By now the total capitalization of the cryptocurrency market amazingly increased by 34.6 times, after which a correction began. However, according to many experts, we will soon see continued growth. In particular, Jesse Powell, CEO of Kraken, in an interview with CNBC announced a forecast that the total capitalization of the cryptocurrency market will exceed a record $ 1 trillion soon.
It should be noted that the share of Bitcoin in the total capitalization is steadily decreasing. One of the reasons for this trend is the technological limitations that prevent Bitcoin from becoming truly widespread.
John Oliver, one of the most popular TV presenters in the United States, in an episode dedicated to Bitcoin, spoke about the recent case when the organizers of the Bitcoin conference were forced to stop the sale of tickets for BTC due to technical difficulties. Such incidents raise questions about the viability of this currency.
Stories like this suggest that the trend of the decline in the share of Bitcoin in the coming years will continue and the main growth will be in alternative cryptocurrencies, since many of them have much more advanced technologies and a higher potential to become widespread in the payments market. But how do you determine which of them has the highest chances of leadership?
Dash finds real-life uses that make a fundament of its growth
One of the most important factors for the growth of capitalization of any cryptocurrency is its applicability in real life. This parameter makes it easy to distinguish speculative projects from truly promising products.
The main application of blockchain technology, as conceived by its creator, is the replacement of existing system of centralized money. However, none of the top currencies, apart from Dash, market themselves this way. Other projects are targeting technology platforms without a clear niche and goal.
Dash’s goal is to massively enter the daily lives of hundreds of millions of people as a means of payment, and there are all the prerequisites for this.
While fees for Bitcoin transactions reached $ 40 at the end of 2017, Dash fees cost less than $ 0.01, and using Instant Send technology, funds reach the addressee instantly. These two simple arguments expand Dash’s potential use cases to the broadest possible extent. Combine these arguments with anonymity and decentralization, and you have a project that has the potential to scale to giants like Google and Apple.
The mission of Dash is to make digital cash accessible and easy to use, even for people with no computer skills. Anyone can create a blockchain account, add a list of their contacts and transfer money by their name. Online and mobile shopping will be possible with one click.
Dash is the first cryptocurrency with sustainable long-term funding
Most cryptocurrencies have unstable funding models. For example, the development of Bitcoin, NEO, IOTA, Litecoin is funded on a voluntary basis by large companies and exchanges, the same model is used in Bitcoin Cash, which is funded by Roger Ver and, as some people say, by chinese miners.
At the same time, the motivation of the sponsors remains mysterious, each of the groups is accused of being engaged and pulling the blanket over itself. Indeed, this funding model is fertile ground for conflicts of interest.
Currencies from another group, such as Ethereum, EOS, NEM, Qtum, Nano, Stellar and many others, are financed by the held token sale and holding a part of the currency in the fund. Moreover, specific plans are not stated for further financing after the fund’s reserves are exhausted, which should alert cautious investors. It is hard to imagine that a project will develop steadily for decades if it does not have transparent and stable sources of funding.
As for Ripple, it is privately funded, but such a model is not transparent by definition, which reduces the investment attractiveness of this asset and raises questions about the motivation of everyone associated with Ripple.
Monero’s funding differs from other systems similar to crowdfunding, which partially solves the problem , but nevertheless does not answer the question “Where will the money come from if serious spending is necessary?” – after all, with the help of donations it is not always possible to collect the necessary amounts, which is proved by the current financial situation of Monero.
It is hard to imagine that a project will develop steadily for decades if it does not have transparent and stable sources of funding.
Dash has an efficient management system
Like funding, the management systems of most cryptocurrencies have obvious flaws. In the case of Bitcoin funding itself is absent and the community develops in an anarchic manner, which leads to regular splits and forks (fork means the division of the original currency into separate independent ones). Vitalik Buterin reigns supreme in Ethereum, which is the obvious key person risk.
Unlike Bitcoin and Ethereum, Dash’s governance model is based on the experience gained in the business environment, where the project is led by directors appointed by the shareholders. In Dash, the role of shareholders is played by large holders of funds, the so-called “master nodes” (investors who own more than 1000 Dash). Master nodes have the right to vote on all key issues in the development of the company, including the selection of key positions such as CEO, CFO, CTO, etc.
I think it is quite obvious that the motivation of shareholders, whose long-term well-being depends on the success of the project, is much higher than the motivation of independent teams or individual leaders, whose motives remain unclear to a wide range of investors, whose ambitions, whims or even health problems can put the whole project under a risk.
Dash’s governance model is based on the experience gained in the business environment
Dash’s governance mechanism avoids conflicts within the community. This is achieved through decentralized voting on all important decisions.
Having a clear and unambiguous way of voting allows the community to remain strong even when it is forced to face a very dynamic environment that requires making difficult decisions about the direction of development, and to ensure that those decisions are implemented on time.
A simple example: in early 2017, when the Dash Core Team published a proposal to increase the block size to 2 MB, within 24 hours a consensus was reached by voting and the proposal was approved. Compare that to Bitcoin, where the block size debate lasted for about three years.
In addition, Dash is not vulnerable to the risks associated with the loss of a leader, which, for example, is subject to Vitalik Buterin’s Ethereum. The death rumors of the owner dropped the cryptocurrency rate by 11%.
Strong team. Mechanisms of motivation and internal competition.
Internal voting and long-term funding made possible the emergence of another Dash advantage – a strong team.
Dash developers can be displaced at any time by voting, which creates a natural incentive to move forward. This sets Dash apart from some other projects in which leaders can rest on their laurels until the money from the sold tokens run out.
In addition, a long-term source of funding opens up the opportunity for Dash to offer some of the highest salaries in the industry and thus attract the strongest talent. Since the inception of Dash, the development team has grown to 30 full-time employees, 20 remote employees and dozens of volunteers.
In our opinion, these arguments prove Dash to be one of the most competitive cryptocurrencies on the market, and the prospect of its mass popularization as a payment system opens up the possibility of widespread distribution for Dash.