Dash is a cryptocurrency that has long been in the top 20 cryptocurrencies by market capitalization. It has recently caused a sensation by trying to find mass application in Venezuela.
History and Technology of Dash
The Mainnet was launched in the year 2014 under the name Xcoin. Later the project was renamed Darkcoin, since March it’s called Dash. The founder of the project, Evan Duffield, was CEO of the Core Project until 2017. It is was one of the Privacy coins of the year 2018.
Dash cryptocurrency, similar to Bitcoin, is a cryptocurrency that can be utilized to transfer or receive payments. Dash was developed on top of the blockchain technology that Bitcoin applies, though, some important changes have been made to it. The initial days of Dash were defined by the layout and structure of the currency’s novel two-tier architecture that promotes quick execution speeds and the coin mixing essential for privacy. Soon thereafter, Dash applied a decentralized governance method that enables power users to vote on improvement plans for the network.
Dash is a proof of work blockchain with some extra features. It was the first project that introduced Masternodes. To run a masternode, you have to lock 1000 DASH. Thus, the masternode is moved to work correctly and to give added value in the network, which influences the price.
There is now a new feature called Chainlock. Through about 100 Masternodes sign the last seen block. If at least 60% agree, the blockchain from this block is no longer changeable and even protected against 51% attacks. The Blockreward is not 100% to the miners at Dash, but is divided as follows: 45% gets the Miner, another 45% go to the Masternodes and 10% get people who support the network. Whose work is rewarded is determined by the Dash community through elections.
Engagement in Venezuela
In the days of great inflation in Venezuela, people were trying to use Dash. The success was impressive. Meanwhile, the country has recovered a bit. Dash continues to promote the distribution of cryptocurrency in Venezuela.
Anyone who uses a dash explorer from Dash recognizes that the first blocks had a very short block time and a high block return, which actually contradicted the protocol.
Dash was forked from Litecoin, and Litecoin was forked from Bitcoin. A flaw got prefaced when the fork occurred, appearing in the mining of 1.9 million DASH coins within the initial 2 days. 1.9 million is approximately 10% of the total Dash coins that will ever endure! Evan Duffield declared that it was a bug in the code and proposed to relaunch the coin but the Dash community opposed the offer and so the project remained as it is. Truly, such an error is unlikely, because the error must occur in two places in the code. Once, when the blockreward from the miner is written to the block and again when the nodes check the block. If the error occurred only once in the code, the blocks would be rejected by the network.
There are miners on the Bitcoin blockchain who validate transactions that occur on the blockchain, and in turn, get remunerated for their activity. Likewise, on the Dash cryptocurrency blockchain, there are also miners, but the arrangement is split into two parts — Masternodes and miners.
A user must transfer a minimum of 1000 DASH to become a Masternode. Masternodes work as distinctive servers that implement the important functions on the Dash crypto chain. They are liable for Private Transactions (PrivateSend), Instant transactions (InstantSend) and the authenticity and treasury operation.
These Masternodes enhance the defense of the network and make sure that the activities are as swift as cash transactions. This requires money and labor from the Masternodes, so they are rewarded by the network.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.