Dash coin was created in January 2014. It combined the best blockchain developments known at that time. The creator of the cryptocurrency is Evan Duffield. First, he worked on adding a level of anonymity to Bitcoin. However, the Bitcoin developers were not interested in changing its code, and Evan decided to use his solutions to create a new coin. That is when the story of Dash began.
Initially, the currency was called XCoin (XCO). Later, its name was changed to Darkcoin, and in March 2015 — to Dash. Dash ensures complete privacy of every user’s data thanks to network technology.
Key features of Dash digital coin:
- Dash is positioned as an anonymous cryptocurrency.
- The code is completely transparent and open to all network users.
- The main focus of developers is security and increasing the speed of transactions.
Similarities and differences between Dash and Bitcoin
The Dash system has security and transaction algorithms similar to Bitcoin. However, Dash has distinctive features that allow solving problems in a way that is unattainable for the first cryptocurrency. All transactions in this system occur much faster, while complete anonymity guarantees the confidentiality of all users’ data.
Because of these advantages of Dash, many users and investors have begun to take an active interest in this coin. They invest in the coin to promote its further development and receive profit in the future.
Unique features of Dash
There are several basic operating principles that differ this coin from other cryptocurrencies. Here are the main of them:
- the number of coins is strictly limited;
- the issue of the cryptocurrency will be fully completed only in 2477 (for comparison, the last satoshi will be mined in 2140);
- the volume of the mining will decrease by 7% every year to reduce the inflow of Dash and extend the period of its issue, thereby increasing the price;
- the network has complete security thanks to a two-tier system of miners and masternodes;
- mining requires full consent of the nodes, which increases the protection of user accounts;
- the total reward is shared between miners and masternodes, while the latter receive 45% of the total profit;
- new blocks can appear every 2.6 minutes.
The coin received the full name DarkCoin only because the developers mixed passive functions with complete data secrecy. Transactions occur only after the system selects the same amount of transfers from other network users, which will be sent at the same time.
Given that all personal data of users are not available to third parties, it will be impossible to track who the transfer came from since several hundred similar transactions were made at once at that time.
Features of performing financial transactions:
- all transactions are strictly grouped by amount, and miners are paid for the entire group at once;
- all transactions go to masternodes, which group applications and distribute the amounts;
- there are a lot of masternodes; they all work together to encrypt the identity of the sender completely.
All this ensures that the principles of the blockchain remain completely decentralized, while the senders’ identities are undisclosed to third parties. Thus, no checks will ever reveal even the IP address of a Dash sender.
The Dash Core Paper Wallet is created for storing Dash. From a security point of view, it provides 100% protection of funds. There are two QR codes the user receives during the operation. The first one is necessary to buy coins, while the second code provides access to the cryptocurrency for personal use.
If you need to convert DASH to BTC, it is better to use a decentralized exchange. Services like Godex guarantee the anonymity of their users. Thus, when swapping coins, you can be sure of the safety of your funds and personal data.
The main feature of the Dash cryptocurrency is a special algorithm developed for miners. This is a hashing algorithm called X11.
This method significantly complicates the procedure of mining and creating ASIC, although it is quite possible if you put in significant effort. We can only hope that this decentralization will stay in place, and miners will keep using simple CPUs to earn digital coins and make a profit.
Now that we know all the advantages of this cryptocurrency, we can suspect that the prospects for further growth are promising. It took about 2.5 years for Dash to gain the trust of investors and users, as well as gain unprecedented popularity on exchanges all over the world.
After careful consideration, we can say that Dash will be stable trading on exchanges around the world for a very long time. Thanks to a unique algorithm for reducing the emission of cryptocurrency, miners will not be able to receive all the coins for several more centuries.