What is Dash? - Cryptocurrency Guide For dummies Table of Contents
Analyzing the history of cryptocurrencies, especially Bitcoin (BTC), the most famous cryptocurrency, you can come across a cryptocurrency built on the “blueprint” of Bitcoin. This cryptocurrency one is the right dash (Dash).
Dash is an open-source blockchain-based cryptocurrency that has been receiving a lot of attention recently.
Before investing in a cryptocurrency like Dash, you need to know a little about Dash’s background, unique features, price timeline, future plans, as well as the “controversial” history of Dash. So, let’s start the post by briefly explaining the dash.
What is Dash?
Dash is a cryptocurrency created as a fork of Litecoin . Since Litecoin is a fork of Bitcoin, these three cryptocurrencies are very similar. Dash, or the name Dash, is a compound word of “Digital” and “Cash”. In fact, digital cash is essentially a cryptocurrency.
Dash wants to make better versions of both Bitcoin and Litecoin. Dash also aims to be a successful vehicle that people use to process their daily transactions.
Dash is open source. This means that any user will have access to new updates and will be able to change the protocol if the majority of nodes agree.
It is worth noting that Dash, like other cryptocurrencies, is decentralized and has no centralized power. However, Dash is managed by DAO, a decentralized autonomous organization.
What makes Dash special is its efficiency over Bitcoin and Litecoin. Moreover, the Dash network is working to improve its privacy protocol, which means that Dash Coin guarantees more informal transactions than other cryptocurrencies.
The supply of Dash is limited to 18.9 million pieces, with around 10 million already in circulation.
Dash is a fungible cryptocurrency. This means that one coin cannot be traced back to previous transactions.
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How does Dash work?
What sets Dash apart from other cryptocurrencies is how it works. The three special features that make Dash a cryptocurrency today are: Masternodes, PrivateSend, and InstantSend.
Dash has two main systems: miners and masternodes. Miners on the Dash network follow the same rules as other cryptocurrencies. On the other hand, masternodes are users who own more than 1000 DASH. These masternodes serve as decentralized autonomous organizations, DAOs, on the Dash network. They have more leverage than small users and have the ability to dominate the network as well as operate various functions within the Dash blockchain. To do so, masternodes have to spend a lot of money to operate all services within the network.
But besides owning 1000 DASH, what are the benefits of being a masternode?
Masternodes are rewarded in the same way that miners are rewarded. Every time 1 Dash is mined, 45% of the mined Dash goes to the miner in charge of mining, and another 45% is given to the masternode to reward the contribution to the operation of the Dash blockchain. The remaining 10% will be used by decentralized autonomous organizations (DAOs) to improve the Dash network.
There are two main functions that Masternodes are responsible for PrivateSend (private transaction) and InstantSend (real-time transaction).
With PrivateSend, users can secure even more transactions than ever before. Users who trade DASH have the option to make their transactions completely untraceable and invisible to other users. This means that users may not be able to see the DASH transaction history, transaction amount, and address. The PrivateSend feature has made Dash leading anonymity and secure cryptocurrency.
InstantSend is another feature that Masternodes provide to users. This feature makes Dash transactions much faster than other cryptocurrencies. To put it more simply, a Dash transaction takes about 2 minutes and 30 seconds to complete, which is much faster than most other cryptocurrencies. In addition, by paying a small fee to the masternode, users can complete Dash transactions right away.
As a consensus mechanism, Dash uses a hybrid version of Proof of Work (PoW) and Proof of Stake (PoS).
Dash vs. Bitcoin – which is better?
Dash (DASH) and Bitcoin (BTC) have many similarities. However, there are many differences between the two as Dash was created as a better version of Bitcoin.
1. Similarities
- Concept
- Dash is considered a fork of Litecoin, which is itself a fork of Bitcoin. So many protocols are similar to Bitcoin and Litecoin forks, and they share the same concepts and ideas.
- Decentralization
- Both Dash and Bitcoin are decentralized cryptocurrencies that do not require a third party or central authority to control transactions.
- Limited supply
- Both Dash and Bitcoin have limited supply. Bitcoin’s limited supply is 21 million BTC, while Dash is 18.9 million DASH.
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2. Difference
- Transaction cost
- Transaction fees are much higher for Bitcoin compared to other cryptocurrencies like Dash.
- Network control
- All nodes that are part of the blockchain collectively control Bitcoin. On the other hand, Dash is controlled by a decentralized autonomous organization, DAO.
- Privacy
- One of Dash’s main goals is to make cryptocurrency trading more private than Bitcoin. This is done through PrivateSend, which makes Dash an alternative cryptocurrency, meaning that previous transactions cannot be traced and each coin has the same value as the others. However, Bitcoin does not have the same policy. This means anyone can access your Bitcoin transaction history.
- Mining
- The mining process for both cryptocurrencies is almost the same. However, users who own more than 1000 DASH become masternodes that can utilize more of the features of the Dash network. Also, to mine DASH, 45% of mined DASH must be used for users, 45% for masternodes, and 10% for network maintenance. The same does not apply to Bitcoin.
- Efficiency
- With InstantSend, Dash transactions are much faster than Bitcoin transactions. When the market is congested, it can take hours or even days for a large number of Bitcoin transactions to be processed. However, a Dash transaction of the same amount can be completed in just a few minutes.
- Consensus mechanism
- Bitcoin only uses Proof of Work (PoW) as its consensus mechanism, which means it uses a “trapdoor” feature to verify that transaction validation is valid. Dash uses a hybrid version of Proof of Work (PoW) and Proof of Stake (PoS). This hybrid version is a consensus mechanism that ensures that mining rewards are based on the number of coins owned by the user, rather than on computational power.
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History of Dash
Since Litecoin is considered one of the first Bitcoin forks, many people think of Dash as a Litecoin fork. Created by software developer Evan Duffield under the name XCoin, Dash was launched in 2014. It was also referred to as “Darkcoin” before it was given the name “Dash” today.
Due to a bug that appeared when the fork occurred in Litecoin, 1.9 million Dash (about 10% of the total supply) was mined in just two days, causing Dash to be controversial from the beginning of its operation.
Initially, Dash was heavily criticized for reports that people may have used it to trade illegally on the black market. In August 2016, the charges were dropped.
Since then, Dash has grown both as a cryptocurrency and as a community.
Dash has expanded its network in Venezuela by 2019, becoming the largest cryptocurrency in Venezuela.
History of Dash Price
According to CoinMarketCap, on February 16, 2014, the starting price of DASH was $0.36. Prices started off well, reaching $14 in May 2014. However, it began to decline sharply in the months that followed, hitting its lowest price at $1.34 in early 2015. Dash then continued its strongest bullish run for the longest time. By early 2017, the price of Dash was slowly rising.
Along with many other cryptocurrencies (including Bitcoin), the price of DASH is higher than ever. Within three months, Dash had crossed $100. It grew at the same rate throughout 2017, reaching $374 in August. After two months of recession, the price began to rise again, reaching an all-time high of $1437 on December 20, 2017. After that, following the cryptocurrency downtrend, the price of Dash dropped to $40 at the end of 2019.
Prices were between $40 and $100 for most of 2020. In 2021, the price of DASH will continue to rise, but not at the same rate as some other cryptocurrencies that have made the largest cattle herd in history. As of May 2021, DASH is around $400, up more than 300% from the beginning of the year.
What is the future of Dash?
Now that you have covered the basics you need before investing in Dash, let’s take a look at how many experts predict the price of Dash in the future.
Digitalcoin predicts that the price of Dash will reach $650 in 2022 and $1090 in 2025 .
Trading Beast (TradingBeasts) is expected to reach about 490 US dollars rose 38% from the current price Dash 2025.
WalletInvestor forecasts that by 2025, DASH could reach between $660 and $1300 in price.
Wallet Investors should (WalletInvestor) is expected to dash to $ 1,300 to 660 US dollars by 2025.
YouTuber BitBoy Crypto predicts that Dash will hit $220 by the end of 2021. One of the reasons may be that Dash has not yet crossed its previous bull run like other cryptocurrencies.
What are the factors affecting the price of DASH? The main factors are:
- Flow
- Dash is limited in supply at 18.9 million DASH. With around 10 million DASH already circulating in the market, Dash is getting rarer every day. This scarcity can make cryptocurrencies higher in price.
- Privacy
- What makes Dash so special is the guarantee of privacy during the transaction. In the future, the privacy-preserving feature of Dash may be favored and more people may want to use it, which in turn may drive up the price of Dash.
- Potential power
- While many cryptocurrencies have surpassed previous bull runs with their 2021 bull run, Dash has yet to. However, if more people find out about this, there is a chance that Dash’s bull run will happen.
Conclusion
Dash’s background, controversial history, system, past price patterns, and predicted future value – DASH has many stories to tell. Everything about Dash leads to the conclusion that Dash itself has potential, whether because of the privacy features it offers, or because of its potential to exceed all-time highs, such as the infamous cryptocurrency bull run at the end of 2017. Overall, the future for Dash looks bright.
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