Since the emergence of Bitcoin there have been many various cryptocurrencies (known as altcoins) come onto the seen.
Many cryptocurrencies have tried to make improvements on bitcoin, one of these being Dash.
Dash is a next-gen peer to peer decentralized electronic cash that was launched in 2014 by Evan Duffield.
It was previously known as XCoin and then Darkcoin and it is now becoming one of the most popular cryptocurrencies.
Their main emphasis for Dash is that it a digital cash that can be spent anywhere.
The following article will breakdown what Dash is, how it works and what makes it different to other cryptocurrencies.
So What Is Dash?
So first lets take a closer look at where this digital currency came from and why it was created.
Dash originally came on the scene as XCoin in 2014 after Evan Duffield noticed that Bitcoin was not private and fast enough.
The main purpose for this cryptocurrency is to be simpler to use and accepted as online payment methods similar to PayPal.
They want to make Dash as liquid as fiat currencies such as USD/GBP/EU and used in a similar way.
It can currently be purchased and sold in many ways, you can visit the Dash.org site for all purchase methods.
Evan Duffield used Bitcoin’s core code to build his own more anonymous cryptocurrency.
Dash uses a modified Proof of Stake algorithm to mine coins whereas Bitcoin uses a Proof of Work algorithm.
You might be wondering what these two types of algorithms are so lets go over them briefly.
Proof Of Stake vs Proof of Work
So one of the main differences between Dash and Bitcoins is the algorithms used, Proof of work and Proof of stake.
Proof of work is a protocol used by many cryptocurrencies such as Bitcoin aimed at deterring cyber-attacks.
The basic process for this is that each transaction is bundled into a block and then verified by miners to make sure it is legitimate.
To verify each transaction miners will need to solve a mathematical puzzle known as proof-of-work.
The first miner to solve the puzzle is then rewarded and the verified transactions are then stored in the public blockchain.
With proof of stake, the creator of a new block is chosen depending on the wealth or stake held by each miner.
For example, if a miner owns 2% of Dash coins available then this means he could only mine 2% of the blocks
This means that there are no block rewards available for miners and so miners take a transaction fee instead.
It has been said that due to proof of stake offering less rewards this could eventually lead to less miners.
Having less miners verifying transactions opens up risks of making the network vulnerable to fraudulent activity.
How Has Dash Been Performing?
Dash has been around for a few years now and has been growing in popularity.
It has been designed to eventually have a total supply of 18 million coins in circulation.
There are currently 7.4 million Dash coins in circulation out of 18 million.
The full supply will not be in circulation until the year 2300, yes that is a very long time.
The Dash blockchain is currently four times faster than that of Bitcoin meaning coins can be mined more quickly.
As of writing this article the price of each unit of Dash is worth $176.14 USD having previously reaching nearly $1500.
Dash currently has a market capitalization of $1,458,798,426 USD making it seventh most valuable cryptocurrency.
What Does Dash Have To Offer?
So what really makes Dash a cryptocurrency deserving of attention?
Lets take a look at some of the main features that Dash has to offer.
- Payments are kept private with Dash’s anonymization so nobody can track or access your financial information.
- The ability to send money anywhere in the world effortlessly.
- Instant transactions can be made by using Dash’s InstantX Masternode network within four seconds.
- Advanced encryption helping to keep your payments secure.
- Lower fees for transactions compared to other services such as PayPal, Western Union, or Moneygram.
Dash’s long term goals to become a globally accepted virtual currency certainly make it a cryptocurrency to watch out for.