- Bitcoin is currently the most widely used cryptocurrency and is controlled by a decentralized network of users.
- Transactions on Dash are done almost instantaneously as opposed to Bitcoin where it can take almost 10 minutes to confirm a transaction.
- The DASH Core Group Inc. has taken commendable efforts to establish partnerships with payment systems which include various businesses.
Bitcoin is currently the most widely used cryptocurrency and is controlled by a decentralized network of users. However, despite it not being controlled by any banking authority or governmental institution, many privacy concerns have been raised.
The systematic monitoring of the Bitcoin’s unencrypted peer-to-peer network and analysis of the public blockchain can reveal a lot of information such as who is using Bitcoin and for what purposes.
Additionally, the use of Know Your Customer (KYC) policies and AntiMoney Laundering (AML) regulation with network traffic and blockchain analysis techniques, could further enhance the quality of the extracted information. Along with this, the time it takes to confirm a Bitcoin transaction is very high which makes it very impractical for daily use.
To resolve these problems, Evan Duffield founded his own cryptocurrency after multiple failed efforts to resolve the said issues in Bitcoin itself. It was originally called XCoin, gained popularity as DarkCoin and was later rebranded as Dash which is a portmanteau of Digital Cash.
It is powered by the X11 algorithm which is a combination of eleven cryptographic functions used at once. Transactions on Dash are done almost instantaneously as opposed to Bitcoin where it can take almost 10 minutes to confirm a transaction.
Another distinct feature of Dash is Masternodes. They function like nodes in Bitcoin but in addition they act like shareholders and can contribute towards improving DASH’s ecosystem. 1000 DASH must be invested in to run a Masternode. However, they’re paid back in dividends for making such an investment which incentivizes them to work in the best interests of the ecosystem.
Features like PrivateSend and InstantSend are performed by Masternodes.InstantSend requires a consensus of Masternodes to validate a transaction instead of mining which makes the transaction quicker instead of ordinary mining and PrivateSend makes transactions untraceable, thereby, ensuring greater privacy.
So Masternodes, essentially, exist on top of miners, as a second tier network. This creates a coordination between proof of service and proof of work mechanisms. They also handle governance. These features make DASH very sought after by both businesses and individuals.
In April 2018, DASH was one of the top 12 cryptocurrencies and its market capitalisation was around $4.3 billion. However, its price since then has considerably decreased. This could be accrued to the overall declining status of the cryptocurrency market.
Although DASH has been a massive success in Venezuela and is the most popular cryptocurrency there as of February 2019. A charity program was also conducted in Venezuela by their directly distributed charity program DASH Charity.
The DASH Core Group Inc. has taken commendable efforts to establish partnerships with payment systems which include various businesses. This will assist in building a reliable network which could significantly increase its price in the coming future.
This goes to show that DASH could potentially be very popular taking into consideration its privacy, speed and accessibility which provides a seamless user-friendly experience. It might even become an alternative to fiat currency, as is the case in Venezuela and is increasingly gaining acceptance from various merchants around the world.