary, the time exceeds to 10 minutes and in certain cases to hours in case of bitcoin.
People have a common misconception that every transaction performed via bitcoin is anonymous, however the reality is far from that. Tracing your wallet and then monitoring previous transactions through the blockchain is a simple task but this will never happen in case of dash wallet. The wallet is equipped with a unique feature called PrivateSend, with this various transactions are bundled together to create anonymous payments. With this tracing the origination of payment and understanding what’s happening to them turns out to be impossible.
Incentivized Model of Governance
The governance model of dash is superior to other cryptocurrencies. In bitcoin, the development is dependent upon the contribution of community, while in case of Dash it acquires its funds from the transaction fees that it takes from the users.
Lower Transaction Fees
The average fee that you might pay when you use digital cash is around $0.05 dollar, while at present for bitcoin it is $3 to $4 dollar. This certainly brings some great news for the crypto users who pay only two cents for the transaction, for which a bitcoin user pays five dollars and the best part is that these fees have remained to be steady, even after the price of cryptocurrency saw a serious hike.