Since the launch of Bitcoin as a digital currency (cryptocurrency), we have witnessed the creation of other cryptocurrencies (altcoins) serving innovative purposes in the decentralized ecosystem. Likewise, some cryptocurrencies are built based on Bitcoin’s blueprints. An example is the prominent Dash (DASH) crypto.
DASH is a cryptocurrency with the innovative purpose of offering more features and scalability to the crypto community than pre-existing cryptocurrencies have been doing. Its name is rooted in its mission of being a “digital cash” while providing users with a cheap and fast decentralized payment method.
It is a token with an open-source blockchain, and this has helped it draw global attention and become one of the most popular cryptocurrencies. In this guide, you will learn what DASH Coin is, how DASH works and where you can buy DASH.
What is Dash Coin (DASH)? | Definition of Dash Coin
Dash Coin (DASH) is a cryptocurrency created in 2014 as a Bitcoin blockchain fork. However, it has many features that differentiate it from Bitcoin, such as making it more efficient and user-friendly.
DASH was initially launched as XCoin and DarkCoin and was created to correct the flaws attributed to Bitcoin transaction privacy and times. It protects users’ anonymity and privacy while delivering high-speed transactions using Masternodes. The creators claim that DASH processes transactions in just one second, meaning you can receive funds in one second.
DASH is prominent for its X11 algorithm and two significant features (InstantSend and PrivateSend) that set it apart. With InstantSend, you can transfer DASH without waiting to confirm the transaction on the DASH blockchain. Meanwhile, PrivateSend allows you to send DASH in a peculiar sequence by mixing it up with other transactions, making it difficult for an observer to trace the transaction.
When you compare DASH decentralization to Bitcoin, it is more decentralized. This is achieved through a system of masternodes. These are nodes elected by token holders. As a result, DASH has become more resistant to illicit attacks than Bitcoin.
How Does Dash Coin (DASH) Work?
DASH uses a two-tier network wherein miners and Masternodes run concurrently. This ensures improved network efficiency. The first tier is the proof-of-work system powered by miners. These miners compete to solve complete mathematical problems and add a new block of transactions to the Dash blockchain.
Masternodes control the second tier of the Dash blockchain. Masternodes are special nodes of the Dash blockchain. These are users who hold 1,000 DASH tokens. They help miners to create orders and verify transactions within the network.
DASH is significantly different from Bitcoin due to a few reasons. One is its average block time of 2.5 minutes compared to BTC’s 10 minutes. Another is the 45% DASH rewards miners receive when they mint in each block compared to 100% on Bitcoin.
DASH is used to pay fees on the DASH network and to stake within the Masternode system. This brings rewards while securing the network.
History of Dash Coin (DASH)
Most people believe Dash is a Litecoin fork because Litecoin is one of the first sets of Bitcoin forks. Dash was launched in 2014 as XCoin by Evan Duffield before changing to DarkCoin to amplify its notable privacy feature. In March 2015, Dash went through another phase of branding and was renamed “Dash”, coined from the two words “digital” and “cash.”
There were different controversies surrounding Dash in its early days. One is when 1.9 million DASH got mined in just two days due to a bug from the fork. Likewise, DASH received heavy criticism because of the claim that individuals use it for illicit transactions in the dark net. In August 2016, this allegation was resolved, and its community has kept growing since then.
In February 2014, DASH started trading at $0.34 and reached $14 in May. Its run across 2015 and 2016 was relatively not encouraging until 2017, when it began an exponential bullish run until it reached an all-time high of $1,642.22 in December 2017.
Following that was a bearish run that made DASH experience a sharp decline in price through the following years. This doesn’t mean it didn’t bring profits to investors during those times after 2017. But its price didn’t exceed $410 in 2021.
Pros and Cons of Dash Coin (DASH)
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PROS |
CONS |
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DASH ensures swift transactions due to InstantSend. |
There are fewer DASH users than Bitcoin users. |
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There is a high level of financial and transactional privacy through the PrivateSend option. |
There is no unified platform to buy DASH. |
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DASH’s transaction fees are significantly lower than other cryptos. |
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Using Proof-of-Stake (PoS) and Proof-of-work (PoW) protocols ensures that nodes and traders split rewards evenly. |
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As a DASH holder, you can contribute to the decisions on the continuous development of the token. |
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Where to Buy Dash Coin (DASH)
Due to its popularity amongst altcoins and its innovative mission of being a global payment method, crypto investors and enthusiasts are constantly looking for where to buy DASH. You can buy DASH on popular cryptocurrency exchanges such as Binance, Coinbase Pro, Huobi, Kraken and OKEx.
You can buy DASH by trading it against fiat currencies (local currencies like dollars and pounds), cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) and/or stablecoins like USDC and USDT.
Should You Invest in Dash Coin (DASH)?
If you're thinking about investing in Dash (DASH), there are a few things you should consider. Dash aims to make transactions fast and private using its special masternode network. It's known in the world of cryptocurrencies, but there are a few important things you need to know.
First, remember that the cryptocurrency market can be really up and down – the prices can change a lot and it's hard to predict what will happen. Before you even think about putting your money in, take some time to learn how Dash works, what it's used for, and how it's doing in the market.
Also, think about your own money situation, how much risk you're comfortable with, and what you hope to achieve with your investment.
It's always a good idea to talk to experts who know about finances, like financial advisors, and to do your own research before you make any decisions. Keep in mind that cryptocurrencies can be a high risk investment, so make sure you're being careful and making choices that are right for you.
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This article is intended for educational purposes and is not financial advice.
Remember, this article is not financial advice but solely for educational purposes.
