Dash is a popular crypto currency which may be used to send or receive payments. Dash was based on the same Blockchain Bitcoin relies on, and significantly improves upon its structure, as we will discover over the course of our article.
Dash is a crypto currency which launched in 2014 and represents a market capitalisation of $2.4 billion. The crypto asset gained in popularity thanks to higher levels of confidentiality and faster transaction speeds than what Bitcoin can offer.
The technology associated with this virtual currency possesses a unique model: the Masternodes, which we will go over in more detail after our introduction as these are fundamental to Dash.
Dash is a portmanteau word which brings together ‘Digital’ and ‘Cash’. It was launched on the 18th of January 2014 by Evan Duffield under the name ‘Xcoin’ (XCO). On the 28th of January 2014, the name was changed to ‘Darkcoin’ before finally being designated as ‘Dash’ on the 25th of March 2015.
The price of Dash has been increasing continuously, particularly in the beginning of 2017. Today, it stands as a reliable standard in the crypto world.
Faster, Private Transactions
Dash is probably one of the best crypto currencies to carry out fast, private transactions thanks to three trademark elements: Masternodes, PrivateSend and InstantSend.
While some transactions can take a significant amount of time when using other virtual currencies, Dash allows its users to carry them out at lightning speed.
In the classic Bitcoin Blockchain system, miners check the transactions made on the Blockchain and receive a reward for the work they carried out on the network in the form of a certain number of tokens.
Dash is no exception. The difference resides in the fact that this crypto currency involves Masternodes.
Masternodes act as special servers and execute important functions on the Dash network. A Masternode is in charge of private transactions (PrivateSend), of instant transactions (InstantSend) and of the control system.
A user must make a deposit of at least 1000 DASH in order to become a Masternode.
These Masternodes improve network security and guarantee fast online transactions which are now on par with regular banking transactions.
The fact that the Bitcoin Blockchain is public is both an advantage and a drawback. If you complete a Bitcoin transaction, anyone who has access to the Internet can also access the following elements:
The sender’s and the recipient’s public addresses for each Bitcoin transaction
The value of the transaction
All previous transactions
In a traditional monetary system, transaction details are known only to the parties it concerns within the network. As an example, if you complete a bank transfer to send money to someone you know, only yourself and your bank will be informed as to the transaction.
Within the framework of Dash’s PrivateSend, an additional layer of confidentiality is conferred to transactions. These transactions cannot be traced back and the users’ identities are not revealed to the whole wide world. Private transactions are facilitated by the Masternodes.
The Dash crypto currency consequently offers a certain advantage when compared to Bitcoin by adding a layer of confidentiality which the latter doesn’t allow.
The Dash currency may be referred to as fungible, in the same capacity as Euros or US dollars. Fungibility means that two €50 bank notes (for instance) can be swapped around without any incidence. This concept doesn’t apply to Bitcoin. Dash transactions can’t be traced back, which implies that their history is unknown and, therefore, that all values are equal and fungible.
Within the Bitcoin Blockchain, about twelve minutes are necessary for a transaction to be confirmed whereas it only takes a few seconds for a traditional banking transaction using a Visa or a MasterCard.
Some consider that this considerable processing delay put a damper on the development of the Bitcoin currency around the world. In this context, Dash is an alternative solution which solves this issue by offering its ‘InstantSend’ service. Thanks to the Masternode network, transactions are processed incredibly swiftly.
How Do Dash Transactions Work?
As they would do for any other crypto currency, Dash users need to rely on a wallet. A Dash Wallet contains:
A Public Address
You can think of your public key as a bank account number, or Bank ID. The user doesn’t get to pick the number, as it is randomly generated and contains a combination of numbers and letters, much like a Bank ID.
A Private Key
Your private key is confidential and corresponds to a random character sequence which is required to access your Dash wallet and to complete a transaction. In other words: this is your password.
Now that you know the two main components of a Dash wallet, let’s look at how money transits between your Dash wallet and the rest of the network and how another user can receive your payment.
When you send Dash to a public address, miners add your transaction to the next transaction block. If you opted for the InstantSend service, your transaction will immediately be confirmed by a Masternode; otherwise, it will be confirmed by a regular miner in the space of a few minutes. Following the mining operation, the results are verified and validated in order to make sure that there is no mistake and that the transaction is valid. Finally, the amount is transferred to the recipient’s account.
Investing in Dash
The legitimate question many investors in the crypto world ask is the following:
Should I invest in Dash and, if so, how much?
Dash remains a typical crypto asset and, as such, it is no exception to the rule. The amount you decide to invest in Dash should be intended to gain in value at some point or another.
In 2017, those who had wagered on the success of Dash remember this example which illustrates the currency’s potential perfectly:
10 Euros invested in the beginning of 2017 had turned into €1500 by December. While the currency has been relatively stable since, the vigour of the Dash coin has been influencing the entire crypto world. The main reason which explains Dash’s popularity is that it solves two of Bitcoin’s most significant issues: a lack of confidentiality and slow transaction speeds.
As an investor, you certainly like to keep an eye on those projects which are continuously improving their technological specs. As a self-managed and self-funded project, Dash is constantly building upon its user base and investing in its future, which is certainly very encouraging.
With lower processing fees than Bitcoin, Dash transactions make it cheaper to transfer money.
Is the DASH System Reliable?
Dash’s crypto currency is built on the foundations of Blockchain technology, which offers highly secure online transactions based on a decentralised process. Dash transactions are confirmed by almost 5000 micro servers hosted everywhere around the world.
The decentralisation of Dash’s system was criticised due to an incident which allowed for too many tokens to be released when they were first introduced. This concentrated the gains of a small group of people, giving them what some considered to be too much power over decisions regarding the future and the development of Dash.
Thanks to a truly robust infrastructure, Dash is turning out to be a reliable crypto currency which deserves the attention it receives.
Should you be investing in Dash? The answer to this question is much more complex than a simple yes or no. As you would for any investment, follow your intuition and do your research to know whether the operation is likely to be a winning one.
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