Coin of the Week #50; DASH on Altcoin Magazine
Understanding Dash: A Better, Faster Cryptocurrency
Revolutionizing payments processes
It is a prominent function of most major cryptocurrencies; however, none are as effective as the one I’m about to discuss — an all-encompassing digital asset payments processor that’s already playing a formative role in providing fiscal stability to developing countries like Venezuela and Turkey. In just four years, it’s made a name for itself as one of the fastest, strongest, and most secure cryptocurrencies on the market, and is already being lauded by experts as a solution to many of the inefficiencies created by centralized payment systems. That cryptocurrency is Dash.
What is Dash?
Admittedly, these are strong statements, so I want to break down the value proposition behind the words. What is Dash? Why does it offer substantive solutions not only to the problems created by traditional payments processes but also to the problems created by mainstay cryptocurrencies like Bitcoin and Ethereum? It’s a multifaceted question that requires careful thought and consideration. Simply put, through fast transaction times and a best-in-class governance infrastructure, Dash addresses many of the inefficiencies that have — for far too long — caused millions to suffer from the woes of hyperinflation, with the ultimate goal of breaking down barriers that impede economic growth.
Dash as a store of value
This begins by creating an adequate store of value. For many developing countries, hyperinflation is a problem that has had a lasting impact on financial stability. In Venezuela, for example, the national currency, the Bolivar, has undergone inflation rates of more than 40,000%. Socialist President Nicolás Maduro recently announced measures mandated by the state to devalue the currency by as much as 95%, leaving an estimated 87% of citizens below the poverty line. Venezuela is just one example. Turkey recently announced a 24.52% increase in its Consumer Price Index, rising by 6.3% to its highest point in 15 years. Unfortunately, both countries are indicative of a larger, and more ominous trend: Financial stability is increasingly difficult to attain in today’s uncertain economic climate, and it’s the general public that suffers as a result.
Low volatility, low transaction fees, and high level decentralization
Conversely, Dash’s low volatility and minimized transaction fees make it a prime alternative for individuals who cannot afford to operate using inflated currency. This is because Dash isn’t connected to anyone centralized entity, meaning that it’s completely unrestricted by shifting international sentiments. Moreover, transactions on the Dash blockchain are almost completely free of cross-border transaction fees, which can represent astronomical costs for individuals depending on remittance payments from abroad. Recently, Dash underwent a preliminary stress test to see how the infrastructure would interact with high-volume transactions. Over a 24-hour period, Dash was able to complete half a million transactions with median transaction times at under a cent. It’s results like this that are starting to catch the attention of citizens in Venezuela, where more than 1000 retailers have already committed to using the cryptocurrency, with an extra 200 signing up per month.
Two-tiered decentralized governance
While this popularity is certainly a welcome sign for future growth, it’s nothing without efficient and dependable scalability. That’s why Dash has instituted a first-of-its-kind two-tiered decentralized governance infrastructure that ensures that expanding size and scale doesn’t come at the expense of efficiency. It works as follows. The first tier is comprised of a mining layer, where miners validate transactions for 45% of the mining reward. The second tier is comprised of Masternodes, who keep the platform up-and-running by staking their involvement in return for another 45%. While most Proof of Work (PoW) cryptocurrencies depend solely on miners to validate transactions, this “hybrid” Masternode layer allows Dash to successfully implement one of its most exciting features, InstantSend, where payments are verified at a small fraction of the time of its competitors. Whereas Bitcoin might take up to 40 minutes to process one transaction, InstantSend’s processing platform on Dash can facilitate a given transaction in seconds.
What the critics would say
That’s not to say that Dash is without areas of improvement. Critics of Dash might argue that the cryptocurrency infrastructure has not yet amassed a sufficient number of merchants and users to its site, and is therefore too premature to be considered solidified within the community. Transaction volume on the network remains low, and although there’s been a distinct increase in Dash usage in developing countries, we’re still a long way from worldwide adoption. This has led some to question whether Dash can possibly amass the necessary momentum to compete with mainstays of the industry.
I would urge these people to take a step back and consider the bigger picture, focusing less on Dash’s competition and more on its incredible strides year-over-year. Gaining support from merchants is a slow and painstaking process, however, the support of one merchant today will no doubt lead to the support of another merchant tomorrow. Dash’s growing presence in Venezuela alone is evidence that cryptocurrency integration is a snowballing process. As Dash continues to roll out new and innovative use cases, the broader community will continue to take notice, which will only further its progress.
A good example of this is Dash Evolution, a first-of-its-kind decentralized payment platform built on the Dash blockchain. The goal of this new project is accessibility, creating a streamlined digital experience that will make it easier for the everyday person to carry out instant and secure transactions. And with new and innovative service offerings, including a peer-to-peer payments app akin to Venmo or Paypal, Dash Evolution aims to make cryptocurrency concepts more digestible to the general public.
The modern payments ecosystem is fundamentally unsustainable
It’s a hard truth: The modern payments ecosystem is fundamentally unsustainable. As centralization continues to strengthen wealth disparity and weaken economic stability around the world, the general public is growing increasingly frustrated with the status quo. Thankfully, Dash, complete with its fast transaction times, heightened security, and unprecedented privacy might just be the solution we’ve been waiting for. While there is still progress to be made before Dash becomes the payment process-of-choice for users around the world, we are well on our way to making this dream a reality.
Where to catch up with Dash
Info site: Website
Before moving on, make sure to press follow, leave a clap or 46, share today’s highlight and if you missed the last article, click here.
Read about the Altcoin Magazine Mastermind Event here.
The purpose of ALTCOIN MAGAZINE is to educate the world on crypto and to bring it to the hands and the minds of the masses.