As Dash Cryptocurrency has been gaining popularity like bitcoin when it first spread worldwide in 2014, you may be wondering what is Dash Cryptocurrency and how does the company function and its differences from bitcoin and it’s other competitors.
Dash is an open-sourced cryptocurrency formerly known as Darkcoin due to its brief moments of being used in the Darknet markets and Xcoin when it was first released in 2014 on January 14th.
Dash was founded by Evan Duffield and is one of the top 12 cryptocurrencies such as bitcoin, ripple, and etc. Dash became its official name on March 25, 2015.
Although dash cryptocurrency is considered fungible due to it being a traditional fiat currency, Dash is known for its self-governing and self-funding nature.
This allows for the profiteers to have a say in how to improve the program. The governance of this system overcomes the shortfalls the Bitcoin offers, unfortunately.
Dash is able to self fund itself through its reward system. Dash allows for both the masternodes and miners to earn 45% of the mined profits to their dash wallet, before storing the final 10% towards network funding. This is effective due to the blockchain system needing continuous development which is built on top of the Bitcoin also uses.
Dash’s popularity comes from its privacy and better transaction speed, unlike bitcoin. Unlike bitcoin which is completely public allowing any person with access to the public address of the sender and receiver.
They are also able to see how much it’s worth and previous transaction history. Because of this Dash is completely untraceable so you are not required to disclose your minings to the IRS.
Dash’s transaction speed and privacy are made possible by its 3 features. Masternodes has the ability to validate transactions, act as shareholders, vote on terms to improve Dash, relaying messages, hosting a copy of Blockchain.
In order to become a Masternode, you must have ownership for over 1000 Dash coins, have a static IP address, and a minimum CPU ram, disk space, and network bandwidth. The other two features fall directly under Masternodes.
You have the ability of InstantSend which bypasses mining and requires the consensus of a Masternode to validate a transaction and it’s speed.
Unfortunately, this feature requires an extra additional cost or fee for the service. The final feature is titled PrivateSend, this makes transactions untraceable and combines unspent user’s Dash.
PrivateSend prevents the reveal of user’s identities. Although Dash is popular due to its security, it’s only secure if a bug doesn’t get written into the code like it did when the company was first launched resulting in 2 million being mined within 48hrs when the company limit is 18 million. Because of its popularity Dash has become insanely powerful.
Dash has grown exponentially over the past few years. In 2018 Dash’s market capitalization had grown to around $4.3 billion. Due to the company rise, the profits have risen too, providing the early investors with a tremendous return. Although Dash has become a cryptocurrency powerhouse it is still Cryptocurrency where investors should be very mindful of.