After the birth of Bitcoin, new cryptocurrencies have appeared, improving somewhat certain characteristics of the most famous cryptocurrency.
One of these cases is Dash, one of the criptocurrencies with more prospection of future and to which we are going to dedicate the following post.
I recommend you to watch the following video before continuing with the post:
The origin of Dash
One of the characteristics of Bitcoin is that it has Open Source technology, that is, the source code of computer software is developed and distributed freely. This means that anyone with programming knowledge can modify the Bitcoin source code.
In this way, its creator Evan Duffield, launches on January 18, 2014 the cryptocurrency XCoin, derived from the source code of LiteCoin, another cryptocurrency from Bitcoin.
After some changes of name, on March 25, 2015 it is definitely called Dash, merging the terms Digital Cash and honoring one of the premises of its creation, being cash in the digital world.
In its launching, Evan Duffield committed some programming errors propitiating what is known as Instamine.
At this time, the difficulty with which it was mined was not properly regulated and almost 20% of the total amount of Dash was discovered in a very short time. After this, and thanks to the decentralized autonomous management, the development went ahead.
What differentiates Dash from Bitcoin?
This cryptocurrency works very similar to Bitcoin, but it includes certain extra features that make it special.
Its creator wanted to give this virtual currency more flexibility and speed in transactions, with the aim that its use was the closest thing to cash. To achieve this, he based his development on three pillars:
- PrivateSend: Unlike Bitcoin, where you can track all transactions, Dash does not allow it.
- This privacy is achieved by combining identical entries in a single transaction with several outputs. Which makes the flows are hidden and can not track the exit addresses of the money.
- InstantSend: this feature is one of the most important of Dash. This technology is capable of accelerating the transfer of cryptocurrencies, achieving almost instantaneous transactions. Bitcoin usually takes in registering a shipment between forty minutes and two hours. Here the “master nodes” play a fundamental role, of which we will speak later.
- DGBB (Descentralized Governace by Blockchain): It makes Dash the first autonomous and decentralized organization. DGBB, also called “treasury system” is used to reach consensuses of development or financing of cryptocurrency. This structure has made Dash grow quickly obtaining the necessary funding for its evolution.
Mining and rewards in Dash
In Bitcoin the operation of the network is sustained by the work done by the miners. In the Dash architecture, the work test system is also executed to validate the blocks, but instead, it has two levels of work.
In Dash there are two types of miners, as we will see below:
- Nodes: this is the name in Dash for miners who perform tasks similar to those of Bitcoin. They are responsible for recording the transactions that have occurred in the network and for creating the new blocks.
- Masternodes: as we said at the beginning, this cryptocurrency has advanced functions that make it different. For the execution of these functions, the network has a type of “master node” that is responsible for supporting the PrivateSend (private transactions) and InstantSend (instant transactions) services. In addition, these nodes can vote to make decisions regarding the approval of new proposals for the development of the network.
The reward system is very characteristic, since the cryptocurrencies generated in each mined block are distributed in the following way: 45% is paid to the miner in charge of mining the new block and another 45% to the master node, delivering the remaining 10% to the treasury system (DGBB).
This budget accumulated by the decentralized autonomous government is managed by the “master nodes” and is used in the development of the cryptocurrency.
The evolution of cryptocurrencies advances very fast. Dash implies a revolution in the world of virtual currencies, and is a good example of success.
It shows us how, from the source code of Bitcoin, new cryptocurrencies with improved functionalities have been created.
These advances make Dash and other currencies reach popularity in a short time, earning the trust of its users.
Therefore, and as its creator intended, it has ended up becoming one of the most accepted means of payment in the business world, due to the speed it brings in exchanges.
Dash has earned the nickname of digital cash, taking advantage once again the wide range of possibilities offered by Blockchain and providing a plus of security and privacy to the user.