Top 20 Alternatives: Dash (DASH)
Highlights, summary, review and discussion of Dash
Dash, formerly Darkcoin, was introduced in Jan 2014 to provide blockchain privacy by using a coin-mixing scheme to obfuscate transaction flows. A network of 3700+ masternodes performs mixing services for users. Users need 1000 coins to operate a masternode and earn 50% of mining rewards. Masternodes also validate transactions instantly via consensus rather than using standard block confirmations. Dash uses a unique POW mechanism called X11 that uses 11 different hashing functions. A supposed error during launch resulted in 1.9 million coins mined (~30% of the current coin supply) to be rewarded in the first 48 hrs. Overall Darkcoin is fairly new and although there were some early issues, the privacy feature seems to have attracted support from the Bitcoin community. There is some competition from newer coins such as Bytecoin and Monero that may have more robust privacy features, but the early traction seems to have enabled Dash to remain the leader in the privacy niche.
Bottomline: Dash (DASH) is a coin that adds more privacy and uses low cost proof-of-work to secure the network. It serves a niche in the Bitcoin space and may be the first choice for those that require more privacy, but there is competition. Just like with Litecoin, you can monitor long term price correlation and divergence with Bitcoin. Trends in privacy may shift to favor Dash, but on the other hand if Bitcoin’s pseudonymity is considered good enough for larger institutions and the general public Dash may not keep pace with Bitcoin’s growth. Dash may also struggle as a monetary digital commodity and as a unit of account without the high unforgeable costliness Bitcoin has.
Please respond below to add any insight or ask a question to elevate the community's understanding of Dash. Here are some questions to consider:
- What are the main reasons why you invest or don't invest in DASH?
- What projects & applications are you most excited about?
For some background on this blog series and analysis of other currencies click below:
Top 20 Alternatives: Introduction
A little error there: 1.9 million Dash is not 30% of the total supply (which is most likely around 18.9 million translating into 10%) but of the current supply which is almost 6.5 million at time of this writing.
I'd also like to mention one major and critically important feature that makes Dash future-proof: Dash is a self-funding project that finances its own development, making it fully independent from altruism, donations, foundations etc. and creating a platform to attract talented developers who can work for Dash and get paid for it.
Thanks! Updated to say 'current ' instead of 'total'...
typical!
It is a feature not an error.
Most other crypto will fail with voluntary opensource development.
This is bigest Dash advantage.
Another Dash supporter on Steemit now! Starting to rally the community to get involved over here as well. So feel free to hit us with any and all questions! Love this place!