If you are new to the world of cryptocurrency, you might be wondering about all the different currencies you can buy or invest in. There are so many that it can be overwhelming to know where to begin after the two front runners – Bitcoin and Ethereum.
In this article we go in depth on a cryptocurrency called Dash. We’ll explain everything you should know, including what it is, who founded it, and whether it is a good investment. Ready to learn more about Dash in just a few minutes? Let’s jump in!
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What Is Dash?
Dash is a form of cryptocurrency that enables users to send and receive payments globally through cheap, quick transactions. Dash was created using the same code as Bitcoin; however, the developers of Dash wanted to make it more anonymous than Bitcoin.
The name is an amalgamation of the words’ digital’ and ‘cash.’ Pretty clever, huh? Dash is most popularly used in countries where inflation is at its peak, such as Zimbabwe and Venezuela.
History of Dash
Dash was initially developed as XCOIN by American blockchain developer, Evan Duffied who saw a massive flaw in Bitcoin in that it did not give anonymity to users.
While transactions sent through Bitcoin do not reveal the sender’s name, they can reveal their wallet address.
Duffield first named his creation XCOIN before changing to Darkcoin, which was then finally rebranded as Dash.
What Makes Dash Unique?
Predominantly, three features set Dash apart from other cryptocurrencies, particularly leading coins such as Bitcoin and Litecoin. Let’s take a look.
The Dash blockchain has miners – which is not uncommon for blockchains to have. However, this system is split into two parts which are known as master nodes and miners.
Masternodes are vital as they perform critical functions such as sending private and instant transactions and controlling the treasury system. The work done by master nodes is not easy, and so they are rewarded by the network.
Sending transactions can be time-consuming and takes between 8-9 minutes to send a transaction through Bitcoin, resulting in a poor user experience. Dash prevents this from happening with master nodes that are paid to speed up the sending of transactions.
This is part of the reason why Dash was developed in the first place. Transactions sent through Bitcoin are available for all to see; therefore, if a transaction is sent, information such as where the transaction has been sent from, how much the transaction was for, and previous transaction history is available for anyone to see.
Duffield saw this as a risk, and when he created Dash, he saw a gap to create a feature known as PrivateSend. Transactions sent through Dash are entirely anonymous and cannot be traced back. Again, PrivateSend transactions are facilitated by master nodes who are rewarded for this.
What Is Dash Used For?
Like many other cryptocurrencies, the most basic use of Dash is to purchase goods and services. Interestingly, Dash funds many projects through funds of its own such as:
This was developed for users in Zimbabwe, where the national currency is crippled by inflation.
This controversial project was set up to provide a payment platform for individuals to buy legal cannabis in the USA.
What Is The Technology Behind Dash?
Dash was built using the same technology used for Bitcoin but with a few tweaks. These can be seen in the nodes used. In the Bitcoin system, each node is equal, whereas Dash sets them apart using masternodes.
Any user can become a masternode, providing they have 1,000 Dash sitting in their wallet. Masternodes can perform certain features such as instant and private transactions (as discussed above). They can also vote on essential discussions involving the network.
The master nodes also prevent attacks and add an edge of security that other networks do not offer to users.
The safest and most reliable way to purchase Dash is from an online exchange. Other ways to purchase Dash can be online from another individual or even from a cryptocurrency ATM.
If purchasing online, do some research into other online exchanges as you may save yourself from money if rates are different. If you plan to invest in a large sum of Dash, it is best to store your funds in a wallet to keep it secure.
The feature that sets Dash apart from the likes of Bitcoin is the fact that private transactions can be sent. But how private can they be?
The problem with the privacy feature is firstly; they take longer to send. This is because the masternodes can only send them when other transactions of a similar value also need to be sent.
Another problem is that they are not entirely private, as there is a chance the transaction could be traced back to the masternode.
Is Dash A Good Investment?
It is hard to say whether or not Dash is a good investment. The fact that it is a privacy coin may reveal potential risks. For example, the anonymity features make it easier for illegal traders to use as it lowers the risk of getting caught out.
Technically, Dash is a decentralized network, however, a hefty portion of the work is carried out by masternodes which somewhat counteracts this claim; this also brings up another investment issue in that if the masternodes begin to lose faith in the system, this will affect the user experience.
With that being said, it is difficult to say what is and what isn’t a good investment as the market is so volatile at the best of times.
Dash is a cryptocurrency that can be used to send and make payments globally. Its anonymity and fast transactions make it a good choice for those who use crypto to purchase goods and services. Dash is available as an altcoin on most leading exchanges. Cryptocurrency is a volatile industry, so be sure to conduct your research before making any investments.