What is Dash?
Dash (formerly known as Darkcoin and XCoin) is an open decentralized payment system in the form of a cryptocurrency based on the blockchain, using the mechanism of instant and anonymous transactions. Formally, Dash is a fork of Bitcoin (created on the basis of bitcoin), but in practice, it differs significantly from all other altcoins. The main difference is complete anonymity in transactions.
History of Dash
The creator of the dash cryptocurrency Evan Duffield has been following the development of the Bitcoin network since 2010, and since the beginning of 2012, the developer began to think about anonymizing operations on the Bitcoin network. Evan developed 10 ways to anonymize operations, but after the release, the Bitcoin developers refused to use his code, because it diverged too much with the basic Bitcoin protocol. This was the reason for the creation of the initial Darkcoin project.
Over the weekend, the X11 algorithm was created, which was perfect for evenly distributing rewards, and this served as a good basis for creating a new coin.
In the first hour after launch, 500,000 DASH was earned and in just the first 48 hours, 1.900,000 DASH was mined. On March 25, 2015, Darkcoin was introduced as Dash.
How is the value of the Dash cryptocurrency formed?
The value of coins is formed on the basis of supply and demand on the exchange. In turn, supply and demand depend on the level of activity of the use of coins, the level of trust in them. All coins in the top 20 are particularly affected by the news background.
States are also involved in the formation of value, the resolution of which may permit or prohibit the use of cryptocurrency in any region. For example, Dash has been used extensively in Venezuela since its inception. This was due to the depreciation of the national currency – Boliviara.
In Venezuela, it was necessary to create special conditions for using Dash: algorithms were created to simplify payments and the circulation of funds between ordinary people, there are special agreements with mobile operators. Some smartphones started to install dash apps by default.
Cryptocurrency Dash: the principle of operation and an overview of technical points
What is Masternodes in Dash
Masternodes are special servers that provide maximum anonymity of the operations performed and work “on top” of the Proof-of-Work algorithm. It works this way: during a transaction, before the coins reach the final wallet, they are “run” through master nodes, so the transaction cannot be tracked.
For the servers to work, a large amount of Internet traffic and other resources is required, while maintaining the servers requires large financial costs from their owners, and in order to become a masternode, a Dash user must have at least a thousand coins for collateral, and a user must use master nodes must be active.
When they are active, the servers process operations on the network, in return they are paid cryptocurrency: 45% of the reward for the found block is received by users with master nodes. This allows you to recoup all the costs and make money on it.
What is PrivateSend?
PrivateSend is an algorithm that makes transaction tracking impossible by breaking and mixing transaction codes.
This protocol is designed to hide all information about contractors performing transactions in the dash network. In the blockchain, all coins contain their own codes, which contain information on transactions between wallets, transaction denominations, etc.
The PrivateSend system mixes the codes of your coins into the codes of coins of other people’s wallets, while all the coins remain with you and you do not see this work. This ensures the best possible anonymity of network members.
Amounts are divided into 10, 1, 0.1, 0.01 Dash, respectively. This closes the ability to track the counterparty by the volume of the operation.
A request is sent via PrivateSend to Masternodes that an anonymous user wants to mix the code of his coins with strangers, while no data about the wallet is reported.
When the masternode receives a request from two wallets, with a comparable breakdown and calculation of coins, a breakdown of codes begins.
For maximum anonymity, several shuffles are performed with each set of coins. The developers call each shuffle a “round.” With each round, the level of the impossibility of tracking increases exponentially, and the maximum number of mixing rounds is 16.
What is InstantSend
InstantSend is a service for exchanging fast transactions. When this function is enabled, all inputs are blocked for a particular transaction verified by master nodes.
Dash algorithm with which users can almost instantly send tokens between their wallets and pay for services with them because when making operation and using InstantSend technology, information about incoming transactions is intentionally blocked by this transaction.
The need to confirm the transaction is blocked by the system and the funds are credited to the recipient’s account (blocking time 4 seconds).
How to enable InstantSend
To make a payment using InstantSend, just check the box in the corresponding field in your application. The following screenshots show where to find this option in Dash Core, iOS and Android wallets.