Dash
Dash is an open-source peer-to-peer cryptocurrency that aims to be the most user-friendly and most on-chain-scalable cryptocurrency in the world. It is also formerly known as Darkcoin and XCoin. On top of Bitcoin‘s feature set, it currently offers instant transactions (InstantSend), private transactions (PrivateSend) and operates a self-governing and self-funding model that enables the Dash network to pay individuals and businesses to perform work that adds value to the network. Dash’s decentralized governance and budgeting system makes it a decentralized autonomous organization (DAO).
Contents
What is Dash?
Dash is designed as a dark coin to ensure user privacy and anonymity. Dash uses a Proof-of-stake consensus mechanism.[1].
History
Dash was originally released as XCoin (XCO) on January 18, 2014. On February 28, the name was changed to “Darkcoin.” On March 25, 2015, Darkcoin was rebranded as “Dash.” Dash is a portmanteau of “Digital Cash.” Creator and lead developer of Dash, Evan Duffield, attributed this to a bug created when the Litecoin code was forked to create Dash, “which incorrectly converted the difficulty, then tried using a corrupt value to calculate the subsidy” Once the problem was resolved, Evan offered to relaunch the coin, but the community overwhelmingly disapproved. He suggested an “airdrop” of coins in order to broaden the initial distribution but the community also disapproved of this proposal. As such, the initial distribution was left alone and development of the project continued. The majority of mined coins were distributed on cryptocurrency exchanges in the following months at very low price levels.
The Dash Core Team, responsible for developing the currency, has since grown to 30 full-time employees, 20 part-time employees, and dozens of unpaid volunteers. All Core Team employees are paid from Dash’s budget system and therefore are not reliant on donations or sponsorships that can lead to conflicts of interest.
According to CoinMarketCap, in June 2017 the daily trade volume of Dash was approximately $100 million per day and the market capitalization of Dash exceeded $4.8 billion. Dash has become the most active altcoin community on BitcoinTalk reaching more than 6400 pages, 133k replies, 7.9M reads.
Features
Masternodes
Unlike Bitcoin’s single-tier network, where all jobs on the network are performed by miners, Dash utilizes a two-tier network. Certain network functions, such as creating new blocks, are handled by the miners. The second tier of the Dash network consists of “masternodes” which perform PrivateSend, InstantSend, and governance functions.
Masternodes require 1000 DASH as collateral to prevent sybil attacks. That collateral can be spent at any time, but doing so removes the associated masternode from the network. Because masternodes provide vital network functions, the block reward is split between miners and masternodes, with each group earning 45% of the block reward. The remaining 10% of each block reward funds the “budget” or “treasury” system.
PrivateSend
PrivateSend is a coin-mixing service based on CoinJoin, with numerous modifications. These include using masternodes instead of a single website, chaining by mixing with multiple masternodes, restricting the mixing to only accept certain denominations (e.g.: 0.01 DASH, 0.1 DASH, 1 DASH, and 10 DASH, etc.), and passive mode. The maximum allowed for a PrivateSend transaction is 1000 DASH.
Later iterations used a more advanced method of pre-mixing denominations built into the user’s cryptocurrency wallet. The implementation of PrivateSend also allows masternodes to submit the transactions using special network code called DSTX, this provides additional privacy to users due to the deadchange issue present in other CoinJoin based implementations such as DarkWallet and CoinShuffle.
In June 2016, DarkSend was rebranded to PrivateSend.
In its current implementation it adds privacy to transactions by combining identical inputs from multiple users into a single transaction with several outputs. Due to the identical inputs, transactions usually cannot be directly traced, obfuscating the flow of funds. PrivateSend makes Dash “fungible” by mixing the coins in the same denomination with other wallets, ensuring that all coins are of the same value.
InstantSend
InstantSend is a service that allows for near-instant transactions. Through this system, inputs can be locked to specific transactions and verified by consensus of the masternode network. Conflicting transactions and blocks are rejected. If a consensus cannot be reached, validation of the transaction occurs through standard block confirmation. InstantSend solves the double-spending problem without the longer confirmation times of other cryptocurriencies such as Bitcoin.
In June 2016, InstantX was rebranded to InstantSend.
Dash coin price
The price of DASH token is always chaining, however, BitcoinWiki gives you a chance to see the prices online on Coin360 widget.
Dash Wallet
On the official website of the cryptocurrency there is an electronic wallet that can be downloaded to your computer. The program will need some time to synchronize, it is similar to The popular Bitcoin Core QT wallet, only with additional features that are related to the anonymity of transactions.
In total, there are several main types of wallets for this cryptocurrency:
- online wallets;
- computer program;
- applications for mobile platforms;
- hardware;
- paper.
- online
Everything is as simple as possible-the wallet is implemented in the Web format and does not involve downloading additional software and storing a file with wallet keys.dat. At this stage, such an online storage DASH wallet Rahakott is implemented. Convenient and reliable option + the most anonymous and safe.
Software
Assume that the client is downloaded to a personal computer. The most popular options are Dash Core, Dash Electrum. The wallet file is created during installation.dat. Implemented for different platforms: Windows, Linux, Mac OS.
Mobile application
Small programs that are synchronized with Dash blockchain. Specialized mobile wallet for this currency is only one – Dash Wallet. Also, the cryptocurrency is supported in universal mobile storage Jaxx, Coinomi and some others.
Hardware
In fact, they are a USB-drive where the private key is stored. Easy to operate and configure. Recoverable from damage. Examples of such wallets: Ledger Nano S, Trezor Wallet, KeepKey and others.
Paper wallet
There are also paper wallets – a simple and reliable way to store and use DASH without additional registrations and downloading anything. To work with them created special sites that generate QR-codes for transactions.
Where to buy Dash
Dash cryptocurrency is supported by major cryptocurrency exchanges. Also on the site there are special sections “buy Dash”, “Spend Dash” and “Sell Dash”, which explains how to work with the coin and use it as a means of payment. The cryptocurrency is supported by 52 exchanges, as well as several companies that provide debit cards, and a large number of online stores, games, Internet providers and other organizations.
Governance and funding
Dash is the first decentralized autonomous organization powered by a Sybil proof decentralized governance and funding system. Decentralized Governance by Blockchain (DGBB), often referred to simply as the “treasury system” is a means of coming to consensus on proposed network changes and funding development of the Dash ecosystem. Ten percent of the block rewards go to this “treasury” in order to pay for projects that benefit Dash. Funding from the treasury system has been used to hire additional developers and other employees, to fund attendance at conferences, and to fund integrations with major exchanges and API providers.
Each masternode operator receives one vote. Proposals are eligible for funding according to the following formula: (YES VOTES – NO VOTES) > (TOTAL NUMBER OF MASTERNODES * 0.1). If there are more proposals that meet that criterion than there are budget funds for the month, then the proposals with the highest number of net votes will be paid. Community interaction with proposal submitters is done through the dash.org forums, or through community-driven websites, like DashCentral. These websites allow proposal submitters to provide multiple drafts, then lobby for community support before finally submitting their project to the network for a vote. After the submitter has enough support, the network will automatically pay out the required funds in the next super block, which happens monthly.
The funding system has seen revenue growth. In September 2015, the treasury system provided $14,000 in funding per month. Due to increases in the value of Dash, as of May 2017 the treasury system provides over $650,000 per month in funding. The treasury system has created a positive feedback loop, whereby additional development increases the value of Dash, which increases the amount of funding provided by the budget system.
External links
See Also on BitcoinWiki
References
- ↑ Investopedia – What is Dash Cryptocurrency? https://www.investopedia.com/tech/what-dash-cryptocurrency/
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