Dash cryptocurrency came into the crypto industry as a fork from Bitcoin Protocol in the year 2014. It too is an open-source crypto coin also including a non-centralized payment system. It is also called a privacy-centric coin by its originator Evan Duffield and Daniel Diaz.
They formed it on the touchstone of Bitcoin cryptocurrency that landed in the crypto industry as the first coin by so-called founder Satoshi Nakamoto. It was initially known with the name Xcoin thereafter Darkcoin but after many name amendments, it is currently known as dash coin.
Its goal is to serve as a medium for transactions occurring on a daily basis by making its usage in the form of either credit cards or physical cash via monetary agencies like PayPal. The users that use it are called “Masternodes”. These Masternodes possess in their system 1000 dash as stake amount. As per the previous reports, it has become the most valuable cryptocurrency in the world in terms of its market cap.
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In 2019, it had been founded as one of the most famous cryptocurrencies in Venezuela. It is designed in such a way so that there is instant governance and transaction processing is much quicker so as to wipe out all the shortcomings of Bitcoin.
SOME IMPORTANT POSTULATES TO REMEMBER ABOUT DASH CRYPTOCURRENCY
- It is an open-source crypto coin.
- It aims to be a privacy-centric coin.
- It aims to be an easy medium for all-day transactions.
- It is also a payment network.
- It also works as a decentralized mechanism for processing payments.
HOW THIS CRYPTOCURRENCY IS DIFFERENT FROM BITCOIN
- The main point of difference is the mining algorithm used for the creation of new coins. Both these currencies use different algorithms for mining. The algorithm used by Dash is X11 that is based on a proof of stake mechanism. Whereas, Bitcoin uses a proof of work algorithm for mining crypto coins to be circulated in the market.
- In proof of stake, we have validators that verify and process transactions and coins are pre-mined, while in the proof of work, miners miner the coins and they verify and process transactions.
- Dash is a fork of its master that is Bitcoin and dash also aims to reduce the scalability issues that lie with the Bitcoin cryptocurrency.
- Dash also differentiates itself from Bitcoin in terms of its governance mechanism.
- Dash has made itself a self-funding mechanism where the rewards accrued are distributed amongst the stakeholders known as treasury, master nodes, and miners. The share is distributed as per the terms decided.
- It has huge time consumption that leads to delay in the transaction processing ultimately resulting in a high fee for the transaction.
ITS GOVERNANCE
DAO is the handling agency responsible for its governance. DAO is called the decentralized autonomous organization. With this phenomenon, decisions are taken via the master nodes on a blockchain. Master nodes are responsible for the performance of the essential works like validating the transaction, replying to messages, maintaining the blockchain’s copy, and any other function associated with the Dash for its developmental purpose.
Any master nodes that want to get into the process must 1000 Dash. These nodes are required to have a valid IP address along with other requirements such as RAM, CPU, etc. Master nodes have all the power to look after all the regulatory and governance-related work.
CONCLUSION
The article relates to Dash cryptocurrency which is an altcoin. The article has stated all the essential information about this coin. I hope I have made a successful attempt in disseminating the important information related to this coin for your crypto journey and if you are looking forward to investing in this coin.