Top Cryptocurrencies

What is Dash? Full guide to the instant and privacy coin

Being one of the most popular privacy-focused coins, Dash has appreciated both in price and in strength. Unfortunately, most people know very few facts about Dash coin.

In this Dash guide, we will explore everything you need to know about the privacy coin. After going through this introduction to DASH, you will be able to answer questions such as;

  • What is Dash?
  • The birth name?
  • A brief history of the privacy coin.
  • How to start mining Dash
  • Where to buy Dash
  • How to store Dash

Let’s dive right in…

What is Dash?

Dash is an altcoin that was forked from the Bitcoin protocol, Just like Bitcoin, it is a decentralized and open source cryptocurrency run by masternodes.

The privacy coin was founded by Evan Duffield with the aim to address 3 key issues he felt were the shortcomings of Bitcoin; privacy, transaction speed and governance.

It has since then grown to become of the top cryptocurrencies both in terms of market capitalization, usage and trade volume. It has also grown to achieve one of its biggest goals of being a go-to cryptocurrency for smaller transactions.

Recently, the cryptocurrency was accepted by KFC Canada for payments at its restaurants and it has been one of the most popular cryptocurrencies in Venezuela since the wake of the financial crisis in the country.

Background of Dash Coin

Most people understand that Dash was formerly known as DarkCoin. Although this is true, DarkCoin was originally known as XCoin on January 18, 2014. In approximately one month, February 28, 2014,  XCoin was renamed to DarkCoin.

The name ‘DarkCoin’ was born to endear the coin to those interested in anonymous transactions on the blockchain.

However, this name did not sound as professional as they hoped. One year later, it was renamed Digital cash (Dash). The name has since then not been changed, at least not at the time of writing.

According to reliable pointers, the first name change (from Xcoin to DarkCoin) was to clear the coin against a flaw that rocked the coin almost instantly after launch. With the total number of coins up for grabs capped at 18 million, a fifth of them were already mined in two days. i.e 3,800,000 coins.

This flaw was attributed to instamining, which its developer, Evan Duffield acknowledged it was present but was not hidden as it was claimed.

“An error can be seen in the first block calculation function ‘GetBlockValue’, which incorrectly converted the difficulty, then tried using a corrupt value to calculate the subsidy, causing the instamine,”

Dash price history

The privacy coin was introduced in the market at a price of 0.2 U.S dollars and between early 2014 and early 2017, the coin had only appreciated by 9.8 U.S dollars to trade at 10 U.S dollars.

However, the privacy coin closed 2017 with a price tag of slightly above 1000 U.S dollars ($1,051 on Dec 31). The highest it ever got in 2017 was at $1,452 on Dec 21.

Image result for dash price history

In 2018, the privacy coin held onto these gains for only 14 days (from Jan 1 to Jan 14) after which the bears took over gradually dipping the price of the coin to the current $159.99 mark according to coinmarketcap.

In fact, you bought $1000 worth of Bitcoin in 2014, by end of December 2017, the coins were worth $2.4 million.

The current price indicates that the coin has lost 1.92 percent against the dollar and 1.60 percent against bitcoin.

Although the price is still very low compared to its all-time high, Dash has fought the fight and with experts predicting that the bearish momentum is almost over, the coin is headed in the right direction.

Advantages of DASH

  • Low fees: Compared to Bitcoin or traditional banks, the cryptocurrency charges very low fees for sending coins. It can cost less than $0.4 to send the coins
  • Fast executions: the speed of executing transactions is faster in Dash compared to Bitcoin and much faster compared to traditional banks. It takes less than 4 seconds to send coins via the network. Trying this with banks could take a couple of days.
  • High level of anonymity: funds can be transferred without third parties knowing who sent coins and who received them. There is also no limit to how many coins
Image result for advantage of dash coin

Dash Mining

One of the things that make Dash and Bitcoin worlds apart is the mining aspect brought about by the different mining algorithms.

Dash uses the infamous X11 mining algorithm. This algorithm ensures that the coin has an extra layer of security, decentralization, and energy efficiency.

Although the privacy coin uses a Proof-of-Work algorithm, the X11 aspect enables the coin to be mined using a Personal Computer, unlike other coins which require expensive specialized hardware.

However, mining using your PC is less profitable compared to using GPUs and ASICs.

Image result for dash mining

Dash mining profitability and distribution

Dash masternodes can be compared to specialized miners only that for you be a Masternode you have to purchase 1000 Dash coins. To become a node, you don’t have any special obligations but rather investing in a DASH mining hardware.

Profits generated are shared between the Masternodes (45percent) and the miners (45 percent). 10 percent is for the system.

However, Masternodes occupy a higher level on the 2-tier network and uses a Proof-of-Service algorithm to provide an extra speed in transactions. Additionally, the Masternodes are entrusted with providing untraceable transaction trails.

Masternodes are known for two specialized transactions; Instantsend and PrivateSend while nodes create new DASH coins on the network.

Instantsend allows a user to transact and details are written on a block later. This increases Dash transaction speed and provides the necessary verification for the transaction.

The PrivateSend function calls onto the masternodes to divide and mix the transaction so that the trail is broken.

Note: The 1000 Dash from Masternodes is not locked or used. It belongs to the masternode. But once it’s spent, the masternode automatically switches itself off.

Where to Buy Dash Coin

If you can afford the funds required to invest in heavy hardware for mining the cryptocurrency, you can invest directly by buying the coin from an exchange or by exchanging another cryptocurrency for the coin. Here are some of the top cryptocurrency exchanges from where you can buy the privacy coin.

Changelly

Changelly is a cryptocurrency exchange that offers Dash buyers the possibility of exchanging another cryptocurrency for the privacy coin. Before an exchange is being made, you will need to have a DASH destination address where the DASH coins will be stored.

Changelly gets the coins you wish to convert to DASH from your wallet, converts the coins to Dash and sends the DASH coins to your DASH wallet.

The payment options supported by Changelly include; Bitcoin, Altcoins, USD, EUR, GBP and VISA/Master Card.

Binance

Being one of the most popular cryptocurrency exchanges, the Binanceis said to experience one of the highest trade volumes and is also one of the most secure cryptocurrencies.

With its support for over 50 cryptocurrencies, the privacy coin can easily be bought from the exchange via the use of other cryptocurrencies such as Bitcoin, Ethereum or Litecoin.

For first-time cryptocurrency investors who do not yet have cryptocurrencies to convert to coin via Binance, you can first buy Bitcoin or other cryptocurrencies from other exchanges such as Coinbase that support fiat which can then be transferred to Binance and exchanged for the privacy coin.

Dash Wallets

After acquiring the privacy coin either by mining or by buying the cryptocurrency, the next stage will be to store the cryptocurrency. Below are some top wallets to use for the storage of your coins.

Jaxx

Jaxx is one of the most popular cryptocurrency wallets offering support to over 2 dozen coins. The wallet its users the ability to use its desktop and mobile versions of the wallet.

Your private keys are always within your control and it provides users with a 12-word phrase backup which can be used to access the wallet on another divice or in case the user looses their device.

It is a secure wallet to store your DASH coins but make sure not to share your back up phrase or your private keys with no one.

Dash wallet

Dash wallet is one of the first wallets built purposely for Dash. It is an open source Android mobile wallet that helps with the storage, sending and receiving of the cryptocurrency.

It has a Bluetooth feature which makes it possible to send the privacy coin even offline to a recipient.

Image result for dash wallet

However, the coin doesn’t provide the option to make privatesend transactions though it supports instantsend and also gives you full control of your private keys.

Ledger Nano

For those looking for higher security for their coins, Ledger Nano, a hardware wallet is the best option to store your Dash coins. Ledger is known for its ultra security due to its offline presence making it almost 100 percent from from hackers.

It is generally always advised that those with a lot of DASH holdings should consider hardware wallets such as the Ledger.

Image result for dash ledger wallet

Though the ledger nano doesn’t offer instantsend or privatesend options, it is a fancier wallet type with a small OLED screen on the hardware device which allows you to control your coins.

Final words

With 2-tier network infrastructure each having its own algorithm, Proof-of-Work for miners and Proof-of-Service for Masternodes, Dash is one of the safest blockchain projects.

Regarding the price, the privacy coin can only be expected to start moving towards its 2018 high now that all indications in the market point to a bull run somewhere in 2019.

Also, the privacy coin started positioning itself as the preferred coin to pay for goods and services due to its high transaction speeds. Adoption at these levels will bolster the price of the altcoin even higher.

Furthermore, as regulators discourage the listing of privacy-focused coins like Dash, cryptocurrency exchanges, eg Binance, are employing world-class AML solutions to counter money laundering and terrorist financing.

Finally, from the overview of the privacy coin above, I know you are headed to a crypto exchange to grab some. However, before you do, research more to get a conclusive overview of the investment journey ahead and bear in mind that investing in cryptocurrencies is very risky.

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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