Let's take a look at what Dash is all about, why did it gain recognition from thousands of users and where can you buy or trade it.
- Jump to the list of platforms to buy or trade Dash (with or without KYC)
Dash stands for digital cash. This slogan reflects the main idea of Dash - to create a digital payment system available anywhere in the world.
To implement the idea, Dash uses technologies of instant and anonymous transactions and constantly expands a partner network of businesses accepting Dash coins for payment.
Other than that, Dash is one of the top 3 anonymous cryptocurrencies (along with Zcash and Monero) and it is the highest capitalized cryptocurrency that runs on master nodes.
A bit of history
Dash was created by Bitcoin fan and crypto-enthusiast Evan Duffield. He thought it was critical that Bitcoin was lacking a way to incorporate anonymous transaction technology and it prompted him to create a new cryptocurrency.
The history of what is now known as Dash began on January 18, 2014 with the creation of the first block of the cryptocurrency XCoin. Due to a bug in the XCoin codebase, crypto mining went very fast - 1/10 of all possible coins were mined in 4 days. The developers corrected the error and the crypto community decided to continue the project. At the same time changing the cryptocurrency name to Darkcoin.
Darkcoin seemed to have a reputation problem because of its wide use for transactions in the darknet. And in March 2015, another rebranding took place and the modern name Dash appeared.
The official Dash website is https://www.dash.org/
Dash network architecture
The architecture of the Dash network is two-tiered. That means that the division of consensus is split into two levels: One level runs on the PoW (Proof-of-Work) algorithm, the other runs on the PoSe (Proof-of-Service) algorithm.
The PoW level contains miners who create new blocks, the PoSe level contains the master nodes - the full nodes that perform special functions in the Dash network.
Dash was the first cryptocurrency that implemented master nodes, by the way. Masternodes have since spread and became popular in other cryptocurrencies.
The functions of master nodes in Dash:
- Store a complete copy of the blockchain and constantly update it;
- Verify and validate new blocks;
- Implement the InstantSend function, instantly confirming transactions;
- Ensure the anonymity of transactions.
Miners and master node owners are rewarded by the network for performing their functions. It is paid for each new block created and is divided in the following proportion: 45% for miners, 45% for the owners of the masterboards and 10% for the development of the network.
Mining for block creation, master nodes for network services
New blocks in Dash are created just like in Bitcoin, by mining on the basis of the PoW algorithm - that is by means of complex mathematical calculations of a new block hash number.
Initially, mining was done using central processing units (CPUs) and graphics processing units (GPUs). Over time, again just like Bitcoin, the mining difficulty rose and Dash mining moved onto professional ASIC mining equipment.
Running a masternode on Dash is likewise not available to everyone. To create a Dash master node, you need to install and configure the software for it and deposit 1,000 Dash coins into it.
Coins deposited to the Dash masternode wallet are a deposit and remain "locked" for the entire duration of the master node being active. Over time, as your masternode participates in Dash network, it starts collecting rewards for the services performed which brings you revenues on the locked amount of Dash.
Advantages of Dash
Remember the slogan "Dash - digital cash" and the basic idea of this crypto - to become a convenient payment system, available anywhere in the world. What is the convenience of cash? Cash payment is always fast and anonymous - you pay the money, take your hot latte and change, and no one knows who had these bills an hour ago and where they will be soon.
That's why Dash makes anonymity and high speed of transactions its main priority. These qualities are its main advantages.
Anonymity in Dash
The anonymity of transactions in Dash is ensured by the PrivateSend function. Master nodes work on the principle of a mixer - within the nodes themselves and between them, user transactions are mixed, thus ensuring their anonymity.
The principle of mixing - transactions are divided into parts and grouped by the size of the sum - 0.001 Dash, 0.01 Dash, 0.1 Dash, 1 Dash and 10 Dash. The master nodes then shuffle them within and among themselves in multiple rounds.
A random masternode is used for each new round. Up to 8 rounds of shuffling can be set. In the end, the recipient receives the same amount of money that the sender sent him, but with completely different coins.
The more rounds, the more probability that no one will be able to identify the sender and the recipient of the transaction.
A transaction is not considered "confirmed" until it is included in a new block. The time to create a new block = 2.5 minutes. Thus, the transaction time in Dash does not exceed 2.5 minutes.
But Dash officially states that it can finalise a transactions in 1 second using its InstantSend function.
InstandSend is implemented through transaction verification using a consensus mechanism in the master node network. A quorum of 10 random master nodes checks that the funds used in the transaction have not yet been spent and, within 1 second, fixes and confirms them. These master nodes then send information about the transaction to all other members of the network. Any attempt to resend the same funds (so-called “double spending”) will be rejected by the network.
Dash coins have high liquidity, which means you will hardly ever run into issues trying to buy or sell them. Dash is traded on all major cryptocurrency exchanges and can be exchanged for other cryptocurrencies or fiat in exchangers.
Dash also trades on no-KYC p2p marketplaces and some instant swaps.
Dash is one of the oldest altcoins and yet, unlike most alts, it keeps steadily among the top 100 cryptocurrencies in terms of trading volume.
In terms of capitalization, Dash is also in the top 100 of all cryptocurrencies. As of May 19, 2022, the market capitalization of Dash is about $0.6 billion (according to https://coinmarketcap.com)
Dash has its own official software maintained directly by Dash, not relying on any third party wallets.
Dash wallets from third-party developers exist too and Dash is also supported by multicoin wallets like Exodus, but it is always good to have a wallet that is maintained directly by the coin’s developers.
Wallets come for computers, mobile, hardware, paper, web, and even text (sms) wallets for those without a smartphone or internet.
Speaking about the age of Dash, crypto has been on the market for 8 years. For a cryptocurrency, that's a solid term. And during this time Dash proved to be a stable coin.
Drawbacks of Dash
Legislation in some countries is putting more and more pressure on cryptocurrencies in general and even more so on cryptocurrencies with privacy features like Monero, ZCash and Dash.
There is legislation, both active and in the works, that may affect Dash and other anonymous coins.
For example, in January 2020, the fifth EU (European Union) directive aimed at combating money laundering and terrorist financing came into force. One of its points concerns cryptocurrencies - it forces cryptocurrency companies to identify their users, which cannot be done in privacy coins.
If the regulatory requirements continue to tighten, they could literally oblige cryptocurrency exchanges to remove anonymous cryptocurrencies from their listings. On the other hand, as of today, there is no unified global legislation. It seems unlikely that there would ever be agreement between all governments in the world, which would be the only way to weed out privacy coins entirely.
Other than the regulatory uncertainty, there’s only the high volatility of the exchange rate that is to add to the disadvantages of Dash. But high volatility is a characteristic feature of the cryptocurrency market in general.
It is important to understand that all cryptocurrencies are a high-risk investment.
Where to buy Dash coin
How to buy Dash without KYC:
To buy Dash for fiat without KYC, you’ll need to use a P2P market.
Dash is one of the big cryptocurrencies that is available from the zero-knowledge P2P marketplace LocalCryptos. The platform encrypts all private communication, keeping your fiat-based identity secret even if you sharse your banking connection with your counterparty.
If you want to buy or sell Dash for a cryptocurrency, you can use any of the no-KYC swap exchanges out there. SimpleSwap supports Dash and doesn’t charge a high margin on trades.
Buy or sell Dash on a KYC exchange:
Dash coin is listed on all the big international crypto exchanges like Coinbase, Kraken and Bitfinex. All these exchanges will let you deposit a fiat currency, buy Dash and withdraw it, once you’ve passed the KYC/AML identification check.
Out of the three exchanges listed, Kraken has the lowest trading fee.
Where to trade Dash with the lowest fees
The super low-fee trading platform FTX made their classic cost-cutting move and listed the Dash perpetual future contract but not a Dash spot pair.
This is what makes it possible for FTX to keep their trading fees up to 10x lower than on most crypto exchanges.
For you as a trader it means that you cannot buy Dash on FTX to hold it and withdraw it into your wallet, but you can speculate on the price of Dash by longing or shorting the Dash perp contract.
The fees on FTX are low enough to not shy away from a stop loss, so make a use of it. Go see the DASH-PERP on FTX here.
Additionally, if you want to put money on your opinion about privacy cryptocurrencies in general, FTX has a whole set of trading products for the PRIV basket - a weighted basket index of all the privacy focused cryptocoins out there. Here’s the PRIV-PERP contract if you’re curious.
Generally speaking, Dash gives a good impression: The coin has been on the market for a long time, it is traded on most big exchanges and is well maintained by a dedicated team. Dash provides its own software, has a clear idea and is developing.
Dash is self-financing the coin’s developments, there are no VC shareholders or governments involved. There is the allocation of 10% of income for the development of Dash to guarantee its independence.
And of course anonymity. "Money love silence", the authorship of the words is attributed to J. Rockefeller. The world of social media is becoming increasingly public and we fall under total control of the state and financial corporations.
Dash and similar cryptocurrencies protect a person's fair desire to preserve privacy of their private life, which in the vision of Dash includes that person’s monetary settlements.