What is Dash coin cryptocurrency?

What is Dash coin cryptocurrency?

There are a ton of cryptocurrencies on the market, so you may not have heard of the Dash coin. Dash is one of the middleweights with a market cap just shy of $2 billion as of October 2021.

Initially named as Xcoin, then Darkcoin, and later renamed as Dash coin, DASH has come a long way ever since it was founded seven years ago by its main founder, Evan Duffield. It is an open-source cryptocurrency that is built from the Bitcoin protocol. However, both projects are different in their long-term goals.

Dash is also a DAO (decentralized autonomous organization) that runs as a subset for the users who operate it and are known as “master nodes”. Upon its creation, Dash coin was designed to ensure the user’s privacy along with their anonymity. The goal of Evan Duffield was to ensure Dash coin becomes one of the main privacy-centric cryptocurrencies just after Bitcoin.

What is Dash coin?

Apart from being a coin that is anonymous and ensures the complete privacy of its users, Dash aims to become a platform for the daily transactions that occur between the buying and selling of products. Due to reach their ambition, 2018 saw an increase in the dash coins operation’s when it expanded its operations in Venezuela, a country that is in an economically distressed situation.

Being a “transactional” currency, the demand for the Dash coin increased substantially in Venezuela. It allows the users to avoid civil unrest along with hyperinflation so much so the local currency of Venezuela (the Bolivar) has been rendered essentially valueless.

This is the reason why the CEO of Dash coin stated that their coin is essential for the people of Venezuela as it allows for quick transactions of goods and services.

Difference between Dash and Bitcoin

The major difference between Dash and Bitcoin is how they secure their respective blockchains. Dash coin’s algorithm is X11, which is a modified version of PoS or Proof of Stake. Furthermore, it also uses CoinJoin that helps the coin to scramble transactions, also allowing for better privacy on their present blockchain. On the contrary, Bitcoin uses the PoW algorithm or Proof of Work to ensure the privacy of their coin.

Secondly, both cryptocurrencies use different kinds of systems that allow them to handle transactions. Bitcoin’s blockchain validates all nodes within the network which helps to ensure the consensus of each transaction. As the scaling of Bitcoin increases, this process is becoming almost an impossible task and thus leads to the slow processing of transactions. Dash uses a completely different system to handle transactions which are known as “master nodes” – a process that helps to simplify transactions.

Future consideration of investment

Altogether, the Dash coin has come a long way. It has a market capitalization of $1,837,922,800 and has a current value of $177 per coin. Dash has defied many odds and beat a strong competition to be where its value currently stands. While cryptocurrencies have a long way to go before they are fully adopted by society, Dash coin’s practical usage in Venezuela is a great example of how the coin may serve other communities and societies in the future.

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