DASH - exchanging cryptocurrencies for UAH! 💵
DASH is a fork (fork) of Bitcoin born in 2014 with the goal of improving scalability and privacy. Dash is an acronym for Digital Cash; in fact, the goal of the project is precisely to become the most widely used form of digital payments in the world.
Back in 2014, cryptocurrencies appeared on the market with so-called altcoin or Bitcoin alternatives. The problems these altcoins were trying to solve were mainly related to privacy and scalability, features that Bitcoin lacked.
Evan Duffield, an American entrepreneur and software developer who discovered Bitcoin in 2010, wanted to add anonymity to the protocol. After receiving rejection from Bitcoin Core programmers, Duffield decided to launch XCoin on January 18, 2014, as a fork of the Bitcoin protocol. Just a few months later, XCoin was renamed Darkcoin and soon gained prominence in the market. Its price rose from a low of 75 cents to a high of nearly $15 due to its anonymity features, which made it an ideal payment solution for buying illicit goods on the dark "web."
Darkcoin uses a mechanism called Darksend, a feature that allows any transaction made by a user to be combined with the transactions of two other users. Thus, anyone attempting to analyze what is happening on Blockchain will have difficulty tracking the destination of a particular payment as well as its sender.
A year after Darkcoin's launch, Evan Duffield and the Darkcoin Foundation began investigating a possible rebranding because the fame Darkcoin received no longer reflected the true essence of the project. The coin was actually considered the favorite cryptocurrency of criminals and other illegal enterprises, undermining investor confidence and threatening the viability of the product.
In March 2015, Duffield chose the name Dash to stand for "digital cash," a name that represents the ultimate goal of building a fast, friendly and scalable online payment system.
Model, control and mining algorithm
Compared to Bitcoin's blockchain, which uses a proof-of-work (PoW) mechanism to secure its network, Dash uses a hash function called "X11" with a masternode system called Proof of Service (PoS). Simply put, a masternode is a server with a full copy of the Dash blockchain, which guarantees a certain minimum level of performance and functionality to perform certain tasks related to blockchain verification, as well as PrivateSend and InstantSend, which are the privacy and instant transaction functions present on Dash, respectively. In order to be eligible to become a masternode, it is necessary to deposit 1,000 DASH as a deposit - about $50k dollars.
It is interesting to note that Dash was the first cryptocurrency to incorporate the masternode model into its protocol.
In exchange for their services, masternodes receive dividends on their investments. This incentivizes masternodes to work in the interest of the ecosystem.
Masternodes models are rewarded in the form of blockchain rewards. Basically, 45 percent of the block reward goes to masternodes and 45 percent to miners. Dash has a hard upper limit of 18 million coins, which means that only 18.9 million Dash will ever be produced, and the block reward on Dash will decrease by 7.14 percent every 210,240 blocks (approximately 383.25 days). As of this writing, there are ~9.2 million coins in circulation with more than 4,800 active mastercoins.
Another important service provided by masternodes is the DAO. This decentralized organization serves to fund those projects that users find useful for Dash development, and generally to pay developers or others working on the project. The masternode plays an important role here as well, as they lead the voting to determine the future direction of the cryptocurrency.
DASH was born with the intention of improving Bitcoin's privacy and scalability to develop a tool that would be widely used as digital cash. Based on the way it was designed, DASH has greater transactional capacity than Bitcoin and allows transactions with a higher level of privacy. But the biggest difference from Bitcoin is the masternodes-based governance model, which operates a decentralized autonomous organization (DAO).
Dash has been adopted in various parts of the world as a real payment instrument, especially in the case of Venezuela, and what are the updates and plans in the roadmap.