Table of Contents What Is Dash (DASH)? Dash (DASH) is a blockchain-based peer-to-peer cryptocurrency that was forked out of Bitcoin to offer faster transactions to users than Bitcoin could deliver. Dash was created as a fork of Bitcoin, which means it duplicated Bitcoin’s existent code and made it better by addressing the issues users faced with Bitcoin. The InstantSend (previously called InstantX) feature available to Dash users solves the double-spending issue by barring the amount of money that is sent without having to wait for a block confirmation to consider the transaction confirmed. Formerly known as Xcoin and Darkcoin, Dash was initially a Bitcoin fork that sought to address some of Bitcoin's weaknesses: namely the 10-minute block confirmation time.
What Is Dash (DASH)?
Dash (DASH) is a blockchain-based peer-to-peer cryptocurrency that was forked out of Bitcoin to offer faster transactions to users than Bitcoin could deliver. Dash is a blend word for digital cash.
Dash was launched in January 2014 as Xcoin, and quickly changed its name to Darkcoin. In March 2015, Darkcoin was rebranded as Dash. Dash was created as a fork of Bitcoin, which means it duplicated Bitcoin’s existent code and made it better by addressing the issues users faced with Bitcoin.
So apparent flaws and weaknesses in Bitcoin are absent in Dash, making both digital coins substantially different in terms of efficiency. As an alternative to Bitcoin, Dash provides a faster and more anonymous service to its users.
One of the setbacks of using Bitcoin is the slow rate at which funds are transferred, confirmed, and visible in a recipient’s account. It could take minutes or even hours for a transaction to be confirmed and finalized using the Bitcoin system. With Dash, however, it takes seconds to confirm a transaction.
While a number of other cryptocurrencies also offer instantaneous confirmed transactions like Dash, not all of them lock down these transactions once they are made. Consider a buyer who purchases goods from a seller and sends their payment. If the system confirms the payment but does not lock the amount down, the buyer could make another purchase using the same funds that should have been restricted in the first place.
In the crypto world, this phenomenon is called the double-spending issue. The InstantSend (previously called InstantX) feature available to Dash users solves the double-spending issue by barring the amount of money that is sent without having to wait for a block confirmation to consider the transaction confirmed.
Privacy and Masternodes
Dash has a coinjoin mixing technique called PrivateSend (previously called DarkSend) which anonymizes the transactions carried out by its users. Coinjoin mixes the transactions of multiple parties as one transaction, instead of separate transactions.
For example, three fund transfers from A to D, B to E, and C to F, will be read on the blockchain as A, B, C to D, E, F. This way, there’s no sure way of identifying who received funds from who and in what amount. With PrivateSend, at least three different users are required to conduct transactions that will be merged to obscure the fund's trail. The senders and receivers have to submit the same Dash denominations, and the limit per session is 1,000 DASH.
Dash runs on a network known as Masternode. Masternode runs the Dash digital wallet, facilitates transaction locking under InstantSend, coordinates coin mixing through PrivateSend, and enables a decentralized governance platform.
In 2017, Dash entered into a partnership with the web-based platform, Wall of Coins. Wall of Coins provides a peer-to-peer platform that allows users to buy and sell Dash with cash. It also opens up an avenue where users can buy and sell the cryptocurrency at traditional financial service institutions such as Wells Fargo, MoneyGram, Chase, and Western Union. Dash support has also been added to several popular wallet services such as blockchain.info.
As of May 2021, DASH is number 45 on the list of top cryptocurrencies by market capitalization. DASH is trading at $364.73 with a market cap of $3.6 billion.
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
Bitcoin cash is a cryptocurrency created in August 2017, arising from a fork of Bitcoin. read more
Bitcoin is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments. read more
What Is a Blockchain Wallet?
A blockchain wallet is a digital wallet that enables users to manage the cryptocurrencies bitcoin and ether. read more
CoinJoin is an anonymization strategy that protects the privacy of Bitcoin users when they conduct transactions with each other. read more
Cryptocurrency : What Is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses cryptography and is difficult to counterfeit because of this security feature. read more
In a decentralized market, technology enables investors to deal directly with each other instead of operating from within a centralized exchange. read more
What Is a Digital Wallet?
A digital wallet is a a piece of software that stores payment information and transaction history. read more
Double-spending is a potential flaw in cryptocurrency systems referring to the risk that a digital currency can be spent twice. read more
Ether is the cryptocurrency of the Ethereum network. All of the programs linked with the Ethereum network require computing power; Ether is the token that is used to pay for this power. read more