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

8,744 USD
1.84%

DASH

170.40 USD
-0.14%

Related news

🎯 BITCOIN PRICE 2019 - Market Maker and Trader Predicts 📈 Correction, Manipulation, TA, Altcoins

BITCOIN PRICE 2019 - Trader and Market Maker Explains 📈 Correction, Manipulation, TA, Altcoins SUBSCRIBE TO ERIC: https://www.youtube.com/channel/UCnwxzpFzZNtLH8NgTeAROFA FOLLOW ERIC: https://twitter.com/krowncryptocave TRY XCOEX - https://xcoex.com/ 🚨 RATE EXCHANGES: https://exchangeratings.com 😱 WANT TO BE SEEN ON THE CHANNEL? 👉 EMAIL contact@ivanontech.com 🚀 JOIN ACADEMY 👉 https://academy.ivanontech.com/webinar 💥 JOIN TELEGRAM GROUP 👉 https://t.me/ivanontechvip 💰 GET $10 TO BUY YOUR FIRST CRYPTO: https://www.coinbase.com/join/59d1738ff36136022bd9ee10 🏆 BUY PHYSICAL BULLION GOLD: http://www.bullionvaultaffiliate.com/ivanli/en 📈 BEST ALTCOIN EXCHANGE: https://www.binance.com/en?ref=35933746 🔐 BEST WALLET: https://www.ledger.com?r=5a56aa023b40&tracker=IOT Good Morning Crypto 🚨 Want to be a Sponsor? EMAIL contact@ivanontech.com 🎓 Join my online academy https://academy.ivanontech.com 👬 Join the crypto discussion forum - https://forum.toshitimes.com 📣 Join Telegram channel https://t.me/joinchat/AAAAAE2xJE4l8xhC8MU4cg 🎤 If you would like me to speak at your conference, book me here: https://ivanontech.com #bitcoin #blockchain #ivanontech 👫👭👬Social: LinkedIn: http://linkedin.com/in/ivanliljeqvist/ Instagram: http://instagram.com/ivanontech/ Steemit: https://steemit.com/@ivanli Facebook: http://facebook.com/ivanontech/ DISCLAIMER: This is NOT financial advice. This is just my opinions. I am not responsible for any investment decisions that you choose to make. Ivan on Tech is all about cryptocurrencies and the technology behind Bitcoin, Ethereum, Litecoin, Ripple, IOTA. We also cover Bitcoin price, altcoin price, investing, analytics, different altcoins. Ivan on Tech by Ivan Liljeqvist
Ivan on Tech

Breez Unveils Its Lightning-Powered Bitcoin Payments App for iPhone

Coinspeaker Breez Unveils Its Lightning-Powered Bitcoin Payments App for iPhoneOn Monday, June 17, payments platform Breez unveiled its Bitcoin payments app for iPhone in an attempt to boost the Bitcoin (BTC) adoption. As per the company announcement, this is the first project built on the Bitcoin network Lightning client called the Neutrino.Solving Bitcoin’s Mobility and Usability ProblemsBreaking the ice is the non-custodial wallet and payments platform, Breez. Under the vision of having a Lightning Economy, Breez aims to make Bitcoin mobile to a point where individuals can use it easily. Breez’s vision of Lightning Economy is to break-free people from the clutches of intermediaries handling their money and give the owners an absolute control.In a statement, Breez founder Roy Sheinfeld states that their payments app solve issues that merchants and retailers are facing currently. He says that the Breez app resolves issues of disputing purchases and receiving funds. Thus, “it’s suitable for every kind of purchase right down to a cup of coffee or paying back a friend,” says Sheinfeld.Using the Breez Bitcoin Payments AppUpon the installation of a Breez app by a user or merchant, it will automatically open a payments channel to the Breez hub. The hub has a direct connection to the Lightning nodes. This allows users to transact with anyone present on the network.Both the parties involved in the transaction have to cryptographically sign an updated balance sheet. The signature is to ensure that the transaction reflects the changing amount of Bitcoins present in the respective wallets of both the parties. After finishing the transactions, the resulting balances get registered on the blockchain. In case of dispute, the two parties can use the recently used balance sheet to recover their balance sheet.Thus Breez solves a very important issue associated with the immutability of the Bitcoin blockchain. Although, immutability is a great feature for a public blockchain which makes sure that no one can tamper with the records. However, in the case of dispute, there has to be a mechanism which can reverse the last transactions.After launching its beta version for Android, Breez gained hundreds of new users in just two months. Banking on its success model, the company has now announced a beta for iPhone which will be first running on Apple Developer’s TestFlight. Scheinfeld says that having an iOS product along with Android gives them access to 98% of global smartphone users.This latest announcement comes with Breez securing $500,000 investment from Fulgar Ventures and Recruit Strategic Partners. The company states that it will make additional investments for developing Breez’s point-of-sale Lightning app for merchants to accept Bitcoin payments instantaneously.Yuki Tanaka, Vice President at Recruit Strategic Partners and investor in Breez, believes that there will be a heavy demand for blockchain-based POS terminal in the future.Breez Unveils Its Lightning-Powered Bitcoin Payments App for iPhone
Coinspeaker

Binance Announces Launch of Bitcoin-Pegged Token (BTCB)

According to a blog post on the Binance website on June 17, 2019, the cryptocurrency exchange giant announced plans to launch BTCB, their Bitcoin-pegged token. The pairing is the beginning of a string of similar crypto-pegged BEP2 token pairs for trading on the Binance DEX platform, per the announcement. First BEP2 Token Backed 100% byRead MoreRead More. The post by Anthonia Isichei appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
BTC Manager

Hot news

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