What is Dash?
Dash is an open source cryptocurrency and DAO (decentralized autonomous organization). It is intended to make instant, private payments over the internet. Dash boasts lower fees, quicker transaction time and more privacy than Bitcoin. Dash has a very unique governance system that allows it provide Money as a Service.
What is the Problem?
Dash attempts to solve many of Bitcoin’s issues. Bitcoin transactions can be slow, expensive and lacking in privacy. In addition, Bitcoin lacks a true governance system. Also, Bitcoin has an issue with the time required to verify the transactions in point-of-sale situations.
How does Dash solve governance?
Dash functions as a DAO (decentralized autonomous organization). The purpose of the DAO is to 1) make decisions 2) to fund the execution of those decisions.
How is it funded?
Dash is unique because they divide up the block reward into three different parts (45% miners, 45% masternodes, and 10% treasury). The treasury funds the hiring of code developers, code auditors, marketers and translators.
Who makes decisions?
Dash has decision makers called masternodes. In order to have a masternode, you must prove ownership of 1000 Dash. Masternodes have financial incentive to make good decisions on the network. Also, Masternodes cast votes that are recorded directly on the Dash blockchain.
How does Dash solve Bitcoin’s lack of privacy and speed?
Again, the answer is Masternodes because they must provide three basic tasks
1) keep a copy of the ledger
2) provide the network with instant send functionality
3) private send functionality.
Instant send and private send are two functionalities that set Dash apart. It is important to note that each of these features are optional on the Dash network.
Instant send transactions work by randomly selecting a masternode in the network. That masternode is given instant send authority and will broadcast the transaction to the other masternodes in the network.
Private send transactions work by taking many different transactions of similar sizes and mixing them together, which obscures which addresses the funds are from.
Token, Algorithm and Ecosystem
Dash has a total maximum supply of 18.9 million coins. It currently has a circulating supply of 8 million. Dash is a proof of work coin that uses the X11 algorithm. Dash has a strong network of global miners with over 5,000 masternodes.
Recently Dash masternodes voted increase the block size from 1mb to 2mb and to lower fees. Recently they have made great inroads in Venezuela. “We are seeing tens of thousands of wallet downloads from the country each month” according to Ryan Taylor, the CEO of Dash Core Group.
In addition, Dash is expected to release Evolution in Q4 of 2018. This update is expected to make using cryptocurrency easy and accessible for all users. Evolution will make it so that anyone can transact in cryptocurrency without the need for complicated addresses or technical knowledge. Making purchases using dash will be a one click process. To learn more about Evolution click here.
Dash Core Group inc leads development and maintenance of the project. They are funded by the blockcahin on a monthly basis. The CEO is Ryan Taylor. You can view the rest of the team here.
The POW Network has come under criticsm—a bug in the code allowed for 2 million coins to be quick mined. Many people still hold this against dash. Also, Bitcoin upgrades could be a competitor to dash. The Lightning network is expected to increase transactions speed and decrease fees. However, Bitcoin’s lack of governance does give Dash an edge.
The biggest concernt that BlockWolf has is that the masternode system is a controlled by a group of wealthy individuals making decisions about the network. This means that the average holder does not have any rights on the network.
BlockWolf believes that Dash has a unique structure that will make it successful. The innovative block reward structure funds different and important activities besides mining. BlockWolf believes that Dash is going to be very successful because of the work they are doing in Venezuela. We are also very excited to see how the Evolution update works. If Evolution is able to make using cryptocurrency user friendly, we believe this will make a massive impact.