What Is Dash? Dash Network Review
Jul 05, 20226 min read
What Is Dash?
Dash Network ($DASH) is a Peer-to-Peer (P2P) network and digital currency that provides you with fast, cheap payments worldwide. Its main goal is to offer you a user-friendly experience and privacy equal to cash.
Transactions are made using the Proof-of-Work (PoW) and Proof-of-Service (PoS) consensus model, which is similar to Bitcoin (BTC) and Ethereum (ETH).
That was pivotal for the project to build a digital payments system with real use cases. That’s why you can shop with your $DASH at 150,000+ locations and online merchants for any goods you need.
The Dash Network has some undoubtful advantages:
- One of the most private cryptocurrencies;
- Speedy transactions;
- Masternodes enable transaction anonymity;
- High level of security.
Evan Duffield, a software developer, launched Dash on January 18, 2014, and named it XCoin, which was changed to Darkcoin later. In 2015, it was renamed Dash, reflecting its aim of being "digital cash."
Dash has a two-level system of the network, and it's a unique innovation in the cryptocurrency world. That makes it possible to earn in the network both by mining digital currency but also on the masternodes. Masternodes are always online and have way more memory than usual nodes. They also process transactions for about several seconds. All this makes the network's capacity relatively high.
How Does Dash Works?
The most unique aspect of Dash is its masternodes system. A masternode is a special server with a full copy of the Dash blockchain. Users with at least 1,000 Dash can operate masternodes that power several of Dash's features.
These features include InstantSend, which allows for fully confirmed transactions within two seconds, and CoinJoin, a method of running a sequence of transactions and making them harder to trace. In exchange for running masternodes, users receive a portion of the block rewards from Dash mining.
While most merchants don't accept any type of cryptocurrency, Dash has had some success in this area. It launched DashDirect, a retail savings app, on July 27, 2021. The app allows you to make purchases using Dash in more than 155,000 stores and 125 websites. It also includes discounts, with the discount amount depending on the retailer.
One final thing worth noting is how user-friendly Dash is. Its website clearly explains how Dash works and where you can buy it. This may seem minor, but it stands out compared to all the cryptocurrencies with overly complicated websites.
One of the most prominent organizations in the Dash network is the Dash Core Group (DCG) which is building a platform where developers can create dApps and websites. The DCG platform will create a space for developers and businesses to improve their integration and payment solutions using Dash to reach decentralized finance and commerce.
The DashDirect application is already used by about 155,000 retailers across the United States. The application uses Dash to buy gift cards in the precise transaction value at the point of sale that can be traded for goods such as food, travel tickets, and clothes, with transactions that settle almost instantly.
As DCG is still perfecting itself, we can expect Dash to attract more innovative developers since it finishes its platform.
Dash Use Cases
Dash has many features that enable it to compete with such giants as Bitcoin ($BTC) and Litecoin ($LTC). Thus, you can use Dash to make transactions more privately and quickly because of these three features: Masternodes, PrivateSend, and InstantSend.
Let’s look at them a bit closer to reveal the whole thing:
The Bitcoin blockchain has miners who validate transactions within the blockchain, and they get rewarded for their work. In the Dash cryptocurrency blockchain, there are also miners, but the system is separated into two parts — Masternodes and miners.
To become a Masternode, you must deposit a minimum of 1000 DASH.
Masternodes are special servers that perform the crucial functions on the Dash crypto network:
- they are responsible for Private Transactions (PrivateSend), Instant transactions (InstantSend) governance, and the treasury system.
- Improve the network's security and ensure that the transactions are as instant as cash transactions. It takes money and effort from the Masternodes. That’s why the network rewards them.
A Masternode takes 45% of the whole reward received from $DASH mining. Imagine that the miners mine 1 DASH coin. It will be split in the following way:
45% reward (0.45 DASH cryptocurrency) for miners;
45% reward (0.45 DASH cryptocurrency) for Masternodes;
10% (0.10 DASH cryptocurrency) for funding the network improvements.
Some find that it’s a problem that Bitcoin is a completely publicly open blockchain. It means every time you make a Bitcoin transaction, anyone in the world can find out the following details bout it:
- The sender and receiver’s public address of every transaction;
- The transaction’s cost;
- The previous transactions where Bitcoin was involved.
For people who don’t like that information to be shared, Dash offers a service called PrivateSend. It adds an anonymity layer to the transactions. Dash transactions cannot be traced back, and the users’ identity isn’t revealed to the world. Masternodes process all private transactions.
As Dash cryptocurrency transactions cannot be traced, their history is hidden. It makes all the Dash coins equal and fungible.
It’s well-known that a Bitcoin transaction takes about 10 minutes to confirm.
That was one of the issues why Bitcoin’s scalability and mass adoption became a serious question. Many blockchains try to fix those concerns but Dash has its own decision and solves the problem by providing a special service called “InstantSend”. Thanks to the InstantSend, the Masternode network almost instantly accepts Dash transactions.
It has some extra cost for the InstantSend service over a usual Dash transaction. Anyway, a usual Dash transaction takes about 2.5 minutes, which is still faster than Bitcoin.
The Dash Network is governed by a Decentralized Autonomous Organization (DAO). All decisions are made on a blockchain through masternodes and anyone who owns 1,000 Dash becomes a masternode owner. These perform standard node functions like hosting a copy of the blockchain for consensus purposes, relaying messages, and validating transactions. Still, they act as shareholders, with voting power for proposals to improve Dash’s ecosystem. Along with masternodes, The system also uses standard nodes and miners.
There are two most notorious Dash DAOs:
Dash Incubator: It’s an open-source platform used to motivate the development of projects that are supposed to improve the Dash network with cooperative community work.
Dash Investment Foundation: Thanks to the connection of the Dash network with businesses via legal and financial arrangements, the foundation is delivering Dash to international companies and growing the network’s value.
With its unique and strong technology, it's quite obvious that Dash overcame many cryptocurrencies and turned them into a currency with high demand among ordinary people and some serious investors. Cointelegraph has even made a solid report on the project to tell us why it’s worth investing.
Dash could be an ideal example of how blockchain technology can offer its users more independence and freedom. For this reason, you can expect to see Dash continue to develop and prosper.
Where to Buy and Store $DASH?
To buy some $DASH, go straightly to a SimpleSwap exchange with the best rates and the easiest way to buy and exchange your favorite crypto.
To store your $DASH coins, create a wallet with an easy-to-use mobile app, SimpleHold wallet.
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