Updated: Dec 20, 2019
Dash, formerly known as Xcoin, which later became Darkcoin, is a digital currency that was specifically designed for making and receiving payments. DASH is the symbol the cryptocurrency trades under. It is a peer-to-peer cryptocurrency, forked out of Bitcoin and is one of the most promising alternatives to it. “Dash” stands for digital cash, which was initially launched in 2014, and today has a total market capitalization of $2.4billion.
This guide will attempt at explaining the purpose behind Dash, its creators, how the crypto coin works, and various uses and applications.
What is Dash Designed For?
Dash was created by Evan Duffield in 2014, as a more successful alternative to Bitcoin minus all the drawbacks. One major disadvantage of using Bitcoin is the slow rate at which transactions take place. It can take up to 30 minutes to a whole hour for funds to be transferred, validated, and to show up in the recipients’ accounts.
However, Dash employs Bitcoin’s core code with numerous additional features to make transactions faster and secure. Duffield took his ideas about resolving Bitcoin’s slow transaction speed and the lack of privacy to core members, but they refused to implement the changes since it meant tampering with the core code. This is why Duffield decided to create Dash as a more promising altcoin response to Bitcoin.
Who Is the Team Behind Dash?
Dash was built by Evan Duffield, who started like most other cryptocurrency founders – by studying and implementing on Bitcoin. In 2010, he was impressed by the crypto tech employed by Bitcoin but was not overly enthused by the challenges posed by it. After creating Dash, he became one of the more visible players in the industry.
Presently, Ryan Taylor is the CEO of Dash, who was awarded the position for his comprehensive understanding of the payments landscape after working with McKinsey & Company's Business Technology Office, in New York, in the capacity of an Associate Partner.
How Does Dash Work?
Dash works on the same protocol system as Bitcoin, but with an additional tier. The first tier utilizes a proof-of-work consensus mechanism, like in Bitcoin. However, it is the second tier, which makes Dash unique. This uses a proof-of-service (PoSe) consensus mechanism, which can be best described as a scoring system to determine whether node operators are behaving in good faith.
Dash miners power the network’s first layer and enable the basic receiving/sending of the cryptocurrency to prevent double-spending. The second tier is powered by master nodes, which ensures that miners are providing services in good faith. Masternodes cannot mine and mining computers cannot serve as master nodes. Two types of transactions can be carried out with Dash – PrivateSends and InstantSends.
The bitcoin blockchain is completely public, which can be a problem when you are trying to maintain your anonymity. Dash PrivateSend ensures that the identity of users is not revealed and that the transactions cannot be traced back.
InstantSend allows Dash transactions to be almost instantly confirmed on the network in real-time. You can have your grocery payments cleared in less than a minute by asking Masternodes. However, this feature incurs a small fee.
What are Current and Future Applications of Dash?
Dash is the most popular cryptocurrency in Venezuela and has a strong merchant base in the US as well. You can use it to buy groceries, pay bills, or shop online. Because of the three key features – Masternodes, PrivateSend, and InstantSend employed by Dash, the digital currency can be used in various private and speedy manners.
These are some of the merchant categories where DASH is readily accepted as a mode of payment:
DASH can be used at RE/MAX Venezuela and 3D Modeling.
Electronics and IT
You can use DASH at Mobile Topup, NordVPN, Pi Supply, Viking VPN, and Laci Cloud, among others
Food & Drink
DASH is accepted at Churchs Chicken Venezuela, Cub Coffee, and La Pasta LLC among others
Health and Medicine
Dash is accepted at Live Life Elevated
Several financial services accept Dash, such as gainsevillecoins.com
Dash has also set up several Digital Cash ATMs in the country, such as Idaho Falls and Boise.
A great way to use DASH where merchants don’t accept it is by purchasing gift cards from Dash Giftcard Store and eGifter. The cryptocurrency is one of the best ways to pay for retail therapy at Overstock, Bitrefill, and Sugartrends among others.
You can also pay for your travel by using the crypto coin on CheapAir.com and Travala.com.
Dash has employed various useful features that give it a significant edge over other crypto coins, such as Litecoin and Bitcoin. Dash has consistently performed very well over the years, giving users a return of 14,900% and more.
It has garnered favored comments even from cryptocurrency experts. The notable “Jesus” of cryptocurrencies, Roger Ver, has time and again shown support for Dash because it effectively addresses two major problems faced by users on Bitcoin – slow transaction speeds and lack of privacy.
Dash cryptocurrency is also a self-funded and self-governing system, which is important for investors because no crypto coin can sustain the volatile digital markets without constant improvements in their crypto tech.
You can expect Dash to continually improve on its crypto technology and grow its user base in the coming years, both of which are critical for the cryptocurrency to succeed.
Dash is currently supported by over 4,800 services and merchants, is available on more than 90 exchanges, and claims to settle 9,400 transactions each day.