What is Dash?
What is Dash (formerly known as Darkcoin and XCoin)? Dash is an open decentralized payment system in the form of a cryptocurrency based on a blockchain that provides the mechanism of anonymous transactions. Like most cryptocurrencies, Dash does not have any central control.
The emission occurs during mining. From the miners’ compensations received, 90% of the rewards are shared between the operators of Master nodes and the miners. The remaining 10% will be used to finance approved projects. By February 2018, the capitalization of Dash was among the top 12 popular cryptocurrencies.
What is Dash – An overview
The main differences between Dash and Bitcoin:
The transactions in Dash are anonymous. Dash uses not just one, but a combination of multiple encryption algorithms. Dash mining requires less energy. Decisions on the further development of the system are taken not only by the individual programmers but by all members of the Dash network through the mechanism of decentralized administration (decentralized governance).
What is Dash – Private Send
PrivateSend is a CoinJoin-based payment-mixing service. After the release, the premix method was improved and incorporated into the client program.
The current implementation of the system allows you to increase the anonymity of transactions by combining multiple inputs from different users in a single transaction with multiple outputs. This obscures the cash flow and limits the ability to track transactions directly.
To monitor such transactions, a mechanism for a hierarchical list has been proposed (based on inputs and outputs). However, there was no practical benefit to the possibility of such an analysis.
What is Dash – The master nodes
Master nodes are special nodes (servers) of the network, that enable the work of the “”Private Send”” mixing mechanism. Master nodes are managed by a community of volunteers who do not have a central body.
Each time the user intends to use “”PrivateSend,”” he specifies the number of rounds of mixing (usually two to eight, but more is possible), which greatly increases the level of anonymity. Next, the randomly selected master nodes mix the coins.
The combination of several random, independent master node programs increases confidence that no one has complete information about all inputs and outputs in the transaction process.
What is Dash – InstantSend
InstantSend is a service for instant transactions. In this system, the inputs are only processed for a particular transaction, which is verified by the consensus mechanism in the master node network.
Contradictory transactions are blocked and rejected. If consensus can not be reached, the transaction is confirmed using the standard block confirmation mechanism. InstantSend allows you to solve the problem of duplicate issues without having to wait long for a confirmation, as is the case with other cryptocurrencies, such as Bitcoin.
Instead of using the SHA-256 algorithm (from the Secure Hash Algorithm family) or Scrypt, Dash 11 consistently uses a variety of hashing functions to prove its performance. X11 is a system of hashing algorithms that uses a chain of 11 algorithms, such as a cryptographic hash function, to prove the performance of the work.
Algorithm X11 was proposed by the main developer of the Dash system, Evan Duffield, to complicate the use of special mining equipment. In sequential hashing, the latest generation CPUs produce, on average, the same performance as the GPU.
When such an algorithm is run on GPUs, approximately 30% less electrical power is required compared to the “”Scrypt”” algorithm and 30% to 50% fewer resources for heat removal. This allows you to significantly reduce the cost of mining and expand your computer equipment resources.
Dark Gravity Wave (DGW)
Dark Gravity Wave (DGW) is an algorithm for adjusting the complexity of mining to overcome the drawbacks of the Kimoto Gravity Well algorithm. In this case, a multiple and simple moving average are used to smooth the complexity, which is recalculated for each block.
The reward for the block does not change exactly with the block number, but instead uses a formula based on Moore’s Law: 2222222 / ((Difficulty + 2600) / 9) 2.
What is Dash – the Dash wallet
The Dash Wallet (Dash Core Wallet) is based on the popular Bitcoin Core QT Wallet with additional features. You can perform anonymous transactions using the PrivateSend and InstantSend functions described above.
Decisions about changes to Dash are made through a general vote. Anyone can submit a public proposal on a specific project related to Dash (the cost of the project is 5 Dash units), then make a decision on the project by a vote.
In this way, it was decided to increase the size of the blocks from 1 MB to 2 MB. The decision-making process took less than 24 hours.
Dash was originally created as XCoin (XCO) on January 18, 2014. On February 28, 2014, the name was changed to “”Darkcoin””. On March 25, 2015, Darkcoin was relaunched as “”Dash””.
In the first hour of the launch, about 500,000 Dash were mined. The next 1,000,000 Dash were mined in 7 hours and eventually another 400,000 over the next 36 hours. All in all, 1.9 million Dash were produced in 48 hours, or about 24% of the current volume (7.86 million in February 2018), which generated a discussion about the initial distribution.
In June 2014, Craftocoinnews, an industry news site, said, “”One of the biggest mistakes on Dash’s way was linked to the massive instamining.”” According to the developer, the reason was a flaw in the code.
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.