Dash is described as a privacy-centric cryptocurrency.
Dash allows you to remain anonymous while you make transactions, similar to cash.
The dash symbol is DASH.
The dash address lookup on the Internet is https://www.dash.org/
How dash works
Dash is based on bitcoin software, but it has a two tier network that improves it. Dash allows you to remain anonymous while you make transactions, similar to cash.
When bitcoin is used, the identity of transactions can be traced back to the blockchain by anyone with an Internet connection. But when dash is used, the anonymization technology of the dash network makes it impossible to trace transactions.
Dash ensures privacy through the use of a mixing protocol over an innovative decentralized network of servers called Masternodes.
A further improvement over bitcoin is the speed of transactions; bitcoin speeds may vary and be slow at times because confirmations are all done by miners. But, in the case of dash, transactions are almost instantly confirmed by the masternodes network.
The dash blockchain is a two tier system; it comprises the proof-of-work activities and rewards normally associated with miners –similar to the bitcoin network- and additionally, it also rewards users for running and maintaining special masternodes servers.
Masternodes enable the following services:
- InstantSendallows for near-instant transactions. Dash InstantSend transactions are fully confirmed within four seconds.
- PrivateSendgives financial privacy by obscuring the source of funds on the blockchain.
- Governance and Treasuryallows stakeholders in dash to determine the direction of the project and devotes 10% of the block reward to development of the project and ecosystem (the annual budget is +$6.7 million).
- Dash Evolutionwill make using cryptocurrency as easy as using PayPal.
Because users are rewarded for running masternodes, 45% of the block reward is allocated to pay the masternode network and the remaining 55% to pay miners for regular proof-of-work activities.
Masternode owners must have possession of 1000 DASH, which they prove by signing a message and broadcasting it to the network.
Masternode users are also given voting rights on proposals. Each masternode has one vote and this vote can be used on budget proposals or important decisions that affect dash.
InstantSend technology allows cryptocurrency payments on the dash network to compete with nearly instantaneous transaction systems -such as credit cards- for point-of-sale situations; an added advantage of dash –over traditional financial institutions- is that it does not rely on a centralized processing authority. Further, whereas other digital currencies –such as bitcoin- can take several minutes to confirm, dash takes only a few seconds.
Masternodes also give double-spend protection by instantaneously locking in transaction inputs and by broadcasting an immutable payment confirmation to transacting parties –such as retail merchants- in as little as one second.
PrivateSend gives users of the dash network true financial privacy by obscuring the origins of funds. When dash users send payments, their wallets break up and fragmentize the requested amounts into smaller, random units.
The anonymous masternodes –who also do not know the identity of the sending wallet- further “mix up” and combine such payment requests with the requests of at least two other users prior to confirming payment to transacting parties. It is therefore impossible for anyone to trace back payment requests to any specific user wallet.
The dash network employs highly sophisticated, complex and self-developed software protocols to ensure the integrity and speed of its blockchain.
For instance, the X11 chained hashing algorithm utilizes a sequence of eleven scientific hashing algorithms for the proof of work (PoW). Other networks normally use single-hash PoW solutions that are not protected against security risks like SPOF (Single Point Of Failure).
Further examples of innovative technology which was developed and pioneered by the dash network are Dark Gravity Wave (DGW), Multi-Phased Fork (Spork), Sentinel and Evolution (Evo) which allows users decentralized access to the dash API. Access to the dash block explorer is also available at multiple online domains.
The primary use of dash is as a digital currency that can be exchanged instantly, privately and anonymously between transacting parties.
But, the dash coin is also exchangeable in the open market.
Importantly, it is not dash stock. Dash is virtual money, tradeable on cryptocurrency exchanges under the dash symbol, DASH.
Currently, dash is in the top ten of all crypto coins by market capitalization.
Dash creator – white paper
The dash founder –Evan Duffield – has explained the concept of the dash coin –what is dash and the functioning of the dash network- in a whitepaper which is available online.
“…Dash has continued to build on the original invention of Bitcoin, to add more value to the original code.” – Invest It In
“Dash is undoubtedly a speculative investment that has a great potential of becoming the next bitcoin.” – Bitcoin Exchange Guide
“Investors Who Missed Bitcoin Rally Go for Dash…” – Bloomberg
Dash website – dash.org
Github – dash wiki
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