Dash Cryptocurrency

Why Was Dash Cryptocurrency Created?: Image: Adobe Stock

Why Was Dash Cryptocurrency Created?

The Dash cryptocurrency was launched by Evan Duffield on January 18, 2014, under the name XCoin, later renamed Darkcoin. Find out more.

Dash Cryptocurrency

Why Was Dash Cryptocurrency Created?: Image: Adobe Stock

Cryptocurrency Dash (CRYPTO: DASH) allows users to send and receive money internationally quickly and cheaply. It provides a user-friendly experience and the same level of privacy as cash transactions.

The Dash cryptocurrency was launched by Evan Duffield on January 18, 2014, under the name XCoin, later renamed Darkcoin. Dash was rebranded on March 25, 2015, reflecting its intention to become a digital currency.

The Dash digital payment system is scalable, unlike many cryptocurrencies rarely used in transactions. And there are certain other specialties of this cryptocurrency, which makes the Dash price a matter of great interest among investors today.

So, what makes Dash special?

There’s one thing that makes Dash unique: master nodes. Dash master nodes have a full copy of the blockchain. Some of Dash’s features are powered by master nodes, which are available to users with at least 1,000 Dash.

There’s InstantSend, which confirms transactions within two seconds, and CoinJoin, which runs a series of transactions and makes them harder to track. As a reward for running master nodes, master nodes get a share of the block rewards.

There has been some success with Dash in this area, even though most merchants don’t accept cryptocurrencies. It launched DashDirect, a retail savings app, on July 27, 2021. You can use Dash at more than 155,000 stores and 125 websites, depending on the retailer’s discount.

Last but not least, Dash is super easy to use. You can learn how Dash works and where to buy it on their website. Many cryptocurrencies have overly complicated websites, but this one stands out.

How does Dash work?

Dash utilizes a two-tiered structure to increase efficiency over Bitcoin (CRYPTO: BTC). A proof-of-work system is the first tier, which involves using mining devices to solve complex mathematical problems. If a miner can find the correct solution, they may add a new block of transactions to Dash’s blockchain.

Dash’s master nodes belong to the second tier, and anyone who owns 1,000 Dash can operate a master node. Masternodes are responsible for InstantSend and CoinJoin and voting on governance and funding proposals.

Rewards are generated when a block of transactions is added to the Dash blockchain. The rewards are categorized into three categories:

  • Miners receive 45%
  • Masternodes receive 45%
  • A 10% contribution to Dash’s governance budget

The maximum supply of Dash is 18.9 million, and there are currently more than 10 million in circulation. DashDirect lets you buy stuff from retailers with Dash. Cryptocurrency exchanges list it, so you can buy it and sell it there:

  • NASDAQ:COIN (Coinbase)
  • Binance
  • Kraken

Is Dash a risky investment?

The following are the most significant risks associated with Dash investments:

  • Its price can fluctuate by 10% daily or more, making it extremely volatile. Cryptocurrency investments have a risk-reward issue.
  • Dash faces a common issue – whether it’s a currency or an investment. It wants to become a global payment system, but that’ll take a stable price. Otherwise, consumers will hold Dash hoping it’ll rise in value.
  • Dash has been called a scam because of issues when it launched. Almost 2 million DASH were issued in the first 24 hours because mining difficulty didn’t adjust fast enough. According to some in the crypto community, it was planned so a small group could mine a lot of Dash. Evan Duffield says it was an error.
  • Only invest what you can lose if you buy Dash. Cryptostocks are also an option if you want something lower-risk.

What’s the difference between Dash and Bitcoin?

There’s one big difference between Dash and Bitcoin – efficiency. You can process transactions in a matter of seconds with InstantSend. All Dash transactions are now InstantSend transactions with 0.14, and Bitcoin transactions take much longer.

Dash also has fewer transaction fees. Typically, these fees range between $0.01 and $0.02. Depending on the transaction, Bitcoin fees can range from $1 to $30.

Different mining algorithms are used to mine cryptocurrencies, which govern the computational work involved. There’s less processing power requirement with Dash’s X11 mining algorithm. Because of this, mining hardware stays cool and uses less energy.

Dash’s primary use is as a payment system, so it is indeed tough to predict if it can be successful in the long term. But it is genuinely a brand new and solid method of sending money and buying things.

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