Formerly known as Darkcoin and Xcoin, Dash is an open source peer-to-peer cryptocurrencies that offer instant transactions (InstantSend), private transaction (PrivateSend) and token fungibility. The cryptocurrency is the first among its contemporaries to operate decentralized governance and budgeting system.
It uses a chained hashtag algorithm called X11 for the proof of work.
The developers of Dash wanted to introduce a new blockchain that would not have these weaknesses and be completely ‘bullet-proof.’ Here are some key additions that Dash incorporated:
There are several exchanges where an interested investor will find Dash. Some of them are listed below:
Trade Dash Coin through CFD’s
If a trader does not wish to go through exchanges to buy Dash coin, there are different options they can use to trade Dash Coins. For instance, Contracts for difference (CFD), gives access to all of the profit potentials of investing in Dash coins, for pennies on the dollar.
eToro is a broker that provides Dash coin CFD’s with the option to leverage your position. The one thing that a trader should take into account is that there is no physical delivery of the dash coin to the wallet of the user which means that he does not own the dash per se and hence would not be able to send it to others as a form of payment. However, trading with eToro via CFD’s allow you to take advantage of Dash price fluctuations.
How to Store and Spend Dash?
To store DASH is easy. But knowing which wallet to opt for is also important. There are some Dash wallets which are better than others. Some of them are KeepKey, Exodus, Trezor, DASHcore, Uberpay, Electrum, etc. which help to keep Dash secure from hacking. The user has to make sure that he/she creates the wallet and stores the details in a safe place and also at a place from where he can retrieve it.
DASH, as a cryptocurrency, is much more secure as compared to Bitcoin. There are numerous businesses scattered across the globe that accept DASH coin as payment. For instance, Dash combines with “BitCart” – a service that exclusively supports Dash to allow customers to buy Amazon.com, Inc gift cards at a 15% discount. This avenue makes Dash one of the most usable and practical cryptocurrencies in existence.
Some businesses such as Yipptee, a designer boutique, Cycles Etc., a cycling company, Praxeum, a Taekwondo club, etc. have been open about accepting dash as a mode of payment.
DASH Credit/Debit Card
There is also a dash card which works as a great alternative to credit or debit cards. The dash card is accepted at more than 40 million physical and online retailers around the world. And although currency exchanges happen behind the scenes, the dash app even reports the local currency wherever purchases are made. Some Dash debit cards are ShakePay, SpectroCoin, Uquid, Bitwala, and Wirex.
Not just that, in September 2017, the Dash team announced an integration with a Bitcoin debit card provider that will allow Dash to be used at any retailer that accepts Visa, both in-store and online. This effectively allows Dash to be spent at over 40 million merchants worldwide. Also, owners of Dash will be able to withdraw their funds, in cash, at any ATM in 210 countries around the world.
Pros and Cons of Using Dash
There are several pros to using dash and fewer cons which makes it ideal for utility.
- The network funds itself from the new coin emission. That, in turn, pays for software development, business development, integrations, marketing and whatever other real-world activities benefit the network.
- Dash has decentralized governance by blockchain, where Masternodes vote on how to spend the budget. Anyone can submit proposals to increase the value of a network, and it can be funded if the idea is good.
- The core team is focusing on making Dash extremely easy to use and they have a roadmap that is starting to be delivered on.
- Since Masternodes are incentivized, Dash network can scale on the chain without worrying about a declining full-node count.
- The difficulty adjustment algorithm (Dark Gravity Wave) beats Bitcoin Cash‘s.
Apart from that, as mentioned above features such as PrivateSend and InstaSend sets it apart from other cryptocurrencies.
- Still uses the Proof of Work (PoW) algorithm, which is really a waste of computing energy and electricity. It will bring along problems as the network grows(increased blocksize and transactions per second bog down the system)
- There is a scalability problem. Like Bitcoin, Dash’s block size is also 1MB currently. This means only a small number of transactions can be processed per block. It states that the block size can be increased in the future followed by a higher transaction fee. However, this does not solve issues such as insufficient storage capacity if the network keeps growing with the same block growth rate and an increased block size, revealing that this is not a long-term solution.
- A large number of tokens are locked up (It is said that the amount of locked tokens is more than the transferrable total token amount). The reason behind is: In order to be a “Masternode”(a node that its owner has a vote for the project changes and can be rewarded about half of the mining reward by performing services such as InstantSend and PrivateSend). A trader also needs to have 1000 DASH deposited. This shows that a large proportion of the current market cap is not the money that is circulating and being used in the network.
- The PrivateSend service has some skeptical reviews and concerns. The coin mixing strategy of PrivateSend depends a lot on the number of active users, and many of the users complain about the slow mixing process.
There is a lot of debate as to whether DASH is worth the investment or not. It’s pitted against Bitcoin on a regular basis, for reasons that are good as well as bad. It seems a little unfair considering that bitcoin was already in the market since 2008 whereas dash was created in 2014. It has done considerably well for itself in the short time that it has been in the market space.
Dash’s privacy features are one of the best, which is important for traders who do not wish their transactions to be made public. Another salient point is, Dash is accepted by around 40 million merchants across the world, which makes it globally accepted. This also makes dash one of the potential candidates that could rise to the top run of the crypto world with a proper understanding of how it works and what it can do for the merchants and traders around the world. After all, it only requires one spark to light a fire and it is this spark that the dash makers would be expecting from somewhere.