Dash is a digital currency based on the Bitcoin software that focuses on privacy and scalability as its main distinguishing features. You can make instant, private payments online or in-store using its secure open-source platform hosted by thousands of users. And the technology is expanding incredibly quickly.
The eToro team has put together an infographic to help simplify this seemingly complicated financial asset:
In that sense, Dash has solved many of the problems inherent in Bitcoin, which have centred around slow transaction speeds and inabilities to scale quickly and become a genuine mass-market mainstream offering. By comparison, Dash has been designed from the very start as a scalable and user-friendly currency platform for mass adoption.
In addition to the traditional rewards for mining Dash, users are also rewarded for running and maintaining special servers called ‘masternodes’. In brief, these masternodes provide a good deal of the network infrastructure on which Dash operates.
Bitcoin runs on a single-tier network with an average blocktime of ten minutes. They require six of these to fully confirm a transaction, which means a Bitcoin transaction can take up to an hour to complete.
Dash works on a two-tier network. The first tier operates in much the same way as the Bitcoin network but the second tier, comprised of these special servers known as masternodes, allow for additional operating features such as instant transactions (InstantX), private transactions (Darksend), and decentralized governance and budgeting. It’s this second tier that gives Dash a competitive edge.
Anyone can run a masternode – hosted on virtual private servers run by companies such as Amazon Web Services. They just need to first have evidence that they own 1,000 DASH. If the owner spends their 1,000 DASH then their masternode gets turned off.
Dash users running a masternode are further incentivized by virtue of receiving a portion of the reward when miners find new blocks, with 45% of that reward going to the network of masternodes. That in itself may make Dash an interesting and very different kind of investment opportunity.
Dash clearly means business. It has created a new team based in Hong Kong called Dash Labs to focus on developing custom hardware. Meanwhile, the core team aims to increase speed, size and scope with each development stage, doubling the number of developers with each release. They are also committed to publishing a large amount of private documentation to ensure complete transparency and trust in the evolution of the platform.
Dash has certainly been one of the fastest growing cryptocurrencies in 2017 and has attracted a lot of interest among cryptocurrency traders and investors.
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