The name ‘Dash’ derived from the synonym for cryptocurrency – ‘Digital Cash’. As a result, Dash refers to themselves as a “revolutionary digital money system” by providing their users with digital cash they’re able to “spend anywhere”. So what is a DASH token, and why do they deem themselves revolutionary?
Originally known as ‘Xcoin’ Dash was founded by Evan Duffield and launched in 2014. Much like most cryptocurrencies on the market these days, the DASH token was inspired by Bitcoin and attempted to make a better version of it.
Some features that many altcoin investors like about the DASH token its the fact that it’s movable, divisible, cost-effective and instant. Using Dash, sellers, buyers, and traders are able to make transactions both online and in person with significantly low transaction fees.
Dash aims to be one of the most scalable and user-friendly payment systems in the world. One of the many features Dash offers its users is an ‘InstaSend’ option. If users would like a transaction to be done quickly (for merchants etc) they can enable this option. InstaSend transactions take a mere 2 seconds to process. There’s also a ‘PrivateSend’ option for users who’d like some extra security and privacy for their transactions.
This decentralized governance and budgeting system makes it one of the first ever successful decentralized autonomous organizations (DAO)
As DASH is a decentralized cryptocurrency, it retains a self-governing and self-funding model. With this in mind, users on the Dash network add value to the network whenever they transact on it. Governance and Treasury allows DASH stakeholders to have a say in the course of the project, all while providing 10% of each block reward to the development of the project.
While the DASH token is the most popular option, there is also a decentralized currency platform built into the Dash blockchain. This is Dash Evolution. This platform aims to help create decentralized technology available all around the world, all while making Dash’s exclusive benefits easily accessible to the public.
With this in mind, Dash chose to use layers in which several jobs for the Dash network are able to be done. API access and a decentralized file system are all features of this platform.
Dash states they will be releasing the Dash Evolution platform in stages:
As stated by Dash, here are a few features they are currently working on:
DashDrive: A decentralized shared file system for user data that lives on the second tier network
DAPI: A decentralized API which allows third tier users to access the network securely
DashPay Decentralized Wallets: These wallets are light clients connected to the network via DAPI and run on various platforms
Second Tier: The masternode network, which provides compensated infrastructure for the project
Budgets: The second tier is given voting power to allocate funds for specific projects on the network; via the budget system
Governance: The second tier is given voting power to govern the currency and chart the course the currency takes
Quorum Chain: This feature introduces a permanent stable masternode list, which can calculate past and present quorums
Social Wallet: We introduce a social wallet, which allows friends lists, grouping of users and shared multisig accounts.
DASH is a PoW cryptocurrency. People can mine DASH with a GPU, CPU or ASIC miner. However, there is a difference that separates Dash from most other cryptocurrencies. Dash miners will also earn rewards for running and maintaining special servers named masternodes.
Essentially, masternodes are the fuel that powers InstantSend and PrivateSend transactions, as well as the governance and treasury systems. These masternodes are on their own layer of nework servers, working in secured clusters called ‘quorums’. Quorums enable decentralized services that include increased privacy, instant transactions and governance. All while eliminating prospective low-cost network attacks.
Dash users earn rewards for running masternodes. 45% of each block reward is put aside to pay for the masternodes network. Be that as it may, the Dash network requires all users running masternodes to possess 1000 DASH tokens
Users running Masternodes earn proposal-voting rights. This means that each masternode has 1 vote. They can use this for various different things such as Dash budget proposals or even new project decisions. As running a Masternode has hosting costs, they are paid an 8% return on each full block reward of 1000 DASH as an incentive.
Dash records transactions in blocks on the Dash blockchain, working similarly to most cryptocurrencies. Each transaction size is only a few bytes. Though, the number of output and input addresses involved heavily impacts the size of the transaction.
As the Dash blockchain is decentralized and miners are being paid DASH token through block rewards, spam transactions are not uncommon. In order to prevent these fraudulent transactions, there is a limit to the size of each block. If the number of transactions increase, block spaces become scarce very quickly.
With DASH, miners are able to include the transaction in the block they generate. As a result, more miners join the fold due to this attempt to provide even more incentive for miners to continue mining DASH.
To promote consistent growth of these cost-efficient DASH transactions, the dash team increased the Dash block size from 1mb to 2mb. This allows InstantSend and PrivateSend transactions to operate on a different mandatory fee schedule.
Dash implemented the PrivateSend feature by creating denominations of 10,1,0.1 and 0.01 DASH. Next, these denominations mix with other DASH users. For standard transactions, creating a denomination costs a default fee. But mixing them is free except on an average of 1 in 10 occasion in which there is a charge of 0.001 DASH in order to prevent spam.
All mixed spending inputs will either include the standard fee or the InstantSend fee. Dash states:
To avoid creating a potentially identifiable change address, the fee rounds up to the lowest possible denomination.
Equivalent to 0.01 DASH
An average DASH token transaction with a single input and output with a change address will be within the range of 200-400 bytes. As per Dash’s example, if 1 Dash costs 800 Rand, the fee would cost between R0.0015 and R0.0030. If using InstantSend at the same price, you add an extra R0.08 to the transaction.
Combining both the InstantSend option with PrivateSend could result in an accumulation of high fees. This is because PrivateSend transactions may require several inputs, and InstantSend charges 0.0001 DASH per input.
All things considered, 2 questions still remain. Is the Dash token worth its current valuation? Is it worth investing in? While I can’t (and won’t) tell you what to do with your money, I can detail some promising features DASH has that caught investor interest.
We think the DASH token is definitely a promising cryptocurrency. For users who want faster transactions and greater security for their everyday transactions, Dash provides a great alternative to fiat currency or even bitcoin.
It’s highly unlikely that DASH will die any time soon. Despite it having competitors like Monero and PIVX, Dash is easily the more flexible option. Coupled with solid infrastructure and a user-friendly configuration, Dash definitely sets itself apart from the crowd and proves itself to be a promising currency worthy of investing in.
Will you be investing in DASH? Our Dash market offers quick and easy trading to help all our users build up their crypto portfolios with ease. Let us know your thoughts in the comments below!
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.