The Creator of the Dash cryptocurrency Evan Duffield wanted to make Bitcoin truly anonymous, but it would have required to significantly change the source code, so the community rejected this idea. It was then that Evan decided to create his own cryptocurrency, a more confidential, faster, and cheaper than Bitcoin.
We are to tell you how the Dash cryptocurrency was created, what its features are and whether it can become an international digital cash.
Evan Duffield became interested in Bitcoin back in mid-2010, and two years later, he decided to contribute to the first cryptocurrency and proposed 10 ways to make it truly anonymous. But none of them was accepted by Bitcoin developers, so he started working on his own cryptocurrency. In January 2014, he launched a cryptocurrency called X11, which 10 days later got renamed to Darkcoin. Fast forward a year later, and it became known as Dash.
The quantity of Dash is limited and based on Bitcoin, but during the first 44 hours after Dash had launched, due to a critical code failure, almost 2M coins were mined. At first, the project team wanted to restart the network, but then they decided to sell the cryptocurrency on exchanges at low prices.
In order to support the new cryptocurrency, an organization called Dash Core Group was created. Until April 2017, it was led by Evan Duffield, followed by Ryan Taylor, who previously joined the Dash team as a financial analyst. In many ways, it is Ryan’s leadership that is attributed to the successful promotion of Dash in various markets.
Today, a team of 50 people is engaged in the development of Dash on a regular basis. The cryptocurrency itself has several offices in different countries of the world. Dash is also actively looking for new partners to expand the scope of cryptocurrency adoption. As such, the project is already cooperating with Kripto Mobile, a manufacturer of low-budget smartphones in Latin America. As well as Wirex (that’s a crypto card provider), and the British payment service called Payza.
The concept of Dash is laid in its name. Dash stands for Digital cash. Two key technologies were proposed for its implementation — Instant Send and Private Send
Instant Send is a method of instant payment that takes just a few seconds. Such transactions are somewhat more expensive but are processed faster. It’s convenient for making retail purchases without creating a line at the checkout.
Private Send is a technology of anonymizing transactions, which works like coin mixers. Cryptocurrencies from different wallets mix together, making it impossible to track individual payments.
Also, Dash has an interesting way of making decisions about future development. Each user can openly put their own proposals for a vote. However, as means against spammers, it is required to pay a fee of 5 Dash.
The Dash cryptocurrency became the first network that featured the concept of master nodes. It was also the first to use a hybrid mining algorithm, combining Proof-of-Work and Proof-of-Stake both.
It works like this. So the ordinary miners, just like with Bitcoin, process transactions and form them into blocks. But in Dash, this is only a prerequisite, which is then checked by the master nodes working like in POS-mining, approving the blocks before transmitting them to the network.
To execute the master node, a user must have at least 1000 Dash on the account, which isn’t any cheaper at the current rate — $161 000. It is the master nodes that process instant and anonymous transactions, and their owners receive a 45%-reward for each mined block. They can also participate in voting for network proposals.
It is also worth noting that 10% of the mined cryptocurrency goes to Dash Core Group, so that it may later be used for further development of the project. But where and how do they spend the funds is unknown because no one shows the financial statements to the community.
Dash is considered to be one of the most promising cryptocurrencies. Cheap, instant, and anonymous transactions, multiplied by the aggressive marketing of the project team – this is all you really need to create an international digital currency for everyday use.
But. There’s always but, is it? According to statistics, Dash loses to cryptocurrencies such as Litecoin or Dogecoin by the number of transactions per day and the number of regular users. So its distribution at the moment is much less than the project team claims. If Dash cannot get around these cryptocurrencies, it is not clear how it will fight for the market with Bitcoin which will soon receive instant, free, and confidential payments through the introduction of additional blockchain layers.