1. What is DASH (Dash)?
Dash is an open-source peer-to-peer payment system with a unit of account of the same name.
2. Who, when and how created DASH?
- Launch date: January 18, 2014
- Creator: Evan Duffield, American programmer
- Name at launch: Xcoin
- Renaming dates: Darkcoin (2014) and DASH (2015)
Dash was born as a fork of bitcoin. During the fork process, there was a glitch that caused 1.8 million DASH tokens (approximately 10% of the total issue) to be mined in just two days.
According to Duffield, the cause was a bug in the code that incorrectly converted the complexity, the wrong value of which was then used to calculate the reward, resulting in insta-mining.
One of the main beneficiaries of the bug was the developer himself. Because of the criticism, he suggested restarting the cryptocurrency, but users rejected the idea, and the project continued to develop in its original form.
3. How is DASH different from bitcoin?
DASH focuses on increased user privacy and higher transaction speeds. The distinguishing features are:
- PrivateSend mixer mechanism to ensure interchangeability of coins
- all transactions are instant thanks to the InstantSend technology without any additional fees
Miners in the DASH network share the reward per block with masternodes that provide privacy and high transaction speed. Both groups receive 45% of the reward each.
A user needs to freeze 1,000 DASH to run a masterkind. The masternode operator can withdraw or spend its pledge at any time, but then the node will lose its masternode status and stop receiving remuneration.10% of the reward per block goes to a special fund to finance the development and improvement of the cryptocurrency.
Decisions about which aspects of development to fund are made through votes at dash.org.
4. What are the strengths of DASH?
- low fees ($0.005 to $0.01)
- transaction speed
5. What are the disadvantages of DASH?
Among the disadvantages of DASH, critics refer to the presence of the threat of network centralization by establishing control over most of the masterminds.
The coin, along with other anonymous cryptocurrencies, is also subject to delisting on exchanges because of the latter’s desire for legal compliance.
6. What is DASH’s potential?
In December 2019, developers plan to roll out Dash Evolution, a technology stack for developing decentralized DASH-based applications, on the Evonet test network.
The model for encouraging deterministic masterminds ensures that they will be paid more as the network evolves and the demand for ASIC devices used in DASH mining grows.
The year 2020 will see the launch of smartphones preloaded with DASH wallets, as well as the conversion of masterboards to individual chips, allowing them to scale to the size of data centers. The growth of system requirements for masternodes will theoretically facilitate the formation of a large network with high functionality.