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What is DASH? – A Detailed Guide

  • Evan Duffield launched Dash in 2014 as an improvement on Bitcoin (at that time Dash was known as Darkcoin).
  • A user requires a minimum of 1000 DASH tokens to become a Dash Masternodes owner.
  • Dash allows its users to obscure the trail of their transactions through the PrivacySend feature.

Dash is one of the pioneering cryptocurrency projects that modified Bitcoin’s code, hoping to access the larger market. 

The Dash project was launched in 2014, but it wasn’t just a modified version of Bitcoin. Dash had many features that were different from that of Bitcoin’s technology. The founders aimed to make Dash transactions similar to traditional online payments.

What is DASH? – A Quick Look Into Its Unique Features

Two prominent, innovative features were added to Dash – InstantSend & PrivateSend

With InstantSend, Dash users did not have to wait for confirmation of the transaction. InstantSend enabled them to lock their funds by sending their cryptocurrencies to masternodes. The locking of funds happened even before it was recorded in the next block.

PrivateSend separates the identity of a person sending cryptocurrency from their transactions. It obscures the trail of the transactions by mixing with other transactions. The user has to send their cryptocurrency to masternodes to access this feature.

Dash was one of the earliest protocols to provide staking to its users. Holders could take part in deciding how the Dash blockchain operated. Dash went on to add many new features for the benefit of its user community.

Dash has come a long way since its inception. Many of its operations such as marketing, development, and software infrastructure are partly run through contracts and the team is working hard to bring more innovative features to its community.

A Short History

Dash was launched in January 2014 and created by Evan Duffield, a developer, then named Darkcoin. The name summarized its privacy-oriented features. In 2015 it was rebranded to Dash, short for Digital Cash.

How Do DASH Masternodes Work?

The masternodes concept was pioneered by Dash. Today the concept of masternodes is gaining tremendous traction and has been implemented in many popular projects. So, how does the masternodes concept work?

On Dash blockchain, the participants can take part in how the blockchain is governed and how it will progress ahead. They can hold Dash tokens and shares in collateral. The participants can even verify transactions on the Dash blockchain.

Benefits for Dash Participants

There are double benefits for the participants to provide collateral to the Dash network. Participants receive rewards in lieu of providing collateral to the Dash network. The rewards are paid from the transaction fees that Dash generates from the services it offers to the network. Aside from the rewards, participants also get voting rights, allowing them to take part in the governance of Dash.

A minimum of 1000 DASH tokens is required to become a Dash masternodes owner. Masternodes owners ensure that no participants act in a manner that will put the Dash network at risk as they have a stake in it.

Participants are free to withdraw their tokens any time they want. Their collateralized tokens don’t reduce overtime either. Dash maintains a two-tier incentivized network, only possible because of masternodes, also offering features such as PrivateSend and InstantSend which were discussed above.

Summary

DASH tokens have seen a huge fall from their 2018 highs. Such a drastic fall has made many question the future of Dash. 

Many Dash proponents swear by the privacy feature of Dash, but the truth is that Dash is not among the top-most privacy coins, currently led by Monero. The road ahead is going to be quite challenging for Dash and it will be interesting to see if it can tackle the challenges that it will face in near future and remain relevant in this fast-paced industry.

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