Dash (Darkcoin until March 26, 2015) is a cryptocurrency aimed at anonymity. Dash cryptocurrency protects your privacy by making transactions anonymous using a network technology developed by the Dash team known as DarkSend. DarkSend was inspired by the CoinJoin project, which was supposed to anonymize Bitcoin transactions. After the rebranding, Dash was positioned as an open source anonymous digital currency for the common public. The focus is on security and transaction speed.
The coin was born on January eighteen, two thousand fourteen without mined coins. It uses an 11-stage hashing algorithm, namely blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd and echo, which makes this coin particularly secure. In today’s version, only twenty-two million units of Dash can be issued, which is intended to keep back the coin’s growth.
The coin has certain characteristics that are similar to Bitcoin, but there are also a lot of features that assist it to avert such problems that stay unsolved for Bitcoin. Thus, the maximum emission volume of Dash is limited, like that of Bitcoin, but the mechanism for containing growth is different. Also, the coin is more anonymous and multifunctional than Bitcoin, and transactions with Dash are faster.
Dash salient features
The organization system of Dash is significantly different from other cryptocurrencies. Basically, Dash operates on the principles of Decentralized Autonomous Organizations (DAOs), rather than through a consensus system that involves a large number of participants, which inevitably leads to problems with the organization. There are other features that define how cryptocurrency works. Here are some of them:
- Maximum emission is limited;
- The coin production ends at two thousand one hundred-fiftieth year;
- The volume of produced cryptocurrency will reduce by seven percent every year until it approaches 0 in two thousand one hundred-fiftieth;
- A two-tier system of miners and master nodes ensures network security;
- The consent of the master nodes is required to confirm the block mining by miners;
- The mining (how to mine Dash) reward is divided between the master-nodes and the miners, while the master nodes get about forty-five%;
- A new block appears approximately every two minutes and a half;
- The established block reward is five coins.
Where Dash comes from
All these features were established into Dash with the aim of creating an alternative to Bitcoin that’d be more secure, decentralized and anonymous, and transactions would be faster. Dash cryptocurrency creator Evan Duffield wanted the speed of transactions to authorize his crypto to be used in retail. He wanted to solve the problem of long waiting time for Bitcoin transactions confirmation, due to which sellers cannot effectively use it for trading, or are forced to rely on third-party services that authorize transactions without confirmation. This is how Darkcoin, which we presently know as Dash, was born on January eighteen, two thousand fourteen.
The choice of the title for the Darkcoin was driven by inactive mixing and privacy features that were built into Dash. These functions allow to authorize truly confidential transactions, which is achieved by grouping several separate transactions with the same value in such a way that no one can use the data of these transactions to identify any of the senders. For this, transactions are grouped by the quantity of funds sent, and miners are paid for the all grouping at once. Transactions go through master nodes, which enqueue them for further distribution. This allows the master nodes to work together to discover transactions that can be added to the grouping and thus obscure the identity of the senders. This ensures that the principles of blockchain verification are maintained, but the identity or aliases of the senders aren’t disclosed.
Another feature of Dash is the mining algorithm. It’s called the x11 hashing algorithm. The method used by this algorithm makes it much more challenging to create ASICs for mining the coin, although it’s possible. It remains to be hoped that such an ASIC won’t be created soon, which means that amateur miners will be able to mine the using the CPU and GPU for longer.
Considering all the above, it can be assumed that Dash is very popular. In fact, it took about two and a half years for the cryptocurrency to gain acceptance. One of the main achievements was the rebranding of DarkCoin and XCoin into Dash. Regular users are more willing to a coin with a neutral title that doesn’t lead to shadowy thoughts about illegal transactions. On the other hand, the coin developers have always tried to discover a use for their coin in the genuine world. So they ensured the coin compatibility with devices such as the Trezor wallet, which many Bitcoin users already had at that time. The coin is supported by Lamassu bitcoin machines and Dash N ’Drink machines.
Community participation and organizational structure
All this became possible only thanks to the active participation of the community, with which powerful ties are maintained on BitcoinTalk, as well as a well-thought-out organizational structure in which each master node can vote on the investment of funds that the project receives in the form of donation. As a result, the coin is very flexible in terms of organization of work and always meets the needs of users.
However, all these benefits don’t imply that Dash isn’t being criticized. When Evan Duffield launched the coin, he was able to mine a lot of currency in a brief quantity of time. In the first forty-eight hours after the launch of Dash, 1.9 million coins were received. Duffield stated that this was due to a bug in the code that was quickly fixed. Many people think that it was nothing more than premining. Duffield vehemently denies all charges. In the comments, you can give your opinion about Dash. Please note that if you’ve got questions or wish to discuss trading, we recommend using the topic on the forum.