What is cryptocurrency Dash (DASH) and how does it work?

What is Dash (DASH)?

Dash (DASH), originally known as Xcoin and Darkcoin, was launched as a fork of Litecoin – which is a fork of the Bitcoin protocol – in January 2014 by Evan Duffield to address Bitcoin’s purported flaws with transaction times and privacy. Dash was designed to protect the anonymity of its users with the X11 algorithm while delivering transactions at higher speeds using Masternodes.

DASH is popular for it’s secure X11 algorithm and two popular features, InstantSend and PrivateSend. InstantSend allows users to transfer DASH without waiting for transactions to be confirmed on the DASH blockchain. PrivateSend enables users to obscure transactions by sending them in a special sequence that makes it difficult for any observers trying to trace DASH transactions.

How does DASH Work?

DASH uses a two-tier network, allowing its miners and Masternodes to run in tandem. One layer is powered by miners who compete to create new blocks and secure the blockchain. Miners preserve the DASH blockchain’s transaction history, while preventing double spending.

The other layer is controlled by Masternodes, which are users on the network who take some of the functions of a miner by staking 1000 DASH. Masternodes help miners by ordering and verifying transactions

One major difference between Dash and Bitcoin is that DASH has an average block time of 2.5 minutes (compared to 10 minutes) and miners only receive 45% of the DASH minted in each block (instead of 100% on Bitcoin). DASH utilizes the DASH utility token as one of the payment methods for fees on the DASH Network and it is used for staking in DASH’s Masternode system, allowing users to help secure the network in return for rewards.

Who Are the Founders of DASH? (History of DASH)

Dash was founded in 2014 by Evan Duffield as “Xcoin” before being rebranded as “Darkcoin” – and then rebranded again in 2015 with the name DASH to better represent its platform as ‘digital cash’. Duffield has claimed that he started it as a hobby, coding it in just one weekend.

Duffield stepped down in December of 2017, leaving the operations of the protocol to the DASH Core Group. DASH was one of the first alternative cryptocurrencies developed alongside Bitcoin and has been very prominent in the blockchain space over the last years rising as high as Rank 12 in 2018 amongst all other cryptocurrencies.

What Makes DASH Unique?

Dash utilizes the X11 algorithm for mining. It is a combination of 11 different hash functions making it very secure, as the potential hackers would have to solve 11 different problems.Dash also utilizes impressive features like private send and instand send.

DASH has over 5000 Masternodes currently, making it one of the largest networks in the world.

DASH has funded several community projects such as a feature-length documentary and the Dash Force News Team.

What Gives DASH Value?

Dash DASH

Buy

Bitcoin BTC

Buy

Ethereum ETH

Buy

DASH acts as a decentralized exchange of value and facilitates transactions between users who are invested in the ecosystem. DASH is scheduled to release its test net in 2021 which will allow DAPPs and other stores of value to be launched on the platform.

The DASH Dao receives 10% of every block that is solved. The DASH DAO uses the 10% it receives from mining to invest as decided by governance, using a decentralized voting system. This has allowed the DASH community to create many funded organizations including Dash Core Group, Inc. (DCG), which supports continued development, integrations, and other activities for DASH.

DASH has seen adoption worldwide with several vendors and suppliers allowing transactions in DASH. DASH is very popular in Venezuela with over 40,000 users of the DASH wallet located there. A list of companies that support DASH can be found on the official website.

How Many Dash (DASH) Coins Are in Circulation?

DASH has a circulating supply of 10,027,308~ tokens and a total maximum supply of 18,920,000 DASH. This supply will never increase unless the DASH DAO votes to allocate additional rewards from the 10% reserved for budget proposals.

During the first 48 hours of Dash’s launch roughly 2 million coins were mined. This significantly exceeded DASH’s planned emission schedule. DASH was originally forked from Litecoin, which suffered a similar issue at its launch due to a bug in its difficulty adjustment algorithm. While it is well-documented that Dash inherited the bug from Litecoin, there has, nonetheless, been widespread speculation about whether the resulting fast mine was intentional to benefit early miners.

How is the DASH Network Secured?

DASH, like Bitcoin, stores all transactions made on the network on a public ledger. This is so that the network can verify users have enough funds in their wallets to make a transaction. However, unlike Bitcoin, DASH uses a two-tier network where miners and Masternodes run in tandem. This makes it quicker than Bitcoin for processing transactions while also offering additional security.

By using Masternodes to secure the network rogue miners are unable to overpower DASH on their own. Even if malicious actors or rogue miners captured 51% of the mining power, Masternode operators would keep the miners in check. By combining Masternodes with the X11 algorithm for miners, DASH becomes incredibly resilient to bad actors.

Other Technical Data

Masternodes – a node is defined as any computing device (computer, phone, etc.) that is maintaining a network. Masternodes are governing hubs with additional collateral requirements.

Miners – the role of miners is to secure the network and to process every DASH transaction. Miners achieve this on the DASH network by solving a X11 computational problem which allows them to chain together blocks of transactions

X11 – a widely used hashing algorithm created by Dash core developer Evan Duffield. The X11 algorithm uses multiple rounds of 11 different hashes (blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd, echo), thus making it one of the safest and more sophisticated cryptographic hashes in use by modern cryptocurrencies.

How To Use DASH

DASH launched its main net in 2014. Users can head to the official DASH Website to create a DASH wallet.

Once a wallet has been created users will be able to deposit and manage their funds on the DASH network. DASH is primarily used to facilitate transactions of value on the DASH Network. DASH may be staked by users participating in the Masternode system for additional rewards. Additionally, DASH can be used as a speculative investment tool and a form of payment.

How To Choose a DASH Wallet

The type of DASH (DASH) wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets provide the most secure option with offline storage and backup. Both Ledger and Trezor hardware wallets offer storage and staking solutions for DASH. Hardware wallets can involve a bit more of a learning curve and are a more expensive option, however. As such, they may be better suited to storing larger amounts of DASH for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of DASH or more novice users.

Online wallets or web wallets are also free and easy to use, accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives, however. As you are likely trusting the platform to manage your DASH, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts or for more experienced frequent traders.

Kriptomat offers a secure storage solution, allowing you to both store and trade your Dash (DASH) tokens without hassle. Storing your DASH with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Selling and buying DASH, or exchanging them for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

DASH Staking

DASH currently supports staking through it’s masternode model and third party providers. The average APY for DASH is currently 5.5%.

Conclusion

DASH is a well-established cryptocurrency that has encountered and passed numerous obstacles. It offers a unique value proposition in terms of governance, which many investors may like. If we add to that the fact that Dash is a blockchain that can host decentralized applications, we may see why this cryptocurrency is so popular amongst crypto enthusiasts.

DASH FAQ

Is DASH a competitor to Bitcoin?

Yes. DASH was designed by Evan Duffield to address decisions in Bitcoin’s design that he disagreed with and to make a more robust protocol.

When will staking be released?

Staking has already been released for DASH users who wish to participate in the masternode system. The DASH website offers a walkthrough for any users who want to stake.

How to Buy DASH?

Buying DASH is as easy as visiting Kriptomat’s how to buy DASH page and choosing your preferred method of payment.

How to Sell DASH?

If you already own DASH and hold it on a Kriptomat exchange wallet, you can easily sell DASH coins by navigating the interface and choosing your desired payment option.

DASH Price

Several factors influence DASH price & market cap, including exchange inflows and outflows, sentiment, technical and fundamental developments, the news cycle, and the general economic environment.

DASH price is also directly impacted by the demand of users who use DASH to transact on the network.

Like Bitcoin, the price is decided at any given moment by the cumulative buying and selling of millions of participants worldwide. You can keep up to date on the latest price action and news using crypto exchanges like Kriptomat or one of the many different cryptocurrency tracking services.

The current DASH Network (DASH) price is EUR.

The 24-hour trading volume of DASH is EUR. DASH is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of $ EUR. It has a circulating supply of DASH.

Register now to begin your journey into the world of DASH and cryptocurrencies with Kriptomat!

If you’re experiencing any issues or have any questions at all, please don’t hesitate to reach our Customer Support Team. We’re always here to help!