Dash is a popular digital currency that differs from Bitcoin in several ways. Launched in April 2014 the development team created the currency with maximum speed and low fees in mind. Dash is also known as ‘Digital Cash’.
The best things about Dash are:
- Strong governance, which makes it easier for Dash to innovate and adapt
- Innovative features, like InstantSend and PrivateSend
- Fast and cheap transactions
So what makes Dash different from Bitcoin?
The process in which Dash handles transactions differs from Bitcoin due to the introduction of ‘masternodes’. Masternodes are an additional function of the Dash system that perform some interesting tasks such as allowing anonymous transactions and enabling voting on project funding ideas. To create a masternode a person requires 1000 Dash ‘locked’ in a wallet.
At the time of writing it is approximately $800,000 New Zealand Dollars to be able to run a node. This is to ensure that those involved with the Dash network have a vested interest and are incentivised to make the best decisions for the network.
What about mining?
Dash has traditional miners just like Bitcoin and they receive 45% of the reward for facilitating transactions on the Dash blockchain. Masternodes receive the other 45% reward for assisting with the network.
So who receives the last 10% of the reward?
Everytime a new coin is minted; 10% of the rewards are put into a Dash fund to allow the developers to fund new projects related to the coin. For example Dash could plan to set up its own ATMs using the rewards, which will help drive its mainstream push.
All development ideas must be voted on by masternode users. This creates a democratic process around the spending of rewards and the direction and innovation of the Dash network.
What are the main advantages of Dash?
As mentioned earlier, Dash has very fast transaction rates and low fees. The average transaction takes less than 5 seconds to complete. The average fee is around $0.50 NZD.
Plus there’s cool features! While Dash transactions aren’t automatically anonymous, you can select to make an anonymous transaction on Dash through a process is known as PrivateSend. While anonymity might not seem like an important consideration for your standard payment, remember that the blockchain record of transactions is fully open and transparent. This means that if you pay me, I can see where you got that money from, and what address it received funds from, etc etc. Anonymity allows us to have privacy around our financial transactions.
Dash has also InstantSend which allows payments to be confirmed in around one second. Compared to Bitcoin where confirmations can take around an hour, this makes Dash a much better currency for real world situations like retail stores, cafes and restaurants.
How do I buy Dash?
Here at Easy Crypto we make it easy for anyone to buy Dash from start to finish – just tell us how much you want, and we do the rest.
Want to know more?
For more articles about your favourite (or soon to be favourite!) cryptocurrency click here for the rest of our cyrptocurrency 101 series.