As an altcoin, Dash is a decentralized autonomous organization (DAO) operated by a subset of its users known as "masternodes". Dash is also an open source cryptocurrency that was developed via a forked from the Bitcoin protocol.
Similar to Bitcoin and other popular cryptocurrencies, Dash is a digital coin that can be used to send and receive payments. It was developed using the blockchain technology that Bitcoin operates on—on top of noteworthy upgrades made by its developers.
And here's some good news: You can trade this crypto on the eToro online investment platform!
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History of Dash
Originally launched in 2014 by Evan Duffield as "Xcoin"—a fork of the Bitcoin protocol—it later became as "Darkcoin” but earned a controversial reputation in the media because it was alluded to as the digital coin of choice in the dark net market. To shed this repute, it underwent another rebranding in March 2015 to its current name “Dash” as a portmanteau of the term "digital cash".
Actually, Dash's whitepaper was co-written by Evan and Daniel Diaz based on the original whitepaper of Bitcoin written by its founder Satoshi Nakamoto.
By April 2018, Dash's market cap reached more than $4.3 billion and became one of the 10 cryptocurrencies in the world.
Dash in a Nutshell
- Dash is making an—uhm—mad dash to become a prime digital currency used for common online payment transactions in the same manner as cash, credit card or PayPal.
- Dash is credited in helping uplift the distressed economy of Venezuela by expanding into the country.
- Dash is operated by a subset of its protocol users known as "masternodes"
- A "masternode" owns an initial stake equaling to 1,000 DASH coins.
- Dash provides faster transaction speed and better privacy.
- Remember: Masternodes plays an integral role in the Dash protocol because their votes can steer the direction of the cryptocurrency in the future.
Difference of Dash from Bitcoin
Since Dash was forked from Bitcoin, it is important to take note of the two crypto's differences from each other.
- Dash uses an X11 algorithm—a version of the Proof-of-stake (PoS) algorithm—to mine coins along a "Coinjoin" anonymization strategy for increased privacy on its blockchain.
- Bitcoin uses a typical proof-of-work (PoW) algorithm in its mining technology.
- Dash and Bitcoin uses different systems for processing and handling transactions. While Bitcoin's blockchain requires all nodes in its network to validate transactions, Dash uses a subset of its users known as "masternodes" for a simplified and faster validation of transactions.
- Dash has introduced a self-funding concept by cutting block rewards into three categories of stakeholders namely: miners, treasury and masternodes. Miners and Masternodes receives 45% each while 10% is allocated to the Treasury in order to fund future Dash technology development projects.
As of the first quarter of 2021, there are more than 4,500 masternodes in the Dash network.
Remember: Coinjoin is an "anonymization" technique used to protect cryptocurrency holders from privacy breach when they conduct transactions with other crypto users.
Important Features of Dash
Emerging as one of the pioneering forces in the cryptocurrency industry, Dash is becoming more popular due to these features that makes life easier when using it.
This feature allows users to pull of blazing fast transactions by bypassing miners and making use of "masternodes" to record and validate transactions. InstaSend eliminates the long waiting time that most blockchain network usually takes to confirm a transaction.
InstaSend works when a user makes a request to validate a transaction and a special Masternode accepts it by locking the transaction inputs before the transaction data is broadcasted in the Dash network to be made available to other Masternodes. This assures a smooth flow in the succeeding block of transactions.
Dash's PrivateSend protocol enable users to receive and send untraceable payments on the blockchain.
This feature protects users from 51% of attacks when used with InstaSend. A 51% attack happens when over half in a Blockchain network produces false data.
This feature was added after the Dash community recognized the need for a flawless upgrade system. Sporks makes it possible to easily make major or minor upgrades like a soft or hard fork without causing major change in the network.
How Dash Works
As a cryptocurrency run by a decentralized autonomous organization (DAO), Dash is a platform that relies on smart contracts voted or decided upon by its community in determining future plan of action. DAO's are an integral part of the cryptocurrency industry because they offer solutions to issues regarding funding and governance.
Role of Masternodes
If "miners' is to Bitcoin, then for Dash, its divided into two: "Miners" and "Masternodes".
The miners in Dash operates the same as Bitcoin's miners, as they aslo verify transactions. The Masternodes meanwhile, performs as "special servers" tasked in dealing with critical functions on the Dash network. Masternodes are responsible for Instant Transactions (InstaSend), Private Transactions (PrivateSend) and the treasury and governance system.
To become a Masternode, a user needs to deposit a minimum of 1,000 Dash coin.
How to Buy Dash?
The easiest way to buy and invest on Dash is through a broker or a trading platform. Especially useful for those beginning to invest on cryptocurrencies are trading platform apps like eToro.
How to Trade DASH on eToro?
- On your eToro dashboard, click “Trade Markets”.
- Select “Crypto”.
- Scroll down to look for “DASH”.
- Click “Buy” and set the amount you want to invest.
- Click “Open Trade”.
Interested now to trade DASH? Get started here.
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