Dash is one of the more popular Altcoins in the cryptocurrency market. It regularly ranks high on the list of traded coins behind major offerings of Ethereum and Bitcoin, and it is one of the few Altcoins to appear in or near the top five on cryptocurrency exchanges. Dash has a unique mining algorithm which is different than that used by Bitcoin and Litecoin. It is also known for faster transactions and increased privacy. This coin has shown some growth in the past and can make a good starting point for new digital currency investors.
The History of Dash
Dash is still relatively new to the market. It made its first appearance in January of 2014 and was called Xcoin. This name lasted little more than a month before the coin was renamed Darkcoin. Unfortunately, this name was somewhat doomed from the start. Because of the issues with Bitcoin usage on the so-called Dark Web, the developers opted for a third name change in March of 2015. They chose the name Dash because it combines the words “digital” and “cash” and also reflects the platform’s increased speed of transactions.
Evan Duffield is the developer given credit for the initial development of Dash. It assumed a significant popularity from the start. 1.9 million coins were mined in the first two days of its launch. It is estimated that the eventual number of coins issued will be capped somewhere around 100 million. This ease of mining in the first days was attributed to a bug in the platform’s algorithm which was originally a fork of the Litecoin code, and the initial value of the coins was very low.
Today, the development team behind Dash includes 50 part and full-time employees. There are also many volunteers who participate in the maintenance and development of the platform. Volunteers are unpaid but may receive compensation in the form of Dash.
A goal of Dash has been to bring privacy back to the world of cryptocurrency transactions. The developers believe that Bitcoin, once a leader in anonymous transactions, has suffered somewhat of a decline in privacy. To accomplish more private transactions, Dash relies on Darksend. Darksend facilitates the use of so-called Masternodes. These function in a manner which is very similar to the tumblers which were popularly used with Bitcoin to further anonymous transactions.
Masternodes receive all Dash transactions. The process of using Masternodes involves multiple outgoing transactions which can help to obfuscate the incoming transaction. Some individuals who use cryptocurrency in online gambling platforms, for example, can be more concerned with the privacy of their transactions.
Like Bitcoin and other cryptocurrencies, Dash relies upon the use of a blockchain to record transactions. The blockchain is a decentralized ledger. It maintains a list of every Dash transaction that has ever been performed. The security of each blockchain is maintained through a mechanism known as Proof of Work. When miners of Dash establish Proof of Work by solving complex mathematical problems, they are rewarded with units of Dash.
Mining Dash can be difficult to do for the cryptocurrency hobbyist. It involves the use of specialized computer equipment. In most cases, mining hardware is composed of specialized computers which are referred to as Application Specific Integrated Circuits. These are also known as ASICs. The hardware required is resource intensive and can be costly to operate. It also requires a vast amount of electricity.
A more affordable option can be participation in a mining pool like that offered by Genesis Mining. These mining pools allow individuals to pool their resources with others and share the Dash coins that are mined as a result. A mining company operates a mining farm where they secure and maintain all of the advanced hardware required. Mining contracts can be purchased in many different increments, and Genesis Mining also rewards those who refer others to the service with discounts and additional hash power.
In the earliest days of Dash it was still possible for a single individual to mine coins with a relatively simple setup at home. The complexity of the algorithm behind Dash, however, has made this largely impractical today. Cryptocurrencies like Bitcoin and Litecoin use a single mining algorithm—SHA-256 and Scrypt, respectively. Dash uses 11 different algorithms in combination with one another. The reason for this is that using multiple algorithms contributes to a more fair distribution of the coins among those who mine them.
X11 is the chained hashing algorithm which powers Dash. X11 allows both CPU and GPUs to compete in the mining of Dash coins.
Dash Use and Acceptance
There are many online merchants which are currently accepting Dash as a form of payment. Individuals can purchase a variety of services including web design and VPN, photography, advertising, and play games like Coin Wars. Books may also be purchased online with Dash.
It is also possible to use Dash at a number of online casinos. Many of them were created specifically to work with the Dash platform. Popular examples of these casinos include DirectBet and Fortune Jack.
At the present time there are a few physical retailers which accept Dash as a form of payment. These include locksmiths, jewelers, and even healthcare providers. There are even debit cards which will function with Dash and other Altcoins. As the popularity of cryptocurrency increases, expect more retailers to integrate digital payments into their existing systems.
What many are discovering today is that Dash and other digital coins offer a promising investment. Always remember that investing in cryptocurrency carries an inherent risk and that markets can be very active and volatile. That’s why you should bookmark us [WEBSITE NAME HERE?] as a source of reliable information.