How Dash Works?
Dash is an open-source, peer-to-peer cryptocurrency which offers quick, private and safe transaction with a very low transaction fee. It also has a decentralized self-governance system. Dash has a two-tier network called master node network. The first tier consists of full nodes, i.e. computers communicating with one another within the network. The second tier comprises of master nodes, which facilitates special functions like InstantSend and PrivateSend.
How to Buy Dash?
If you want to buy a Dash, these are the steps you need to follow.
Create a dash wallet: This is where you will receive and store your Dash. The options for dash wallets are:
- Desktop: Official desktop wallet is offered, which includes PrivateSend and InstantSend functions. Jaxx and Exodus are recommended.
- Mobile: Wallets like Jaxx (iOS and Android), Coinomi (Android) and Dash Core (iOS).
- Hardware: KeepKey, Ledger Nano S and TREZOR are some Cryptocurrency wallets.
- Paper: You can write your public and private keys that allow you to send and receive cryptocurrency.
Buy Dash: you can buy Dash with fiat currency or with bitcoin.
- Fiat Currency: It is difficult to buy Dash from fiat currency as there are only two services, i.e. BitPanda and Kraken, that offers fiat-to-dash transactions.
- Bitcoin: Bitfinex, Kraken, ShapeShift and Bitrex offers to exchange bitcoin for Dash.
Transfer Dash to wallet: There is an option to transfer the Dash you have bought to your wallet. It is safe as it prevents hacking.
Dash can be exchanged through various exchanges like,
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Dash coins can also be traded through Contracts for difference (CFD). eToro is a broker that provides Dash coin CFD's. It helps to gain advantage from the fluctuations to make a profit.
Storing and Spending Dash:
Dash can be stored in Dash wallets. There are various dash wallets available, but some wallets are better than others. KeepKey, Exodus, Trezor, DASHcore, Uberpay, Electrum, etc. are some of the most preferred wallets. It helps to keep the dash safe from hacking. As Dash is much more secure than Bitcoin some of the companies like Yipptee, a designer boutique, Cycling company, Praxeum, a Taekwondo club, BitCart, to buy Amazon gift cards have accepted Dash for payment.
Dash Card is also available to store Dash which acts a Debit/Credit Card. It is accepted at more than 40 million physical and online retailers. ShakePay, SpectroCoin, Uquid, Bitwala and Wirex are some dash Cards. Dash team integration with a Bitcoin debit card allows dash card to be used at any retailers that accept Visa. People can also withdraw cash using a dash card at any ATM in 210 countries.
Dash better than Bitcoin:
There has always been a comparison between Dash and Bitcoin. Dash was developed after Bitcoin to tackle the problems faced while using Bitcoin. This is how Dash improvised,
- Masternodes: Dash works on master nodes as it is secure and quick. Masternode operator also gets 45% of the reward, i.e. 7 Dash each month. This service is not available in Bitcoin.
- PrivateSend and Anonymous transactions: Bitcoin transaction can be traced while dash transaction cannot be traced as it uses masternodes. Private transactions can be made using Dash.
- InstantSend: Dash transaction can be completed within seconds using masternodes whereas bitcoin transaction takes about 10 minutes to an hour.
- Decentralized Governance: The blockchain is governed by master nodes. It is also self-funded, and promoters are provided with incentives and rewards. There is no middle man.
- Low fees: The average dash transaction fee is $0.10, while bitcoin’s fee is around $2 to $4. It is much cheaper than bitcoin.
- Block rewards: Incentives are provided to confirm transaction known as block rewards. In dash transactions the miner receives 45%, masternode operator receives 45% and Dash maintenance fund receives 10%. In bitcoin transaction the miner receives 100%, full node operator receives 0%, and 0% goes to bitcoin development.
Advantages and Disadvantages of Dash:
Like every other cryptocurrency, Dash has its own advantages and disadvantages.
Advantages of Dash:
- It is self-funded. It pays for software development, business development, integration, marketing and all the other costs.
- It has decentralized governance by blockchain. Anyone can give ideas to improve the network, and if it is good, they will fund the idea.
- The dark Gravity Wave beats Bitcoin cash.
- The team is working on improving Dash and making it almost as liquid as possible and easy to use.
- Dash has master nodes, PrivateSend and InstantSend facilities which are not in Bitcoin.
- It is very fast, private and charges a very low fee for the transactions.
The Disadvantages are:
- Some services are very slow, i.e. PrivateSend service uses coin mixing technique with some modifications, but there are still concerns. It relies upon the number of active users. The number of users can make the coin mixing slow, and recipients have to wait. The transaction is delayed because of it.
- To use master node users have to deposit 1000 dash as 1 master node = 1000 dash.
- Because the users have to use master nodes and deposit 1000 dash, it shows that the current market cap of Dash is actually not the money circulating in the network.
- The block size of Dash is 1 MB like bitcoin. This brings the problem of large transactions and storage. As the network is growing, but the block size remains the same only small number of transactions can be processed per block.
- Dash uses proof of work to ensure there is no fraud. However, it is also a waste of energy, and it will bring problems as the network will grow. It will make the system slow.
- Rich list for Dash enables to see the top 100 wealthiest addresses in the network which contradicts its privacy features.
- There is a cap on dash coins. Only 18 million dash coins can be ever mined. This limits the number of coins people can buy.
As we can clearly see, there are advantages as well as disadvantages of dash coin, but the benefits outnumber the disadvantages as their developers are trying to make it better. Dash coin has done well for itself despite being issued in 2014, i.e. after Bitcoin. It has achieved great significance in the year 2017 and 2018 and is still surviving in the cryptocurrency market.