Getting To Know Your Peer-to-Peer Coins - Dash (DASH)
Apr 25, 2018
Key Highlights for Dash (DASH)
• Founded in 2014, Dash is one of the first cryptocurrencies to expand upon Bitcoin’s blockchain and capabilities
• Blocks are produced every 2.5 minutes
• Total coin supply (TCS) for Dash is 18mm – unconfirmed estimate of 42% in circulation by year end
• Had its ICO at USD$0.20, now trades at USD$478.03 – a 238,915% return in just over 4 years
• Average transaction fee under USD$0.50 since the beginning of March.
• Dash transactions are securely confirmed by ASIC computing on over 4,500 servers hosted around the world
Dash is the 13th largest cryptocurrency by market capitalization, with a current market cap of nearly USD$3.73bn. Dash aims to be the most user-friendly and scalable payments-focused cryptocurrency. Dash’s network features instant transaction confirmation, double spend protection, and anonymity equal to physical cash. Dash’s blockchain is self-governing, and self-funding due to its incentivized full nodes and its clear roadmap for on-chain scaling up to 400MB blocks. A block is the data stored on the blockchain and each block is protected by a proof-of-work (PoW). The proof-of-work used in Dash requires a hash below a target value which can only be obtained, on average, by performing a certain amount of brute force work—therefore demonstrating proof of work. Investors who value privacy, transaction speed and an incentivized network may want to consider Dash as a cryptocurrency investment and transaction medium.
• Average transactions/hour: 411
• Average transaction value: 17.19 Dash
• Median transaction value: .105 Dash
• Blocks Count: 859,516
• Blocks avg. per hour: 23
• Reward for Block: 3.35 Dash
• Last difficulty: 67,601,567
• Blockchain Size: 5.95 GB
Dash’s blockchain is built on Masternodes which are full nodes, or computers connected to the Dash network. To run a Masternode, the node must store 1,000 Dash. When active, nodes provide services to clients on the network and in return are paid in the form of a dividend. The network uniquely contains two tiers to incentive individuals. Users receive dividends from the completion of nodes and post collateral to the network. The collateral is never forfeited while the Masternode is operating. Therefore, investors can provide a service to the network, be financially rewarded, and reduce the volatility of the currency. The dividend amount is essentially 45% of the total block reward.
InstantSend: a feature of the Dash network that provides instant transactions and prevents double spending. The double spending solution prohibits users from making duplicate payments or making payments for which they do not have the funds. Dash’s developers created a three-step process to combat this issue. First, a miner locates a new Dash block in the network and then submits the block with a winning hash. Then the hash selects ten Masternodes, which are required to process the block. The ten Masternodes are the instant send authorities which receive transaction inputs and broadcast them to the rest of the network. The transaction inputs are locked and the network reject further transactions with these inputs. Once the Masternodes are processed, both parties of the transaction receive five confirmations of the transaction within one second.
PrivateSend: a core feature of Dash which provides improved financial privacy for investors’ funds. All Dash coins in an investor’s wallet send inputs into the network. The PrivateSend platform combines the inputs from an investor’s Dash holdings with the inputs of two anonymous Dash investors. This allows the origin of the funds to become obscured, while also allowing the holder to remain in full control of their funds. PrivateSend operates by sending a distinct signal from an investor’s wallet to the “Masternode” (see above) indicating that the investor wishes to send this signal with inputs from other holders. The Masternode then receives the same signal from two other investors, and the inputs are mixed. The Masternode then pays the Dash currency back to a user’s wallet, except in a different address. This process is repeated several times to ensure increased privacy.