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.


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 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 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)


Official website










Bitcointalk thread


Dash reddit guide

Important links

Block explorer

Dash on Coinmarketcap


5,266 USD


111.65 USD

Related news

Just build a platform where you can earn interest on your Bitcoin. Would love to hear your feedback.

My foray into the world of Bitcoin and blockchain technology began in 2013, during the ‘Silk Road Bust’. At the time, I had a very negative opinion about the cryptocurrency and wrote it off as ‘dark web money’ or ‘drug dealer money’. In spite of having this opinion, I still had one eye on this domain, the tech and the currency. It wasn’t until 2017, that I crawled into the crypto-rabbit hole. I have a background in finance, and was working for a large housing finance company. The disparity in classes created by the traditional economy was a source of distress for me and I was on the lookout for something that had the capacity to disrupt finance in a way that would create equal opportunities for all classes of people. Dialing back to 2017, I found myself being engrossed in everything crypto and blockchain. The vision of Satoshi particularly appealed to me, and I eventually found out that my calling had something to do with blockchain and decentralized finance. I eventually ended up investing in Bitcoin in the same year while it was on its bull run. I started the Bank of Hodlers in May, 2018 with this exact same intention and spent the next couple of months forming the core team and developing our products. We are now live with our first product in asset-backed lending. With such a service, hodlers will be able to earn interest on their Bitcoins by depositing them in a wallet created with us. Hodlers will also be able to borrow against Bitcoin, but that feature will be available soon. You can borrow in dollars or euros, and avail the loan, instantly, at the click of a button. Welcome to the bank of the future. We look forward to enabling your crypto gains. Sign up for our product here:

Nasdaq possibly testing Bitcoin could be extremely bullish for cryptocurrencies

Earlier this week, quantitative analyst at StrongMarket, Crypotopolis, announced that Bitcoin is being ‘traded’ on Nasdaq. A tweet from the analyst sparked the interest of the crypto-community, after he suggested that he was able to purchase Bitcoin through electronic trading platform connected to Nasdaq TD Ameritrade. According to Cryptopolis and the chart tweeted, it shows the BTC/USD pair trade from April 10th 2019. BREAKING: BTC is now being traded on the Nasdaq! I bought one BTC through my TDAmeritrade account! According to the chart it started trading April 10, 2019!! Other digital assets are soon to follow!! 🚀🚀🚀 — Cryptopolis (@cryptopolis_x) April 22, 2019 Is Nasdaq listing Bitcoin for trade? Despite Cryptopolis’ excitement, it was confirmed that the trade did not take place through the real platform, but was made on the paper one. In contact with TD Ameritrade staff, Cryptopolis found that CXERX “is not a symbol [they]trade on the live side,” which suggests that the digital currency might be in a testing version. Although no real transactions are taking place, it could spell a massive wave of adoption if Nasdaq goes live with CXERX. UPDATE: According to TDAmeritrade support – it’s not a real trade in my account – it appears they are testing only using their Paper Trading platform. Support said “I’m not able to speak on it” -They did not know what CXERX is. Strange… But something is going on for sure! — Cryptopolis (@cryptopolis_x) April 22, 2019 TD Ameritrade tests Litecoin Litecoin founder Charlie Lee also commented on the news, tweeting that TD Ameritrade is testing both Bitcoin and Litecoin on its platform. Lee confirmed that the image was taken from his own TD Ameritrade ThinkOrSwim account, saying that although it might be paper trading for now, “it’s there for sure“. Just saw that TD Ameritrade is testing both BTC and LTC trading on its brokerage platform. 😲 🚀 — Charlie Lee [LTC⚡] (@SatoshiLite) April 23, 2019 The post Nasdaq possibly testing Bitcoin could be extremely bullish for cryptocurrencies appeared first on Coin Insider.
Coin Insider

Hot news

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