DASH: What is it?
Before we dive right into Dash, we should understand what exactly does the term "cryptocurrency” means. Cryptocurrency is a decentralized digital currency, i.e. operating independently of a central bank and is highly encrypted to secure the generation of currency units and verify the transfer of funds. There are many cryptocurrencies in the market like Ripple, Litecoin, Monero, NEO, Ethereum Classic, Cardano, IOTA, Bitcoin. Dash is a cryptocurrency which stands for Digital Cash.It was initially named as Xcoin which was then changed to Darkcoinand finally Dash. It functions on the same core code followed by Bitcoin, i.e. blockchain system.It has its own blockchain, wallet infrastructure and community. The thing that makes it different and better from bitcoin is that it maintains privacy, enables quick transaction and has very low transaction fees. With the building popularity, it is safe to say that the future is Dash.
Origin of Dash
Evan Duffield developed Dash on 18th January 2014. In the year 2010 Evan came across Bitcoin and took an interest in it. He wanted to improve it, so he built his cryptocurrency using the same code as bitcoin but with improved features which are now known as Dash. Evan, along with his team created Dash.
Dash Dream Team includes:
- Ryan Taylor (CEO)
- Bob Carroll (CTO)
- Glenn Austin (CFO)
- Robert Wiecko (COO)
- Fernando Gutierrez (CMO)
- Philipp Engelhorn ( Press and Multitool)
- HolgerSchinzel (Quality Assurance, Automation, Testing)
- Udjinm 6 (Lead Developer)
- Evan Deffield ( Strategy Advisor)
Dash Controversy, Supply and Market Cap
When Dash was launched in the market, 1.9 million coins were mined within the first two days, which equals to 10% of the total supply which will ever be issued. It was due to a bug in the code. This bug was immediately resolved, and there was a proposition to launch the coins again, which was disapproved. However, the rest of the coins were issued later at very low prices.
The total supply of dash coin is intended to be 18 million. Currently there are 7.4 million coins in circulation, and it is supposed to reach 18 million in the year 2300. As we can see, it's going to take a very long time to achieve its full capacity. It has a variable block reward which diminishes at a 7.1 % rate every year. Dash is four times faster than bitcoin as it has an average block mining time of 2.5 minutes.
The cost of a single dash coin was $0.02 in the year 2014, which increased to $11 in the year 2016. In the year 2017, the price of each unit of Dash was worth $204, and the market capitalization of Dash was $1.5billion. In the year 2017 Dash was the 6th most valuable cryptocurrency in the market. The price of Dash skyrocketed to $1200 to $750 in the year 2017. Presently the price if Dash has fallen to $95.13 per unit making it the 15th most valuable cryptocurrency in the market.
Features That Make Dash Unique
There are three major features that make it special and different from all the other cryptocurrencies in the market.
Masternodes: Full nodes helps to receive updates about the events happening in the networks. To increase the amount of full nodes, Dash is using a secondary network known as Masternodes to receive updates more quickly. Masternodes are like full nodes, but they provide better services and comes with a price of 1000 Dash. As it requires investment, master nodes get paid back in dividend on the investment. Masternode is also in charge of InstantSend function, PrivateSend function and governance.Masternodes can earn 45% block reward as it requires much time and effort. The return on investment for running a master node can be calculated as ((n/t)*r*b*a*365)/1000. Here n = number of master nodes, t = total number of master nodes, r = current block reward, b = blocks in average day, a = average master node payment. Masternodes can be manipulated by fraud users so to make sure the master nodes are working efficiently; Dash uses proof-of-service. Master nodes select two quorums per block; quorum A checks the service of quorum B block by block. After six violation, the node is deactivated to keep frauds away.
PrivateSend: As the name suggests, it helps to send funds privately by mixing it with other transactions making it difficult to trace the history. It is based on the CoinJoin function. CoinJoin means making a joint payment together. Ex.: A wants to send two coins to B and C wants to send one coin to D. So A and C can make a joint payment to B and D. PrivateSend uses the same technique but with some modifications as coinjoin has some weaknesses.PrivateSend uses modifications like Masternodes, chaining transactions by mixing with multiple master nodes and restriction to use only fixed denominations like 0.1, 1, 10 dash, etc. Each session is limited to three clients, and the limit is 1000 dash per session in PrivateSend.
InstantSend: It was previously known as InstantX. It ensures a speedy transaction. The biggest drawback faced by bitcoin is that is takes a lot of time to complete the transaction. It is now solved by InstantSend function of Dash. The transaction is done within 1.5 seconds, but a higher fee is charged for such a speedy transaction. It also solves the problem of double-spending. The transaction details are locked and broadcasted by the quorum, and if there is any double transaction, the network will reject the new transaction. The sender and receiver receive five confirmations of the transaction within a second. This eliminates the risk of double-spending.
These are the core functions of Dash, which makes it unique and different from other cryptocurrencies. As we know, Dash currently is facing a downfall in the market, but still, it has not affected its profitability. The charity event in Venezuela is a proof that Dash is doing well in the business. It is expected to reach a peak of $1000 by the end of 2019 and $1500 by 2020. As for now, we can say that the future for Dash is bright.