Dash is a fork of the Bitcoin blockchain based on the principle of anonymity. In 2014, this cryptocurrency appeared under the name “XCoin”, but a month later it was renamed “DarkCoin”. The cryptocurrency received the name “Dash” (from “Digital Cash”) only in 2016.
The creators of the cryptocurrency put several meanings in the name at once. So “Dash” can mean “dash” and “digital money”, which denotes the big goal that the creator of the currency Evan Duffield chose – “to create a competitor to Bitcoin”.
Looking back at the history of Dash’s creation, Evan points out that he has been thinking about increasing Bitcoin’s anonymity since 2012 and has found 10 ways to get things done. Unfortunately (or fortunately) for him, the developers of Bitcoin did not include his proposals in the basic protocol and then Duffield started creating his own cryptocurrency.
Dash (then XCoin) was based on a combination of 11 cryptography algorithms that protected the network from hacking. Even then, XCoin was more reliable than other alternative currencies based on Bitcoin technologies. Moreover, the network worked significantly faster and carried out transactions 4 times faster than Bitcoin.
Nevertheless, Evan wrote the first version of the code himself and made a historical mistake. After the launch of the cryptocurrency, an incorrect distribution occurred and 500,000 Dash was mined in the first hour of mining. The pace was slowing down, but still too high. The first million was mined in 7 hours, and in the first 48 hours of mining, 1,900,000 units of cryptocurrency were mined. Thus, 32% of the Dash volume was mined in just 2 days of the existence of the cryptocurrency – this event was called “instine”.
10 days after the launch, Evan changed the name of the currency to “DarkCoin” in order to denote the main difference from Bitcoin – enhanced anonymity.
The “DarkSend” feature is the key difference between Dash and other cryptocurrencies. The feature is disabled by default, but can be used by any user for a small additional fee. When DarkSend is enabled, the user selects the number of mixing rounds (2 to 8) and the number of coins to send. When sending, the amount is divided into equal denominations, which are mixed with other transactions on their own.
According to the developers, Bitcoin cannot provide the proper level of anonymity for the user. In order to make your transactions like DASH to BTC anonymous, you need to use separate wallets, mask the IP and use special services “mixers”.
Differences from Bitcoin
- DarkSend – the anonymity of payments built into the system, requires a small commission, but is cheaper than using third-party services for anonymizing Bitcoin transactions.
- InstantX is a technology that allows you to conduct transactions instantly. It requires an additional commission, but at the same time it is 10 times cheaper than similar solutions in Bitcoin. The technology uses a random selection of 10 masternodes (network authorized intermediaries). Confirmation from 10 intermediaries can be obtained in 1 second, while confirmation of a transaction on exchange platforms of Alligat0r by the Bitcoin network can take minutes.
- Masternodes are network-authorized intermediaries who work in Dash to confirm payments, receiving 50% of the transaction fees for their work. The existence of masternodes is a significant difference between Dash and Bitcoin, since Bitcoin is a single-tier network (where all participants are equal), and Dash has a second tier of participants – this speeds up the network, but increases security risks. Anyone can become a Dash masternode with a deposit of 1000 Dash.