The Beginner’s Guide to Dash

Dash aims to be an on-chain scaling and private digital cryptocurrency. Powered by a two-tier network, Dash boasts functionalities such as PrivateSend and InstantSend as well a decentralized governance model called Decentralized Governance by Blockchain

What is Dash?

Dash is a privacy-centric peer-to-peer cryptocurrency. It was launched in January 2014 as Xcoin by Evan Duffield. Later Xcoin was rebranded as Darkcoin and finally Dash (a portmanteau for ‘digital cash’) in March 2015.

Duffield came across Bitcoin in 2010 and became fascinated with it. However, seeing its drawbacks, he modified the Bitcoin protocol to bring Dash, a new cryptocurrency with additional functionalities including:

  • masternodes,
  • PrivateSend,
  • InstantSend,
  • and Decentralized Governance by Blockchain.

Masternodes

The functioning of Dash relies heavily on the operation of the Dash network which consists of two types of nodes, standard nodes, and masternodes. Much like in Bitcoin, standard nodes carry out functions such as hosting a copy of the blockchain, relaying messages and validating transactions. Masternodes, in addition to standard node functions, have responsibilities such as:

  • voting on proposals for improving the Dash ecosystem,
  • facilitation of PrivateSend transactions and
  • facilitation of InstantSend transactions.

The masternode model addresses the issue of insufficient full-nodes, a problem that is present in many existing cryptocurrencies. Dash encourages users to fully participate in the consensus by distributing 45% of all mining rewards to masternodes. The other 45% goes to miners and the remaining 10% is allocated to the treasury.

Any user can deposit 1000 DASH and become a masternode. The deposit serves as a collateral for any attempt to compromise the healthy operation of the system.

PrivateSend

PrivateSend is a feature that provides transaction anonymity and, therefore, the fungibility of coins. PrivateSend is an improved version of CoinJoin, an anonymization method first proposed by Gregory Maxwell. CoinJoin ensures user privacy by combining several transactions and mixing them inside the transaction. This makes it harder for any outside observer to determine individual transaction outputs.

PrivateSend is an improvement on CoinJoin in two ways:

  • Denomination and
  • Chaining approach.

PrivateSend breaks down inputs from three separate transactions into the following denominations: 0.01 DASH, 0.1 DASH, 1 DASH, and 10 DASH. After that, a mixing session takes place where the funds are mixed together. Chaining approach further increases anonymity by conducting multiple mixing sessions. A mixing session is limited to 1000 DASH and transactions of a larger amount are processed in multiple mixing sessions. PrivateSend brings fungibility, which some believe pseudonymous cryptocurrencies like Bitcoin cannot boast.

Color denotes different users

InstantSend

InstantSend seeks to address the issue of high transaction times. InstantSend enables instantaneous transactions by way of transaction locking. Transaction locking is a mechanism that eliminates the possibility of double-spends by relying on masternodes’ consensus.

InstantSend allows users to send transactions with a special lock command. Masternodes then decide on the validity of the transaction. If the transaction is confirmed, the associated funds are locked. Masternodes serve as the authority and source of truth, which prevents any double-spend attack without the cost of longer transaction times.

Decentralized Governance by Blockchain

DGBB is an autonomous decentralized organization that manages governance and funding of the Dash ecosystem. With DGBB, Dash relies on masternodes to make decisions on further development and the funding of own projects.

Anyone can make a proposal for improving Dash for a small fee. After that masternodes vote on the proposal: yes, no, or abstain. If approved, the proposal receives an implementation budget from the treasury.

Mining and DASH

Dash utilizes a specially designed proof-of-work mining algorithm called X11 with eleven rounds of hashing. Despite this, the algorithm was eventually cracked and X11 ASICs hit the market. The average block time of DASH is 2.5 minutes.

In order to maintain a stable reasonable hashrate, Dash uses dynamic block rewards averaging at about 3.3 DASH per block. To tackle the inflation, the emission of DASH decreases by 7% annually. Thus, the total supply is calculated to be at 18.9 million DASH with the current circulating supply of 8.4 million. The price of DASH at press time is around $180.

(image source: Dash whitepaper)

Links

Official website

Twitter

Whitepaper

Documentation

Youtube

Community

Subreddit

Telegram

Discord

Forum

Bitcointalk thread

Help

Dash reddit guide

Important links

Block explorer

Dash on Coinmarketcap

BTC

3,641 USD
7.88%

DASH

76.34 USD
16.58%

Related news

Turkish Investor loses $170,000 worth of BTC due to lack of Backup

For those who have cryptocurrency wallets without proper backup, a huge loss may be lurking in the corner if something is not done to safely backup your wallet and recovery seeds. An investor in Turkey is counting his losses right now after losing $170,000 because he lost his password and wallet recovery information. The man, Kerem Albayrak, lost his wallet information while trying to exchange a laptop computer at a store where he initially bought the computer to get a smaller one. Being in a hurry, he forgot to safely save his wallet information or even copy it out. By the time he realized, the computer had been formatted and every information lost.  He explained: “My wallet was newly transferred onto a Blockchain wallet created on the iMac after I had an incident with an offline wallet and got scared. I used [an] auto generate password by Apple with no iCloud to backup the keychain. When creating [the password], I took a screenshot on the iMac of the recovery phrase which is also now gone” Albayrak told his sad story in a Reddit post where he detailed the events leading to the loss. The scary thing about Bitcoin or other cryptocurrencies for that matter is that once your password is lost, your funds are gone as well because the wallet admin (Blockchain wallet for example) do not store such information neither do they have access to the wallet. Funds sent to the wrong or non-existent address is also permanently lost unless, in the case of the former, the recipient is kind enough to send back the funds. This calls for utmost care when dealing with wallets especially those with such huge funds like Albayrak’s. He has this advice for all cryptocurrency owners. “It’s not a joke. You don’t realize sh*t happens until it happens don’t be that guy in my position. Please copy your backup codes and secure your wallet … it’s not a good feeling. It’s not even about losing 170K … it’s about losing a wallet with that much money in BTC. It’s there but you cannot use it. When I start seeing the price go up is when it’s going to piss me off.” A 2017 estimation by Chainalysis suggests at least $30 billion worth of BTC may have been lost forever. Out of this amount, more than half has been lost or misplaced, cases such as Albayrak’s accounting for a good number of course. This should serve as a warning to those who hold BTC and other digital assets to properly backup wallet information to avoid this huge loss. The post Turkish Investor loses $170,000 worth of BTC due to lack of Backup appeared first on ZyCrypto.
ZyCrypto

To The Moon? Dash and EOS Outperforms, sees Inflation in Daily Gains

Whether or not a bullish rally is emerging, Dash and EOS are not waiting for another moment to be certain, instead, these two altcoins have decided to take advantage of the moment and outperform with massive gains. The two tokens may not be in the top five categories, but they are definitely giving other rival tokens a run for their money. While Bitcoin and Ethereum have risen by up to 5%, EOS has taken the baton to set a new trend with the arrival of the bulls. The token has amassed an outstanding total of 15.23% in gains, this has quickly skyrocketed the once struggling token back to $2.08. Another interesting outplay is the fact that EOS is beginning to pose as a new rival for Tether who has only gone up by 0.49%. As of this writing, a competition has erupted, as both tokens have now garnered the same value in market capitalization; both EOS and Tether are seated with a market capitalization of $1.88 billion respectively. A survival of the fittest is required for either of the tokens to overpower the other, but either way, a breakout which may push market capitalization to $2 billion is likely to occur and considering the percentage of gains attained by EOS, the token might emerge the winner. Meanwhile, Dash has been unstoppable since the last 24hrs. Traders from Bithumb can be credited for lifting the token’s trading volume from $155.6 million to 166.68 million in just a span of one day. As of yesterday, Dash opened at a trading price of $67.78 and closed at $69.09. However, as of this writing, a single Dash token is now valued at a price of $75.63. The post To The Moon? Dash and EOS Outperforms, sees Inflation in Daily Gains appeared first on ZyCrypto.
ZyCrypto

First Week of December Ends with Flush of Green, Bitcoin Nears $3,700

First Week of December Ends with Flush of Green, Bitcoin Nears $3,700 Sunday, Dec. 9 — The crypto markets are showing a wave of green, as Bitcoin (BTC) trades closer to $3,700 at the end of the week, as data from Coin360 shows. Market visualization by Coin360. After a week of breaking new year-to-date lows, […] Cet article First Week of December Ends with Flush of Green, Bitcoin Nears $3,700 est apparu en premier sur Bitcoin Central.
Bitcoin Central

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.