History of Dash (DASH)

The project was created in January 2014 by a development team led by Evan Duffield. Before launching the platform, Evan studied the algorithms of other coins for several years and came to the conclusion that the digital currency should preserve the anonymity of users. In the BTC wallet system, there were tools that ensure the confidentiality of transactions – mixers. But Duffield’s initiative to implement a built-in protocol to increase anonymity was not supported by the community. This prompted him to start a separate project.

Dash cryptocurrency previously had a different name – XCoin. In February 2014, the coin was given a more catchy name – DarkCoin, but this option was misassociated with the concept of shadow turnover of finance, and as a result, the developers settled on the name Dash (Short for Digital Cash).

  1. Cryptocurrency features
  2. What is Dash in simple words
  3. Features
  4. How it works
  5. Distinctive features
  6. Dash technology
  7. Negotiability
  8. Usage
  9. Methods of obtaining
  10. DASH mining
  11. Masternodes
  12. Ways to earn
  13. Future and Prospects of Dash (DASH)
  14. Why you should buy Dash in 2021

Cryptocurrency features

The Dash coin (DASH) is used in a completely decentralized system: each member of the community can influence the approval of decisions on the development of the project. The network uses a complex mechanism for extracting new coins – the X11 protocol, which consists of 11 sequential functions.

What is Dash in simple words

An overview of the Dash crypto coin allows us to highlight the following characteristics: it is a decentralized, fast and anonymous alternative to BTC. The system’s source code has principles similar to Bitcoin, including the Proof-of-Work mode, which allows new tokens to be mined. But unlike BTC, mining of this coin is possible both on video cards and on processors. In this case, “amateur” mining is meant, since for faster mining it is necessary to use special equipment.

Despite the fact that ordinary users can mine new blocks, special servers called masternodes also participate in the transaction chain. These nodes act like mixers, splitting the translation into several parts and mixing that money. After the operation is processed by the masternodes, it becomes impossible to match the sender and the recipient. In theory, this guarantees almost complete anonymity. However, there are warnings from experts that the owners of the nodes can take possession of the confidential information of the participants in the transaction, although there was no direct confirmation of such cases as of 2021.

Features

The Dash crypto operates with the following parameters:

  • Open source code. Original version is uploaded to GitHub.
  • Just like most other cryptocurrencies, it uses blockchain technology, which allows it to track all the network updates.
  • Works according to Proof-of-Work principle.
  • Built-in PrivateSend function, which allows transactions to be anonymous. 
  • X11 hashing algorithm. Whereas Bitcoin uses SHA-256 function, DASH coin is validated with a chain of 11 conversions. This feature reduces the complexity of mining new blocks and protects the mining system from monopolization by the owners of powerful computing systems.
  • Dark Gravity Wave. This function is based on moving averages and is needed to smoothly increase the difficulty of mining subsequent blocks.
  • Decentralization. The user can suggest changes to the source code or vote on the changes already made. Thus, all token holders influence the development of the project.

How it works

Dash (DASH) is a two-tier system of miners and masternodes that guarantees anonymity and high transaction processing speed. Confirmation of operations and generation of new blocks can be carried out in three ways (at the choice of the sender):

  • Standard transaction. When entered into the blockchain, the transfer is considered unconfirmed. Then the block is decrypted and validated by other users.
  • Instant-X transaction. Information about the deal is transmitted to ten random nodes (masternodes), which immediately add the block to the chain as confirmed. In this case, the transaction processing speed can be only a few seconds. Higher fees are charged for the use of Instant-X technology, but this method is effective in retail and other areas where the speed of payment processing is important.
  • PrivateSend, a modified version of the CoinJoin technology used in the Bitcoin network. Before the sum is delivered, the coins intended for the recipient are split into several parts of 0.001, 0.01, 0.1, 1 or 10 DASH.

Distinctive features

DASH cryptocurrency has a number of features that distinguish it from BTC and other coins:

  • X11 algorithm, based on the sequential application of 11 hash functions.
  • Two levels of transaction validation. Regular transfers are confirmed by including blocks mined by miners in the chain. In parallel, some of these functions are performed by special nodes – masternodes.
  • Smooth increase in the difficulty of new block mining, based on moving averages.
  • Complete anonymity of transactions, which is achieved with the help of PrivateSend technology.

Dash technology

Platform is written in C++ programming language and is available as open-source. During the operation of the application, 11 cryptographic algorithms are sequentially applied (X11 protocol).This original development of the founder is designed to protect the system from centralization and monopolization of the network by the owners of ASIC miners – special mining equipment. After 2016, farms appeared on the market that allow mining the coin on a commercial scale, but the degree of centralization of this project is still much lower than that of similar blockchains (BTC, BCH).  X11 protocol allows to:

  • Make mining available for everyone, by using common GPUs and CPUs.
  • Increase performance and lower power consumption of mining farms.
  • Additionally, protect the network from hacker attacks, since the developers consider X11 to be a more advanced set of algorithms compared to SHA-256.

Negotiability

The platform is based on an open-source code published in two repositories on GitHub. Any user can make suggestions and additions to the code, which are approved by the vote of all platform participants.

Usage

The Dash coin is used in everyday transactions. High speed of transaction processing and protection against hacking allows you to use tokens to pay for goods and services. In 2019, a number of sources published data according to which the coin became the most popular cryptocurrency in Venezuela. People of this state have long suffered from hyperinflation and economic crisis and are forced to switch to digital assets for investment and day-to-day settlements.

Methods of obtaining

There are several ways to become the owner of this cryptocurrency:

  • buying on exchanges and P2P exchange platforms;
  • mining;
  • maintaining a node to secure transactions within the network (masternodes).

DASH mining

Mined tokens are distributed among the users who perform the calculations, the owners of the nodes and the decentralized control system in the following proportions:

  • 10% — deduction for project support;
  • 45% — reward for miners;
  • 45% — reward for masternodes.

Mining tokens is possible on various devices, including conventional processors and graphics cards. In the early years of the project, the features of the X11 algorithm did not allow the use of ASIC devices for block calculations. Currently, this option is already available, which affected the system hash rate and increased the complexity of the calculations. However, users who own conventional computers can still participate in cryptocurrency mining.

Masternodes

To provide Instant-X and PrivateSend modes, in addition to ordinary miners, special servers have been created in the network – nodes. The guarantee fee for connecting a masternode is 1000 coins. This amount is set to protect network users from intruders who might try to take control of the confirmation of transactions. The owner of the node receives 45% of the reward for the blocks found by miners. 

Ways to earn

As of June 2021, Dash cryptocurrency is in the top 50 coins by market capitalization. At the same time, during 2020-2021, the market trend of this token was mostly in line with other digital assets. Traders could earn both with long-term investment and speculative exchange transactions.

General ways to make money:

  • long-term investment;
  • speculative trading;
  • buying futures and other derivatives;
  • investments
  • trading
  • derivatives

Future and Prospects of Dash (DASH)

The assessment of the project changed as alternative platforms emerged, trends in cryptocurrency markets changed and statements from major token holders were made. For example, in December 2015, the founder of the currency, Evan Duffield, was optimistic about the future of the platform and said that it would survive even if the founders left the project, since it works on the principle of decentralized financing. However, after 5+ years the situation has changed.

Why you should buy Dash in 2021

The expediency of purchasing this cryptocurrency is associated with several factors:

  • High demand for digital assets in the first half of 2021. The charts of BTC and other tokens in May 2021 broke historical price records. The continuation of the trend can bring additional profits to investors.
  • The speed of processing transactions and the anonymity of transfers. These advantages make the project popular for day-to-day payments.
  • The prospect of mining. The process of mining new coins will remain available longer than the one on the Bitcoin network.

 

About Ankur Suri 8 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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