Dash (DASH) 101 - Everything You Need To Know
Dash is a cryptocurrency project based on the Litecoin blockchain, which itself was based on Bitcoin’s; the difference is that Dash was modified into a two-tier network. It comprises incentivised nodes, peers involved in confirming transactions, and Masternodes, governors of Dash’s ecosystem. The incentivised nodes receive their rewards in DASH, which is the native token for the Dash network. Peers use digital currency to settle payments in an instant and a privacy-focused environment.
However, this is just the tip of a huge iceberg: read on to find all you need to know about Dash.
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What Is Dash and Why Was (DASH) Created?
Dash is an open-source cryptocurrency project that underlies the DASH digital currency. The project’s whitepaper was authored by Evan Duffield who released it in January 2014. At the time of first unveiling, Duffield had called the project ‘Xcoin’. Not long after that, the name was changed to Darkcoin, and later, in March 2015, to Dash (a portmanteau of digital cash).
Because Dash started as a derivative of Litecoin, the aim was to create a digital currency that would revolutionise the financial sector. So far, Dash has garnered support across the globe due to DASH-based transactions being instant and costing next to nothing. In addition, the Dash network enables users to transact without having to divulge as much information as required by traditional financial services providers. In a big way, Dash puts the control of personal details in the hands of consumers.
How Does Dash Work?
Dash is made up of a network of computers called nodes. New blocks are created through a proof of work (PoW) system. This means nodes solve complex mathematical problems and whoever arrives at the solution faster earns rewards in DASH tokens. This is the system by which nodes validate transactions.
Away from the PoW system, Dash differs from Bitcoin by way of the structure of the network. The governance of the Dash network is in the hands of Masternodes, also called the Dash Core Group. This is a group of developers who perform functions like confirming transactions, hosting copies of the ledger and relaying messages. The Masternodes also facilitate functions that are central to the Dash project such as ChainLocks, PrivateSend and InstantSend.
The decentralised architecture of DASH’s treasury enables fast transaction speeds at very low costs. Instead of smart contracts, as seen on the Ethereum network, Dash uses what’s called a proposal system. This is where users propose to initiate a transaction and nodes swing into action to facilitate its execution.
3 Key Selling Points of Dash (DASH)
The Dash Core Group brings together Masternodes to facilitate the smooth operation of InstantSend. This is a leading product of Dash that enables users to make transactions that are settled almost instantly. As a result, Dash has seen the number of users increase to more than 85,300 in Q3 2020, bringing the payment volume in the quarter to $0.63 billion.
DASH also enables transactions at very low fees. Dash users pay an average of from $0.2 to $0.3 per transaction. This is nowhere near many other digital currencies like Bitcoin that charge almost $15 in transaction fees. Furthermore, the DASH cryptocurrency is easily accessible on over 260 cryptocurrency exchanges and brokers. Therefore, users not only get affordability but also convenience and ease of use.
Bitcoin’s most important drawback is that the ledger is completely public, which makes it uncomfortable for users who would like to remain under the radar. Dash has PrivateSend to solve this problem. This solution blurs the trail of transactions so that no entity can trace them back to their origin. Masternodes are not capable of leaking users' details because the ledger is immutable thanks to the blockchain.
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Is Dash Worth the Investment?
The financial sector is experiencing a radical shift as demand for cheaper and faster transaction builds. Unfortunately, the traditional financial industry is incapable of delivering these goals, especially because of the fiat money that powers the ecosystem. Fiat money-based ecosystems involve many third parties who make transactions long and drawn out, and inevitably, costly.
Herein lies the potential of DASH. The architecture of the cryptocurrency ecosystem eliminates third parties from transactions. As a result, consumers can achieve faster transactions, usually under 24 hours no matter the distance, as well as rock bottom transaction fees.
The ability of DASH to deliver these two important goals make the digital currency viable as a long-term asset. Possibly, the token will continue to fetch more dollar value as it integrates more into the mainstream financial industry. To have an idea of the potential returns from Dash, consider the total ROI (return on investment) of over 9,000% so far achieved since inception.
If the world begins to substitute fiat currency for DASH and other digital currencies, this ROI could be much higher in 10 years’ time. Better yet, the digital currency has shown that it has enough volatility to make it profitable for short-term trading. In the last seven days, CoinMarketCap data shows DASH’s price touching a low of $62.31 and a high of $70.59. The volatility is just enough to generate short-term income.
Yes. Other than facilitating digital money, DASH is part of the Dash ecosystem, which is a project that aims to make it easy, convenient and cheap to transact online. The Dash project has major products such as PrivateSend, InstantSend, and more, which could explode in the future individually. Therefore, DASH is backed by a real project that gives it intrinsic value.
Yes. Dash has a network of merchants all around the world who accept DASH. Also, consumers can easily acquire DASH in the crypto market from cryptocurrency exchanges such as Huobi Global, Binance, and HBTC among many others. Furthermore, Dash’s ever-growing community of Masternodes means the network will have even a bigger capacity to handle more users.
Dash presents three compelling reasons that make it worthwhile. First, it is the speed of the transaction. Today, major blockchain networks like Bitcoin cannot achieve near-instant transactions and even their transaction per second (tps) is quite low. Another benefit of Dash is privacy. The private nature of the blockchain offers better protection. Thirdly, Dash offers convenience at micro-fees. These are benefits that the traditional financial system finds impossibly difficult to achieve.
DASH is first and foremost digital money, meaning you can use it to pay for coffee or to send money across international borders. Secondly, the coin facilitates transactions within the Dash ecosystem where it is given as a reward to Masternodes that validate transactions.
Dash is on the lower extreme in terms of transaction fees for cryptocurrencies. The average transaction fee on Dash ranges from $0.2 to $0.3.
Yes. So far, Dash has returned 9,000% in ROI. Such an asset has the strength to produce even bigger numbers in the future. Besides, the Dash project offers some powerful products which, if adopted by the wider public, will add great value to Dash.
DASH is available on crypto exchanges and from brokers. Dash developers have also made some serious partnerships that have availed many DASH ATMs to provide access to the digital coin.