What is Dash (DASH)? The Beginner’s Guide
By: Crypto Info
Tags: The Beginners Guide, Dash, Blockchain, Bitcoin

DASH is a digital currency with a high level of anonymity, which was originally created as an alternative to Bitcoin. The main motive for launching DASH was to improve BTC and solve those problems that the world’s first cryptocurrency couldn’t. It is decentralized, which means the absence of a central issuer and equality of network participants, while its production does not need such high capacity as in the case of BTC.

Decentralization in DASH does not end with a simple “equality” of participants. Each member of the network can contribute their own ideas for the development of cryptocurrency or vote for other initiatives. The idea of ​​Decentralized Governance or DAO is fully implemented.

Evan Duffield

The name DASH was not immediately attached to the altcoin. When Evan Duffield, a senior developer of this network, launched a crypt in 2014, it was called DarkCoin. Soon the grim name was changed to XCoin, and then another rebranding was carried out and the name DASH was taken. According to one of the versions, this name means “jerk up” or “rapid movement up” and at the same time is an abbreviation of Digital cASH.

Evan Duffield, talking about the creation of a new cryptocurrency, emphasizes that for him the main point was and remains anonymity. Initially, the developer became interested in Bitcoin and proposed to make changes to the protocol of the world’s first cryptocurrency. They did not listen to him, and this became a catalyst for the creation of DarkCoin in 2014.

In the first two days of the existence of a new cryptocurrency, 2 million coins were mined, which is approximately 10% of the possible maximum (16–22 million). Criticism in the crypto community collapsed on DarkCoin because of such a voluminous instamine. Duffield even suggested restarting or rolling back the network, since instamine was the result of an error in the algorithm, but the participants refused. The mined coins quickly sold on the exchanges at low prices, and the situation stabilized.

DASH is convenient to use for making everyday payments, as there is an instant transaction function in this cryptocurrency. It works using the InstantSend service (until 2016 InstantX). As a result of this, Dash Core, a company that deals with the development of Dash, in October 2017 signed a strategic agreement with the online banking platform Wirex. This agreement provides for the integration of cryptocurrency into the banking system, which will allow Dash holders to pay at 40 million VISA card acceptance points in more than 210 countries of the world.

Dash, like Bitcoin, has a blockchain, it is mined, traded on exchanges. But between these cryptocurrencies there are conceptual differences:

Availability of InstantSend service at DASH for instant transactions; Availability of PrivateSend service for additional anonymity of operations; Mining does not require such powerful installations; In the full less decentralized network in which each participant affects its development; Several cryptographic encryption algorithms are used at once; The whole system is two-level.

We will talk about these differences in more detail in a separate section of the material.

DASH Features

We noted several times that the network of this cryptocurrency is two-level. Let’s see what it is expressed.

In the Bitcoin peer-to-peer network, consensus is reached at the level of peers supporting the blockchain. In simple words, these miners whose activities protect the network from double spending through the Proof-of-Work protocol. A similar mechanism is in DASH. Mining DASH occurs according to the X11 algorithm, which is a combination of 11 other cryptographic algorithms or hash functions.

However, this cryptocurrency has a second level, in which masternodes plays the central rol. Masternode is a member with a fully downloaded DASH blockchain. This system uses the Proof-of-Service (PoSe) mechanism. There are InstantSend and PrivatSend services in Dash, thanks to masternodes. Full nodes have the right to vote on network development issues and receive 45% of mined coins; another 45% get miners, and 10% goes to the development of the network (often the remuneration of developers).

The InstantSend service can also be used by the owner of a full DASH wallet, as well as owners of lightweight programs and clients for mobile devices. Transactions in this mode are performed in a trusting format, since it takes time to complete their confirmation (about 2.5 minutes). However, the system is built in such a way that for each operation its own trusted “gateway” is blocked, which is checked by the supervisor. This guarantees protection against double spending.

The PrivateSend service based on the CoinJoin mechanism. It is responsible for mixing payments, which makes it very difficult to keep track of them. Everything works as follows:

Denomination: the transaction is split into equal parts (0.1, 1, 10, 100 dash), which prevents the tracking of individual amounts; Partial anonymization with mixing of coincident particles; each mix is ​​performed by a new masternode; The amount goes to anonymous addresses instantly without additional waiting for the completion of the process.

DASH retains the status of “the most decentralized digital currency” by implementing a decentralized DAPI software interface. It is an open environment where companies and developers can create wallets and software to interact with the network.

If you are interested in cryptocurrency, then you have heard of the term DAO, which refers to the decentralized management mode in the platform or literally “decentralized autonomous organization”.

DASH was the first among other cryptocurrencies offered this system. This mode is called not DAO, but DGBB — Decentralized Governance by Blockchain. As we noted above, such a regime allows nodes (masternodes) to submit their proposals or vote for new reforms of the DASH platform. It was by a vote that it was decided to change the block size from 1 MBto 2.

Differences DASH from Bitcoin

The key difference between these two cryptocurrencies is the platform architecture. If Bitcoin is a peer-to-peer network based on the Proof-of-Work protocol and individual developers are working on the development “behind the curtain”, then DASH is a much more democratic and decentralized network with two levels at once. Here there are Bitcoin elements in the form of the Proof-of-Work protocol (miners) and an additional level in the form of DGB with Masternotes (nodes).

The latter feature allows DASH to fully implement decentralized autonomous network management with internal voting on all key issues. And also introduce features such as instant transactions (InstantSend) and additional anonymity (PrivateSend).

DASH is a more open currency to innovate, thanks to DAO. Each node has the right to make their own proposals for the development of the platform.

There are differences in mining and distribution of rewards. First, DASH uses its own X11 algorithm, which combines 11 hash functions at once, and does not require such capacity as in the case of Bitcoin mining. Secondly, the reward after receiving the block is distributed in a specific proportion.

The implementation of DAPI, an open road map with ambitious plans for the future, can also be considered to be what distinguishes DASH from Bitcoin. Duffield and his team are serious about creating a user-friendly cryptocurrency that even a child can use. Signing an agreement with Wirex is another step along the way.

DASH application

The DASH team has set a goal to become number one among all other cryptocurrencies in non-cash payments. And taking into account the peculiarities of this platform, this development is quite real.

Created as an alternative to Bitcoin, DASH has managed to go its own way and is significantly different from a number of other cryptocurrencies. Whether it will be super successful and whether the future will show will DASH become the “digital cash” or not.