Date Launched: January 18, 2014
Mineable: PoW, PoS (Proof-of-Service)
Founders: Evan Duffield, Kyle Hagan
Parent Code Fork: Bitcoin
Dash, short for Digital Cash, is a cryptocurrency based on Bitcoin. Unlike Bitcoin’s single-tier network, where all transactions on the network are verified by miners, Dash utilizes a two-tier network. Certain network functions, such as creating new blocks, are handled by the miners. The second tier of the Dash network consists of “Masternodes” which perform PrivateSend, InstantSend, and governance functions.
Dash mining is done in two ways: Proof-of-Work and Proof-of-Service. Proof-of-Work is similar to that of Bitcoin’s, through the use of GPUs and ASICs. Proof-of-Service is operated by series of Masternodes, who are rewarded for their actions.
Masternodes are require to put up 1000 DASH as collateral to prevent sybil attacks. That collateral can be spent at any time, but doing so removes the associated Masternode from the network. Unlike Bitcoin, Dash is self-funding. 45 percent of newly created Dash goes to the miners, and 45 percent to masternodes. The rest — 10 percent — goes to a treasury for funding the development team, marketing, customer support centers, and so forth.
Other benefits of Dash include fast transactions using InstantX. When sending money, users can select the “Use InstantX” option in their wallet, and transactions will be fully sent and irreversible within four seconds. In addition, most Dash transactions only cost a few cents to send, which is considerably cheaper than services like Western Union, PayPal, or MoneyGram. Dash also allows for PrivateSend transactions, which hide user transactions by mixing them with others.
How Dash Works
Peer-to-peer digital currency differs from traditional money in that there is no central authority responsible for monitoring supply and authenticity. Instead, the hard laws of mathematics govern supply and ensure that only legitimate owners can spend their balances. Assuming users follow recommended security practices, this makes fraudulent spending and theft almost impossible. In the absence of a central authority, each node on the network itself must come to an agreement (or consensus) on the balances of each account (or address) every few minutes. This information is then stored in a block, and irreversibly written and linked to the previous block to form a chain. This constantly updated ledger is accessible by any user of the network and is called the blockchain.
Dash builds on this simple (although somewhat unfamiliar) concept by offering users instant, private and secure transactions that are so simple, you won’t even know you are transacting on a blockchain. Anyone can participate in the network, and Dash is widely available for purchase around the world. The ingenious masternode network means sending any sum of money around the world is as simple as tapping your phone at your local store to buy groceries. Say goodbye to slow transactions, complex international account numbers and high transaction fees – Dash is digital cash!