Dash, the Digital Money of the Future

The next point of focus is one that comes with no absence of passionate dialogue surrounding it. This is a coin that has seen up’s and downs. A coin that has been in controversial head to head’s and above all else, a coin that has been a trailblazer for anonymity and utility in the cryptocurrency world. It’s laid the groundwork for many other styles of coin and is commonly seen brought into discussions of “vs. Monero” as until Zcash, it was only one of two options for a truly hidden and secure coin. By now if you’re familiar with the crypto world, you’ve probably guessed the guy we’re talking about: Dash

In this article we’re going to steer away from the overly populated internet dialogue of “Which is better? Dash or Monero?” and focus on illustrating what we consider the strengths and weaknesses of Dash, and we’ll let you decide on your own.

So how does Dash work you say?

Glad you asked. Dash operates on a system called PrivateSend. Basically Dash gives its users the ability to “mix” their coins. Once a user has begun the mixing process the client searches for other Dash users and according to the number of cycles chosen the full length of the process can range from thirty minutes to upwards of several hours.

Each cycle, or round chosen connects the user to a group with a minimum of two other users. Every cycle theoretically introduces at least two new users each time and cycles the coins amongst everyone. It speaks to logic that an increased amount of PrivateSend cycles will provide a higher level of security. If you read the article on Monero you can immediately see differences in this method versus their Ring Signature way of creating anonymous transactions.

Immediate concerns rise in individuals potentially logging the the data that passes through their servers, in turn discovering where each output finalizes itself. Masternodes have been created in an attempt to mitigate the risk, though not in the most reliable fashion. Masternodes are essentially servers that organize PrivateSend transactions and require deposits of 1000 Dash to operate. This collateral is supposed to prevent someone from creating an infinite amount of nodes and recording details surrounding Dash transactions.

As so, this tends to be the point of attack for Monero. The argument usually sounds like something of people pointing out how Monero is a much more anonymous system with no need to trust a mixing server. It’s as simple as transactions are created by a user’s client and then submitted to the network. It’s pointed out how the privacy afforded by Monero is ensured through cryptography. Ring signatures are decades old and have years and years of peer-review and real world application backing them, not to mention Monero has a team full of renowned cryptographers developing it. So this sounds pretty damning right? Well it might be if privacy was all there was to a coin.

In what setting does Dash thrive and why do we, along with many others see longevity in it? Well the answer is plenty. Firstly, Dash is forked from existing Bitcoin systems. This means that any existing or even developed bitcoin infrastructure can be easily implemented into the Dash system. Furthermore, Dash has instantly confirmed double-spend proof transactions. Yeah, that’s a mouthful, which is why it’s generally just refer to as InstantSpend. Essentially it means that Dash can be instantly traded and accepted, which is a massive advantage over other coins that have layover or cycle periods. Bitcoin has reported an average of 10 minutes for a single conformation where Dash is instant! A real potential use case for this can be seen here.

Dash has also done a good job of motivating their user base and growing along side them while strengthening their overall product. A good example of that can be seen in how they incentivize their full nodes which are key for the instant transfer and coinjoin process, DarkSend. Essentially you deposit $9500 (at moment of writing) of Dash into a node that then gives you 45% of all the block reward, or return that comes through it. This is two fold in advantages as it strengthens the network while allowing users to profit from it. Beyond that “Lead developer and creator of the masternode scheme Evan Duffield sees value in the collateral requirement for two reasons: first, to attempt to stabilize the Dash price by disincentivizing short sells; and second, to make a “51% attack” cost-prohibitive for a malicious actor,” which in turn saw them grow 40% in just 4 short months over last summer.

Continuing in line with their focus on incentivizing and working with their community, Dash lays the words across their website, “Dash has a well-defined set of mechanisms for anyone to submit proposals to the network to improve Dash, obtain approval, and fund those proposals directly from the network’s revenue.” They’ve designed a system that allows for the community to suggest ways for improvement while providing them the opportunity to receive funding and publicity through Dash. This also has benefit in that it removes a lot of pressure from the developers in terms of trying to figure out what the community wants, but instead allows them to debate amongst themselves and assist in developing the most desired protocols and amendments.

To buy or not to buy?

All in all, Dash is a coin that won’t be going anywhere anytime soon. It has strengths in the fact that it provides a long-term solution to crypto quantum issues, has a passionate user base that is easily incentivized and motivated, and has gone beyond targeting privacy in focusing and optimizing usability for future integration. We have faith that it’s a coin you should research further and consider trading because at this moment there’s no telling who’s going to be the next big player in the crypto world and it’s looking like Dash does it all.

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