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Dash: Everything you need to know

Dash

Source: ForexNewsNow.com

Cryptocurrency is nothing but a form of virtual or digital currency. This digital asset uses blockchain technology assisting in recording transactions across multiple computer networks. The online currency uses cryptography which is itself a symbol of surety in regards to security as with the help of cryptography, it is nearly next to impossible to counterfeit or double-spend for that matter. Now, for those of you wondering what double-spending is, let me help you with it. Double spending is merely a situation when cryptocurrencies are stolen due to disruption in the blockchain network. Although it is not very common, double spending does happen. 

The topic of cryptocurrencies is something that many of us are already familiar with and the industry itself have come a long way since the past few years. Who would have thought that someday we would have an online currency which could be used to buy goods and services over the internet? Well, we do! Talking of cryptocurrencies, it is important for you to know that there are a lot of them available today in the crypto marketplace such as Dogecoin, Binance Coin, Baby Doge, and  Ethereum to name just a few popular ones. But that is not where it ends, there are a lot of other currencies available too, some of them are popular and some of them not so much. Not just that,  some of the currencies even managed to get into the mainstream of the crypto industry as well. 

Some of you familiar with cryptocurrency might know that this is a highly volatile market and extremely uncertain as well. Over the years we have seen new currencies getting hyped about and their prices skyrocketing but on the other hand, we have also seen currencies go downhill soon after.

But today we are here to talk about Dash, a cryptocurrency that was launched back in 2014 which caught the eye of many investors over the years from all around the globe. 

Everything to know about Dash

dash

Source: Crypto Casino Online

Dash is a cryptocurrency just like any other. It had a series of changes in regards to its name, the currency was originally known as Xcoin which then changed to Darkcoin which brings us to its current name, Dash. initially, when the currency was developed, it was done with the aim of providing users with anonymity as well as privacy. The virtual currency aims to become a medium for transactions done on a daily basis and can be used as a credit card, cash, or even via PayPal.

The currency runs using a subset of its users known as “Masternodes”. In the currency’s systems, all of these masternodes have a beginning stake which is nearly equal to a thousand Dash. In the currency’s whitepaper, the co-founder states that this is because it allows users to earn a return on their investments and pay for the services. Around three years ago, back in 2018, the virtual cash corporation decided to expand into Venezuela, being the first foray of the currency into an economically troubled country. 

Along with this, it is vital for you to know that Dash is an open-source platform that indeed includes a payment network that is decentralized. The currency functions on the Bitcoin blockchains or as commonly said, is forked from the Bitcoin protocol. As of May 2021, Dash is a cryptocurrency which according to the market capitalization is said to be the 50th most valuable virtual currency across the world, having a market capitalization of nearly 2.7 billion dollars. However, the value of Dash is nearly 229.74 dollars. 

The currency entered the market aiming to provide the cryptocurrency community with much more scalability along with a lot more features than its predecessors. Since the past few years when the currency was first launched, Dash has managed to grow its platform and community remarkably. The cryptocurrency majorly managed to turn heads because of its unique approach to the marketplace. The primary focus of the currency was transaction speed along with privacy. As a result, Dash transactions are nearly impossible to trace, to say the least. 

Another reason why Dash managed to gain so much attention was because of the amazing features that the currency offers, as most of these features were new to the market at that time. This is how Dash continues to be a developing force in the privacy coin sector.  

How does it work?

dash

Source: Kryptomoney

According to the currency’s website, Dash is globally popular as an alternative to credit cards as well as cash, mainly because of its speedy transactions and low fees being charged from traders. It is also important for you to understand that the Dash community is said to be running with the help of a decentralized autonomous organization(DAO). For those of you wondering, what DAO’s are.  They are simply platforms that are dependent on the smart contracts voted by the community for them to determine their future course of action. DAO’s are extremely important for the cryptocurrency industry as they help in solving two major concerns with all currencies, funding and governance. 

Many of you by now must be thinking as to how is Dash different from the industry-leading Bitcoin. Let me help you with that. The technology that each of the currencies uses to mine coins is one of the key differences between the two. While Bitcoin uses Proof-of-Work(PoW) algorithm, Dash uses the slight modification of the existing Proof-of-Stake(PoS) algorithm, known as the X11 algorithm.  

The X11 algorithm is known to utilize a chained hashing algorithm. In comparison, the industry-leading Bitcoin operates using a single hashing function often known as SHA-256. Using the X11 algorithm, in just nearly 2.6 minutes, a new block is mined. Each of these blocks contains about 2MB worth of data. As per this, it is nearly equal to fifty-six transactions each second. Not just that, similar to Bitcoin, the block rewards are decreased yearly. Specifically, in the Dash ecosystem, it decreases at a rate of almost 7.14 percent per annum. 

Also, both currencies have different methods of handling transactions. While the transactions happening on Bitcoin’s blockchain requires all the nodes within the network to be validated, the entire process is very time consuming and is unable to prevent clogging. Along with this, slow transaction processing speed often results in a backlog of the user transactions inside the currency’s memory pool, thus, leading to a high cost of transactions, making it unsuitable for daily usage. 

As previously mentioned, Dash uses masternodes which further simplifies the validation and verification of transactions along with solving a scalability issue for transactions as the number of nodes required in order to successfully approve a transaction is further reduced to a much more manageable number, to say the least. Masternodes have a responsibility to approve transactions that are generated through the miner networks and also providing services such as privacy and payments to the entire network of Dash. It is also important for you to know that there are all in all 4512 masternodes in the currency’s network as of May 2021. 

Also, it is worth mentioning that, unlike Litecoin and Bitcoin, Dash has managed to have pioneered a self-funding model just by splitting the block rewards amongst three major shareholders which are miners, masternodes and treasury. Masternodes and miners get forty-five percent share each and the ten percent share given to treasury will be made to use for any future developments of the currency. Here also, masternodes play a significant role as their votes are used to determine the directions of future developments for the virtual currency. 

Investing in Dash

dash

Source: Open Business Council

Dash is a cryptocurrency that has been placed in the top hundred list for years now. The currency has an all-time high value of 1,642.22 dollars per each coin. Reading so far you might have understood what Dash is and how it operates. Now, let’s discuss whether or not buying Dash is a good investment as of 2021. 

According to reports, as of now, Dash holds 58th place on CoinMarketCap. Also, with a twenty-four hours trading amount of 385,619,243 dollars, Dash trades at nearly 115.43 dollars. In the last twenty-four hours, the price of the currency has decreased by almost 9.43 percent. However, as of today, the currency has a circulating supply of 10,089,862 DASH. 

Dash has performed exceptionally well around four years back in 2017. If then you would have invested about ten dollars in January, it would have been nearly fifteen hundred dollars by the end of that year. It may not seem like a big deal but trust me, it is. It is nearly a growth of 14,900 percent in just under a year! 

For those of you wondering where to purchase Dash, the currency is available on all major crypto exchanges in the world including Kraken: being the best for people residing in the USA, Binance: most suitable for those of you residing in Canada, the United Kingdom, Australia and Singapore. Along with these, Huobi Global, Easy Crypto, BitPanda, FTX and Coinbase are few other exchanges where Dash is listed. 

In addition to this, there are about three new ways that can be used to store your Dash. Depending on how often you will trade your Dash and what amounts you intend to hold with you, you will be able to figure out the best storing method that compliments your investment strategy. There are several online wallets available in the market today which are reliable in terms of security.  Mobile wallets for instance are easy to use and are free along with being fairly secure. However, if you are planning on making a major investment in the currency and are intending to hold it for quite some time then, hardware wallets are the one to go. This makes it next to impossible for online threats to even access your currency holdings. 

Having said that, It feels like it is the best cryptocurrency to invest in as of 2021 and not just that, between 2022-2025, it is possible for Dash to beat it’s own previous best and create an all-time high even surpassing the current value of 1,642 dollars.

It is extremely crucial for you to know that the crypto marketplace is highly uncertain and investing in virtual currencies is risky. Invest only if you are willing to take those risks and bear losses is necessary. Remember that it is not advisable for you to invest more than you can afford to lose. 

What are your thoughts on Dash? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Polygon: Everything you need to know

 

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