The Blockchains, Part 6: The Dash Blockchain
We continue looking at various blockchains and comparing their differences. As Neo is compared to Ethereum, Dash is compared to Bitcoin. Let’s find out why is it so and what makes the 12th biggest cryptocurrency unique.
Launched in 2014 by Evan Duffield and Daniel Diaz and built on top of Bitcoin blockchain, Dash was initially called DarkCoin, because of its distinctive characteristic of anonymity. The whitepaper of this cryptocurrency reads that it is “the first privacy-centric cryptographic currency”. However, later on, the objective has changed together with the name: Dash now stands for digital cash and aims to be the daily use crypto.
Clearly, Dash was made to facilitate fast and secure money transfer, just like Bitcoin. So how is Dash different from Bitcoin?
There are several differences between the two. One of the most important differences is how the projects were funded. Dash was the first-ever cryptocurrency project that has implemented the self-funding model. This was made possible by dividing the block rewards among the Dash treasury (10% of the rewards), its masternodes and miners (45% each). The treasury uses its share to further develop the project, in accordance with the votes of the masternodes.
The second difference is the Dash mining algorithm which is similar to the Proof of Stake. As we know, when it comes to Bitcoin the Proof of Work algorithm is applied.
The third difference is the mechanism used to ensure privacy, whereas Bitcoin blockchain is transparent and anyone can view and trace any BTC transaction that has ever happened.
The fourth difference between Dash and Bitcoin is the way the transactions are verified. On Dash blockchain, the transaction authentication is done only by Masternodes — the nodes that stake 1000 Dash coins each. Staking allows the network participants to pay for the services and earn a return on their investment. On Bitcoin blockchain, all transactions are confirmed by every node on the entire system. Therefore, the Dash mechanism involves fewer resources, is more time-efficient and ensures that there is no congestion on the network.
Emirex supports all the major blockchains, including DASH. Come back soon to check out the next articles about the fascinating world of blockchains!
Digital Commodities Asset Exchange in the Middle East, focusing on tokenised commodities. Licensed and Regulated. Tokenisation advisory.
