Dash styles itself as the first cryptocurrency that acts like digital cash. It boasts instant transactions (InstantSend) private transactions and operates a self-governing and self-funding model.
The emergence of Dash as explained by the Dash team comes from the congestion and escalation of high fees on the Bitcoin legacy chain (1mb version). And from the need for faster and cheaper transactions so that users can once again have a cryptocurrency that performs like “Digital Cash”.
Dash was originally known as XCoin (XCO) which launched on January the 18th, 2014. A month and ten days later it was rebranded to “Darkcoin”. And then a year on, March the 25th, 2015, Darkcoin was rebranded to “Dash”.
Dash was forked from the Litecoin blockchain, so it does not have a record of the legacy Bitcoin. And it suffered from a bug in its early code which allowed miners to mine approximately 10% of the total supply within a very short time.
The developers moved to correct this bug, but the community convinced the developers to just move on. It is estimated that most of the early mined coins were sold en masse and cheaply via exchanges in Dash’s early days to help spread the currency.
Dash’s network is comprised of two tiers. Creating new blocks is governed and run by the miners, while a “2nd tier” style of nodes, known as Masternodes perform PrivateSend, InstantSend and governance functions.
PrivateSend provides Dash users with more privacy by using mixing methods that obscure a user’s transactions.
InstantSend allows users to have near-instant transactions. Through Masternode verification users don’t need to rely on block confirmation times as most other cryptocurrencies do.
However, if a consensus of the masternode network cannot be reached the transaction must rely on the standard validation that occurs through block confirmation.
Funding and Supply Issuance
The issuance supply (miner reward) in Dash follows an interesting model. 45% of the Miner reward goes to miners, 45% goes to the Masternodes and 10% funds the “Treasury” system, which is further used to help development projects in its ecosystem.
There is a side of a debate, depending on where you network, that puts forward that “Bitcoin” is 99% economics. If this is the case, then Dash’s economic model clearly alters the fundamentals. Whether it will work better or worse, it will certainly be an interesting one to watch.
And with our new “gateway” into the Dash ecosystem for all our customers, you can now also take part directly in this emerging cryptocurrency.
Dash has a solid team behind it and a defined roadmap. With updates and new wallet releases planned through 2018 and the Evolution v1 scheduled for launch in June 2018. They have a clear plan through a few stages of Evolution that has the potential to drive Dash on a strong path forward over the next few years.
Currently rated at number 6 on the charts at a value of £233.36 at the time of writing.
Date Published: Thursday November 9, 2017
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