Dash Cryptocurrency 101: Here’s What You Need to Know

Dash enables fast and anonymous transactions, while also including a mechanism to reward engaged members.

Dash cryptocurrency basics

Most popular cryptocurrencies like Bitcoin and Ethereum are not completely anonymous. While that’s not the problem for most people, some do not like the fact that prying — albeit tech-savvy — eyes could find out how they are spending their digital money.

And so anonymous cryptocurrencies were born, Dash being one of them. Today, we give it some space on Wallet Weekly.

What is Dash?

Dash dubs itself as peer-to-peer decentralized electronic cash, created with the idea to be as liquid as real cash. It is built upon Bitcoin’s core code with the addition of new features, such as those for enabling privacy and quick transactions. Like most (all?) other cryptocurrencies, Dash is open-source and has its own blockchain, wallet infrastructure, and community.

It was created on January 18, 2014 by developer Evan Duffield, and originally launched as XCoin (XCO). In February 2014, the name was changed to “Darkcoin,” and in March 2015, it got the name we know today – “Dash.”

Limited supply

Dash is designed to have a total supply of 18 million coins, which is the target that will be reached in 2300.

The Dash system has a variable block reward which decreases at a rate of 7.1 percent each year. The average block mining time is 2.5 minutes on the Dash blockchain, which is four times faster than Bitcoin.

What makes Dash better?

There are a few things that make Dash unique, including:

In the Dash system, there are nodes with special privileges called Masternodes. These Masternodes are used to perform special Dash functions, like PrivateSend and InstantSend (more on them in a second). Anyone holding 1000 Dash as collateral can form a Masternode, and earn a 45% block reward.

Private Send
Dash uses a coin mixing service based on CoinJoin that makes it much harder to identify any specific transaction. Once a private transaction has been initiated, the Dash system will create a number of transactions making it next to impossible to identify which of the series of transactions is real.

Instant Send
This service, which used to be known as InstantX, allows users to make Dash transactions instantly, within 1.5 seconds, but they also come with higher processing fees that are charged by Masternodes.

Dash infographic

These features are (still) not possible on blockchains of Bitcoin and Ethereum.

Buying and storing Dash

Dash is available from a number of exchanges, including Changelly, Bitfinex, CEX.io, Kraken, HitBTC, Bittrex, Coinpult, and Livecoin.

Once you buy some Dash coins, you will need to store them somewhere: you can use a mobile wallet (for Android devices there are Dash Wallet, Coinomi, Jaxx; for iOS – there’s Jaxx), desktop wallet (Dash Core, Jaxx and Exodus) or a hardware wallet (Ledger Nano S, Trezor, KeepKey).

What is the future of Dash?

Dash is by no means the only cryptocurrency supporting higher (than Bitcoin) level of privacy and anonymity. It is, however, one of the oldest such tokens/networks and has managed to gather quite a community in the last few years. So, yes – we do think there is room for Dash, and not just Dash — we are still in the early days of cryptocurrencies with a ton of room for growth.

You can keep up with Dash from its official blog and/or join the discussion on Dash Forum. It is up to you to decide whether you are willing to invest in Dash, go for some other cryptocurrency or mix more of them for a diversified portfolio. For what it matters, the last option is the one we opt for.

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