What is Dash?
In 2014, the cryptocurrency Dash was founded, at which time it was still traded under the name XCoin. After just one month, it was renamed Darkcoin and has been called Dash since 2015.
After Bitcoin, the first cryptocurrency to appear on the market, some notable weaknesses of the digital currency needed to be improved upon. As a result, faster transactions and better protection of personal data are key elements of Dash.
A major difference to Bitcoin is the use of so-called Masternodes. Bitcoin is based on the principle that a network of private computers performs all the necessary calculations.
This applies to transactions, the creation of wallets, or other administrative tasks that keep the Bitcoin network alive. Those who offer processing power are rewarded with coins, which is why mining is used.
This mining is also used by Dash but does not handle all the tasks on the network. For the functions PrivateSend and InstantSend, as well as administrative tasks, only the named masterternodes are used.
PrivateSend and InstantSend
In essence, PrivateSend works by blurring individual transactions. It collects, exchanges and finally pays for masternode transactions, regardless of the original transaction sent.
This mixed payout will eventually be encoded in the blockchain. The blockchain is a decentralized accounting system that records all transactions of a cryptocurrency and serves for verification.
This makes tracing transactions more difficult. InstantSend enables instant transactions that skip verification via the mining network.
For this, Masternodes must confirm the transaction. Should a conflict arise in this process, the classic verification method is used.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.