What is Dash (DASH) and How does Dash (DASH) work?

What is DASH (DASH)?

Dash (DASH), is one of the significant alternative cryptocurrencies, which was initially known as Xcoin before being rebranded as Darkcoin. Darkcoin later landed on its current name DASH in the year 2015.

DASH’s design and functioning were intended to help with the anonymity of its users with its unique hashing algorithm along with offering swift transactions through the aid of Masternodes.

Masternodes ensure the security of the network by steering it clear off malicious activities by keeping the rogue miners in check.

The technology of DASH became exceptionally differentiated with the addition of new features that are intended to make transactions effortless.

Few such features like Instasend enable its user in the DASH transaction without waiting for approval on the DASH blockchain. Users can transfer cryptocurrency to Masternodes that would deposit the funds even before getting recorded in the blockchain.

PrivateSend is another unique feature that allows users to enable private transactions. In a way private and aids in securing the user anonymity by using a technique called “Coinmix” which is a built-in service of DASH.

Through this technique, users can transfer their DASH coins to Masternodes that are in turn mixed with other users’ coins, therefore concealing the original transaction trail.

Another prominent feature of DASH is its decentralized autonomous organisation that leaves its users with the authority of determining the direction in which the network operates. 

DASH also proved its excellence by embracing experimentation and coming up with features like enabling its users who hold DASH to take part in its blockchain operation even before staking became a norm.

Who founded DASH (DASH)?

Dash was founded by E.Duffield in the year 2014. It was claimed that the coding that went into its creation was done by Duffield in just a week’s time as he is a crypto enthusiast.

One of the reasons behind the robust protocol of DASH is that it was created with an intent to call off the existing problems in the crypto ecosystem. 

What makes DASH (DASH) unique?

The hashing algorithm which DASH uses for mining constitutes 11 unique hash functions that are intended to secure the network from security breaches and hacking.

Having 5000 Masternodes as of now DASH is deemed to be a giant network in the crypto ecosystem. 

DASH also garnered a reputation for having funded many community projects: DASH Force news team, a news site and a feature-length documentary.

Upon the launch of DASH close to 200,0000 coins were mined within 2 days which remarkably outreach their schedule of planned emission. 

How many DASH (DASH) Coins?

Currently, 10,027,308 coins are in circulation with the maximum supply being  18,920,000 coins. An increase in the supply can only be dictated by DASH’s decentralised autonomous system that has the authority to vote on the allocation of rewards from the reserves.

How does DASH (DASH) Work? 

DASH makes use of a two-tier network that enables its miners and Masternodes to work in conjunction. The first tier of DASH works like any other Proof-of-work cryptocurrencies like Bitcoin and Litecoin in which miners generate new blocks and secure the blockchain. Miners are responsible for preserving the transaction history of DASH all while avoiding double-spending.

The second layer of DASH is maintained by Masternodes which are nothing but the network users who aid miners in maintaining the order and verification of transactions along with undertaking a few of the miners’ functions by staking 1000 DASH.

Users who wish to take part in the Masternode system can stake DASH. The official website of DASH guides the users regarding the stalking process.

How can you choose a DASH wallet?

DASH aims to facilitate transactions of value on its network. DASH wallet can be created on the official website of its own.

Upon the creation of a wallet, the users are allowed to manage their deposits on the network of DASH.

Users may stake DASH through their participation in the Masternode system and gain rewards subsequently. In addition to that  DASH also serves as a speculative investment tool and a payment alternative.

The type of wallet any user may choose depends on two factors which are what they want to use it for and how much they desire to store.

Two types of wallets provided by DASH are 

  • Hardware or Cold Wallets 
  • Software Wallets

Hardware Wallets / Cold Wallets

Hardware wallets of DASH are the most secure that come with offline storage and backup. Ledger and Trezor are both hardware wallets that provide storage and staking options for DASH. These wallets are not however beginner-friendly and involve quite a learning process. Hardware wallets are also expensive options and can only suit those who are experienced and hold a considerable amount of DASH.

Software Wallets

Software wallets are user friendly and are freely available that can be downloaded on your smartphone or laptop. Again these apps can be either custodial or non-custodial. Custodial wallets are the ones whose private keys are regulated and by the service provider on behalf of the user. Non-custodial wallets on the other hand come with secure elements that ensure the safety of private keys on your device.

These are conducive however they’re not on par with the hardware wallets when it comes to security. These are most suited for users who hold lesser amounts of DASH and are beginners.

Another kind of wallet is an online or web wallet that can be easily used and accessed on the device of your choice through a web browser. 

Online wallets/web wallets are less secure when compared to the other alternatives

alternatives. It is always advisable to opt for a platform that is most trustable with its security. 

Conclusion

After going through a lot of obstacles DASH managed to establish itself to be a successful cryptocurrency. Dash shares many common traits with popular cryptocurrencies that gave them their value.

Dash is durable, portable and scarce. It provides its users with unparalleled governance that may appeal to many investors. Also, because DASH, is a blockchain network that supports other decentralised applications, added to its popularity in the crypto ecosystem.

For more such interesting articles, check Zeen blog.

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