Bitcoin and blockchain have changed the financial world drastically. Previously, the traditional system of financial transactions has included the active cooperation of third-party financial institutions (for example banks). In any case, blockchain would now be able to utilize exchanges among people and multinationals without the need for intermediaries. An example of this is the DASH protocol.
Aside from performing peer to peer transactions, blockchain also assists organizations with fixing and executing contracts with the attributes of smart contracts on public blockchains like Ethereum. Smart contracts have allowed for a fundraising mechanism- ICOs. This helps tackle the issues entrepreneurs face in raising capital for their business.
DASH is an open-source protocol that fell off as a hard fork on the Bitcoin blockchain. Everyone knows he cryptocurrency for its extraordinary features. The platform is focused on information security and transaction speed. Therefore, the asset’s exchanges are practically prompt and practically untraceable.
DASH’s story started in 2014 under the name Xcoin. Xcoin turned into an instant hit as it offers clients genuine privacy tools that are right now out of use. Shortly after launch, the creator, Evan Duffield decided it would be smart for the project to promote its privacy capabilities even further. This desire led to the coin undergoing a rebranding to Darkcoin.
After further changes and decisions, Evan Duffield renamed the cryptocurrency to DASH. The word originates from a mix of the words “digital ” and “cash”.
Is DASH an alternative to Bitcoin?
The simple answer is YES. Bitcoin has numerous alternatives called altcoins. Evan developed the protocol to improve upon Bitcoin’s original idea in multiple ways, including speed, cost, and governance.
Speed: The transaction speed on the platform cannot be compared to that of Bitcoin. Bitcoin exchanges can take as long as 10 minutes or more to affirm, while DASH can finish a comparative exchange in only 1 second.
Cost: As far as cost, DASH altogether outflanked Bitcoin. Bitcoin exchange charges were near $6 as of 2018. DASH managed to lower those fees drastically to less than half a US Dollar. Also, the fees do not increase as more transactions take place.
Governance: DASH can fuse changes into the improvement of tokens without the requirement for a “hard fork”. This is not quite the same as Bitcoin with numerous hard forks. DASH deals with this cycle through a voting system, with which changes can be actualized as fast as possible.
How the Protocol Works
The extraordinary structure of DASH is executed in a two-level network called the “master node network”.
The main layer of the network comprises nodes, which are computers that speak with one another within the network. Miners utilize these nodes to verify exchanges and make new coins.
The masternodes make up the second layer. These are full nodes that contain a full blockchain of the digital currency and implement network rules. The masternodes empower specialized transactions among PrivateSend and InstantSend.
To run a masternode, you need 1,000 DASH as collateral. An operator needs to continuously hold this collateral to continue running a masternode and receiving transaction fees.
In theory, requiring masternode operators to post collateral helps protect the network. If somebody wants to attack the Dash network, they should initially purchase a lot of DASH to turn into a masternode operator. At that point, attacking the network makes no sense. Doing so also destroys their holdings.
Since masternode operators invest a great deal of money in the network, they have a motivating force to secure the ecosystem. To this end, they carefully analyze and approve the financial plan presented by the network.
Features of DASH
DASH became well known as a result of its stunning features. At the point when Dash presented these highlights, the greater part of them were new to the market. The platform keeps on being a pioneer in the privacy coin sector. The following are the features that make the protocol an asset to possess.
DASH can utilize its InstantSend convention to finish near-instant transactions. InstantSend sidesteps miners and uses the agreement of the masternodes to verify transactions. This cycle takes out the waiting time that comes with confirming a transaction in the blockchain network. To accomplish this task, Masternodes form voting quorums.
At the point when a client demands InstantSend, a unique masternode accepts the requests and locks the input of the transaction. The masternode exchanges the information to other masternodes across the network. This procedure guarantees that the exchange is in the next block of transactions.
One of the most exceptional highlights of DASH is the PrivateSend protocol. The arrangement allows users to make and receive untraceable payments on the blockchain.
To start with, the client demands a PrivateSend exchange. At that point, the platform executes the exchange and rearranges the client’s unused assets before executing the exchange. Next, the protocol breaks your transaction inputs down until they are standard denominations. From there, the user’s wallet then sends a request to the Masternodes. This request fills when two other people send similar requests.
Next, a masternode rearranges all the information sources together and instructs each of the three users’ wallets to pay the now-transformed input back. Your wallet will give you the assumed worth back. Interestingly, the wallet utilizes what is known as a change address. Crucially, the wallet repeats this process multiple times. Best of all, this occurs in seconds and without requiring users to complete additional steps.
DASH in Nigeria and Africa at Large
DASH Nigeria is a non-profit educational and promotional organization devoted to advancing the adoption of Dash in Nigeria and other regions. The organization has the vision to advance financial development in West African nations using DASH. The organization works with youth, the local community, the media and different partners to explore the opportunities that digital currencies present.
How is DASH utilized in Africa?
CoinProfile is a Nigerian-based crypto-to-fiat platform where Nigerians can use DASH to pay for merchandise and services. Merchants just need to get payments in their local currency and can depend on the asset professionally. from anywhere in the world directly to a local bank account on the platform making it very convenient for remittances due to its low or zero fees and in less than two minutes.
AnkerPay, an ATM and crypto payment service provider in South Africa, has additionally added the cryptocurrency to its platform. This implies that you can access the cryptocurrency through the huge ATM and POS network. Merchants can now accept DASH in physical stores and convert it legitimately to their local currency.
There are also plans to integrate Dash Text, a service that permits you to send and receive DASH using USSD codes in African areas where there is an insecure or no internet connection.
In a recent conversation with Nathaniel Luz, he stressed that the increased instability of the Nigerian Naira has led more Nigerians to keep their cash in digital currencies. He also explained that high gas fees and slow confirmation times for Bitcoin exchanges are pushing people, in general, to explore other digital currencies with cheaper and faster transactions.
The list of advantages that DASH has over Bitcoin makes it a better alternative to Bitcoin. In contrast to the 10 minutes it takes to process a Bitcoin transaction, a DASH exchange takes a couple of seconds all things considered.
Therefore, it makes sense to use DASH in retail, particularly in everyday transactions. Moreover, transactions in DASH cost just a couple of pennies, which makes it ideal for retail transactions.
Numerous organizations accept DASH in Nigeria. There are over 100 stores that currently accept the crypto asset in Nigeria.
Nathaniel believes that the future of the Nigerian crypto industry is bright and full of promise. Before the end of last year, statistics showed that the volume of digital currency exchanges in Nigeria has expanded by over 60%.
Imagine being able to send Dash to a username or any of your contacts instead of long alphanumeric digits. That is one of the features of the platform codenamed Dash Evolution. It aims to bring crypto usage to the mass of non-tech users. It will be the most innovative solution to the UX problem of crypto at its launch. Once we get this UX problem solved with the Dash Platform, be sure of mass adoption!
Nathaniel added that by the end of 2020, Dash Platform will be on testnet. It is a layer 2 of the network where other developers can leverage on the platform and build their projects. This will mark the initial testing phase before the mainnet launch next year. The platform will allow developers to build Dapps, tokens, smart contracts et al on the Dash blockchain similar to Erc-20 on the Ethereum blockchain. Projects built on the blockchain will inherit the foundational features of Dash such as Instantsend, almost zero fees, anti-51% attacks, etc.
You can learn more about the Dash Platform at https://www.dash.org/developers/
You can also read more about Dash in the book, Digital is the Cash by Nathaniel Luz.
English version of Digital is the Cash book at http://bit.ly/freedashbook
French version of Digital is the Cash book at http://bit.ly/frenchversion
Spanish version of Digital is the Cash book at https://www.dash.org/es/recursos-de-aprendizaje/
German version of Digital is the Cash book at https://www.dash.org/de/weiterfuehrende-materialien/