Review of Dash cryptocurrency technology and prospects for investors. Everything about the Dash cryptocurrency - wallets, history, advantages, where to buy and where to spend

The Dash cryptocurrency project (DASH, Dash, in Russian you can say “Dasha”) is one of the most promising among. It successfully brought together active and qualified programmers who took the best from existing forks, adding their own unique developments. The community appreciated the promising idea.

More than a year and a half has passed since the launch; During this time, Dash rapidly gained popularity, becoming one of the top five leading cryptocurrencies. Like almost all cryptocurrencies, Dash is still officially in beta testing. serial number The latest version of the wallet as of the date of publication of the article is 0.12.0.47.

The launch of the cryptocurrency, which at that time was called Xcoin, occurred on January 18, 2014, and from January 28, 2014 to March 25, 2015, it bore the name Darkcoin, under which it gained a significant share of popularity. Not everything worked out right away, as the developer, Evan Duffield, initially wrote the code alone. Soon, a full-fledged team of enthusiasts was formed, several new releases were released, improving the anonymity mechanisms of DarkSend and optimizing the operation of the Masternode network. In the fall of 2014, Dash successfully passed a security audit by recognized expert Kristov Atlas, after which the source code was opened. Later, the functionality of instant transactions InstantX was implemented.

In March 2015" dark horse" cryptocurrency world carried out a rebranding, changing the name to DASH - while all other components of the project remained unchanged. The general desire to remain the No. 1 anonymous cryptocurrency has also been preserved. The new name DASH plays on the words “dash”, one of the meanings of which is “rapid movement, jerk” and “digital cash”, that is, digital money. Along the way, the word “coin”, generally accepted for most forks, disappeared from the name. Dash has set itself the next goal - to become a direct competitor to Bitcoin.

In the summer of 2015, Dash introduced a built-in decentralized voting system. During the first stage of voting, Masternode owners decided to introduce a system of decentralized management and financing. It becomes the basis for further long-term development of the project.

Dash Wallet

When loaded, the wallet program displays a nice and modern splash screen. Its appearance resembles the classic Bitcoin client, but there are some differences. A large “start automixing” button is visible, there are “try manually” and “reset” buttons. Functions related to Darksend technology are also called from the wallet.

After downloading the wallet program, it will take some time to sync. But then you can start enjoying all the benefits of faster and more anonymous system than Bitcoin. More anonymous, but not completely - since there are no absolutely reliable systems in cryptography. It can be said that this level of anonymity is sufficient to protect privacy.

Dash Features

Dasha has several original features that distinguish it from Bitcoin and many faceless forks that can only boast of changing the name, logo and key constants.

The basis for all of Dash's key features is its two-tier distributed network architecture. Bitcoin's traditional peer-to-peer network is based on peer-to-peer consensus, which results in verified transactions being recorded on a distributed ledger (blockchain).

The two-tier Dash network works differently - "supernodes" form the top layer of real-time consensus. This speeds up the protocol, but slightly increases security risks. After which, transactions approved by masternodes undergo the same procedure of recording in the blockchain through mining.

In the future, the capabilities of the two-level Dash network can be used to implement solutions such as Distributed Storage Systems (transaction lists, registries, messages, etc.), Distributed Application Systems (exchanges, stores, services, etc.), support for Third Party projects, etc.

The future development of Dash will be determined by the voting system currently being implemented. This new tool for the cryptocurrency world will allow Dash to conduct distributed secret voting between masternodes. “Ordinary” network users do not have voting rights, but any of them can put forward proposals for development.

Thus, Dash is creating a platform that is maximally suitable for further effective development, adaptation and promotion of new cryptocurrency technologies.

This is a short list of the features of Dash, below we will look at them in more detail:

• A system of masternodes – key nodes of the network responsible for implementing its main functions
• Transaction anonymization (mixing) system DarkSend
• InstantX transactions
• Original X11 mining protocol
• Optimized DarkGravityWave difficulty recalculation mechanism

There may be between 16 and 22 million coins in total. 22 million is a theoretical maximum, but in practice you should expect no more than 16-18 million DASH to be available. To date, approximately 5.6 million DASH have already been issued. This gives the total coin capitalization of about 20 million US dollars (currently one dash costs about 3 $). The daily volume of transactions exceeds $50,000 (the latest data is available). Every year, the emission of new coins is reduced by 7%, which gives a smoother distribution of emission than BTC and LTC. A complete block calculation is completed in 2.5 minutes (similar to LTC and 4 times faster than BTC).

Just like Bitcoin, Dash is divided into 100 million parts. Some users call them "duffs" in honor of the creator, Evan Duffield. The calculation of transaction fees and their distribution among miners is similar to Bitcoin. Most questions of interest to newcomers are posted on the Dash Wiki

Anonymity and instant transactions

InstantX

Starting with kernel version 0.11.1, the Dash network supports InstantX technology. This is a mechanism for making instant payments, in which the transaction is confirmed not by the network, but only by ten random masternodes. These five confirmations can be received in a matter of seconds. They are not an absolute guarantee that the payment will be processed. Subsequently, the transaction is included in blocks in the same way and receives “regular” confirmations, as in . That is, InstantX is a form of “trusted payment” using randomly selected anonymous intermediaries. The function in the wallet is disabled by default.

Such a high deposit was introduced in order to protect the network from possible attacks (the so-called “51%” attack), and does not allow ill-wishers to gain control over a significant part of the network, including the voting system. If you try to buy a large number of coins on the market, their price will rise significantly. Thus, on the one hand, the system is open to the creation of new masternodes, and on the other hand, it limits the ability of individual players to control a significant part of the network and interfere with its work.

The maximum number of masternodes is naturally limited by the number of DASH already mined. Now this is approximately 5,600 pieces - that is, now more than 40% of all available coins are blocked for the functioning of supernodes. On the one hand, this creates a shortage of Dash and increases their value on exchanges, but on the other hand, developers become hostages of the current scheme, since if the size of the collateral changes - in any direction - a significant amount of DASH will spill onto the market, which can lead to strong fluctuations in the rate .

Mining

Dash mining uses a combination of the X11 multi-hashing algorithm and the DarkGravityWave difficulty regulation mechanism (a special implementation of the KGW technology - Kimoto Gravity Well). With DarkGravityWave, difficulty changes more smoothly and currency prices experience fewer fluctuations. The reward for a block depends on the difficulty and is calculated using the formula 2222222/(((Difficulty+2600)/9)^2). Now the reward is approximately 6 DASH per block.

The X11 algorithm is a combination of 11 hashing algorithms ((blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd, echo). Network failure will only occur if all 11 algorithms are hacked, which is unlikely. Even if attackers It will be possible to break several algorithms, this will give developers time to take action and replace the compromised functions.

Dash is currently being mined using central processing units(CPU) and GPUs video cards (GPU) with a bias towards the latter. Mining with GPUs using the X11 algorithm requires 40-50% less energy than using the Scrypt algorithm. Also, for this reason, the heat dissipation of the card drops by 40-50%.

Is ASIC possible for X11? Such developments are already underway. Developer Evan Duffield has repeatedly emphasized that DASH cannot be called ASIC-protected. In his opinion, Dash is going to follow the same path that Bitcoin and Litecoin did before him - mining on a CPU, moving to a GPU and then to an ASIC.

The Dash cryptocurrency is considered one of the most convenient scalable cryptographic monetary systems for payments on the Internet with partial access to the offline market. Its network features instant transaction confirmation, two-level payment protection, increased anonymity, and a self-governing self-financing model based not only on mining, but also on stimulating the work of full nodes. Additionally, this cryptocurrency has a clear roadmap for scaling on-chain to 400MB blocks using open source software. Next, we will describe these and many others. key functions, which distinguish Dash in the family of blockchain cryptocurrencies, and also evaluate the prospects for its development in 2018 and the more distant future.

General information about the Dash cryptocurrency

If you are new to the world of cryptographic money, then the most important thing to understand about this type of payment system is that transactions in it occur directly between two parties without any central or authorized structures to confirm the authenticity of this transaction. This makes these transactions more secure while being as anonymous as possible, and it also means that all parties are fully responsible for their actions - there is no bank or credit card to reverse the transaction if your funds are stolen or lost. In all other respects, the Dash cryptocurrency is similar to regular fiat money or gold.

Except that cryptocurrency transactions can be carried out locally and/or internationally with incredible ease and without any cross-transfers. However, this is only true if you are sending the funds to the correct destination - an error in the destination address will result in permanent loss of money. That's why Dash places a strong emphasis on security, understanding the concepts and features that drive this ecosystem. The main ones are the following:

• Dash is an open source cryptocurrency with a strong focus on the payments industry. This platform offers a form of money that is portable, inexpensive, divisible and fast. It can be used safely both online and when making offline purchases, and, importantly, with minimal transaction fees.
• Dash is based on Bitcoin, but unlike its “parent”, it aims to be the most convenient way to make payments anywhere in the world, regardless of what national currency is used, and not just on the Internet. In this regard, the Dash cryptocurrency currently also offers instant transactions (InstantSend), private transactions (PrivateSend). In addition, it has a decentralized governance system, which allows the Dash network to provide maximum security for its users.
• The reward for mining the Dash cryptocurrency is given not only to miners, but also to the owners of special servers - Masternodes (they will be discussed separately), ensuring maximum security and anonymity of the system, and at the same time increasing the speed of transactions.

These are the main differences between the White Paper of the Dash developers and its counterpart for the Bitcoin payment system. And they are quite large, therefore, despite their digital relationship, these two payment systems take different paths to different goals.

Dash cryptocurrency – rate and capitalization

As of February 12, 2018, the value of the Dash cryptocurrency is 629 coins per 1 US dollar, or 0.07 Dash coins per BTC coin.

The total capitalization of Dash is 4936875298 US dollars(for comparison, $149,1766,14838 in Bitcoin). At the same time, 7.881 million coins out of 22 possible have already been mined through mining in the Dash ecosystem (this is the maximum for the system, which, according to experts, will be reached somewhere closer to 2150).

Dash and Bitcoin – differences and similarities

Any new cryptocurrency is first of all compared with the well-known Bitcoin. So, it’s easier to understand what makes the new payment system stand out, and what are its prospects in this market. As for Dash, its differences from BTC are as follows:

• In Dash, the speed of forming a new blockchain block is 2.5 minutes, while in Bitcoin it is 10 minutes. This is important, since a lower speed of block formation gives a higher speed of transactions.
• Dash uses its PrivateSend algorithm to increase the anonymity of transactions, which first splits the transfer amount into small parts (equal in size for the entire system, in order to hide the user from detection by the size of the transaction) and mixes this money several times with the money of other users not participating in this transaction. The latter complicates the likelihood of identifying counterparties based on the history of money (each coin in the Blockchain carries its own size and the entire history of transactions in which it participated).
• The difficulty of mining Dash is significantly lower than in Bitcoin. Mining of the Dash cryptocurrency is available to users with regular PCs with relatively weak technical characteristics. And the electricity costs from such activities will be significantly less.
• About 45% of the reward for mining the Dash cryptocurrency goes to masternode owners – private servers that keep the system running.
• Dash allows you to make almost instantaneous transactions using a combination of security system, using a combination of public and private keys.

It is also worth noting that, unlike Bitcoin, Dash has a specific development team known to everyone, which is engaged in advertising, development and improvement of its payment system. Which does not mean that the developers alone decide the future of Desh - this is decided by the community of this payment system: anyone can propose their idea to a vote for 5 coins. And this voting system works! For example, in this way an increase in block scaling to two megabytes was realized literally in one day from the moment the user submitted the idea.

How is the value of the Dash cryptocurrency formed?

As in the case of Bitcoin, the price of dash coins is determined solely by the ratio of supply and demand for this cryptocurrency among financial exchange players. In other words, the value of the Dash cryptocurrency depends only on the level of trust in this payment system: if it decreases, the price falls, if trust in Dash goes to zero, then the cryptocurrency will die, but if people are confident in the stability or growth of Dash, the quotes will rise. There is no material security or guarantees from third parties in this payment system.

Thus, we can say that the value of the Dash cryptocurrency is determined by:

• trust in payment system developers;
• general conditions of the cryptocurrency market;
• news background around Dash;
• the relationship between supply and demand on the exchanges.

It is also important to emphasize that, as in the case of other cryptocurrencies, the rate of the Dash cryptocurrency now largely depends on the attitude of large states towards this market as a whole. Because if they ban the use of cryptocurrency on their territory, then the quotes of digital banknotes will drop significantly or even go to zero. At least in the official foreign exchange markets.

A Brief History of Dash

The Dash cryptocurrency acquired its current name (from the combination of the first characters of the English words “Digital” and “Cash” - cash) only in 2014, although its ecosystem was created and launched back in 2013. It was originally launched under the name "XCoin" (XCO), but due to a failed launch (due to a poorly configured mining system), on February 28, 2014 it was decided to change the name to "Darkcoin". But it did not last long, and already on March 25, 2015, another rebranding took place, replacing the name of the cryptocurrency with "Dash"

According to specialists in the field, the rebranding of messages occurred due to the fact that the developers did not want their brainchild to be associated with something illegal or secret (Darkcoin when translated from English - “dark coin”). After all, they planned to create a payment system for the widest possible use, and not to bypass the control of fiscal or law enforcement government agencies.

As for the developers, this is a team led by Evan Duffield, which, when creating a new cryptocurrency based on Bitcoin, was guided by the following principles:

• The main goal is to create cryptocurrencies like Bitcoin, but with delegation of nodes of control and greater practicality.
• The key idea is to maximize complete anonymity participants in transactions, in contrast to the partial anonymity of Bitcoin.
• The management structure of the development team should be democratic, and at the same time, all users of the payment system should have the opportunity to put their ideas to a vote of the developers.
• Relationship with payment system users – open system with feedback.

In addition, the developers also consider their brainchild a financial project - a startup. Therefore, they have a business plan that indicates what future the Dash cryptocurrency will have - development prospects in the short and medium term. That is why, unlike Bitcoin, Dash has a Roadmap for the next three years and detailed guides on how you can use this money online and offline.

Continuing the story of the history of Dash’s creation, we note that this development team wrote the first code in literally one year and immediately launched it. The result of such haste was a failure - in the first 48 hours, due to a clumsy mining algorithm, 32% of the maximum number of coins (1.9 million dashes) were mined. True, this error was quickly corrected and after that the second launch of the system took place, which became much more successful: within a year the new cryptocurrency became the 6th largest by capitalization. But even this seemingly success turned out to be imaginary, since insurmountable contradictions accumulated in the development team over 10 months, which led to its collapse. And they also seemed to be interfered with by hackers (there is an assumption that this is an excuse for the unprofessionalism of the developers).

However, in 2015, the third launch of the payment system from scratch took place and, as they say, things went well. The value of the Dash cryptocurrency has skyrocketed, and its developers have become millionaires.

Today, Dash is in 12th place among all cryptocurrencies in terms of capitalization, and given the dynamics, it may soon rise even higher.

Dash cryptocurrency: operating principle and technical overview

Bitcoin is a digital cryptocurrency that has become a very popular tool for making payments on the Internet. Moreover, this is the first exclusively electronic currency without any physical or other security, which attracted a large number of people to this market. What became possible because Bitcoin attracted people with its accessibility, simplicity, anonymity and, most importantly, the absence of a trusted third party. But with all these advantages, it is important to emphasize that Bitcoin has a significant drawback from a point of sale (POS) point of view - the waiting time that the Blockchain network needs to confirm the validity of the payment.

In order to mitigate this drawback, alternative payment systems based on Blockchain have created algorithms that allow counterparties to make payments with zero confirmation. However, almost all such algorithms involve a third trusted counterparty to guarantee the authenticity of the transaction, operating outside the protocol of the cryptocurrency itself. This is exactly what the Bitcoin developers tried to avoid when creating their own payment system.

In addition, it should also be noted that Bitcoin provides the opportunity to conduct anonymous transactions in a one-to-one relationship between counterparties with information about the transfer entered into a special public “book”. This allows for a permanent record of all movements of individual banknotes that were involved in at least one transaction (there is no unused money in the Bitcoin system, since at least one operation is carried out when transferring the reward for creating a Blockchain block, and other options for “creating” money not in Bitcoin). Thanks to this, Bitcoin has become widely known not only in academic circles, but also among ordinary people. However, this is precisely why, from the point of view of experts, it may lose its popularity in the future.

Dash cryptocurrency is the first digital payment system based on the work of Satoshi Nakamoto and at the same time focused on maximum privacy of its users. In its code, the developers proposed a number of improvements for the Blockchain system, which served to develop even greater decentralization, increased the anonymity of the cryptocurrency and introduced the possibility of instant transactions with protection from unauthorized intervention. They also added a secondary layer to the peer-to-peer decentralized network (P2P) structure that incentivizes the provision of services to maintain the health of the Dash network. And all this without the participation of a third trusting party, for example, a bank, Central Bank, guarantor, etc.

What are Masternodes in the Dash payment system?

Masternodes or Masternodes (from English “full nodes”) are special servers operating within a decentralized P2P network, with the help of which users can receive information about certain events within the payment system. These servers require significant amounts of Internet traffic and other resources, the provision of which leads to significant financial costs for their owners. As a result, the Bitcoin network has recently seen a constant decrease in the number of such servers, despite the growing popularity of this payment system.

Masternodes are vital to the smooth functioning of the payment system, as they provide ordinary users with the ability to synchronize and quickly distribute important information throughout the network. In other words, it is the masternodes that are responsible for the stability of the system and its speed.

The creators of Dash solved the shortage of such nodes by introducing a secondary network known as the Dash Masternode network. These secondary nodes can be created by ordinary users, and their owners take part in the Masternode Reward Program, i.e. receive part of the coins when the Dash cryptocurrency is mined - the creation of new blocks.

Using Masternodes in the Dash system provides the following benefits:

• InstantSend allows you to make almost instant payments. Such transactions in Dash are fully confirmed within just four seconds.
• PrivateSend provides financial privacy by hiding the source of funds on the Blockchain.
• The distribution of Masternodes content rewards allows stakeholders to determine the direction of the project and allocate 10% of the reward to improve the project and ecosystem.
• Dash Evolution makes using cryptocurrency as easy as using PayPal.

To run a Masternode, a node must have 1000 Dash coins in its account and be active. When active, nodes provide services to clients on the network and in return they are paid cryptocurrency in the form of mining dividends. This allows users to pay for node maintenance services (electricity, Internet, maintenance, upgrades) and at the same time receive income from investments. Masternodes are paid from the same pool as the mining reward: about 45% of the total reward when creating new blocks goes to this program.

Since the Masternode reward algorithm has a fixed reward percentage and the number of network nodes fluctuates, the expected rewards will vary based on the current number of active such nodes. Payments per standard day to determine the profitability of Masternode at a particular moment can be calculated using the following formula:

(n/t)*r*b*a

• n – number of Masternodes, control nodes;
• t — total number of Masternodes;
• r is the size of the reward for generating a block (currently about 5 coins);
• b – the number of blocks created per day (usually about 576);
• a is the average reward for maintaining a Masternode (45% of the average block amount).

The return on investment for running a Masternode can be calculated this way:

((n/t)*r*b*a*365)/1000

Where the variables are the same as above.

What is PrivateSend (hidden coin histories)

PrivateSend is responsible for hiding information about counterparties when making transactions on the Dash network. All coins in the Blockchain system in each wallet come with certain “codes”, which can be considered as individual discrete information coins with a set of information about their denomination and the history of all “jumps” across wallets. PrivateSend uses innovative technology to mix these “codes” with the “codes” of two other participants in the network (in fact, it is not coins that are mixed, but sets of “codes”), in such a way that in fact these coins are not transferred from the wallet anywhere. Thus, the network user can be sure that the Dash cryptocurrency provides maximum anonymity without any threat to his money - control is always in the hands of the owner of the wallet!

The PrivateSend algorithm occurs in the following order:

1. It all starts with breaking down the money in a particular transaction into groups of coins with a standard number of banknotes in them. These standard sets can be 10 Dash, 1 Dash, 01, Dash and 0.01 Dash - this sorting is similar to that found in fiat (paper money + coins) national currencies. It helps to hide the identification of counterparties based on the size of the transaction.
2. Then, on behalf of the wallet wishing to carry out the transaction, a request for PrivateSend is sent to the system to one of the Masternodes. After which the Masternode that accepted the request reports that a certain user is interested in mixing a certain amount of money with such and such a set of groups of coins. At the same time, no information about who is requesting PrivateSend is sent to the network backbone, therefore, no one will ever know the address of the wallet that sent the transaction request.
3. When Masternode receives two similar requests from other wallets with a comparable breakdown of coins into standard batches of coins (for example, 0.1 Dash or 1 Dash), the mixing session starts. At the same time, during the mixing of input “codes”, Masternode instructs the wallets of participating counterparties to make a reverse transaction of the same amount of money after the end of the process, but with a mixed set of codes. In this case, the transaction is carried out from a set of specific addresses, which are automatically generated by your wallet according to a certain algorithm. Those addresses from which you ultimately receive mixed money are called “change addresses”.
4. To hide the history of money as much as possible, the wallet performing the transaction must repeat the mixing process several times with each set of coins in that transaction. The Dash developers call a session of such mixing of “codes” a “round.” Note that with each such round of PrivateSend, the difficulty of determining the origin of the money in the wallet increases exponentially. The maximum number of rounds is 11.
5. All this happens in hidden automatic mode without the participation of wallet owners whose money is mixed. Thus, it turns out that when a user makes a transaction, his money is already initially mixed, i.e. anonymized and therefore no additional waiting is required to transfer Dash cryptocurrency.

IMPORTANT: Any user's wallet initially contains only one thousand “changed addresses.” And they are used up one each time a new round of mixing starts. When the starting set of “changed addresses” ends, to be able to continue working through PrivateSend wallet should create a new set of similar addresses. And this can only be done if in the user profile settings there is a checkmark next to “ backup" Without this checkbox, transactions will be carried out in the standard manner without mixing via PrivateSend.

What is InstantSend (instant transactions)

Using special “quorums” of Masternodes created through InstantSend technology, users of the Dash payment system can send and receive almost instant payments online. This happens because after one of these quorums is created for a particular transaction, the input information for this transaction is deliberately blocked so that the money for it can only be used in one way - sent from wallet A to wallet B. For such blocking It only takes 4 seconds of real time. Moreover, after reaching a consensus between the Masternode regarding blocking information about the transaction, all conflicting payments and the blocks of the blockchain chain generated for them will be ignored by the system.

This approach allows wallet owners to use mobile devices instead of traditional bulky POS systems (PCs, laptops, mining rigs) to buy and sell goods or services in the real world as quickly as with traditional cash, bank cards or online banking. Moreover, information about such transactions in dash coins is completely anonymous, and transactions do not require confirmation of authenticity from third parties, and this does not in any way affect the final cost of the Dash cryptocurrency for a particular payment.

How the X11 system works for mining Dash cryptocurrency

X11 (launched in January 2014 as "Xcoin") is the name of the proof-of-work (PoW) algorithm used by the Dash cryptocurrency. Its creation was partly inspired by the approach used to create the QuarkCoin cryptocurrency, where the algorithm of operation and proof was given greater “depth” and complexity by increasing the number of hashes. But X11 differs from Quark in that hash rounds are determined a priori instead of hashes being randomly selected. Additionally, the X11 algorithm uses multiple rounds of 11 different hashes, making it one of the most secure and most sophisticated cryptographic hashes used by modern cryptographic payment systems.

The main task of this algorithm, in addition to increasing security, is to create difficulties for miners who use bunches of machines to create new blocks, i.e. thanks to it, mining the Dash cryptocurrency on “farms” is not as profitable in comparison with mining on regular PCs, as, for example, in the Bitcoin payment system. X11 works in such a way that as the miner's power increases, the work he must do to receive a reward becomes more difficult.

Note that the name "X11" is not associated with the GUI that provides GUI Unix/Linux users. The names coincidence is accidental.

The increased complexity and sophistication of the X11 algorithm provides an increased level of security and less uncertainty for digital currency compared to other solutions in PoW miner proof-of-work algorithms that are not immune to security risks such as SPOF (Single Point Of Failure). For example, against possible computational breakthroughs that could “crack” the SHA256 hash, which would jeopardize the entire Bitcoin network until its blockchain hard forks to another cryptographic hash.

In the event of a similar hack of an X11-based cryptocurrency, PoW will continue to function reliably unless all 11 hashes are hacked at the same time. Moreover, if some of the 11 hashes turn out to be hacked or simply compromised, the system will give an adequate warning to the developers of the cryptocurrency using X11, which will allow them to take action in advance and replace the problematic hashes with other more reliable hashing algorithms.

Thus, given the speculative nature of digital currencies and the inherent uncertainties of them as a new financial instrument, the X11 algorithm can provide increased confidence to users and potential investors that only two-step payment systems can guarantee the normal operation of the platform. As opposed to single-step hash chains, X11 and its peers provide increased security and durability to preserve capital in the system, diversify investments and hedge the risks associated with single-step currencies that suffer from SPOF (Single Point Of Failure).

Dark Gravity Wave Algorithm

Dark Gravity Wave, or DGW for short, is an open-source algorithm created by Evan Duffield in which, unlike Bitcoin, the difficulty of coin mining does not increase with each 2016 Blochian block, but according to a smooth sliding curve created by the formula “2222222/( (Difficulty+2600)/9) 2", based on Moore's Law. This “law” (in fact, it is an observed pattern, and not a law in the strict sense of the term) assumes a doubling of the power of new electronic computers every 24 months, due to a doubling of the number of transistors on their circuit boards (chips).

With the help of Dark Gravity Wave, the Dash cryptocurrency eliminates one of the main disadvantages of Bitcoin - the centralization of mining in the hands of large players with access to large capacities (mining farms, computing centers, mining pools). This happens because the difficulty of mining in the Dash ecosystem increases with the development of the system itself, and not as the production of money in it accelerates.

Note. Moore's "Law" will soon cease to apply, as computer manufacturers are approaching the limit of shrinking the size of silicon-based transistors, at which the transmission of electricity in the system will no longer operate according to the laws of classical physics. So, there are already plans to create transistors with a size of 5 nm, i.e. some 20 atoms thick. The limit is 5 atoms (the size of a silicon atom is 0.132 nm). With such a quantity of them, quantum effects begin to appear, i.e. uncertainty arises - the signal may or may not pass.

4 options for storing Dash cryptocurrency

The developers of the Dash cryptocurrency have created several options for storing their coins on various devices with different operating systems on board. Both versions for personal computers and mobile applications based on Android and iOS are presented, allowing you to make payments using smartphones and tablets.

Option 1. Dash Core – Wallet for PC

The Dash Core wallet (sometimes called QT, from the abbreviation for the QT software frame used in development) is a professional heavy wallet that downloads the full blockchain (requires quite a few gigabytes) and runs as a full node on the network, meaning it provides all possible features available to users in the Dash ecosystem. For normal operation wallet, it takes some time after launch to synchronize its copy of the blockchain with the network. Once this is done, the balance will appear and you can use all the functions of the wallet.

Dash Core Features:

• PrivateSend;
• InstandSend;
• Wallet encryption;
• Coin control and payment control;
• QR code generation and address book;
• Teams and voting;
• Automatic backup;
• Debug console.

A hardware wallet is a storage device that stores secret keys for a blockchain. They provide the highest level of security in aging out of software wallets, and such wallets also provide their owners with some practical advantages not available with paper wallets. And it is important to note that to date there is no verified evidence that hardware wallets are compromised by viruses. Additionally, they are also immune to keylogger attacks, which can be used to steal passwords to unlock private keys to software wallets.

Hardware wallets are designed to store private keys in a secure area of ​​the microcontroller, such as a removable/portable hard drive. In doing so, they can use a special security procedure that will only allow access to the keys when the hardware wallet is connected to a specific device that interacts with the blockchain, for example, your computer or smartphone. Besides. Most hardware wallets have a small external screen that allows you to verify the authenticity of the device (the one to which the wallet is connected).

Dash paper wallets

Paper wallets use random user and machine input to create a set of keys/addresses that are then printed on paper. In this case, data about printed keys is permanently deleted from the computer, so it can no longer be restored to electronic form. What you print is all you get. Many users don't like this approach because paper wallets can be damaged, lost, destroyed or stolen.

Also, even if the user encrypts them with BIP38 (there are newer versions: BIP-47, BIP-75), the very bad person who finds them (robber, mugger, scammer) will still be able to get the money in the wallet by putting gun to its owner's head. However, paper keys for storing Dash keys are the most convenient and in a simple way Storing coins for a long time if you keep the printed keys safe.

BIP32 is a way to generate any number of keys/addresses using a special algorithm. It is best to use this approach for storing paper keys because it allows you to recover access keys to cryptocurrency wallets, even in the event of a house fire.

Where to buy Dash cryptocurrency?

At the launch of the Dash payment system, its monetary units could only be obtained through mining or by exchanging them for bitcoins. However, now the situation has changed dramatically and you can buy Dash cryptocurrency on almost all cryptocurrency exchanges, online exchangers or regular payment terminals in supermarkets. In addition, Dash coins can be purchased using online banking services at major banks and electronic payment systems.

As for cryptocurrency exchanges, the most complete list of such sites can be found on the official website of the Dash system. Of these, the following definitely work with residents of Russia and the CIS:

• Livecoin;
• BitMEX;
• EXMO;
• CEX.IO.

Regarding exchangers, in order to buy Dash cryptocurrency there at the best rate, you should use portals like Bestchange, where they track best offers for such an exchange in real time.

How to Earn Dash: 5 Main Ways

As in the case of Bitcoin, the Dash cryptocurrency can be obtained for free on the global network or earned in one way or another. Next, we will look at the 5 most popular approaches to how to earn Dash, outlining the pros and cons of each such method, as well as indicating the amount of possible profit.

What faucets give away Dash?

Faucets are websites that distribute free cryptocurrency in small quantities to all visitors at certain intervals. For example, 75 satoshi once every 8 hours or 110 satoshi once a day. Moreover, in order to use the faucet, you only need a wallet of the currency that is being distributed and an Internet connection. Sometimes, a simple action may be added to this list that the visitor must perform in order to confirm that he is not a bot program.

The most “generous” faucets where you can get Dash coins for free are (current as of early February 2018):

• forumcoin.win – 34 satoshi every minute;
• bagi.co.in – from 10 to 100 satoshi every 5 minutes;
• xfaucet.net – 100 satoshi every 5 minutes;
• pslfaucet.win – 84 satoshi every 5 minutes;
• faucet.gold – 84 satoshi every 5 minutes;
• DASH-Faucet – up to 1000 satoshi every hour;
• Dash faucet – from 600 to 1000 satoshi every hour;
• Dashbits – from 200 to 1200 satoshi every 15 minutes.

Regarding the amount of possible earnings, if you visit all these taps as often as possible during the working day, you will get somewhere around 10-30 dollars a month. This is not worth counting on large sums, so all those who want to receive normal money are recommended to find a different approach to how to earn Dash.

However, despite the low profitability, such sites have their advantages:

• These are free dash coins;
• the opportunity to get acquainted with the Dash cryptocurrency will not invest a penny in its ecosystem;
• There are no restrictions on the maximum number of coins issued to one person.

The main disadvantages of cranes include:

• low profitability;
• taps have a habit of running dry or breaking down;
• abundance of aggressive advertising;
• There are high risks of “picking up” malicious code.

Let us emphasize once again that with the help of faucets you can only get acquainted with how to work in the Dash ecosystem (receive, transfer or withdraw money). If you want to make money in this market, then it is better to find another way, since income from taps cannot always cover electricity and Internet bills.

How much does mining Dash bring?

Despite X11 and Dark Gravity Wave, mining the Dash cryptocurrency, similar to Bitcoin, is best done on powerful devices with a good graphics card or processor. Thus, the profit from mining will be much higher than when mining coins on weak office computers or budget laptops. If you don’t want to spend money on an unnecessary upgrade for your electronic “friend”, but want to start mining, then perhaps you should take a closer look at a device called ASICs.

ASICs (from the English “Application-Specific Integrated Circuit”) are an electronic computing “special-purpose integrated circuit”, which, unlike typical general-purpose circuits (as in conventional PCs), was created exclusively for one single task - mining, in our case . Moreover, such specialized integrated circuits can have completely different capacities and specialize only in the extraction of one specific cryptocurrency. Essentially, ASICs are a miniature mining rig with home delivery.

The following ASICs are suitable for Dash mining:

1. Pinidea – model X11 USB DU-1.
2. iBeLink – model DM384M X11.
3. Pinidea – model X11 Miner DR-1.
4. Baikal – model A900 X11.

You can mine in pools such as HashPower and Nicehash. Regarding the profit from mining the Dash cryptocurrency, the numbers will be approximately as follows:

• up to 1 thousand rubles per month on a weak PC with 8-hour mining per day;
• from 2 to 4 thousand rubles per month on a medium-power PC with 8-hour production per day;
• up to 10 thousand rubles per month when mining on top-end hardware with 8-hour mining per day.

Note that these numbers do not take into account Internet and electricity costs, as well as equipment depreciation.

Pros of mining Dash:

• lower electricity costs than when mining bitcoins;
• you can mine coins at night when your computer or laptop is idle;
• the probability of reward is greater than in bitcoins, since there is no dominance of large miners.

Disadvantages of mining Dash:

• This is not a top cryptocurrency, so the potential profit is lower;
• It is a little more difficult to withdraw money than with Bitcoin.

In all other respects, mining the Dash cryptocurrency is similar to mining Bitcoin coins.

How much do Msternodes bring in Dash?

Let us remind you that to launch Masternodes you must initially buy the Dash cryptocurrency in the amount of 1000 coins, which must be in the Masternode wallet. This money will be locked for use by its owner as it will take part in the coin code mixing process. For the maintenance of such a node, its owner will receive a reward in the form of 8.5% per annum on the invested 1000 coins.

Thus, the profit for maintaining a Masternode in the Dash ecosystem will be 85 coins, which, when converted at today’s exchange rate, is equal to $598. The size of the starting investment at the same rate will be equal to $598,497. Of course, the profit will be greater if the rate of the Dash cryptocurrency rises and lower if it falls.

Pros of making money on Masternodes:

• This passive income, which does not require anything other than initial investment;
• profit is greater than in the case of bank deposits;
• does not require any knowledge or special skills.

Disadvantages of making money on Masternodes:

• profit depends on the value of the coins;
• you need to buy 1000 coins to start;
• the invested money will be blocked.

Let us note that now there are people and organizations offering equity participation in the creation of a Masternode. The minimum deposit for such an offer is usually around 25 dash coins.

Trading and cold investing

The last approach to how to earn Dash is speculative income, i.e. We buy cryptocurrency as cheaply as possible, and then sell it as expensively as possible. This method of earning money is divided into two types:

• Trading – speculation in coins on cryptocurrency exchanges with a short period of time between the moment of buying and selling money. Trading brings from 5 to 30% profit from invested money and at the same time requires analytical skills in terms of predicting price movements in the short term.
• Cold investments- essentially the same as trading, only more than one year must pass between the moment of purchase and subsequent sale. In other words, you need to buy Dash cryptocurrency and wait until the market rises. Profit depends on the final margin. Let us remind you that from the beginning of 2017 to February 13, 2018, the rate of the Dash cryptocurrency jumped from 11 to 598 US dollars.

Experts recommend investing in Dash using cold investments, as it is safer and almost guaranteed to bring profit. While trading is best done only by experienced specialists and only on condition that they understand the specifics and all the nuances of the cryptocurrency market.

Dash cryptocurrency: development prospects and exchange rate forecast

Now it’s time to talk about what awaits the Desh cryptocurrency in the future - what will be the exchange rate, scope of application and general vector of development of this payment system.

What experts predict for the Dash cryptocurrency

Experts note that it is Due to its differences from BTC, the future for Dash will be quite bright. This is due to the fact that Bitcoin is the first “test” cryptocurrency, during the creation of which many mistakes were made. So, Dash has no problems with scalability, and at the same time it is in demand as a very simple payment instrument on the Internet with a claim to entering the offline payments market. The same cannot be said about Bitcoin, which is a “thing in itself” with the prospect of going into oblivion if the hype around cryptocurrencies subsides.

These prerequisites allow experts to speak quite confidently about where the Dash cryptocurrency is now heading - its development prospects in terms of further development of the payments market, improving the program code, legalization, etc. Thus, it is predicted that Dash will grow steadily without sudden jumps in one direction or the other. A sharp drop is only possible if the cryptocurrency market quickly fizzles out, but even in this case, there will not be a 100% depreciation of Dash coins. A jump upward is only possible if something happens exclusively to Bitcoin, and not to the cryptocurrency market as a whole.

Dash cryptocurrency: forecast for 2018

If we talk about specific numbers, it is predicted that next year Dash quotes will go to levels around 2 thousand dollars per coin, after which there will be a significant correction. However, before the upward surge, the cost of dashes will most likely drop to somewhere around $450-500 during a seasonal market correction.

In other words, if you are interested in the Dash cryptocurrency, the forecast for 2018 indicates the possibility of a profitable entry between January and April (seasonal adjustment) with the prospect of a 200% profit on this investment. If something happens to Bitcoin, and it does not affect the cryptocurrency market as a whole, then the profit will be even higher – two or three times. True, such a rosy forecast for Dash is unlikely.

Dash cryptocurrency exchange rate forecast for 3-4 years

If we talk about the medium-term forecast, it is almost guaranteed to be favorable for Dash, since the cryptocurrency market will most likely grow for another 10-15 years. And along with it, those cryptocurrencies that have the best combination of pros and cons will grow. Dash has no problem with this, because it has a good development team, a road map for the next three years and a large number of inverters who are investing in this system not only as a cryptocurrency, but also as a promising means of implementing simple and very fast payments on the Internet at the state and interstate level.

There are already Desh plastic cards available, which can be used in many countries due to the fact that dash coins in their accounts are automatically converted into the desired currency when making a purchase in a particular country, as happens when using special multi-currency payment cards Visa and MasterCard.

Regarding quotes, if we take into account the words of experts about where the Dash cryptocurrency will move next year (forecast for 2018), then we can assume that in the next 2-3 years its quotes will go the same way that Bitcoin went in the past two years. Namely, there will be a series of ups and downs with the prospect of first reaching levels in the area 3 thousand dollars per Dash coin, then to the mark in the area 6 thousand dollars and then two jumps to 12 and almost 20 thousand dollars.

It is also worth noting that if another economic crisis breaks out in the medium term, which more and more specialists are talking about, looking at the Chinese credit market and US government debt statistics, then investors will most likely begin to flee to gold, US government bonds and cryptocurrencies (the latter in 2017 received the status of a safe asset to preserve the value of money, along with gold). So, if there is a crisis, the cost of digital money will rise significantly and along with it the Dash cryptocurrency will also rise - the exchange rate to the ruble, dollar, pound and other fiat national currency. Moreover, the growth will be very, very significant.

Conclusion

There is no doubt that this year the Dash cryptocurrency will continue to grow, and at the same time it will most likely gain an even larger share in the Internet payment market. This will be facilitated by the professionalism and moderation of the developers, as well as the high anonymity and maximum openness of this payment system to new ideas. Therefore, in the next few years, mining and making money on this cryptocurrency is unlikely to lose its relevance.

It is appropriate to begin the story about the history of the Dash cryptocurrency with a mention of the main ideologist and developer, Evan Duffield. In 2012, he proposed a number of improvements to the Bitcoin protocol that could significantly increase the degree of anonymity of financial transactions and create a fairer system of mining rewards. But it turned out that these changes were not accepted by the Bitcoin network developer community and Duffield thought about creating his own cryptocurrency in which his ideas would be implemented.

Dash cryptocurrency was originally introduced on January 18, 2014 as Xcoin, but a month later it was renamed Darkcoin, and a year later to Dash. The first two versions contained critical code vulnerabilities, which consistently led to too fast emission for Xcoin and the emergence of an opportunity for a hacker attack, during which attackers were able to mine more than a third of the total volume of blocks of the predecessor of the dash crypt, Darkcoin, within 24 hours. The latest rebranding and relaunch is due to the desire to avoid negative associations of users with Darknet. In this network, Darkcoin became one of the leaders in terms of turnover, which had an extremely negative impact on its reputation. What is cryptocurrency?

But the story of dash development did not end there. To this day, it is a dynamically developing project, which is gradually acquiring more and more functionality and opportunities for users.

Main features and differences from Bitcoin

Initially, the dash crypt was based on the open source code of Bitcoin, and was conceived as an improved and more secure version of it. However, changes in the original algorithm have reached such a scale that the only common features that remain are the use of blockchain principles as a method of storing data. The features and advantages of the dash cryptocurrency accumulated over the years of development have brought it to a new level of development relative to its predecessor, making payments instantaneous, the degree of anonymity almost ideal, and the management system life cycle fully transparent and based on the principles of democracy. Today, the dash currency offers users:

• System of additional anonymization of payments PrivateSand, based on forced splitting of transactions into smaller ones and mixing of inputs, with subsequent return to the owner to a new address. Tracking mixing operations is complicated by the use of different network nodes for each part of the sum, so at any stage of this operation there is no way to find out from which address the mixing procedure was initiated.
• Instant transfers without waiting for confirmation from multiple nodes, thanks to the implementation of a consensus algorithm between multiple nodes. If it is impossible to find a quick solution, the transaction can be confirmed in the “standard” way through inclusion in the next block.
• Availability of additional network infrastructure - masternodes, which are not involved in mining the dash currency, but help increase the speed of transfers and improve their security. As a reward, masternode owners are paid half the cost of mining each block.

Using eleven sequential hashing algorithms instead of one (SHA-256, for Bitcoin). Storm Cryptocurrency Review.

• This approach makes mining more fair– sequential hashing is faster using computing power CPU, while you can still use video cards and ASICs. However, CPU mining requires significantly less (up to -30%) electrical power, which is more profitable.
• A unique system for adjusting mining difficulty based on Moore's law, which creates a fair environment that can adapt to the current load within the network. The difficulty and reward value are recalculated with the appearance of each new block.
• Distribution of mining income between miners and masternode owners. An additional reserve of 10% of the cost of each block allows you to create a budget that can be spent, at the discretion of the community, to support the development of various third-party projects.
• Completely decentralized management system - all solutions, which may affect the algorithms and operating principles of the dash cryptocurrency are decided by the community through a voting system. This mechanism guarantees the absence single center decision making, and even developers cannot implement planned changes without the support of the end owners.

The combination of features of the dash cryptocurrency attracts many new system participants and investors. It is thanks to the continuous and non-stop development of the project that its capitalization has grown to $8 billion! Not intending to stop there, the community regularly offers fresh ideas and functionality. Many of these proposals have a chance to be implemented soon as part of the work algorithm.

Further development

A review of the Dash cryptocurrency will be incomplete without touching on the main goal of the project, which was initially created not just as another means for anonymous calculations. Dash is a whole payment system, easy to integrate for online store owners, and fast and understandable for customers. Improving the direction of e-commerce has already made it possible to attract hundreds of platforms for the sale of goods and services into cooperation, which has an extremely positive effect on the exchange rate of the dash currency and its market capitalization.

Work is also in full swing to improve the data transfer protocol within the dash network. In particular, to further increase the performance of the entire infrastructure, a whole package of global Dash Evolution updates is being prepared. It will affect all aspects of the network’s life – from optimizing the masternode system with the introduction of a specialized high-performance P2P file system, to the release of updated versions of the wallet, work with which should be simple and transparent even for an untrained user.

Prospects for the exchange rate to the dollar and other cryptocurrencies

In a short time, the price of a dash unit has exceeded $1,000, and the daily trading volume is more than 150 million and continues to grow. Very few blockchain-based developments have achieved such success, which indicates an exceptionally high level of trust on the part of investors.

The trend towards increasing capitalization will most likely continue in the future - the Dash cryptocurrency, already extraordinary compared to many other competitors, is awaiting revolutionary changes that can push the rate to new heights.

Dash is a cryptographic system based on the blockchain. It is controlled by the community, which is decentralized and used as a private currency.

Dash is a cryptocurrency aimed at anonymity. Dash protects your personal data by making transactions anonymous using a network technology developed by the Dash team known as DarkSend. DarkSend was created under the influence of the CoinJoin project, which was supposed to anonymize Bitcoin transactions.

After the rebranding, Dash began to be positioned as an anonymous, open-source digital currency for the general public. The main focus is on security and speed of transactions.

A little history

Dash was originally created as XCoin (XCO) on January 18, 2014. On February 28, 2014, the name was changed to "Darkcoin". March 25, 2015 Darkcoin was introduced as "Dash"

I discovered Bitcoin in mid-2010 and it has captivated my mind ever since. A couple of years later, in 2012, I started to really think about how to add anonymity to Bitcoin. I found about 10 ways to do this, but after the release, they didn’t want to include my code in Bitcoin. The developers wanted the core protocol to remain basically the same, and that goes for everything else that builds on it. This was the birth of the Darkcoin concept. I implemented the X11 algorithm over a weekend and found that it worked surprisingly well and solved the problem of fair reward distribution, which could be a good basis for a cryptocurrency startup. I actually built a similar growth curve into X11, where miners have to fight to create even a small advantage, just like they did in the early days of Bitcoin. I think this is essential to creating a living ecosystem.
- Evan Duffield, March 2014

Dash creator Evan Duffield wanted the speed of transactions to allow his cryptocurrency to be used in retail.

He wanted to solve the problem of long waiting times for bitcoin transactions to be confirmed, which prevents merchants from effectively using it for trading, or are forced to rely on third-party services that allow transactions to be carried out without confirmations.

Peculiarities

Here's what the developers write on their website:

The basis of Dash technology is a unique two-level P2P network architecture with a built-in reward system. Miners are incentivized for securing the blockchain, and network nodes (Masternodes) are rewarded for validating, storing, and making the blockchain available to users.

Masternodes form a new network layer of servers working together in clusters called quorums. As a result, this enables new types of decentralized services such as instant transactions, privacy, and decentralized governance. At the same time, these systems are protected from the threat of corresponding attacks on the network.

Dash uses a hashing algorithm consisting of 11 stages, namely blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd and echo, making this coin especially secure.

In today's version, only 22 million units of Dash can be minted, which is intended to curb the coin's growth.

Dash has certain characteristics that are similar to Bitcoin, but there are also a number of features that help it avoid problems that still remain unresolved for Bitcoin.

Thus, the maximum volume of Dash emission is limited, like Bitcoin, but the mechanism for containing growth is different. Also, Dash is more anonymous and feature-rich than Bitcoin, and transactions with Dash are faster.

The Dash organization system is significantly different from other cryptocurrencies. Essentially, Dash works on the principles of Decentralized Autonomous Organizations (DAOs), rather than through a consensus system that involves a large number of participants, which inevitably leads to problems in the organization.

There are other features that determine the operating principles of cryptocurrency. Here are some of them:

• Maximum emission is limited;
• Dash production will end at 2150;
• The amount of cryptocurrency produced will decrease by 7% every year until it approaches 0 in 2150;
• A two-level system of miners and master nodes ensures security in the network;
• The consent of the master nodes is necessary to confirm the mining of the block by the miners;
• The mining reward is divided between master nodes and miners, with master nodes receiving about 45%;
• A new block appears approximately every 2 and a half minutes;
• The established block reward is 5 Dash.

Advantages

There are many benefits that come with using the Dash cryptocurrency. The significant ones are listed below:

Recognizes the concept of economic incentives:

It largely accepts the concept of economic incentives. He built them correctly on his platform and set about creating adequate infrastructure to support it. This is because it is easy to set up a Lash layout and start earning income. Initially it comes with some risk, but now that initial risk is paying several dividends.

Low commission fees

Dash has transaction fees that are significantly lower compared to credit cards or even banks. In fact, there is a minimum fee charged for use personal money, as well as for sending micro-payments around the world.

Instant payments

Instant payments with Dash. This is due to the fact that its developers have created a technology that is decentralized and unique, called InstantX. This technology guarantees and also confirms very quickly, i.e. just under 4 seconds. This makes it much better compared to other digital currencies that take some time before transactions are confirmed on their specific network.

Provides enhanced privacy

Dash is a cryptocurrency that provides users with enhanced privacy. Financial privacy is considered by Dasch as a type of fundamental right. This is the reason why Dash has provided users with the ability to transact with real privacy, which ensures that no one can link a user's identity to a specific transaction or address. The end result is that Dash users have the ability to keep every transaction private.

Network with two levels

This is a two-tier network. Dash is the very first cryptocurrency to introduce masternodes, servers connected to the Dash network. These servers are secure, always on, and capable of running multiple network services. New services can later be brought into the network through servers, services that cannot be delivered by other types of cryptocurrencies. This means that the two-tier network ensures that Dash remains a reliable system and users can benefit from its high level of service.

Service Improvement Request

Dash has a set of mechanisms that are well defined for users to send suggestions to their network to improve services. This is useful for end users, since they can request what they consider most important.

Personal wallets

Personal wallets control all funds in Dash. Besides, distributed network controls and checks everything money transfers. This eliminates all middlemen, as well as their commissions.

Advanced Security

Dash provides increased security. It runs on a network that is secure and decentralized. The Dash network uses advanced encryption and a two-layer structure to ensure complete security for its users. Moreover, it has a source code that is open source and also available for anyone to view and review. This facilitates system security and independence. All transactions are carefully processed by the distributed power of several independent computers around the world. Thousands of computers do this.

Ability to transmit globally

Owning a wallet allows users to transfer money anywhere in the world. Third parties cannot block or monitor these transmissions. Dash has global payments and the infrastructure to facilitate this. Dash unites people into a globe that quickly closes distances and encourages additional international interaction that is not dependent on a person's local currency or location.

Easy international trade

Dash makes international trading easier. It's good for business.

New global opportunities

Dash opens up new opportunities for global business. This is why entrepreneurs should familiarize themselves with this cryptocurrency as it is a leader in terms of innovation in the cryptocurrency space (many innovative features, instant transactions and built-in privacy features).

Community participation and organizational structure

All this was only possible thanks to the active participation of the community, with which BitcoinTalk maintains strong connections, as well as a well-thought-out organizational structure in which each master node can vote on the investment of funds that the project receives in the form of donations.

As a result, Dash is very flexible in terms of organizing work and always meets user requests.

The above benefits are far from exhaustive because there are several benefits that Dash users are exposed to.

Flaws

There are a number of disadvantages:

• It has 19,000,000 coins as a fixed quantity.
• The Dash cryptocurrency still lacks a critical mass of users or sellers.
• The keyword Dash is widely used by several companies, so it is difficult to simply associate it with cryptocurrencies. This is disadvantageous, especially compared to Bitcoin. This leads to a decline in brand recognition and a decrease in its sole value as a cryptocurrency.
• There are other types of altcoins that bear striking similarities to the Dash cryptocurrency, i.e. Pivx, MUE and Crown. This is not good for a brand name at all.

When Evan Duffield launched Dash, he was able to mine large volume currency in a short time. In the first 48 hours of Dash's launch, 1.9 million coins were received.

Duffield said this was due to a bug in the code, which was quickly fixed. Many believe that this was nothing more than pre-mining. Duffield categorically denies all allegations.

Road map

Conclusion

Dash is undoubtedly a speculative investment that has great potential to become the next Bitcoin. This potential depends on developers and the community focusing on users rather than short-term gains.

The above information clearly indicates that Dash has many fundamental advantages over other digital currencies that are currently available.

The DASH cryptocurrency appeared in 2014. It is based on the Bitcoin and Litecoin blockchain code, but with minor technological improvements. The creator of the cryptocurrency, Evan Duffield, set out to solve three key problems that existed at that time in Bitcoin network:

• privacy
• transaction speed
• control

Three years later, the DASH cryptocurrency appeared in the form in which we have it now. It has firmly taken its place in the market and entered the TOP 10 global cryptocurrencies by capitalization.

The main goal of Dash was to facilitate the use of cryptocurrency and make this type of payment more popular. IN present moment It is difficult to imagine any everyday settlements in , since the transaction speed is very low and the commission is very high. Of course, this depends on the network load, but on average it is simply unrealistic to pay for any everyday purchases using Bitcoin.

And this is where the Dash cryptocurrency comes in, which ambitiously claims that these problems can be solved using innovative network architecture.

Dash cryptocurrency. Story

The Dash blockchain appeared as a result of a hard fork from the Bitcoin/Litecoin blockchain. Due to its ambitions for privacy and speed of transaction processing, Dash has a strong reputation as a cryptocurrency for illegal transactions. At the very beginning of its history, this cryptocurrency was even called XCoin, and later was renamed DarkCoin. Such naming, of course, strengthened the image of cryptocurrency as a means of payment for various murky transactions. To get away from the image of a black market cryptocurrency, the developers carried out a final rebranding and changed the name to Dash, which is short for Digital cASH (digital cash).

All the first days and months of the project’s existence were spent designing and building a unique two-level architecture that would allow transactions to be carried out quickly and at the same time mixing them, ensuring high level anonymity. And soon, after the successful launch of the network, governance technology was created that gave power to users in the form of voting for decisions on the further direction of the Dash network.

In the world of corporations and companies, 3-4 years is essentially a child’s age, but nevertheless, the Dash project is considered in the world of cryptocurrency one of the oldest and most famous companies, firmly located on Olympus of the best of the best. Dash cryptocurrency is one of the most stable and reliable digital currencies on the market. Part of this stability is supported by Dash's user community, which is considered one of the strongest and most active. This army of users creates thousands of threads and comments on Reddit and Bitcointalk. All this promotes the project and speaks to a very important point: the Dash cryptocurrency is supported by a large community.

Since its launch, the Dash network has continued to grow, constantly adding new nodes that speed up its operation and make transactions anonymous.

Two-tier architecture. Dash masternodes

A real innovation in the industry was the use of a two-level structure of the Dash cryptocurrency blockchain. The first level is a regular blockchain, the same as Bitcoin, or Bitcoin Cash or any other standard cryptocurrency on the Proof of Work protocol. On the Dash network, miners are responsible for creating new blocks and maintaining the blockchain, and as a reward for this, miners receive 45% of the profit from the reward for the block found. This is different from the Bitcoin network, where miners receive 100% of the reward. Another 45% of the reward goes to another place, where we will tell you below.

On average, blocks on the Dash network are created every 2.5 minutes. This is four times faster than Bitcoin. For Dash, its own unique algorithm was created, which was called X11. This algorithm requires sequential re-hashing. X11 requires 30% less power compared to the Scrypt protocol.

The second layer in the Dash blockchain structure is a network of nodes called masternodes. These are special users on the network who speed up transactions and vote in governance. In return for these services, masternodes receive 45% of the block reward. Any user can launch a masternode; it is enough to have only 1,000 DASH coins in your wallet.

A thousand Dash coins to run a masternode is a guarantee that a Sybil attack will not be used in the peer-to-peer network. This type of attack involves seizing control of a network by creating multiple anonymous fake accounts. By requiring 1,000 DASH from the user, the system protects itself from such a takeover of the masternode network. Also, such a high entry threshold makes the coin exchange rate more stable, since these funds are frozen for the long term and will not be sold, since they bring profit. Finally, users with 1,000 coins or more will make decisions that are beneficial to the network when voting, since they are directly interested in the development of the network.

The masternode system is great way passive income, which can be compared to such a thing as, although technically there is a difference between them.

How Dash Masternodes Help Make Payments

One of the key benefits of Dash is its instant payments feature. Since Dash is ambitiously aiming to become a global digital currency that people use every day, transactions in such a system must be confirmed at lightning speed. And although the time between blocks in Dash is four times faster than Bitcoin, it is still 2.5 minutes. This makes it somewhat difficult to make payments in this cryptocurrency, for example in a store or at a gas station. Dash's solution is elegant: transactions happen instantly because they are confirmed by a network of masternodes.

In short, you send a transaction to one of the masternodes. This masternode locks funds to avoid an attack known as a double spent attack. The transaction itself will be added to the ledger along with the new block, but since the masternode is blocking the funds, they are guaranteed to be paid out. Such an InstantSent payment in the Dash system can receive confirmation literally within a few seconds.

The problem of low transaction processing speed is known in many modern cryptocurrencies. Dash solves this with ease by delegating the task of confirming transactions to masternodes.

Built-in mixer for transaction anonymity

There are various services mixing for networks such as Bitcoin. By default, and all transactions in it are easily tracked. In addition, if someone finds out your BTC wallet address, they can easily see all your transactions and know how much money you have on your balance. This does not comply with the rules of financial security in such a project, which is called “digital cash”.

In 2014, the Dash cryptocurrency became one of the most anonymous digital currencies (along with). Since the Dash network has a coin shuffling function enabled, the likelihood of transactions being tracked is almost zero.

This coin mixing feature is called PrivateSend. The basic scheme of its operation is as follows. When you want to send an anonymous transaction, you submit a request to the masternode. The masternode then broadcasts your request further into the network and mixes your transaction with others that occur at the same moment in parts of 1, 1 or 10 DASH. After this, the transaction goes to the next masternode, where the process is repeated. This happens many times until the transaction finally reaches the recipient.

Masternodes cannot directly obtain information about your transaction, but using the Dash network assumes some degree of trust in the community and masternode owners. If you really need it completely, then projects like Monero have been more successful in this. However, Dash offers a fairly high level of anonymity through its shuffle feature.

Decentralized control without hard forks

As mentioned earlier, miners receive 45% of the reward, masternodes also receive 45%, and the remaining 10% goes to development, marketing and infrastructure of the project. This allows Dash to move forward and improve

One of the serious tests for Bitcoin is that if there is a split in the user community about the future direction of the network, then something happens that has happened many times and will happen in the future - . Over time, these branches split the community into smaller ones. For example, Bitcoin Cash, Bitcoin Gold, and even the Dash cryptocurrency appeared as a result of a Bitcoin fork. To once and for all solve the problem of hard forks and community splits, Dash uses a unique decentralized governance technology. The network operates 4618 masternodes. For a change to be adopted, the number of votes in favor must exceed those against by at least 461.8. This is exactly 10% of the total number of masternodes in the network.

Once a decision is made, it receives funding from a portion of the block reward. In theory, the community could fire the development team if it doesn't agree with what the team is doing.

How to increase the practical application of the product?

One of the newest trends in system architecture is Dash Evolution. For the project's cryptocurrency to be widely used as digital cash, Dash needs to be accepted and easily adapted for use in the real world of finance. The project’s website states that payments and tools will be so simple and clear that even your grandmother can figure them out.

Dash Evolution is an API tool and mobile application that will allow users to make payments without interacting with the blockchain directly.

Conclusion

The Dash cryptocurrency has a wonderful history and a clear future. It also has a strong community and a good reputation in at the moment. The unique two-tier architecture allows for a large number of transactions and efficient management of development. As a result, Dash is one of the top cryptocurrencies, which is several steps ahead of most projects. Dash is a great cryptocurrency to have in your portfolio.