This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.
What is Dash?
It started out as “XCoin,” then became “DarkCoin,” and in 2015 it came to its current name: “Dash,” (DASH) which is a portmanteau of “digital cash.” Its naming history sums up its purpose: it is focused on both privacy and speed and is only meant to be used as a currency (no smart contracts or decentralized apps here). While it is not as completely private as Monero, it aims to combine a higher-than-average level of anonymity with speed and usability to make a cryptocurrency that works for anyone.
How does Dash work?
This cryptocurrency is derived from Litecoin–which itself came from Bitcoin–but it has instituted dramatic changes. At its core is a two-tier structure: the base blockchain and “masternodes.”
The first tier, like Bitcoin and Litecoin, allows miners to use computing power (Proof of Work) to create new blocks. Each block contains permanent records of confirmed transactions. Unlike the other two, though, only 45% of newly mined currency goes to miners. Another 45% goes to the masternodes. The last 10% goes to a “treasury” that funds development costs.
The second tier is composed of powerful computers (masternodes) that enable Dash’s special features: InstantSend, PrivateSend, and governance. They can be set up by anyone, but each node requires a minimum of 1,000 tokens to run, making it prohibitively expensive for anyone to attempt a network takeover.
Become an Insider
Though this blockchain records your transactions in blocks every 2.5 minutes (versus Bitcoin’s 10 minutes), that’s still not instant. InstantSend eliminates the need to wait for the blockchain by sending it to a masternode, which locks your transaction down and sends out a message showing that the funds have been properly directed and sent. The recipient can see your payment within seconds.
PrivateSend makes your tokens untraceable through “coin mixing.” You can send your transaction to a masternode, which then bounces it around to up to eight more masternodes. The nodes break down your transaction and exchange chunks of it for coins from other users’ transactions. Your original amount is sent back to a randomly generated address, enabling you to spend from an anonymous address with tokens that can’t be connected to you.
Finally, the masternodes enable flexible governance. Each masternode can vote on proposed changes. Successful votes result in the proposed changes being allowed onto the network. Those changes and other development costs can be funded using the 10% share of all mined tokens that is set aside to make the project self-funding.
How to buy Dash at a legit cryptocurrency exchange?
The most popular and well-respected cryptocurrency exchanges are Coinbase, Binance, and Crypto. They have been in the industry since the inception of crypto. To buy the crypto you are looking for, simply register for any of the cryptocurrency marketplaces below and claim the bonus sign-up offer as well.
Best no-fee crypto app for free mobile trading?
Voyager is a mobile-first, commission-free cryptocurrency exchange trading platform for users around the world. Think of Voyager as the Robinhood equal, but for popular cryptocurrencies. The platform supports well over 50+ cryptocurrencies and continues to add to their robust crypto portfolio. Use the referral code ALB64A to be eligible for the $25 signup bonus after a $100 deposit.
Recent major developments
Dash 12.2 was released in late 2017. This update most notably increased the block size (allowing more transactions to be processed simultaneously) and lowered fees.
The Evolution project is slated to have an alpha version out by mid-2018. Its stated aim is to make using Dash as easy as using any other payment app.
There is another cryptocurrency called “DashCoin.” Though less popular, it often comes up in searches for this one. The easiest way to tell them apart is the ticker symbols: DSH for DashCoin versus DASH for this coin.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.