Dash cryptocurrency: how good is this Bitcoin fork now?

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Contents

Advantages and disadvantages of DASH

Dash cryptocurrency is a coin with its own advantages and disadvantages – as any other cryptoproject.

The advantages include the following:

  • Low fees – Sending transactions on the Dash network requires the payment of a fee, but it is much lower compared to the fees imposed by banks or those paid when using credit cards. Even with instant transactions, fees remain minimal.
  • Instant Transactions – this feature is made possible by the unique Instant Send technology, where confirmation of a transaction takes about 1.5 seconds. This gives Dash an advantage even over other cryptocurrencies, in the system of which confirmation of transactions takes longer time (more about features and benefits here).
  • Anonymity and privacy of transactions – Dash is the first potentially anonymous cryptocurrency. “Potentially” because the privacy feature is optional, i.e. the user can choose it using a technology called Private Send. It ensures that neither the wallet from which the transaction was sent nor the amount can be traced.
  • Two-tier network – Dash cryptocurrency uses the Proof-of-Activity consensus algorithm, which involves the coexistence of miners (working with the PoW algorithm) and holders (working with the PoS algorithm). This allows creating two levels of transaction verification, which is an indicator of a more decentralized system.
  • Users can participate in the development of the network – thanks to DGBB (Decentralized Governance by Blockchain), users can propose projects that can make the Dash network better. This feature is available to every user who has an account in the official wallet and owns at least 5 DASH.
  • Advanced security – due to the use of the X11 encryption algorithm, as well as the two-tier block creation system, Dash becomes more resistant to hacker attacks, as well as to conducting 51% attacks than other cryptocurrencies. In addition, this coin has open source code, so the changes made will be immediately visible to members of the community.

Among the disadvantages are:

  • A bug in the code that led to insta-mining – In its early days, Dash suffered a hard blow to its reputation that was due to a huge insta-mining. As a result, 25% of the coins were distributed to a very small number of holders. As the founder said, this happened because of a critical bug in the code. Investors who study a coin’s history before investing in it may be put off by this unpleasant fact in the biography of Dash cryptocurrency.
  • The lack of open statistics on the use of funds going to the development of the network – in the process of mining 10% of coins go to the DGBB fund, in addition, the user is charged a fee of 5 DASH for offering each project. Unfortunately, there are no open statistics on the distribution of these funds at the moment.
  • Monopolization of mining – originally the formation of Dash blocks was done with central or video processors, but now most of the miners are using ASIC devices. Unfortunately, the team does not fight against this trend (for example, the Monero cryptocurrency team regularly makes changes in the protocol to prevent the monopolization of mining).   

Collaboration in the DASH Network

hands hold each other

Dash cryptocurrency is a popular and promising coin, so it arouses the interest of many companies. At the moment, the project cooperates with the following projects:

  1. KuvaCash – a project created with the support of Dash funding and aimed at solving the problems of inflation in Zimbabwe. To use this platform and make payments in Dash, you only need to have a smartphone. The service is available not only to companies but also to individuals;
  2. Saifu – a project of a Czech bank, which presents a platform that allows exchanging “fiat” to cryptocurrency and back directly, due to which there is no need to use exchangers or exchanges. The use is very simple and intuitive; 
  3. Kripto Mobile – a Venezuelan project, the cooperation of Dash with which will consist of joint work on the creation of “crypto-phones”. The main target audience is South America. Such phone models will simplify the use of cryptocurrencies, in particular Dash (DASH), in everyday life. And amid the crazy crisis in Venezuela, Dash has huge prospects in this country, and the cooperation with Kripto Mobile is just a part of the global strategy;
  4. CoinFlip – the conclusion of this partnership agreement has expanded the base of cryptocurrency on which Dash cryptocurrency is available by another 80 units, expanding the network of cryptocurrency supporting this coin to 418 units worldwide;
  5. CoinBR is a Brazilian trading platform with more than 13,000 registered merchants. Buyers can use cryptocurrency, including Dash to pay for goods and services on CoinBR;
  6. Rewards, a popular online shopping service – will partner with Dash as part of its introduction of cryptocurrency into its loyalty program. The main goal is to massively popularize cryptocurrencies among the public and encourage their use in everyday life. Users who participate in the Rewards loyalty program will now be able to get back a portion of their purchases in Dash tokens;             
  7. Wirex – a very important partnership for Dash that will allow users to pay at more than 40 million online and offline stores where VISA cards can be used to pay with DASH cryptocurrency. Customers will be able to link their Wirex card to their VISA card, top up their account with DASH and pay for purchases in stores;
  8. Payza – a well-known online payment service in the UK. As part of the cooperation, the cryptocurrency Dash will be integrated into the Payza system, which will allow users to pay with the coin in more than 100,000 online stores, as well as to exchange DASH for other cryptocurrencies and “fiat”.   

Differences from Bitcoin

Dash coin and Bitcoin

Although Dash was originally created as a fork of Bitcoin, these cryptocurrencies have significant differences:

  1. Unlike Bitcoin, Dash cryptocurrency has an instant payment service called InstantSend, as well as a masternode system that provides increased protection for the network. Masternodes receive a 45% reward for each block mined;
  2. While in the Bitcoin network it takes at least 10 minutes to confirm a transaction, in Dash it takes 1.5 seconds to confirm a transaction sent using InstantSend and 2.5 minutes for a standard payment;
  3. Bitcoin transactions can be tracked – anyone can see the details of the sender and recipient addresses, the amount of transaction, in Dash there is an opportunity to send anonymous transactions using the Private Send function;
  4. The Dash community participants can offer their projects, thus participating in the development and improvement of the network. In addition, 10% of the coins received when closing the block are allocated just for the development of the network. Bitcoin has no such opportunity;
  5. Compared to Bitcoin, Dash commissions are lower.

About Ankur Suri 17 Articles
Ankur Suri is a blockchain developer who became interested in cryptocurrencies while studying at UCLA. He follows cryptocurrency market news closely and is as passionate about writing as he is about programming. Together with a group of crypto enthusiasts, Ankur is involved in the development and promotion of the alternative Dash wallet, aiming to provide users with the most convenient tool for transactions with this coin.

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