DashCoin

Dash (formerly known as Darkcoin and XCoin) is an open-source peer-to-peer cryptocurrency with an independent forum. It offers direct transactions, private transactions and independent processing systems. Dash was originally a fork of the Bitcoin software but is now called an altcoin.

Dash’s self-sustaining, self-organized system is known as the Treasury System. The global network of masternodes vote on the Dash upgrade plan and the approved plan is Treasury receives 10% of all newly created Dash.

Dash, a decentralized protocol, built on the bitcoin code, has a unique feature that allows it to process transactions anonymously. Aside from privacy, its transactions are fast, and the fees are incredible. This is possible thanks to its features including masternodes, InstantSend and PrivateSend.

Interestingly, Dash is an open protocol, meaning that it is not controlled by anything or anyone. Also, it has its own blockchain, infrastructure, and wallet.

History of Dash (DASH)

Dash was founded in January 2014 by Evan Duffield. Duffield is a software developer. Prior to Dash, he worked at Wells Fargo Bank and iAcquire.

Derived from Bitcoin, this project was previously called Darkcoin. Although there are similarities with Bitcoin, the service has been improved in many areas to make it more attractive as an exchange. Later, the service was renamed Dash in March 2015. During its launch, the project faced controversy where 1.9 million were mined in the first two days of launch. Apparently there was a bug that caused the problem. However, the coins that were mined were later distributed through different exchanges.

How to use DASH

Dash has several features that give it an edge over other cryptocurrencies such as Bitcoin and Litecoin. Dash can be used to communicate privately and quickly through these three features: Masternodes, PrivateSend, and InstantSend. 

Masternodes

Unlike the Bitcoin industry, in which there is only one type of node, Dash nodes (nodes) are divided into two types – ordinary mining nodes and masternodes. Each member of the network can create a masternod by uploading the complete blockchain history and saving at least 1000 DASH in the account. The latter allows you to protect the network from the “recommendation” of the attackers and the 51% attack, since the violation of the proper functioning of the system, including the violation of the attacker in himself.

It is thanks to the masternods of the Dash system that functions like self-sending and instant sending are available. For their work in network maintenance, masternodes are awarded 45% of each mined block. Also, they have the right to propose their projects, as well as vote for proposing projects that enter the future development of cryptocurrency. According to the official website, 4100 Masternod cryptocurrency is currently active.

PrivateSend

This is a unique Dash technology (formerly known as DarkSend), which allows sending private transactions. CoinJoin’s unique combination method, proposed by Gregory Maxwell (gmaxwell), is for this purpose. The change of the church to create an anonymous transaction will be done manually in a cryptocurrency wallet.

The user can choose the number of mixed towers – from one to eight (other towers, higher level of anonymity). To prevent misuse of the mixing service, a fee is paid – on average, every 10 minutes will be paid for 0.001 DASH. The mixing process takes time, so you have to wait for the anonymous transaction to be processed. When sending transactions you must be careful, because in private transactions it is possible to send normal transactions that can be found in the address where the change will come.

The amount of the anonymous transaction must be the amount of the minimum face value – 0.01 DASH. This is built into the process to bypass the “reimbursement” sending process, which allows you to track the transaction.

InstantSend

This raises many questions about Bitcoin’s scalability and mass adoption. Dash solves this problem by offering a special service called “InstantSend”. Thanks to InstantSend, the Masternode network supports instant Dash transactions.

There is an additional fee for the InstantSend service compared to normal Dash transactions. A normal Dash transaction is cleared in 2.5 seconds, which is still an improvement over Bitcoin.

But who wants to wait 2.5 minutes at the grocery store just to pay? No one. So, by paying a small fee, you can have Masternodes clear your business in seconds. On average, it takes about 10 minutes for a Bitcoin transaction to be approved. On the other hand, it only takes a few seconds for transactions through Visa or Mastercard. 

Working Principle of Dash

Like Bitcoin, Dash also relies on miners to support transactions and compensation, which in turn rewards them for blockchain activity. However, he made some changes to the system by adding the concept of Masternode. Miners can earn Masternode status by investing a minimum of 1000 DASH. This gives them a unique position to perform critical tasks on the network. For example, they are responsible for processing instant transactions (InstantSend) and private transactions (PrivateSend) and overseeing the overall governance and wealth of the blockchain.

The presence of Masternodes not only improves network security but also speeds up the transaction speed. Since this requires additional effort and resources, Masternodes are well compensated for the support they provide. 45% of the reward goes to all miners, while Masternodes get 45%. 10% of the coin is allocated to fund future projects and network upgrades.

To send and receive money, cryptocurrency uses a similar system of public and private keys. This unique way of managing transactions not only allows him to process and monitor transactions quickly, but also ensures that excessive miners do not leave the platform by offering them a reward of good.

Advantages of Dash

Apart from the disadvantages and other advantages that blockchain-based cryptocurrency offers, it brings many unique advantages. Full acceptance as money

More than 4,800 customers accept it as a viable digital currency that allows users to purchase goods and services anywhere in the world.

The cost is low

The average transaction fee is less than one penny, which means that consumers will not have to pay a lot to use the convenience and efficiency of digital currency. 

Availability

You can easily buy DASH at any online currency exchange, and it’s easy to host friends and family. You can also get it from your nearest ATM.

Mobile applications

To bring more quality and functionality, it offers mobile apps for Windows, macOS, Android, iOS, and Linux platforms. You can do many things with the app.

Daily use

Whether it’s paying your loved ones, grocery shopping, or dining at your favorite restaurant, it’s designed for consumers who can use it every day.

Fast business

Unlike Bitcoin, which can take a few minutes to process a transaction, the network approves your transaction in a minute, making purchases quick and easy. 

Suitable for business

Apart from consumers, it also offers many benefits for businesses, including access to new markets and customers, instant accommodation, and no refunds.

Drawbacks of DashCoin

• An error in the code that led to the instmine – at the beginning of his journey, Dash suffered a reputational injury associated with a serious heart attack. 
• As a result, 25% of the coins are distributed among a small number of holders. According to the founder, this is due to a critical error in the code.
• Investors who study the history of the coin, before investing in it, can push this unpleasant fact from Dash’s biography. There is no open rate for the use of funds for the development of the network – in the mining process, 10% of the coins go to the DGBB fund, and in addition, for the plan of each project, the user is paid money which. 5 RUSH. 
• Unfortunately, currently, there are no open statistics on the distribution of these funds. Monopolization of mining – in the beginning the Dash block was made using frames or video clips, now many miners use ASIC devices.
• Unfortunately, the team does not fight this common battle in any way (for example, the Monero team is constantly making changes to the protocol to prevent cryptocurrency mining monopolization).