What is DASH?

 Dash Guide & Review

The cryptocurrency market, which started after 2008, has grown rapidly in the last decade. With so many different coins and technologies, it can be hard to know which ones to invest in or use as currency. The terms and technologies behind these coins can seem complicated, especially for those who aren't tech experts.

One popular option, besides Bitcoin and Ethereum, is Dash, short for “digital cash.” Dash aims to make cryptocurrency easy enough for anyone to use, even your grandma! It’s built on blockchain technology with added features that make it stand out.

Dash, launched in 2014 by Evan Duffield, has grown quickly, reaching a market value of over $2 billion in 2018. It ranks 14th among the many cryptocurrencies out there. While Bitcoin has a much higher value, Dash is still one of the most widely adopted cryptocurrencies.

What Is Dash?

Dash started as XCoin and later changed to Darkcoin before settling on Dash in 2015. It’s mainly used for merchant payments. You can buy Dash on exchanges or mine it using your computer’s processing power to verify transactions and secure the network.

Dash was one of the first cryptocurrencies to successfully adopt self-funding and self-governance, meaning its development is funded by the network itself, and decisions are made by users running master nodes (special servers). This makes Dash one of the first successful DAOs (Decentralized Autonomous Organizations).

In simple terms, Dash builds on Bitcoin’s technology by adding budgeting and governance features, a master node network, and instant and private transactions.

How Dash Works

Dash works similarly to Bitcoin. There’s no central authority managing transactions; everything is recorded on a distributed ledger. The network consists of master nodes that process and verify transactions, earning rewards in return.

Dash’s master nodes give it more processing power, leading to features like InstantSend (confirming transactions in 4 seconds) and PrivateSend (hiding user identities and the origin of funds).

X11 Algorithm

Dash uses a hash algorithm called X11, created by its developer Evan Duffield. This algorithm is more complex than Bitcoin’s SHA-256, making it harder to create efficient mining processors, which helps keep the distribution of coins fair.

Dash Features and Benefits

Dash is popular for its increased anonymity through PrivateSend, which makes it hard to trace the origin of funds. It’s also decentralized, with master nodes providing more security and uptime than Bitcoin.

Dash is built for scalability, allowing up to 400 times more transactions per block compared to Bitcoin. This helps it handle more users and transactions as it grows.

Dash vs. Bitcoin

Dash differs from Bitcoin in several ways. It was released 6 years after Bitcoin, so it’s considered a newer and smaller cryptocurrency. However, Dash has many features that Bitcoin doesn’t, like its master node network and better governance. Unlike Bitcoin, where decisions are made by a small group, Dash allows over 4,000 master node owners to vote on proposals and development.

Dash Value and Price Growth

Dash’s value has grown steadily, especially since 2017 when cryptocurrencies gained more attention. Like many cryptocurrencies, Dash has a limited supply, meaning its value could increase as more people use it. Currently, there are over 8 million Dash coins in circulation, with a cap of 18.9 million.

Investors who bought Dash early have seen significant returns. For example, $1,000 invested in 2015 would be worth $72,000 by July 2018, even after the market corrected.

Summary

Dash is set to keep growing in value and popularity. It started with one developer and now has a team of over 30 people. The goal is to make Dash as easy to use as PayPal, solving issues like anonymity, governance, and transaction speed that older cryptocurrencies face.

Dash can be traded on most major exchanges under the symbol DASH. For more details, visit Dash’s official website.