What is DASH?
In its task to become a widely used payment option, Dash (DASH) has evolved to become the equivalent of digital money. Dash is a cryptocurrency specially designed and developed as a solution for making "person-to-person" payments. It seeks to offer a simple, agile system with low commissions. The main difference of DASH compared to the other cryptocurrencies is that it is focused on the transfer of value. It seeks to stand out from the rest of the cryptocurrencies, presenting options for the massive use of crypto-currencies.
Beginning of DASH Coin
The first version of the software was released on January 18, 2014, and was announced on the BitcoinTalk forum. At that time, the cryptocurrency was called XCoin (XCO). The name was not very commercial, so on February 28, 2014, it was renamed to Darkcoin. This name would be short-lived as well because it could lead to harmful misinterpretations in the community. On March 25, 2014, it was renamed Dash, a more concise abbreviation of the words Digital Cash.
Technical characteristics of Dash
Mining uses a mixed model of PoW and PoSe mining. The first system is inherited from Bitcoin and Litecoin blockchain technology. In this mining process, all nodes in the network seek to solve the cryptographic puzzles imposed by the X11 mining algorithm. The X11 algorithm was developed by Evan Duffield himself and is considered one of the most secure algorithms.
X11 is based on eleven of the most secure cryptographic techniques known to date. Duffield intended to reduce energy consumption and ensure the fairest distribution during the first years of the network. Unlike Bitcoin, which is based on a single algorithm, X11 is designed to provide protection against any future weaknesses discovered in one or more of its hash functions.
Today, mining is a highly professionalized industry driven by powerful ASIC server farms around the world working to secure the network. These are responsible for the operation of PrivateSend and InstantSend, the decentralized system of governance and budget.
The second layer is essential, due to the fact that the masters are also rewarded when the miners discover new blocks. The breakdown is as follows: 45% of the reward per block is given to the miner, 45% goes to the masternodes, and 10% is reserved for the budget system (created by the superblocks every month).
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The masternodes are nothing more than complete nodes of the blockchain. Their main objective is to guarantee a minimum level of performance and functionality in the network. Also, they serve to control updated consensus, development process and economic system of the network. Thanks to the masternodes, this cryptocurrency can execute features such as PrivateSend and InstantSend.
PrivateSend allows anonymous transactions between parties, while InstantSend enables instant transactions. PrivateSend and InstantSend are the reasons why the masternodes receive a payment, using a concept known as Test of Service (PoSe). A test that, together with the Test of Work (PoW) serves to provide greater security to this blockchain. The masternodes can also vote for governance and funding proposals, each masternode entitled to one vote (yes/no/abstain) on each proposal submitted to the system.
However, in order to control the number of masternodes in the network, there is a condition for its deployment. Each masternode must have a stake of at least 1000 Dash as a guarantee. This property is the starting point for the mixed model that uses Test of Service (PoSe) and Test of Work (PoW) for its operation.
Thanks to this double consensus system, Dash can implement many of its features, although the main impact is the improvement in security and scalability of the blockchain. Currently, this blockchain has more than 4000 active masternodes. This leaves clear evidence of the level of decentralization in the network.
How to stake DASH?
- - The user buys a certain amount of crypto produced using this consensus algorithm.
- - The purchased currency is transferred to the wallet and "frozen" (a person does not spend it on anything).
- - After a while, the user receives a dividend to his wallet in the form of new tokens. Accrual of interest is based on the principle of bank deposit - the larger your initial share, the higher your monthly income.
In Bitcoin system, anyone with a computer can form a complete node and participate in the community. However, this is not the case with Dash. To establish an entire Masternode in Dash, you need to store 1000 Dash tokens continuously. Masternodes are initially formed by sending 1000 units of Dash to a specific address in their official wallet.
On the one hand, it favors the centralization of the nodes, since it implies, at the current cost, more than $100,000 to constitute a complete node. On the other hand, it prevents or makes hacker attacks unfeasible, since to control 50% of the network, the amount of Dash required is so large that the purchase price would increase fast enough to prevent an attack. It should be noted that the Dash consensus works in the same way as the Bitcoin network, i.e. one masternode = one vote. Also, this requirement to maintain Dash on an ongoing basis helps to decrease price volatility.
On the Bitcoin Network, all mining revenue goes to the miners, which encourages mining and allows for a secure network. However, the entire nodes receive nothing for their "services". In the Dash Network, this has changed, the reward for mining a block is distributed between the full nodes, the miners, and the budget for the development of the network. In this way, agents are encouraged to maintain a node and provide their services to the community.
Dash does not belong to the cryptos with PoS algorithm, but the system of masternodes allows it to reward the users. Therefore, in this case, it does not differ from other PoS coins. The yield can be up to 9% per annum.
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InstantSend and PrivateSend, Dash's payment services
InstantSend and PrivateSend are two unique services of this crypto-currency. The operation of the masternodes enables both services. The first one, InstantSend, is a service that allows almost instantaneous transactions. To achieve this, every transaction sent using this system is verified by consensus in the masternode network. Conflicting transactions and blocks are rejected. If a consensus cannot be reached, the validation of the transaction is done through the standard block confirmation.
The second service, PrivateSend, is a CoinJoin-based coin mixing service with multiple modifications. These include the use of masternodes instead of a single website. This allows you to send crypto coins with complete privacy at all times securely.
Dash is poised to continue growing in value and users, with the development team has increased significantly (over 30 employees) since the early days of a single individual working on the project. The stated goal remains to make Dash as ubiquitous and easy to use as PayPal and other alternative payment systems that, when they first came on the market, were also considered new, unique and challenging to understand, but are now a fact of life for millions around the world.
Dash has many features that are superior to its predecessors, such as Bitcoin, and relies on an additional layer of technology to solve the issues of anonymity, governance/budget, and transaction speed inherent in Bitcoin and some other original cryptocurrencies.
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