How much do you know about DASH?

Dash is a digital currency that offers fast and cheap payments anywhere in the world. The primary purpose of the Dash is a user-friendly experience and very high security. But in general, what are the uses of Dash?

What is DASH?

On January 18, 2014, the digital currency dash called XCoin was introduced by Evan Duffield. On March 25, 2015, its name was changed to dash based more on digital cash.

Most digital currencies are seldom used for payment, but Dash is built for just that purpose. Here’s how to use Dash and what its uses are.

You can also read: All you should know about Algorand (ALGO)

Main Features of Dash

One of the main features of the Dash is the masternodes system. This system is a dedicated server with a complete copy of the Dash blockchain. Users with at least 1000 dash can be converted to masternodes to get special features of this crypto.

Since most vendors do not support digital currencies, Dash has been able to find a shortcut to doing so. On July 27, 2021, DashDirect was launched, through which you can shop directly with Dash in 155,000 stores and 125 websites. This application also includes various discounts.

How Dash works?

Dash is based on Bitcoin but uses a second-generation network structure to optimize performance. The first generation relied on PoW algorithms to allow miner devices to solve complex mathematical algorithms and receive rewards instead.

The second-generation platforms are dash masternodes. Anyone with more than 1000 dash can get a masternode. Each Masternode is responsible for InstantSend and CoinJoin in the Dash and is allowed to vote in governance and funding.

Each time a block of transactions is added to the dash blockchain, it generates a reward divided into three separate sections.

• 45% to Miner
• 45% to masternode
• Ten percent governance budget

More than 10 million dash tokens are currently in circulation and have a maximum distribution of 18.9 million HES tokens. Dash has many uses as a retail store through the DashDirect app, and May One also buys and sells it at the most reputable digital currency exchanges. These exchanges include Coinbase, Binance, and Kraken.

What are the risks of Dash?

Dash, like other digital currencies, fluctuates a lot, and its price moves more than 10% every day. So it is complicated to invest in this digital currency. All the problems that exist for digital currencies are also for the Dash. However, investors keep it in their wallets because they think the price of this digital currency will increase one day. Early in the release of this token, a strange thing happened that in the first 24 hours of its release, more than 2 million tokens were extracted from the Dash. Although Evan Duffield said it was a technical problem, many in the community believe it was due to the extensive distribution of Dash among a small number of people.

If you have decided to buy a dash, we suggest you first check its volatility and 50 to 100-day MAs so that you do not run into problems in your investment.

Dash vs Bitcoin

The main difference between Dash and bitcoin is based on their algorithms. Dash uses the X11 algorithm for extraction, which is a modified pattern of PoS. It also uses CoinJoin methods so that transactions are not easily traceable. Bitcoin has a PoW algorithm.

Both cryptocurrencies have different systems for processing transactions. Bitcoin transactions must be authenticated through all network nodes. This process, known as authentication to ensure consensus, requires substantial investment infrastructure for full nodes. In this system, the bitcoin miners that run the full node are responsible for increasing the time and cost for more accurate execution of processes. With the scale of the Bitcoin network, this is very difficult and impossible.

This process is time-consuming and disrupts the network. The longer the processes take, the lower the transaction confirmation rate, and the bitcoin pool memory fills up. As a result, transaction costs are very high, and Bitcoin has become one of the worst digital currencies for daily transactions.

Conclusion

Dash uses a separate system for managing transactions. This platform is managed through a subset of users, which, as we said, are called Masternodes. Each of these Masternodes can approve transactions and have a large number of shares in the network.

Using masternode in Dash solves the scalability problem. The number of nodes that must approve a transaction decreases. Each Masternode is responsible for verifying transactions from the Minders network to perform transactions in the blockchain.