What is Dash?
Dash is one of the most popular hard forks of Bitcoin. The purpose of its development was to improve upon the original blockchain and provide faster and safer transactions. Suffice to say, it succeeded in doing so and is now one of the top 12 cryptocurrencies. Users can make use of untraceable, instant transfers and a practically unhackable network. The smallest unit in Dash is 1 millionth of the coin and total supply is limited to 19 million – expected to be reached in the year 2254.
Advantages
Dash has made a name for itself in the crypto sphere as one of the most rewarding coins to support. Some of its main advantages over other currencies are:
- Masternodes – they’re a crucial factor in the network as they enable two key functions. An added benefit to hosting such a node is the rewards you receive;
- InstantSend – one of the functions enabled by masternodes. As the name implies, it’s practically instant transactions, rivaling the speed of credit cards;
- PrivateSend – a secure transfer of funds that obscures the actual addresses of senders and receivers, thus increasing privacy;
Disadvantages
A crucial drawback which many consider when talking about the cryptocurrency Dash is its instamine at launch.
- About 2 million coins were issued over 2 days due to a bug in the mining algorithm. That amount is currently still 15% of the total supply and there are speculations that early adopters have abused this fact for their own benefit.
History and Evolution
The coin’s origin can be traced to Evan Duffield back in January 2014. It began its life under the name Xcoin, later rebranded to Darkcoin and finally became what we now know as Dash – short for Digital Cash.
Currently, the team consists of more than 50 developers, all funded by the network itself. Operating as a Decentralized Autonomous Organization (DAO), 10% of each block reward is transferred into a fund used for further improving the project.
Dash Blockchain
Having in mind that Dash is an improvement of Bitcoin’s blockchain, it still uses Proof of Work as a consensus protocol for confirming mined blocks, based on the X11 hashing algorithm. Block time is roughly 2.6 minutes, the size – 2MB and the reward 1.67 Dash coins. The amount of currency issued is reduced by 7.14% roughly every year or 210240 blocks.
For controlling the difficulty of mining, there’s a Dark Gravity Wave protocol implemented, which adjusts for every block, guaranteeing no drastic fluctuations, no matter the hashing power in the network.
Dash Nodes
Each cryptocurrency has different rules and needs when talking about nodes. In the case of Dash, there are 3 types, all performing specific roles and with different incentives.
- Light node – downloads only the headers of each block in the chain, thus minimizing space requirements – that’s how most wallets work
- Full node – they serve as validation points for transactions and blocks. Full nodes connect to other peers and synchronize between each other, thus reaching consensus
- Masternodes – to establish one, you would need to invest 1000 DASH, have a dedicated public IP address and be able to run 24/7. Up to 1-hour downtime per day is accepted. All masternodes share 45% of block rewards amongst each other. On average, one receives 2 Dash coins in return, per week
Forks of Dash
As previously mentioned, Dash originates from Bitcoin. However, it has also served as a basis for its own hard fork:
- PivX – a staking coin that has been covered in detail separately for your convenience
How to Get Dash
Dash coins are mineable, as they’re based on the X11 algorithm. You can also buy it from exchanges either by trading other cryptos or using fiat money.
Where to Buy DASH
Taking into consideration that you are maybe just getting started with crypto, I’ve provided you with the top 3 exchanges that support buying Dash cryptocurrency with fiat money. Your main reason may be trying to establish a masternode and you’ll find enough supply of coins available.
| Exchange | Cryptocurrencies | Fiat Money | |
|---|---|---|---|
|
Exmo
|
Dash, EOS, TRON, Monero + 12 more | USD, EUR, RUB | Trade now |
|
Bitfinex
|
Dash, Bitcoin, Ethereum + 50 more | USD, EUR, JPY | Trade now |
|
Kraken
|
Dash, Litecoin, Bitcoin Cash + 15 more | USD, EUR | Trade now |
Mining Dash
Another way to earn Dash, instead of buying directly, is to opt for mining. This can be done by investing in specialized hardware called ASIC. These are dedicated mining machines that are optimized, in most cases, for a single algorithm. For our needs, we’ll require one for X11 coins. I can recommend Bitmain’s Antminer D3, but I’ve listed some other alternatives as well, you can find them in the table below. To maximize your earnings, I suggest joining a mining pool. To learn more, visit а dedicated piece on the matter.
| Мining Hardware | Hash Rate | Power | Price | |
|---|---|---|---|---|
| Spondoolies SPx36 ASIC | 540 GH/s | 4400W | $15,500 | buy now |
| Innosilicon A5+ DashMaster ASIC | 65 GH/s | 1500W | $1490 | buy now |
| Innosilicon A5 DashMaster ASIC | 32 GH/s | 750W | $800 | buy now |
Wallets for Dash
No matter which method you’ve chosen to use to get your hands on some Dash cryptocurrency, you’ll need somewhere to store your coins. To do that and exchange them, you need a wallet.
The official one for Dash is Dash Core which can be downloaded here. It’s a desktop version, which will store the entire blockchain history of transactions on your PC. Compatibility includes Windows 32/64-bit versions, Linux 32/64-bit versions, OSX.
- To learn how to install your wallet watch the video – https://youtu.be/rPr_IIwToak
- Performing a backup of your wallet is crucial for security. Visit the link to learn more – https://youtu.be/qAwciSIKu-U
Alternative Wallets
The idea behind alternative wallets is to offer more functionality and customization options. Some include lighter versions for space-saving purposes, others add security layers, local private keys storage etc. Below you’ll find my top recommendations.
Hardware Wallets
Dash Masternodes
One of Dash’s key features is the possibility to earn money from creating a masternode. To begin the process, you’ll need to have 1000 DASH to lock into the server and you’ll receive a 7% annual return on average from block rewards. Should you decide to stop hosting, you’re free to withdraw your funds and cash out.
Future of the DASH Cryptocurrency
According to the official roadmap, the aim is to achieve mass adoption of Dash. The steps towards this goal include many new implementations, including improvements to masternodes, the release of private documentation for better transparency and development of open-source ASIC code.
News and Useful Links
To stay up to date with the latest developments and news around the Dash cryptocurrency, I’ve compiled a list of trustworthy sources for your convenience.