Dash owes its name to two words: digital (digital) and cash (money). When creating Dash in 2014, the Bitcoin Protocol was taken as a basis, but changed with an eye to the fact that calculations should take place quickly. The developers strive to create a universal system that will be convenient for legal entities, individuals, sellers and consumers, as well as become a platform for international transfers. Detailed information about the project was provided by our colleagues from Crypto Reporter.
Dash has entered the market leaders in capitalization-11th place according to the Coinmarketcap, due to the great interest from investors and cryptocurrency adherents. Ryan Taylor, Executive Director of Dash Core, argues that the value of Dash lies in its ability to process transactions quickly and smoothly.
The problem of crypto-currencies in scalability
Currently, the problem of scalability, i.e. increasing the number of transactions per unit time, the most popular cryptocurrency, bitcoin, is not solved. Hardwork SegWit2X was canceled and Lightning Network is only at the stage of testing. The more transactions appear on the network, the more Commission you have to pay to make the transaction go faster. In the Bitcoin network, during peak periods of load, the Commission for quick transactions can reach up to several tens of dollars. Such periods can last up to several weeks, and this causes great inconvenience if you need to make a small quick payment. In this regard, many online businesses that accept cryptocurrencies as payment, move to faster decisions, such as Litecoin or Dash.
The block in the Dash network is generated every 2.5 minutes, its size is 2MB, so the transaction speed is 8 times higher than in the Bitcoin network, where the block size of 1MB is generated every 10 minutes. At the same time, the speed of transactions in Dash will increase with the improvement of the Protocol, on which more than 60 developers are working.
In addition, to improve the network, developers are also working with the state University of Arizona, which provides the results of scientific research in the field of blockchain technology. And also work on the creation of specialized processors for mining, which are thousands of times more productive than usual.
"We are researching how fast it is possible to generate new blocks in our network with the help of specialized processors. If we can do it very quickly, we will bring the speed of transactions to the level of Visa," says Ryan Taylor. Visa payment system allows an average of 2,000 transactions per second and is able to withstand peak loads of up to 24,000, which is much faster than modern blockchain platforms.
Dash DAO — decentralized Autonomous control system
The dash ecosystem is self-managed, it was created as DAO. This structure allows you to Fund the development team and cover fundamental costs, such as marketing campaigns. DAO consists of three independent organizations: the Dash Core, Dash Dahs and Force Labs.
Dash Core, the largest organization, is working to improve the Protocol. Dash Force is actively involved in working with online communities and promoting the brand. Dash Labs, the youngest structure, is based in Hong Kong and is working on creating affordable specialized transaction processing equipment.
"Currently, the main economic benefits of transaction processing are obtained by the owners of patented technologies for the production of microchips for mining. As a result, mining is largely centralized, i.e. controlled by a small number of companies producing mining devices on an industrial scale. Dash Labs is committed to develop a system of mining with an open architecture. This will help make the cryptocurrency ecosystem open and transparent, and the production of microchips for mining will be available to everyone," says Dash Creator Evan Dafield.
Masternodes
To make decisions about the further development of the dash ecosystem, master codes are used.
To become the operator of masternode, you need to own 1000 coins Dash. When generating the block reward is divided between the miners and operators of mastered in the proportion of 45% and 45%. the remaining 10% are sent to the so-called "Treasury".
By vote of the owners of mastered decide how to spend funds from the Treasury. The results are stored directly in the blockchain and allow you to decide which projects are priority for the development of the ecosystem, and which should be abandoned. Decisions are made as usual — by a majority vote. If the project is successfully voted for, its initiator receives funds in the form of Dash for the implementation of the project. The required amount is automatically sent from the Treasury.
This system of self-government allows the project to develop much faster than other cryptocurrencies. Decisions are made quickly, as is the work on their implementation.
Funds from the Treasury are also used for hiring new developers, holding conferences, marketing campaigns, paying for listing on major exchanges and so on.
Operators mastered also support the safety and integrity of the ecosystem. They keep a full copy of the blockchain and constantly update it. In addition, they provide the functionality of InstantSend and PrivateSend, which are the distinctive features of Dash.
How PrivateSend works
When bitcoin transactions are open, the sender and recipient addresses are displayed in the blockchain. Anyone can verify the specific transaction and know which wallet and which wallet was transferred. Dash provides the ability to hide transactions using the PrivateSend option. This technology mixes a lot of different transactions, breaking trace a chain of senders and receivers Dash and making it impossible for the disclosure of their addresses.
The amount sent using PrivateSend before mixing is divided into discrete denominations of 0.01 dash, 0.1 dash, 1 dash, 10 dash, and so on. Then masternode mix these values with the values from other transactions PrivateSend from other users. There can be several such mixes, which increases the uncertainty. After that, the required amount reaches the recipient, and it is impossible to track the sender's address.
Masternodes do not have access to user funds, they work only as an intermediary, distributing a request to mix a certain amount of funds in the network and implement the process as soon as there is a necessary number of the same requests for PrivateSend.
How InstantSend works
If the user does not want to wait a few minutes before the transaction is completed, he can use InstantSend. In this case, a small number of mastered can provide confirmation of the transaction within one second. This happens in the following way:
Ten masternodes are randomly selected each time another block is generated in the network (this happens every 2.5 minutes). These master codes are" favorites " until the next block is generated.
Every time a user sends someone Dash with InstantSend, ten mastered get information about this request. Masternode announce this transaction is blocked, and transmit information about them on the network. From this point on, the transaction is considered to have occurred, and all other transactions that have the same source data but are sent to different addresses will be rejected. Such a locking mechanism can solve the problem of double expense.
The transaction will be displayed in the blockchain when the next block is generated.
The project KuvaCash in Zimbabwe
A great example of how owners mastered make decisions about the future development of ecosystems Dash, is a project KuvaCash.
This project is intended to assist the African country in dealing with hyperinflation and the devaluation of the national currency. Its goal is to provide the local population with the opportunity to use the system of cryptocurrency payments based on simple sending of messages by phone. The project is funded directly from the Treasury of the Dash.
Dash Evolution
In addition to all these features, the Dash team is implementing a plan to develop the dash Evolution platform. The purpose of Evolution is to make the system so simple that everyone can make payments even without special knowledge about cryptocurrencies. Dash Evolution will become a scalable and convenient platform for mass usage, available on different devices, and will simplify the mechanism of transactions.
"Dash Evolution will greatly simplify the use of digital currency. Our goal is that any person, regardless of age, nationality and education, can use digital currency every day. Think of Evolution as an online payment system similar to PayPal, but completely decentralized, in which the user always controls his money. Moreover, Evolution will be incredibly cheap, with no cross-border fees or restrictions. With this approach, Dash could be the first digital currency used by a truly broad audience," Ryan Taylor says.
Ryan Taylor
The Executive Director of Dash is another reason why you should pay attention to this cryptocurrency. He is an expert in the payment industry with over 15 years experience in the financial services and technology industry. He analyzed the global market for payment services, working as an analyst in the investment funds, asset managers with a total sum of 20 billion dollars. Ryan also has extensive experience in one of the leading positions in McKinsey, where he was engaged in strategic consulting and worked with the top management of major financial institutions.
Dash's current market capitalization is about $ 5 billion. Compared to bitcoin (about $165 billion), this is a small fraction. But, taking into account the advantages over bitcoin and other cryptocurrencies, we are sure that Dash will reduce the gap.