What is Dash?
Dash (DASH) is an open-source, peer-to-peer cryptocurrency that makes near-instant transactions private and secure. Based initially on Bitcoin, Dash possesses many of the same features but continues to build on top. Its speed and privacy settings are adjustable, and its unique network architecture consists of regular miners and privileged machines called Masternodes. Dash’s decentralised governance and budgeting system make it a decentralised autonomous organisation (DAO).
A brief history of Dash
Evan Duffield, a software developer, launched Dash on 18 January 2014, originally as XCoin, which eventually became Darkcoin. On 25 March 2015, the project underwent another rebranding — to Dash, which comes from its goal of becoming ‘digital cash’.
Through Dash, Duffield and a small team of others worked together to establish an alternative to Bitcoin. They aimed to improve user experience and privacy by delivering transaction speeds that are faster than what Bitcoin can offer, making it more useful for everyday digital transactions similar to what’s possible for major payment providers today. Duffield’s team claimed that virtual currencies were not as practical for everyday expenditures, like purchasing a cup of coffee, since transactions took too long to confirm.
Initially forked from Litecoin, Dash ran into an emissions problem at launch, similar to what Litecoin had faced. Within the first 48 hours after Dash’s launch on 18 January 2014, approximately 2 million DASH coins were mined, well above the project’s anticipated emissions timeline. Litecoin attributed its network problem to a fault in its difficulty adjustment algorithm. Although Dash acquired this flaw from Litecoin, there has been an extensive discussion as to whether the mining issue was an accident or done on purpose to help early miners.
As of May 2022, Dash’s maximum supply was at 19 million DASH tokens, with a current circulating supply of 10.7 million DASH. The network’s block time, or the duration it takes for one block to be created on the Dash blockchain, is currently at 2.5 minutes.
How Dash works
Dash aims to build on Bitcoin technology, employing a two-tier network structure to increase efficiency. The first tier is a proof of work (PoW) system in which mining machines solve complex mathematical problems. When miners discover the correct solution, they may add a new block of transactions to Dash’s blockchain.
The second tier is a network of Masternodes, which are robust servers backed by collateral in the form of DASH tokens. They are in charge of Dash’s features, such as InstaSend, a service that immediately settles DASH payments; PrivateSend, which protects the privacy of DASH transactions; and ChainLocks, which defends Dash against 51% mining attacks.
Aside from delivering sophisticated services within the Dash network, Masternodes also govern Dash’s proposal system. Masternodes handle votes on Dash’s governance and funding proposals. Anyone who can verify the ownership of 1,000 DASH can become a Masternode.
Dash’s governance system distributes 10% of block rewards for project development in a competitive and decentralised manner. This has enabled the establishment of other funded companies, like Dash Core Group Inc. (DCG), which supports Dash’s ongoing development, integrations, and other operations.
What is Dash used for?
Dash aims to be a medium for daily transactions, and it has cast a wide net to realise that ambition. In 2018, the digital cash company expanded into Venezuela, a country that has extensively used cryptocurrencies due to several economic and political factors.
As of May 2022, DASH users can spend their tokens on more than 25 retail points, such as Travala, BitPlaza, DashDirect Mastercard, Church’s Chicken Venezuela, and more. More than 19 payment processing solutions, including BTCPAY, AnkerPay, and Flexa, also support DASH.
