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What is Dash cryptocurrency?


Brian Hayslip

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Dash is a crypto alternative to Bitcoin that was originally released in 2014 as Xcoin and later rebranded as Darkcoin. Ultimately, it was renamed Dash, a shortened form of “digital cash.” It was developed by Evan Duffield, who saw the potential in Bitcoin in 2010 but felt it could be improved, especially in terms of transaction speed and privacy protection. Dash has a hard max supply of 18,900,000 coins; there are currently about 8.5 million coins in circulation. Based on its value in March 2019, Dash has a market cap of roughly $750 million, although it entered the billion-dollar market in 2018. At the time of writing, it is currently the 15th largest cryptocurrency, although at times, it broke into the top 10. Dash governance is based on Decentralized Autonomous Organization, or DAO, via masternodes. Masternodes resemble full nodes in Bitcoin, but masternodes are fully invested in Dash; you have to invest 1,000 Dash to run a masternode. In exchange, individuals who operate one take a 45% cut of the block reward. Masternodes are part of the reason Dash is able to slash its transaction speed compared to Bitcoin. Masternode powers a payment system known as InstantX or InstantSend, which can execute a transaction in about 5 seconds. Compare that to the average of 10 minutes it takes for miners to process, confirm, and complete a Bitcoin transaction. For that reason alone, Dash seems better suited to be a currency for everyday transactions in a way Bitcoin cannot. Dash has also solved some of the privacy and anonymity problems inherent in Bitcoin. For example, they offer PrivateSend, which uses CoinJoin technology to create fungibility and anonymity within Dash transactions. Transparency is one of Bitcoin’s chief selling points, but it has significant drawbacks.If your Bitcoin was ever used in an illegal transaction, such as buying weapons or drugs, that history is forever part of your coin. It is essentially tainted and will always be worth less than clean Bitcoin. Dash solves that problem by combining several different transactions into a single transaction that can never be uncoupled, nor can the exact flow of Dash in a particular CoinJoin transaction ever be traced by a third party. Dash is considered a fast, inexpensive, and private alternative to Bitcoin, and in fact, it has a committed user base including many online commerce sites. It is one of the most accepted cryptocurrencies. However, like all cryptocurrencies, it is highly volatile and very young in the crypto space. The Dash coin experienced 100x growth between 2017 and 2018, although it, like most crypto, has struggled in 2019. However, it has fulfilled its core promises of speed and anonymity, and it is aggressively tackling adoption issues. It occupies an important position in the crypto market and is positioned to become a major player if it can successfully address its perceived weaknesses.
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