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What is Dash Coin?
Dash is a cryptocurrency that was launched in 2014 under the name Xcoin. At one point, it rebranded to Darkcoin but didn’t take off until it settled for the name Dash in 2015. The Dash crypto is largely attributed to founder Evan Duffield, who co-authored the network’s whitepaper with Daniel Diaz. In the paper, they highlighted Dash as being a privacy-centric cryptocurrency that aims to address many of Bitcoin’s shortcomings. As an early coin to join the crypto market, Dash has amassed a huge following—particularly in countries with unstable economies, such as Venezuela, Colombia, and, more recently, Nigeria. What makes Dash special is its motivation to become a useable currency, a point of difference that has become few and far between in the current cryptocurrency market, which is dense with new, blockchain-focused innovations that attract investors rather than day-to-day users. Dash has paved the way to financial freedom in the far corners of the world through smartphone accessibility and various partnerships with decentralized financial institutions that aim to help bridge transactional borders.
Dash’s humble beginnings began in 2014 when the unknown XCoin launched as a supposedly better version of Bitcoin. After a few changes to its brand name, founders Evan Duffield and Kyle Hagan (both software developers) opted for the more positive-sounding Dash, which alluded to the super-fast—and cheap—transactions that the blockchain supported. The Dash price didn’t have a great jumpstart, hovering around $0.3 to just a hair under $10 at its infancy. Things began to look upon the network in 2017, when the Dash price AUD skyrocketed alongside many other coins, following the first major Bitcoin-led bull run to grace the crypto market. Alongside the cryptocurrency bull market, Dash’s first major breakthrough came during their ‘February Experiment’, where they offered incentives for people worldwide to create nodes that would help remove any issues within the network. In particular, they aimed to solve the adjustments in mining difficulty expected to come when the coin’s demand increases rapidly due to market fluctuation. The project spawned various communities in the metaverse, including Dash Force News (which has rebranded to Dash News), positively impacting the coin’s overall value. At the peak of the 2017 bull market, the Dash price AUD skyrocketed to an all-time high of almost $2,000 before mellowing back down after the hype. While the coin had an uneventful run in the following years, it made a minor comeback in the 2021 bull market, where Dash stood at $550 in late May. Most of Dash’s developments involve third-world accessibility and relevance in online marketplaces. In 2020, it partnered with StakeHound, which bridges the Dash and Ethereum blockchains—making the former relevant in an NFT and decentralized application-driven economy. More recently, Dash also partnered up with NaijaCrypto to bring the first crypto exchange to Haiti as part of its efforts in servicing the African community.
The Dash Market Cap
While Dash has a history of securing a spot in CoinMarketCap’s top 20 coins by market cap, it has since fallen behind newer altcoins that have taken the world by storm over the past couple of years. Currently, it’s ranked at #57 with a market cap of over $2.1 billion and a trading volume of $409 million. A similar security-focused token, Monero currency(XMR), is 28 places above Dash in the rankings. However, Dash remains active in the cryptocurrency space, securing partnerships and maintaining a community of supporters along the way.
Unique Features of Dash Coin
X11 Hash Algorithm
The X11 algorithm is a unique protocol invented by Dash founder Evan Duffield in response to the comparatively less secure SHA-256 (used by Bitcoin) and Scrypt (used by Dogecoin currency and Litecoin crypto). It was created to reject the market domination of ASIC rigs, and while they have since been programmed to be compatible with the X11, the algorithm is still widely used among new altcoins. In particular, the X11 uses 11 hashes to run the Proof-of-Work algorithm, making it compatible with traditional CPUs and GPUs and extremely secure due to the difficulty of duplicating or reverse-engineering the fabricated blocks. Networks that use this model can also be upgraded to run more hashes—the X12, X13, and more—any time. Dash’s mining process is thus designed to be both fast and well-balanced, ensuring that it remains a competitive coin in the crypto space.
Decentralized Governance & Masternodes
Dash’s Masternode network consists of incentivized nodes that are rewarded for their services. In an attempt to stop spam attacks on the blockchain, this design imposes expensive requirements (1,000 DASH) as collateral from all participants before being eligible to run a node and earn Masternode rewards. The steep financial barrier of entry ensures that attackers who can’t afford the coins won’t participate in making higher-level decisions concerning the blockchain, which are agreed-upon through decentralized governance. In particular, Masternodes can vote for important matters surrounding the Dash network—from coordinating the coin mixing process through PrivateSend and deciding on funds allocation.
PrivateSend and InstantSend
Dash has two incredibly innovative features that elevate the coin’s usage in day-to-day transactions: PrivateSend and InstantSend. InstantSend allows for near-instant transactions to be verified by Dash Masternodes within two seconds through an in-house platform called InstaPay. Typically, when someone makes a Dash transaction, miners will create a transaction with normal fees before it goes on a queue to wait for its turn among other transactions on the blockchain. However, with InstantSend, the transaction is singled out from the line and verified by special nodes, expediting the process. Dash also allows users to make private transactions through PrivateSend, seamless privacy, and security measure that ensures the anonymity of all parties. In addition, it segregates all the coins involved before they are mixed up—making it virtually impossible to track the movement of every coin down the pipeline.
Dash boasts a comparatively faster transaction speed than Bitcoin despite utilizing the same Proof-of-Work consensus model. Due to the innovative X11 algorithm paired with a more generous 2 MB block size, each new block on the Dash network takes only 2.5 minutes to produce—in contrast to Bitcoin's 10 minutes. Theoretically, these numbers mean that Dash transactions are four times faster than Bitcoin, but InstantSend speeds things up further and enables near-instant transactions.
Who are The Founders of Dash?
Dash's founding is primarily attributed to Evan Duffield, an American software developer who also introduced the world to the network's game-changing X11 algorithm.
Is Dash Wallet Available for Android & iPhone?
While the Dash website showcases a wide range of wallet partners for just about any purpose in any part of the globe, there’s only one official Dash wallet created by the same developers behind the blockchain. The Dash wallet is available for Android, iOS, and Desktop (including Windows, macOS, and Linux) and also comes in the form of a paper wallet generator that allows investors to secure their coins without relying on a third-party application. In addition, in limited areas—particularly in the Americas—the Dash Text service is also available through Telegram.
What Are The Differences Between BTC and Dash?
While Dash was developed based on Bitcoin, there are key differences that set the two networks apart:
- Total supply: Bitcoin currency has a total supply of 21 million while Dash has 18 million.
- Block creation time: A new block is created on the Bitcoin blockchain every 10 minutes, while the same process only takes Dash 2.5 minutes.
- Block reward reduction: The BTC reward is reduced by 50% approximately every four years, while the DASH reward is reduced by 7.14% every 380 or more days.
- Hashing algorithm: Bitcoin uses the SHA-256 while Dash uses the X-11.
- Purpose: While Bitcoin has become “digital gold” with an established identity as an investment asset, Dash remains strong in its resolve to become a useable currency by building partnerships and securing a foothold in places with unstable economies.
Can Dash be Hacked?
Like all other blockchains, Dash is vulnerable to attacks simply by existing in the online sphere. However, as a security-focused cryptocurrency, it has a few tricks up its sleeve to prevent massive hacks that could wipe out investors’ funds. First, the high barrier of entry of 1,000 DASH to become a Masternode turns away most hackers, as it’s a venture that’s too expensive given how each coin is currently valued at over $200. Second, Dash is constantly working toward improving its security measures. For instance, in 2017, it partnered up with Bugcrowd, a leader in online security testing, to find and solve critical errors in the network.
Will Dash be a Good Investment Opportunity?
What sets Dash apart is its constant exploration of new, untapped markets with the potential for crypto to grow. However, while it’s found use in Latin America and Africa, it has yet to woo North American and Asian investors. Nevertheless, with the stabilizing Dash price AUD a quarter after the crypto sell-off this year, some experts believe that the coin will continue growing in an upward rally. For now, Dash has yet to beat its all-time high of over $1,400 from 2017—but investors are hopeful.
Can I Buy Dash With PayPal?
It's possible to buy Dash crypto with PayPal from an exchange that supports it, such as eToro.
How Can I Buy Dash With My Credit Card?
Choose a reputable exchange, such as Coinbase and Binance, create an account, choose a coin to purchase, and check out with your credit card. The process is almost exactly the same as purchasing from an e-commerce site!
Dash vs. Other Coins: What Should I Know?
Among the altcoins on the market, very few position themselves with the same characteristics unique to Dash. One of its biggest competitors is Monero, a powerful, privacy-focused coin that allows users to transact with complete anonymity. Unlike Dash, where a higher level of privacy is optional through PrivateSend, all Monero transactions are completely anonymous and fungible—to the point where it’s impossible to decipher between two wallet addresses involved in a transaction.
What is The Future of Dash?
Dash has begun pivoting its efforts from Latin America to Africa, where merchants can accept payments through Dash converted into local currency. Given how the network is aggressively building partnerships in this corner of the globe, it's likely to continue in this wavelength until the coin can be used in day-to-day transactions regardless of location.
Will Dash Reach $1,000?
The Dash price AUD already touched the $1,000-mark four years ago, so experts are optimistic that it will eventually reach the same high. However, some predictions—including trading education’s—don’t see this as a possible value until 2028.