If you have heard of Bitcoin, then you may be somewhat familiar with what cryptocurrency or digital currency is. Dash is another cryptocurrency but there are some differences that make it preferable over Bitcoin to many people.
With Dash, there is technology included to make the transactions much more anonymous. This is not the case with Bitcoin. With Bitcoin, anyone with an internet connection can see the public ledger, which has the record of every Bitcoin transaction all the way back to the beginning of when a Bitcoin was mined.
There are two disadvantages with this. First, anyone can see what your balance of Bitcoin is, and most people don’t want that information public; second, everyone can see what transactions were made with your public Bitcoin key.
The anonymization technology Dash uses mixes transactions with a decentralized network of servers that they called MasterNodes. This means that there doesn’t need to be any third party that could compromise security. In addition, Dash transactions are confirmed much more quickly than Bitcoin. All of the verification is done by miners with Bitcoin. And it can take time for transaction to be verified, whereas with Dash, transactions are confirmed instantly.
Many of the problems that people found in Bitcoin were solved by Dash including speed of transactions, financial security and privacy.
There are lots of reasons that you should choose Dash as your cryptocurrency of choice. We will go over a few of those here.
First of all, Dash is private. You keep your payments private so that nobody can see what you spent your money on or what your balance is. Dash believes that your financial information is nobody else’s business. With the anonymization technology that Dash provides, only you have access to your financials.
Also, because Dash has the MasterNode network, it was able to make use of a breakthrough technology called InstantX. If someone chooses to use InstantX through their particular wallet, transactions are sent and confirmed with in just four seconds.
Dash is also completely secure. Dash cryptocurrency offers advanced encryption and a trust-free protocol that means that both your payments and your information are completely secure.
You can also use Dash globally. No matter where you send money in the world, you get the same speed and you pay the same transaction fees if you were sending money to the next computer over.
Speaking of transaction fees, most of the time transactions only cost you a couple of cents. This is a great deal cheaper than PayPal, Western Union, MoneyGram or Skrill.
You are also able to get prepaid debit cards with some cryptocurrencies. These debit cards can be used in stores or at ATMs just like the debit card from your bank. Spectrecoin offers a Visa debit card that gets funded instantly when someone sends you cryptocurrency and you can choose denomination between British Pounds, US Dollars and Euros.
The Spectrecoin debit card can be funded with a variety of digital currencies including Dash and even Bitcoin. This allows you to pay with Bitcoin no matter where you go. You can spend your money wherever Visa or MasterCard is accepted; including getting cash back at grocery stores or getting cash from an ATM. Of course you can also use it online and even link it to your PayPal account if you want. There are numbered of advantages to using these virtual currency debit cards.
First of all, you have your choice between virtual and physical Bitcoin debit cards. Virtual Bitcoin cards are generated cryptocurrency debit cards. You will have a hard time using them at a physical store, but they can be used for any purchase online including real world items like pizza. Basically anything that requires you to enter a debit or credit card number to buy; you can use the prepaid debit card for.
In addition there are physical prepaid debit cards for virtual currency. The physical Bitcoin card takes between 1 and 4 weeks to deliver and you can use it anywhere that you would normally be able to use a debit or credit card.
One of the other advantages with this debit card is that it can be loaded instantly from your Spectrecoin wallet.
You also are not required to verify your information at first. Instead you will have limits set on your spending until you verify your account, but you can begin the process without verification
Thereafter you can choose from three different currencies: USD, EUR or GBP.
Like a bit torrent service, Dash is a decentralized peer-to-peer network. This means that there is no central authority and you do not have to trust a bank with your money. Everything happens directly between you and the other person in your transaction.
In addition to the normal rewards for mining Dash, users also get rewarded if they run special servers that are called MasterNodes.
MasterNodes are the basis of the infrastructure to the Dash Network. You may be familiar with the single tier network that is used by Bitcoin. Users send transactions to the network and when a new block is discovered, they incorporate those new transactions into the blockchain.
Each block added to the blockchain is a confirmation. But with Bitcoin, transactions are not cleared until they receive at least six confirmations. This means that it takes about 10 minutes for the block time and it could take up to an hour for transactions to become confirmed.
Dash does things a little differently. It actually uses a two-tier network instead. The first here is very similar to the way that Bitcoin works. Like Bitcoin, miners find blocks and post transactions to the blockchain. But there is a second tier made up of the special servers that are called MasterNodes, enabling such features as instant transactions when you use InstantX, private transactions with the Darksend feature and decentralized governance.
Any member can run a master node but they must have a thousand Dash in order to do so. This prevents attacks on the network. Users can spend their money anytime they want but if they go below 1000 then their MasterNodes will be turned off. Generally, MasterNodes are hosted on VPSs and run by major companies. There is a definite incentive to running a MasterNode because whenever miners find new blocks, people running the MasterNodes get rewarded. In fact, 45% of the block reward goes to the MasterNodes.
Right now, those that run a master node are getting about a 15 percent return on their Dash. That means that if you have a thousand and are running a master node, you get about 150 Dash after a year. That’s quite a bit of money when you consider what the current price of is.
Right now, there are several thousand MasterNodes in approximately 22 countries. This means that everything is spread all over the world and it is almost impossible for one person to take over enough MasterNodes to disrupt the goals of the service such as anonymization.
There are some other interesting things about this currency that make it unique among others. One of those is the X11 chain hashing algorithm. X11 is a hashing algorithm created by the lead developer. It is a little technical to explain, but just know that it uses 11 hashing algorithms in sequence in order for verification. This is intended to make centralization of the currency Impossible by making ASICs very difficult to create.
If you are keeping up with Bitcoin news, you may know that within Bitcoin there has been a little bit of centralization because of the creation of Bitcoin ASICs. Dash wants to avoid that at all costs.
Another interesting and unique thing is that the X11 algorithm is designed so efficiently that it uses 30% less electricity and runs up to 50% cooler then the graphic processing units run when they use Litecoin code. What that means is that if you are mining Dash, you will be using a lot less electricity and computing power and be a more efficient miner.
Earlier we mentioned Darksend, so you may be wondering exactly what it is.
To begin with what you need to know is that the Dash system stores premixed Dash currency in the user’s wallet so that they can use it whenever they want. The mixing and denomination process happens automatically, before the money is stored in the wallet and doesn’t require any action from the owner of the currency. Let’s discuss a little bit how that works.
Every 10 blocks, all unmixed Dash will be sent through anonymization from the entire network. This anonymization phase mixes the coins that it receives from the network and then breaks them down into denominations. The currency must be mixed by at least two MasterNodes and then they get sent to the next MasterNode in the chain or back to the user’s wallet. This all happens quickly in the coins never actually leave the control of the person they belong to.
If someone wants even more anonymity over their spending, they can select more than two rounds of mixing. The client GUI has a setting that allows you to set anywhere between 2 and 8 rounds, making it impossible to track where your coins were or are going. When the user’s coins get returned back to the user’s wallet, they are sent using a change address that is randomly generated. These change addresses are totally anonymous.
Dash features decentralized governance by the blockchain. This is a system that Dash developed in order to determine the future of Dash and to fund further development. Anyone using Dash can come up with a project to help the system and submit it to the Network. MasterNode owners will vote on the project and if it least 10% of them approve it, the proposal will continue.
In addition, miners receive 45% of the block reward while MasterNode owners get 45% and 10% of the reward is withheld by Dash in order to fund these projects.
If you want to use Dash and become part of this exciting cryptocurrency, there are only four steps that you need to follow.