Dash cryptocurrency guide advises where to buy and how to buy Dash. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Dash as well its status in the world of cryptocurrencies.
- 1 What Is Dash?
- 2 Beginner's Guide to Dash
- 3 Where and How to Buy Dash?
- 4 Dash Markets
- 5 Where to Spend or Use Dash?
- 6 How Does Dash Work?
- 7 Dash Regulation
- 8 Is Dash Secure?
- 9 History of Dash
- 10 Dash Videos and Tutorials
- 11 See Also
What Is Dash?
Since Bitcoin opened the lid to the world of cryptocurrencies, the race to create new cryptos has been speedy. Call it supersonic speed! In less than 10 years starting from 2009, over 1100 new cryptos have been created. This has been the main reason for the current growing popularity of Bitcoin as its value breaks through the roof while Dash follows from a distance.
When the term blockchain technology is mentioned, one thing comes to mind; ability to bypass the centralized institutions such as banks when making payments. They link the payers and payees in the same network so that no third party such as banks, PayPal and credit card companies come in.
One of the new cryptocurrencies to enter the industry is DASH. The cryptocurrency is one of the top ten best performing networks in the crypto exchanges today. Though its value is dwarfed by that of Bitcoin, Dash is equally valuable with the price of one DASH on the exchanges hitting over $1000 in the fourth quarter of 2017. This is well past other giant cryptos such as Ethereum and Litecoin that have been trading at less than $400.
What exactly is Dash?
Dash is an open source peer-2-peer cryptocurrency started in 2014. The cryptocurrency was launched in 2014 and went by the name Darkcoin before converting to Dash in March of 2015. By the close of 2017, it grew to become the 6th largest cryptocurrency based on market capitalization, only behind Bitcoin, Ethereum, Bitcoin Cash, IOTA, and Ripple.
Dash is like Bitcoin in very many ways. It operates on blockchain technology and runs as an open distributed ledger that captures details of all the transactions. While its transactions appear to mimic those of Bitcoin in many ways, Dash helps to solve the problem of speed that has become a significant undoing component in Bitcoin. In Bitcoin, transactions can take up to 10 minutes to complete while Dash only takes a few seconds.
Dash also introduces the governance structure that makes it possible to implement crucial changes without needing a hard fork (division). This model is perhaps what has contributed to rapid growth of Dash in the market. Experts have indicated that Dash has a huge potential that could catapult it further past Bitcoin.
Beginner's Guide to Dash
When the blockchain technology was introduced into the globe in 2009 by Satoshi Nakamoto, Bitcoin became the the only cryptocurrency in the globe. But it only acted as a motivation for developers who immediately sprang to designing new networks. Dash, was designed by one such enthusiast, Evan Duffield, who targeted addressing flaws that were becoming apparent in Bitcoin in its first 5 years of existence.
When Evan released the Dash core code, he was interested in establishing a new crypto and demonstrating that blockchain technology was indeed the way to go. This focus is now evident with the fast-rising value of Dash in the market. In 2014, Dash value was less than a dollar. This has changed completely as the market capitalization hit over 1 billion mark in early 2017 and threw the crypto to the top ten.
The potential of Dash is only starting to emerge. However, this is not a surprise to the founder or the lead team because they have been working tirelessly to enhance security, release new features, and respond to issues emerging on the network. New versions of the Dash core code and features are always in the pipeline.
The possible future rival to Bitcoin
Dash uses blockchain technology with standard nodes distributed across the globe. But this is only the first layer that users even in other cryptocurrencies are used to. To make Dash transactions extra secure and guarantee clients of better services, the lead team added MasterNodes so that the cryptocurrency operates as a 2-tier crypto in every transaction.
The new nodes have made it possible to embed new features such as InstantSend and DarkSend as well as facilitate plugging partners such as Visa without compromising the privacy of the network. It is because of this unique architecture that Dash has been named a possible competitor of Bitcoin in the future.
As more people develop the interest in the crypto world, they keep asking major questions such as these. What exactly is Dash? Is it a worth investment? Where do I buy Dash? Has it ever been hacked?
While these questions are endless especially for new users, there is no doubt that you need to get comprehensive answers when making decisions on whether to invest in Dash. This is a comprehensive guide that provides all the answers that you have always wanted to know about Dash.
Where and How to Buy Dash?
Do you want to buy Dash and enjoy the benefits associated with the current growth? Well, you do not have to wait until someone donates Dash or follow the long process of mining. A prompt method is buying. But where and how do you buy Dash?
The most important thing that people intending to buy should have is a Dash wallet. This is the location where you will direct all the Dash after a successful purchase. Note that the wallet is also very crucial to facilitating other Dash transactions such as making payment or trading on various platforms.
- Top crypto exchanges: Crypto exchanges are the main platforms you can use to buy Dash. The exchanges are the meeting places where people with Dash sell depending on the latest trends. The price of Dash is purely based on the market demand and supply. Like forex trading platforms, the exchanges allow interested parties to buy as many Dash coins as possible.
- To use Dash markets, you need to check their rules and meet them. Some will require users to signup with particular details while others will go further to require phone numbers. It is worth noting that most exchanges, unlike the Dash network, are bound by local laws that define how they operate. It is, therefore, crucial to evaluate the respective exchange to establish its security, verification requirements, and limits.
- Some of the great Dash exchanges include Poloniex, CEX.io, Kraken, and Bitfinex, and Binance.
- Crypto brokerages: Brokerage firms are special sites that allow people to buy Dash directly. Though they operate in many aspects like the exchanges, the price is not defined purely by demand and supply. The broker sets the price based on his targeted profitability. Some of the top Dash brokerage firms include Coinmama and Bitpanda.
- Cryptocurrency ATM: When cryptocurrencies debuted, it was impossible to figure out a situation where one could walk into a booth and buy the coins of choice. This is possible today. However, the available ATMs are only for the direct purchase of Bitcoins. This means that you have to buy Bitcoins to your wallet and convert to Dash in an appropriate exchange.
- Cryptocurrency clubs: As Dash and other cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Monero continue growing in popularity, crypto clubs have also emerged. These are special platforms where cryptocurrency enthusiasts meet face-to-face to discuss and trade in cryptos.
- The good thing about crypto currency clubs is that you get to meet face-to-face with the seller. Besides, you can negotiate the price and even learn more about the cryptocurrencies world. One of the most popular crypto clubs is the LocalBitcoins.com.
When you decide to join the cryptocurrency industry as a miner, investor, or to simply send payment, one must have thing is a wallet. For those interested in Dash, a Dash wallet is the location where you will hold all the Daily coins.
Note! Here, you need to be careful. Not all the software advertised as wallets are actually crypto wallets. A big proportion is actually malware.
While a Dash wallet is marked as a storage unit for Dash, the term is actually a misconception. In reality, the wallet does not store Dash because the coins are neither printed nor minted. What the wallet stores are the private keys and public keys. These are the special codes that help to point at the number of personal coins in the network so that transactions can be confirmed by the dash miners spread in the network.
How to pick the best dash wallet
- Look for the dash wallet with no hacking history.
- Only go for wallets with a large following as an indicator of approval.
- Pick the wallet with a cold storage and backup services.
- Only select the wallet that makes recovering keys easy and direct.
- The best wallet should have a large developer community.
- If looking for a mobile wallet, make sure to check for compatibility.
Top six Dash wallets on the market
1) Ledger Nano S (hardware wallet)
- This is a leading Dash wallet that has won a lot of popularity in the market today. The finger-sized hardware stores all your Dash offline and, at not one moment do the private keys leave the wallet. Also, the wallet generates a seed code that users can use to recover Dash in case the hardware gets lost or malfunctions.
2) Dash Core (desktop wallet)
- This is the official application wallet for the Dash network. The wallet also doubles as the Dash client for nodes. It has all the features of the Dash system including the IntraSend. One thing to note here is that the Dash wallet is not light. You have to download the entire Dash block which requires significant space and processing power of your computer. Unlike other wallets, you do not need any verification when using the Dash Core.
3) Trezor (hardware wallet)
- This is another top hardware wallet that operates like the Ledger Nano S. While the original design for Trezor was meant for storing Bitcoin, it can now be effectively used to store Dash. It is fitted with a special chip that stores the keys and only gets activated when the owner signs up with the right password.
4) Coinbase (web-based wallet)
- This is a leading web-based wallet in the globe. Initially, the wallet was designed for Bitcoin but has since expanded to include other cryptocurrencies including Dash. Note that the wallet also doubles as a cryptocurrency exchange. This makes it very easy to trade Dash for other top cryptocurrencies.
- The biggest drawback for Coinbase is that your private and public keys are stored on the wallet's website. Users only access the keys when sending payments. This means that the keys work just like an ordinary email.
5) Exodus (Desktop wallet)
- This is a unique desktop wallet that is available as an app. You have to download from the Exodus website and install on your computer. The wallet comes with unique features such as direct email recovery and backup seed to help restore the wallet in case of a loss. Notably, Exodus has ShapeShift inbuilt in it for direct trading.
6) Jaxx (mobile wallet)
- This is a leading cryptocurrency wallet that comes with great features, big community, and unique security features. The great user interface targets making Jaxx wallet very easy to use even for those who are new to Dash and other cryptocurrencies. Jaxx is available for most operating systems including Mac, OS, Linux, Windows, Android, and iOS.
Where to Buy Dash with Credit Card?
The credit card is perhaps the commonest method of payment that people are accustomed to. It is accepted in most conventional and e-commerce stores both locally and abroad. It is also possible to buy Dash with a credit card though only a few platforms accept them.
Before considering buying Dash with credit cards, you need to start by acquiring an appropriate cryptocurrency wallet. This is the location that the Dash coins will be directed to. You should also ensure that the Credit Card company does not restrict use for buying cryptos. The last thing is ensuring that the credit card has ample funds to meet the targeted buyout and fees. Here are some great places to buy Dash using a credit card.
Where to Buy Dash with PayPal?
When the term digital payment is mentioned, the thing that comes to mind is PayPal. PayPal is an international payment platform that represents the hard cash you have back in the bank account. Therefore, it is a representation of the cash held in a central system such s bank as opposed to being fully digital.
There is no direct method of buying Dash using PayPal. Indeed, PayPal does not allow direct buyout for cryptocurrencies. If your cash is in a PayPal account, you have to identify an exchange that accepts payments in PayPal, buy Bitcoins and then convert to Dash. Here are some of the top platforms to consider when using PayPal.
How to Buy Dash with Wire Transfer?
A lot of people have a special connection to their banks. They trust them to handle the salary, mortgage, pay staff, and even hold their savings. Now that Dash is a great investment option, here is the best procedure you can use to buy Dash with a wire transfer.
- Start by acquiring a Dash wallet. This is the most crucial thing because it will hold your Dash after a successful purchase.
- Single out an appropriate exchange. Though there are many exchanges that facilitate the trade of Dash for other cryptos, only a few accept Wire Transfer. Remember that wire transfers can take several days before hitting the exchange of choice. A good example of an exchange that accepts wire transfer is Coinbase.
- Make sure to give the right personal details and confirm them before authorizing transactions. It is important to check whether the exchange requires additional details before allowing wire transfer use in the network.
- For Dash buyers in the US, the best method of bank transfer is ACH transfer that lasts about seven days. This means you can only confirm the Dash in the wallet after seven days. Those in the EU, on the other hand, should consider SEPA transfer that completes transactions in 2 days. Most wire transfers have a very high cost of about 1.5% for every transaction.
Where to Sell and Trade Dash?
If you have been on the Dash network for some time, the chances are that you own some Dash coins. For those who acquired Dash when the network was first unveiled, it is harvest time because the value of one Dash has grown from less than a dollar to more 1000 dollars by the last quarter of 2017. You can either trade Dash for other cryptos such as Bitcoin or fiat currencies.
To trade Dash, you need to identify appropriate trading platform and follow all its prescribed rules. In many cases, the trading platforms are bound by local rules similar to those that govern forex trading. One important thing to note when selecting a great market is security. In mid-December 2017, a cryptocurrency exchange in South Korea was hacked and thousands of coins stolen. The exchange has already filed for bankruptcy. Therefore, you must take extra caution to ensure that only the most secure trading platforms are selected.
Top5 places to sell and trade Dash
- This is among the leading US cryptocurrency trading platforms that have gained a lot of popularity in the recent past. The exchange was founded in 2011 with the target of trading Bitcoins. However, it has continued to grow, and users can trade in pairs such as DASH/USD, DASH/BTC, and DASH/EUR.
- Users prefer Kraken because of high trading volumes and low transaction fees. In addition, the exchange comes with great metrics and progressive reviews that help users understand the market to make the right decisions. However, it is the ability to buy Dash with fiat currency that makes the exchange more outstanding.
- Despite its unique features, many people complain about geo-restrictions. If you are outside the allowed countries, this exchange is simply the wrong option. Besides, the process of opening an account takes very long. You could wait up to 48 hours before the account is confirmed.
- This is probably the most advanced cryptocurrency exchange in the globe. It opened doors for trading in 2014 and has grown progressively to become the leading platform in the globe.
- The exchange boasts of very high trading volumes and attractive user interface that makes trading easy and fun. But it is the large number of cryptos that one can trade for Dash that makes the platform more enthralling. You can choose great cryptos to pair with Dash such as Ethereum, Bitcoin, Bitcoin Cash, Ripple, Litecoin, and OmiseGO among others.
- The biggest challenge for using Bitfinex is the lengthy registration process and complex verification. It takes more than 10 days to get your account verified. Besides, the exchange also requires a lot of details including personal phone number and government-issued identity cards. These details could easily be used to identify you.
- The secrecy that comes with cryptocurrencies has made some people think that they are unreal. Even those who join still feel like they are alone because everyone else is anonymous. To publicize Dash and other cryptocurrencies, local trading platforms that bring traders into the same room have emerged.
- LocalBitcoins.com is a great face-to-face trading platform that helps buyers and sellers of different cryptos to meet. The platform organizes for an actual meeting where traders negotiate directly about and complete the buyout.
- The good thing about LocalBitcoins.com is that it allows traders to agree on terms. This means that there are no restrictions on the number of coins, the method of payment, or even using fiat. All you need is to agree with the buyer. In fact, you could even agree to get several Dash for a car. Remember that you must have a cryptocurrency wallet to effect the transaction.
- The biggest issue with direct trading platforms is that getting a person who is interested in selling or buying can be lengthy. Besides, people with poor negotiating skills could find themselves buying or selling for less.
- Changelly is a popular cryptocurrency exchange that has cut a name for facilitating direct transactions. In many exchanges, the process is long, and your altcoins take more time before hitting the wallet. However, Changelly allows users to immediately move their Dash and other coins directly into their wallets.
- The exchange allows users to trade in Dash and other altcoins. This makes it highly profitable because you can avoid the poor performing cryptocurrencies for stronger pairs. One unique thing about Changelly is that users are allowed to use credit cards to buy Dash and other coins.
- The biggest undoing of this exchange is placing a lot of limitations for users who want to buy Dash with fiat. In Australia, Canada, and the US, the first transaction is limited to $50 while the second one can only be $500 in 4 days.
- For Dash traders in the Far East, this is one of the fastest growing exchanges to consider. The exchange prides of being the fastest in the market. This helps users to identify opportunities and take advantage of them as immediately as possible. It also comes with great features such as cold storage, serves as a crypto wallet, and employs multiple security layers.
How Much Are the Transaction Fees of Dash?
In November 2017, Dash launched an upgrade that saw its transaction fee go down significantly compared its competitors. Now, transactions on the Dash network cost less than a cent. On the InstantSend system that sends money in less than 4 seconds, the fee has been reduced to an average of 2.8 cents (current Dash price x 0.0001).
Historically, InstantSend would cost 0.001 Dash/ 28 cents. However, the latest version 121.2 of Dash has been lauded for cutting the cost with a factor of 10. This is a great improvement that is meant to attract more people because other networks are very expensive. For example, if you want to send cash using Bitcoin network, it will cost $6.
Dash markets are the sites, meeting points, and exchanges that allow people to trade Dash for Bitcoin, fiat, and other altcoins. Note that most markets come with specific rules that every trader must follow to buy or sell Dash.
Unlike the specific cryptocurrencies such as Dash and Monero that are not regulated by law (by the time of writing this post), many exchanges are bound by local laws and international regulations. This means that you might be prompted to provide additional info such as proof-of-location, names, and phone number. Here are the main types of dash markets;
A) The trading exchanges
These are the most common Dash markets today. The sites act as the meeting points between buyers and sellers. Think of the exchanges like the common forex markets where people are free to join, buy, and sell different currencies.
B) Direct trading
When Dash was founded, no one could ever imagine that direct cryptocurrency trading was possible. In cities that have very large populations of cryptocurrency users such as New York, Seoul, and London, crypto clubs that facilitate direct trading have emerged. A great example is the LocalBitcoins.com club. The site connects buyers and sellers to start negotiation for buyouts.
Notably, the cryptocurrency markets are the considered the easiest targets by cybercriminals because individual crypto networks and impossible to break and steal native coins. To know about a great market, here are some crucial questions to ask.
- What is the reputation of the market? This is very important when selecting a Dash market. You have to follow the performance of the market, read through reviews done by experts, and feedback from past users.
- What are the charges for using the market? Every market has a fee that buyers and sellers have to meet. The target is picking a platform that has subtle fees to avoid markets that consume a lot of users’ profits. Here, it is important to make comparisons between various markets before arriving at a decision.
- How secure is the market of choice?
- The cases of cryptocurrency exchanges being hacked and billions worth of Bitcoins or altcoins getting siphoned are way too common. Check for a market that has advanced levels of security, 2-factor authentication, and no history of hacking.
- Does the market insure traders, Dash and other altcoins on the platform?
- When a market insures its traders, it means that you are assured of getting compensated in the event of hacking and loss of DASH.
- What verification details are required?
- When people join the Dash network, they target to operate as anonymously as possible. However, it is the details they provide in exchanges that could easily make them get identified by third parties. Most exchanges require additional verification as users increase their trading capacities.
- Are there administrative restrictions?
- There are some markets that only allow traders from a specific country or region to use them. Therefore, if you operate outside such jurisdictions, it is advisable to avoid such exchanges.
The best Dash markets
While Dash users have access to very many markets, it is important to appreciate their differences. These differences come in terms of charges, operation design, geo-restrictions, and the number of traded cryptos. Some even allow traders to use fiat currencies to buy Dash.
- This is one of the top US-based cryptocurrency exchanges originally designed to support Bitcoin. However, it has grown to support the top cryptocurrencies in the globe including Dash. The exchange has become very popular with millions of users across the globe.
- The enthralling user interface makes it very easy to buy and sell Dash for other cryptos securely. Unlike other exchanges that only help users to trade dash for other cryptos, Coinbase is different because it also serves as a crypto wallet. If you use the wallet, you can keep the cost low and make trading easier.
- For people who anticipate trading a lot of Dash, Coinbase will fit well because it has a special branch called GDAX dedicated to them. This is not all. The exchange also insures all the dash so that users are assured of compensation in the case of loss.
- Poloniex is a US-based crypto to crypto exchange that has been growing at a very rapid rate in the last few years. Its design comes with great features such as technical analysis charts, live chats, and news flow that help users get a unique trading experience.
- The platform has a very low fee of 0.25% for all transactions. However, withdrawals and deposits are subject to changing blockchain details.
- ShapeShift is a leading Dash market that has won the affection of many because of limited verification detail requirements. Unlike other crypto exchanges, users only need their email addresses to start trading on the network. Besides, the platform facilitates direct trading without holding your crypto coins. This means that the market will not hold your Dash after a successful buyout. Rather, all the Dash will be deposited to your preferred coins. Other pros of using ShapeShift include reasonable prices, lovely user interface, and support for multiple cryptos.
- If you are looking for a diverse market that is available in most countries; the best option is probably CEX.io. The platform comes with very diverse features and allows dash traders to use fiat currencies. However, the most outstanding thing about CEX.io is that it allows users to sell or buy dash using a credit card.
Value of Dash
Dash is among the leading cryptocurrencies in 2018 after crossing the $1 billion market capitalization mark in January 2017. Eleven months later, the capitalization grew progressively to reach over $ 7.0 billion.
At inception, Dash value was only $0.02. This value grew progressively hit $11 by close of 2016. The price growth did not stop there. The year 2017 saw Dash value grow even more exponentially to hit over $1000 by the third quarter. It is because of this that more people have started turning to Dash to reap the benefits associated with the rapid growth.
Factors that have caused the value of Dash to grow rapidly
Just like Bitcoin, Dash has shot to popularity because of the current popularity of cryptocurrencies. At first, many people looked at cryptos with suspicion. However, their applications have now demonstrated that they are real. Indeed, you can join the Dash network, send money, and own it.
Dash is a reliable source of income. Many people flowing in droves into the Dash network are interested in getting a share of the cake. For example, a person who invested $1000 worth of Dash in 2014 is now worth about $2.4 million. It is such calculations that have made a lot of people to develop the interest with the target of reaping big in coming months.
Unlike the local banks that hold a lot of details about users, many people feel that an alternative is needed. The recent financial crisis of 2008-2009 that almost brought global economies to their knees opened the lid to alternatives. Since Dash is not controlled by a central authority, it is a great alternative that many find irresistible.
More people are of the view that the value of Dash is likely to continue growing in the coming months. Investors should also take note of the looming regulations that could easily throw the current progress into an unpredictable spin. However, do not hold back when it comes to investing in Dash. It is a great crypto with unique structures that will no doubt catapult it to greater heights.
Is It Profitable to Invest in Dash?
Dash has emerged as one of the strongest cryptocurrency networks in the globe. Its committed team and top-notch security have made its value sky-rocket and people to come in droves. In addition to sending money, Dash has also emerged as a great investment opportunity. Let us demystify whether Dash is a great investment.
The current growth of Dash demonstrates the underlying huge potential
In just 4 years after launching, the price of Dash has grown from less than a dollar to more than $1000. This and the ever-growing market capitalization have made Dash one of the most desirable investments in the cryptocurrency world. But it is the unique link between Dash and other payment networks that have pointed at the underlying potential for growth.
Recently, Ripple demonstrated it could grow and even surpass Bitcoin for operating in partnership with banks. Now, Dash has established a partnership with Visa, Master Card, and hundreds of merchants. Like Ripple, Dash is likely to win more trust and grow exponentially in the coming years because of these partnerships. Here are more reasons why it is advisable to invest in Dash.
- The Cryptocurrency has demonstrated great resilience even after major challenges in the crypto world such as banning of ICO (initial coin offering) in China.
- The lead team does not tire working on new features. This means that every feature including the highly revered InstantSend is likely to get even better.
- By giving clients an easier way to convert to fiat through its card in partnership with Visa, more investors do not feel trapped with cryptos that cannot be converted to direct cash.
- Dash is at the forefront in defining the cryptocurrency space. This means that just like Bitcoin was after launch in 2009, Dash is likely to experience similar growth in a similar time frame.
While the predictions on Dash profitability point at a great future, it is prudent to also appreciate the looming challenges that could compromise the trend. Things that could easily compromise Dash profitability include the looming regulations, cyber attacks, and emerging more advanced cryptocurrencies
Where to Spend or Use Dash?
Now that I have some dash, can I spend them to do some family shopping? This is the main question that people ask when they enter the cryptocurrency world. Dash has tried to answer this question by partnering with other payment networks and multiple merchants. The number of merchants accepting Dash could soon surpass those of Bitcoin.
The Dash network indicates that over 300 merchants across the globe accept Dash for payment today. In New Hampshire, 37 locations accept Dash while Portsmouth has 16. The Three Sisters 5-Star Hotel in Tallinn, Estonia accepts payments in Dash. BitCart, an exclusive payment service, allows Amazon.com clients to make payment in Dash. Others include Algo Strategic, Cryptosteel, Yiptee, Baybil, Nelipott, and Bitfon.
As a major cryptocurrency, users should consider stores that accept Bitcoin to be within their reach because they can simply convert Dash using top exchanges before making a purchase. However, it is clear that Dash has a long way to go for higher acceptance.
Can Dash Grow to Become a Major Payment Network?
After taking a lot of time in the financial and programming niche, Dash founder wanted to bring a revolution to the way people made payments across the globe. By maintaining this focus as the bottom-line, it means that Dash is already molting into a major payment network.
- Dash has the lowest fees for sending cash: While a lot of banks, digital services, and even cryptocurrency networks still maintain very high fees, Dash is revising it's downwards. The release of the latest version 12.2 of Dash has pulled down the price of sending payment to less than one cent. It is the lowest that you can imagine without eating into your stored coins.
- The Dash system is very fast: As Dash team works on bringing down the cost of transactions, it is also improving on speed. Whether you are simply sending money or paying for services, it takes about one second to get the transaction completed.
- Dash cooperation with Visa: Perhaps this is the greatest pillar to making Dash the greatest network ever. Because people can associate it with an already established, recognized and trusted partner like Visa, the trust is extended to Dash payment network.
- Users can select the privacy levels of choice: The two-tier model of Dash system allows users to select the level of privacy through coin mixing. Once you join the network, the MasterNodes allow you to select between 2 to 8 levels of mixing (anonymity) in order to maintain higher levels of privacy. This is what makes more people opt to use it as the main payment method.
With cryptocurrencies, the ability to molt into a major network is defined by its progressive improvement. Since the Dash lead team is very active in rectifying emerging issues and maintaining top-level security, there is great potential for it to molt into a major payment network.
How Does Dash Work?
Dash operates as a decentralized peer-to-peer network. The network relies on nodes distributed across the network. Users on the network, therefore, do not need to rely on centralized authorities such as banks. The person to person operations means that only the sender and receiver understand the transaction details. Indeed, even the receiver only gets to know the funds sent to his wallet without understanding the details of the sender. Here is an account of how Dash operates.
The application of MasterNodes and proof-of-service
To make transactions on the Dash network more inclusive, it applies the proof-of-work algorithm that also drives the mining wheel. The Dash model takes proof-of-work a step higher by introducing a unique reward model to help maintain a new layer of verification and security called MasterNodes.
The standard modes are run by miners distributed on the Dash Network. Their work is the heavier weightlifting of solving the transactions puzzles and confirming transactions. On top of the standard nodes are the MasterNodes that help with further verification of different transactions.
Once a user initiates a transaction, the miners confirm and consolidate them into new blocks. However, this is only considered partial verification. Additional confirmation is done by MasterNodes that carry 6 or more confirmations. The MasterNodes enable Dash to implement additional features such as DarkSend (private transactions) and InstantSend.
Note that though MasterNodes are distributed the same way mining networks operate, you have to raise 1000 Dash to operate as a MasterNode. This means that only very serious parties can fit the jurisdiction. Most MasterNodes are hosted on private servers operated by top web providers like Vultr, Microsoft Azure, and Amazon Web Services among others.
The main incentive of operating as a MasterNode is that you are entitled to a portion of what all the miners get. When a miner adds a new block, he gets 45% of the total reward, 45% is directed to the MasterNodes, and 10% is used to fund projects through the decentralized budget model. There are more than 400 master nodes in different states across the globe.
Does Dash Use Blockchain Technology?
Yes, Dash uses blockchain technology. The Dash network runs an open blockchain with nodes/distributed miners spread across the globe. The distributed nodes help to confirm details of every transaction without requiring a central authority.
To make Dash more effective, its blockchain technology has been enhanced with a 2-tier layer and rich features. The network uses X11 chained hashing algorithm that was designed by the founder, Evan Duffield. This hashing algorithm uses 11 different hashing algorithms for the proof-of-work that help to enhance decentralization and make mining extra difficult.
The complex hashing algorithm is applied at the node/mining level and MasterNode stage that makes it extra difficult to break in. This is the main reason why the network has not experienced any case of hacking since it was founded. Enrichment on the Dash blockchain The Dash Network has been greatly enhanced through unique features that make sending cash prompt. These additional features have also made it possible to plug in third-party cash sending companies to make Dash more popular and reliable.
- DarkSend (private send): When a node/miner or user installs the Dash client, his computer stores pre-mixed Dash in the personal wallet. The coins are mixed and can be used anytime the user wants. The mixing process in the wallet is seamless, automatic, and does not require the user to act.
- After creation of 10 blocks, all Dash user clients send unmixed dash into every Dash client before MasterNodes utilize chain succession to mix and break them down. After processing by at least 2 MasterNodes, the coins are relayed to the adjacent MasterNode until the preferred level of anonymization is achieved.
- DarkSend is used to mean private send and allows users to select the number of coins mixing to enhance the level of privacy. You can opt for 2-8 rounds of mixing by different MasterNodes to stay completely anonymous.
- InstantX (instant transaction): This is the Dash blockchain feature that allows users to send transactions instantly. It only takes 4 seconds to confirm transactions using the InstantX. This feature utilizes the second blockchain tier (MasterNode) to generate a “dash-lock” after a transaction has been created. This means that the sent Dash cannot be spent again.
- In addition to the standard essential services performed by InstantSend and MasterNodes, they also vote to establish who should get the 10% block reward.
The blockchain is the foundation of Dash network. The blockchain is a decentralized ledger that carries details of all the transactions that take place in the network. The ledger is secured through the proof-of-work mechanism referred as mining. The process involves solving complex mathematical problems to confirm transactions and add them to the latest block. The first miner to get the complex puzzle right is rewarded with Dash. The process of mining Dash can be broken into three phases.
1) Acquire the right hardware
- When Dash was launched, the main focus of the proof-of-work algorithm was to discourage wholesale mining. Therefore, CPU/GPU mining was the best way to go. However, advanced technology has made CPU/GPU mining less effective as miners shift to the specialized Dash ASICs (application specific integrated circuits) that are designed for Dash. Some great examples include ASIC Pinidea X11 Miner DR-1 and ASIC iBeLink DM384M X11.
2) Install the mining software
- Once the mining hardware is in place, the next thing is installing appropriate mining software. You can opt to use the MinerGate miner or Dash Client that comes with all the additional rich features such as InstantX for prompt payments. Note that most mining hardware also comes with specific mining software though users can also opt for third parties apps.
3) Join a Dash mining pool
- Mining alone on the Dash network has become very difficult as Dash core progressively adjusts the mining difficulty. A better way to mine profitably is joining mining pools. These are groups of miners who consolidate their hashing power to raise the chances of confirming more transactions. The resulting rewards from mining pools are shared among the members based on the hashing power contribution. Some great pools to consider include Coinotron, Aikapool, Coinmine.pl, and Cryptopool.
What Are the Advantages of Dash?
Since blockchain was introduced into the crypto market, it has grown rapidly to become the most important technology in almost every sector. It has molted from a suspicious mystery to a highly demanded alternative to fiat applied in financial, publishing, media, and education among other areas. Here are some of the great benefits of using Dash.
- Dash is anonymous
- Just like everyone wants a bank transaction to stay private, so do blockchain technologies. Dash takes the level of anonymity a step higher because all transactions are encrypted, peer-to-peer, and a 2-tier authentication system. Therefore, no one will ever know about the DASH in your wallet, the transaction details, or even your personal info. This is the best way to operate privately without worrying about revealing personal identity.
- You can make payment anytime of the day across the globe
- If you want to be attended in a local bank after 4 pm, at night, over the weekend, or during the holidays, it will be impossible. However, Dash now puts the power of making payments on the user's hands. No matter the time of the day or night, all that one requires is the address of the payee to complete a transaction. There are no banks to verify your transactions or rules to chock your move. All you need is ample Dash on your cryptocurrency wallet and the right address to send.
- A great way to own your funds and the network
- When you compare Dash and a conventional bank, they are the direct opposite of each other. Your bank considers you passive and will scrutinize the source of funds, personal intentions, and people you send to. However, the Dash network makes you the owner and gives you absolute control of the funds. As a cryptocurrency, the network is owned by those who use it and allows users to take full control of the funds in their wallets.
- The fastest and cheapest way to make payments
- The bureaucracies involved when sending cash through the bank make the process lengthy and inconveniencing. Often, it takes days to effect especially when moving large amounts of cash. However, Dash has revolutionized this by ensuring that all the payments are effected within seconds with its InstantSend feature.
- The transactions are also done on a person-to-person basis. This means that no charges that are meant to raise the profits for banks or central organizations. Instead, the small fee charged on the Dash network transactions go into maintaining the network and motivating the nodes.
- Dash is the best bridge between crypto and fiat currencies
- Unlike other cryptocurrencies, Dash has taken a unique step of creating a card (spectrocoin) that can be used directly to withdraw the altcoin from most ATMs. This means that you no longer have to feel like personal funds are locked in the Dash network. Simply check into any of the Visa or MasterCard enabled ATMs to make a withdrawal.
- No risk of charge-backs
- Have you ever ordered an item only for the payment to get declined because you do not subscribe to certain ideals that the seller insists on? Dash is the best way to avoid such chargebacks. As long as you like an item and the seller accepts payment in Dash, there is no way he can follow back to decline payment.
- Dash is a great method of avoiding seizures by third parties
- Today, your cash stored in a bank can easily be frozen with the strike of a pen. If you are sued because of any reason or a court battle comes knocking on the door, your savings is the easiest target. Remember that you need not be a criminal to attract such lawsuits. Your vehicle can be involved in an accident, a social battle can easily head to the court, or an ex-lover can target you. When you join the Dash network, it is only you who knows about the funds, the wallet, the private keys, and stored funds. No third parties such as banks or courts can reach or freeze the account.
What Are the Risks of Dash?
The benefits that come with using dash are many. The network makes you feel valued and proud all the time. Despite the anonymity, lower transaction fee, and extra freedom, the network comes with an equal share of risks that every user should be aware of.
- The risk of losing personal keys
- Your Dash wallet such as Ledger Nano S or Coinbase is the most important component because it stores the native coins and allows you to make transactions. However, the risk of losing the private keys is always looming. The computer/phone with the wallet can be stolen, an attack can be directed to you, or third parties can access them. This could mean the loss of all the Dash stored in the wallet.
- The transactions on the Dash network are irreversible
- While this might is considered a strong point for Dash and other cryptocurrency networks, it is also a huge drawback. In case the sender mistakes the address and releases the cash to the wrong address, there is no way that cash can be traced back. It is gone forever.
- The danger of losing
- Today, everyone is rushing to join the dash network because of the good performance in the exchanges. While this rush points at the growing popularity of the network, it is also an indicator of people’s behavior. Most people are interested in the best performing cryptos and are likely to leave Dash and join newer cryptos that will join the industry later. This risk is rife because every new cryptocurrency comes to address weaknesses of the existing cryptos. This means that the upcoming cryptocurrencies are likely to be better and, risk making Dash lose its current appeal.
- The upcoming regulation is likely to affect Dash negatively
- Dash and other cryptocurrencies are considered serious disruptions to central governments. Because of the anonymous nature of the cryptocurrency, the governments feel threatened because the control of currencies could easily get out of hand. This is the reason that some countries like China, Taiwan, Russia, and the EU have cautioned their traders about using Dash and other cryptos. Therefore, the looming regulations are likely to affect Dash value, its operations, and applications in a very negative way.
- The danger of high volatility
- When Dash was launched in 2014, its value was less than $1. This grew to more than $1000 in the subsequent 4 years. However, the cryptocurrency has demonstrated that it is prone to issues that take place around the globe. When China banned ICO (initial coin offering), the Ethereum experienced the DAO attack, and Bitcoin reported its upcoming fork, the price of dash reported significant fluctuations. This means that the cryptocurrency’s value is likely to get affected by new issues including the looming regulations.
- The risk of attacks
- It is not uncommon to hear cryptocurrency exchanges getting hacked and a lot of money in Bitcoins or altcoins siphoned. The latest attack at the time of writing this post was in South Korea where cybercriminals made away with a lot of money in Bitcoins. In 2016, Ethereum was attacked and millions of ether stolen. Though Dash has installed good security measures, cybercriminals are advancing their technologies and could still attack it either directly, through your wallet, or common exchanges.
- Danger of getting involved in fraud
- While banks do everything possible to vet all the people using their networks, Dash operations rely on the nodes that target only to establish that people making payments have ample coins to spend. Because no personal details are shared or vetted, criminals are likely to find a haven in the network. They could steal cash and hide it in the network or even pay you with money raised through scams.
What Happens if Dash Gets Lost?
Every Dash user has to be content with the looming risk of losing the altcoins. The history of cryptocurrency is full of cases of individual and massive losses, especially via hacking. Here are the common ways that your dash can get lost.
- Formatting the computer with the main wallet installed in it.
- Sending Dash to the wrong wallet.
- Hacking of your wallet and siphoning of Dash.
- Cyber attack in a cryptocurrency exchange.
- Losing your private keys.
If you lose Dash through hacking of the personal wallet, desktop, or attack at the exchange level, it means that the Dash has exchanged the wallet. They are now owned by a different party and will be in circulation. The worse thing about this loss is that there is no way to reverse the transaction.
For those who lose their Dash because they cannot longer remember the private keys, it means that the coins will still be in the system. However, they will forever remain dormant because the owner cannot activate them. Therefore, make sure to have a secure backup to ensure that dash can be restored easily in case of a loss.
Since their debut in 2009, cryptocurrencies have had a rough ride with many governments. Most administrations are caught up between a rock and a hard place as impacts of cryptocurrencies such as Dash start being felt. Within the first few years of Dash existence, there are no regulations that touch on it directly. No government has passed a single legislation to guide its design, structures, use, or even taxation. But this could change sooner than later as more governments come in the open to express their dissatisfaction.
Why it is difficult to regulate Dash?
Over the last three decades, there is no doubt that the best way to take economies ahead is considered to be tech advancements. This is the greatest pillar that has made the US the super authority it is today. Other jurisdictions that are leveraging their positions based on technologies include Hong Kong, Singapore, China and the EU. Cryptocurrencies are simple applications of latest blockchain technologies that make it easy, fast, and cheap to send money. Therefore, how do you regulate such technology? Why do governments find it hard to legislate cryptocurrencies?
The technologies have created a catapult to take computing to the next level
Every person in the crypto world appreciates the fast shift in technology. By year 2005, computing technology was considered to have been in infancy. This phase created issues especially about big data, its storage, and use. Now, Dash has given the best solution. Therefore, it is the catapult that governments, individuals, and businesses can use to rush to the next level.
Businesses are opting for Dash technology to cut operational costs
To grow a business, the lead team must craft a reliable technology that can help to cut cost and optimize profits. Think of a company that is selling fashion clothes. If it only accepts bank transfers, the cost, time, and convenience are greatly compromised. Now, Dash places the seller and buyer on the same page, so that cost of making payment is indeed negligible. What a great way to cut costs?
The Dash network belongs to the users and not a single authority
Regulating centralized institutions such as banks is easy because they have clear target structures and ownership. However, Dash does not have a direct owner. Since the inter-nodes and users are spread all the over the globe, it is very difficult to target them. Who do you address with such regulation?
The Dash and entire cryptocurrency network keep molting rapidly
The cryptocurrency networks and technologies have been molting rapidly, and it is very difficult to target any of them. For example, Dash came to address flaws of the preceding cryptos. This means that any regulation that targets the current blockchain technologies is likely to get obsolete in future. Despite these issues, one thing that Dash users should appreciate is that regulations are coming. Therefore, they should prepare for possible shocks in Dash value when the laws finally take effect.
Is Dash Legal?
Yes, Dash is legal. The entry of cryptocurrencies is a huge disruption to the way things are done in the financial sector. The peer-to-peer design of the Dash network allows people to send cash directly without involving banks and other centralized institutions. However, this has been seen as a source of great conflict.
- (a) The model has created a new method of payment that governments have no control to.
- (b) There is a huge risk of banks being rendered redundant. Some could even close down.
- (c) If the Dash network’s popularity continues, there is a risk of massive job losses.
- (d) The governments have been denied a great source of income because transactions are direct.
To bring the legality of Dash to focus, it is better to follow different jurisdictions. Some of them are seeing the blockchain technologies as possible levers for faster growth while others are calculating how to block them completely.
- The US
- Dash is legal in the US. There is no legislation that has been passed in the US to guide use or application of Dash. After the FBI (federal bureau of investigation) cited its concerns that the blockchain technology can be used to fund terror, the federal authorities have indicated they will pass legislation to guide Bitcoin, Dash, and other altcoins.
- The only direct guideline from the government with relation to Dash is through the Commodities Futures Trading Commission (CFTC). The commission argued that cryptocurrencies must be treated as commodities. This means that they are grouped with other tradable commodities. The focus of this classification was to make it easy for the government to target revenue arising from trade and growth of Dash and other cryptocurrencies.
- South Korea
- Dash is legal in South Korea. The country has indicated that Dash and other cryptos are and will not be classified as currency. This means that you can operate without worrying of government censure. However, the government has been monitoring every cryptocurrency’s moves and striking out what is thought to be criminal or risk the country’s peaceful existence.
- Early in December 2017, a man was arrested and prosecuted for trying to use blockchain technology to purchase drugs. By Mid December, the Bank of Korea banned the highly publicized trade of futures contract in the country. This saw top exchanges in the country that were working the trade such as Securities and Shinhan Financial Investment and eBest Investment cancel seminars associated with the event.
- Taiwan has been very vocal about the legality of Dash. While there is no legislation that limits or guides the use of Dash in Taiwan, the government appears focused on nipping anything that can disrupt its operations. For example, cryptocurrencies ATMs such as Bitcoin ATM were banned in Taiwan.
- The country has also advised its citizens to stay away from Dash and other cryptos arguing that it is a bubble that will burst soon. In 2013, The CBC and Financial Supervisory Commission (FSC) (Republic of China) gave a joint statement that warned against the use of cryptocurrencies. However, use of Dash and other cryptocurrencies have blossomed very much in Taiwan.
- The European Union
- While other countries are rush to ban Dash and other cryptos, the EU has taken a positive approach. The giant economic union believes that the blockchain technology used by Dash and other cryptos has a silver lining. It has indicated that it is studying Dash to see how the benefits can filtrate to more people.
- In 2015, the EU Court of Justice made a historic ruling on cryptos. It ruled that cryptocurrencies should be considered virtual currencies. Therefore, they should be exempted from VAT since they are different from conventional currencies. By insisting that cryptocurrencies are means of payment, the court made cryptos to be classified as other means of making payments such as Visa.
- The European Banking Authority has advised individual countries to craft immediate rules to deal with Dash and other cryptos as it fast-tracks an appropriate regulation. The target appears to be ensuring that Dash does not become an avenue for money laundering and scams.
- While other countries appear to juggle on the idea whether to regulate cryptos, Russia has recently indicated that it is willing to throw the first stone. All along, the Russian government through the Russia Central Bank (RCB) indicated that it was not willing to regulate cryptocurrencies. Recently, RCB indicated that it was considering making it illegal to accept payment in cryptocurrencies and imposing taxes on Dash as well as other cryptocurrencies.
- The UK
- The UK government has expressly indicated that Dash and other cryptos are unregulated and, therefore, legal. The cryptos are considered private money and no direct value is imposed on them in terms Value Added Tax (VAT). However, when used to make payment for goods and services, VAT is applied just like other currencies.
- These sample jurisdictions demonstrated that countries leaders have become paranoid. They have demonstrated that most jurisdictions are worried that the influence of Dash could become so much and get out of control. You should, therefore, expect the status of Dash to change in future based on individual countries' approach to legislation.
Dash and Taxes
The entry of cryptocurrencies into the finance industry took most governments by surprise. Dash and other cryptocurrencies have, however, hit the most painful section of the governments; taxes. The network helps traders, people sending cash, and those holding the Dash coins for growth to mask themselves from all parties including tax authorities.
The notion of tax and Dash has become a thorny one as it now emerges that transactions might not be completely shielded from taxes. In the US, the Commodities and Futures Trading Commission has explained that Dash must be treated as a commodity. This means that any profit that results from trading Dash is subject to taxes.
In Israel, Dash and other cryptocurrencies were given a new lease of life after the government indicated it has no intention of regulating them. However, it expressly pointed that all transactions are subject to paying taxes.
Tax experts have explained that though the operations of Dash are anonymous, failing to make appropriate tax deductions could haunt them in future. The looming regulations are likely to compel the respective networks to generate transactions that can easily expose individual users and make them subject to huge penalties for skipping paying taxes. Therefore, what should you do to remain on the positive side of the law when it comes to taxes?
- Treat any income as taxable revenue.
- Ensure to capture every transaction detail and store appropriately as a proof of tax compliance.
- Make sure to note the value of the cryptocurrency and corresponding fiat at the time of every transaction.
- For businesses using Dash for payment, every transaction should be captured, recorded, and tax remittance done just like in standard transactions.
Does Dash Have a Consumer Protection?
The biggest concerns about cryptocurrencies such as Dash and others is consumer protection. Dash does not have direct consumer protection. While Dash has been working extra hard to ensure that its products are carefully packaged, and clients can get greater value, it does not come out to insist on consumer protection.
When the founder released the Dash core code, he ceded the ownership of the network. All the decisions are now made by the nodes distributed in the network all over the globe. To get a clear picture of this, let us go back to the beginning.
When Evans Duffield launched the Dash network in 2014, a bug in the network compromised the mining difficulty and made 10% of the total number of coins to be mined the first few days. Though he was the founder, the Dash community denied him the opportunity to re-launch the cryptocurrency. The network was no longer in his hands. This demonstrates that the authority of the network is not with any single entity, the founder, or the lead team. Rather, it is vested on the nodes that are distributed on the network.
The fact that the entire network is responsible for all the decisions on the network means that if you lose Dash coins, there is no one to report to. Besides, Dash is operating outside the current legal regime because there is no regulation to guide it. Therefore, you must be extra careful because there will be no authority, government or company to run to in the case of a loss. To stay safe on the Dash network, here are some great tips to apply.
- Always triple check the addresses before sending transaction.
- Consider designating a specific computer for Dash related transactions.
- Never share the private keys with anyone.
- The personal computer and phone with the Dash wallet should always be updated to prevent the risk of loss.
Illegal Activities with Dash
The anonymous nature of Dash and other cryptocurrencies makes them some of the great platforms for Ponzi schemes and illegal activities. Criminals prefer them because they cannot be identified by authorities after encryption of their identities.
Despite the ease of use, the Dash lead team has tried as much as possible to keep scammers away. Up to date, there have been no illegal activities repeated with Dash. Note that this does not mean Dash is scam proof. You must always be extra careful by verifying those you are making payments to. If a scammer tricks you into paying for products and not delivering them, you cannot blame Dash.
Is Dash Secure?
When Duffield started working on a new cryptocurrency, he knew that success was mainly dependent on the ability to maintain the security of the network. The lead team has not disappointed. Dash has emerged as one of the most secure cryptocurrencies in the globe. The network uses advanced encryption as well as the trustless protocol to guarantee users of extra security in the network.
- Advanced cryptography: When users initiate transactions, all the details are completely encrypted to reduce the chances of any third party discovering them. Whether it is local authorities, hackers, or even courts, it becomes very difficult to follow back or break in.
- Two level engineering system: Dash uses the 2-level structure that is propelled by advanced encryption to ensure that no hacker can reach the clients’ assets.
- Regular updates to the Dash core: Dash core team appreciates that its role if it is to become the major network the founder espoused at inception. It is because of this that the Evolution Alpha or Dash Version 12.1 has been released with latest security and performance features.
- Only MasterNodes with collateral can perform advanced transactions: While the miners in the network help to add blocks into the open ledger, it is only MasterNodes that have placed collateral of 1000 Dash can perform InstantSend, PrivateSend and governance functions. The collateral means that the MasterNodes have to be extra vigilant to avoid losses.
Is Dash Anonymous?
Dash is anonymous. The Dash founder targeted taking anonymity to a whole new level when he launched the network. This commitment has made Dash network introduce many features to become one of the most anonymous networks in the globe today.
When you initiate a transaction, the details are encrypted using advanced technology so that miners can only confirm the details but can never follow back to know about individuals particulars. Note that confirmation by miners is only one layer of confirmation. The transactions are taken to the next level of confirmation that must be done by MasterNodes. They take the transactions to about 6 rounds of confirmation before a new block is considered permanent in the public ledger.
Using the DarkSend feature, users in the network are allowed to select the level of anonymity they want. In every 10 blocks, the Dash user clients receive unmixed Dash that can be subjected to complex mixing by MasterNodes. You could opt for 2 to 8 levels of mixing (anonymization) to keep your dash more private.
Has Dash Ever Been Hacked?
The notion of security is perhaps the greatest thing that every cryptocurrency network has to focus on. Users on the network want to have the assurance that their coins are safe from hackers. The Dash lead team has worked extra hard to guarantee users of total protection from hackers. Since its establishment, there has not been a case of hacking on the Dash network.
Remember that saying Dash has never been hacked does not mean that attempts are not made on the network. The Dash team has been working on regular updates of its Core Code to seal all gaps that can give hackers easy access to the network.
To remain safer when using the network, it is important to note that hackers are likely to target your Dash in other places other than the main network. Most of the hackers target breaking and stealing Dash at the wallet and exchange levels. Therefore, you should always keep the private keys securely, keep the home computer updated and pick the most secure trading platform.
How Can I Restore Dash?
The design of the Dash network is meant to provide users with highest possible security. Therefore, the network bestows the owner with the task of taking care of the coins through their wallets. Therefore, losing your Dash can be considered synonymous with losing the wallet that stores them.
In many cases, the loss is permanent, and there is no way to restore the coins. However, wallet designers have improved the architecture so much, and it is now easier to restore lost wallets. Here are some ways you can use to restore the wallet.
- For Dash users with hardware wallets such as Ledger Nano S, the system provides them with a seed phrase that they are supposed to use in case the wallet gets lost. All you need is getting a new hardware, use the private keys seed to restore dash, and reconcile with the Dash client.
- For users with Desktop Dash wallets, it is important to keep a backup to help with recovery in case of a loss. The backup acts as a complete app that you can reinstall on the computer even after formatting the drive.
- If you have a web-based wallet, it is perhaps the easiest to restore lost Dash. Most web-based wallets such as Coinbase insist on managing the private keys so that users only need to verify their identity to recover their identities. This operates the same way as the email address.
The bottom-line for recovering lost dash is ensuring that you have a good dash back-up. In many cases, people acquire multiple hardware wallets and store one under lock and key while others opt for the paper wallet to avoid the risk of hacking.
Why Do People Trust Dash?
The entry of cryptocurrencies into the market was marked with great suspicion. At first, nobody even took notice of Bitcoin network when it was launched in 2009. But this has changed over time with the growing popularity of cryptocurrencies. Dash has particularly won the affection of many because of its unique features. Here are more reasons why people trust Dash.
1) It has a highly committed lead team
- The trust in Dash network is mainly tied to the focus and goals drawn by the founder. While other networks enter into the crypto world to reap maximum benefits from the rising popularity, Dash is interested in ensuring that users get the highest possible value. The lead team never lets the eyes of the core mission.
2) The founder is not a mystery like in other networks
- Though the Dash cryptocurrency has always emphasized on taking anonymity to the highest possible level, its founder is not a mystery. This has made more people associate with him and the entire network. It is because of this that the network is slowly molting into a major payment network.
3) It has helped to enhance payment by partnering with other related providers
- One reality that parties in the financial sector must contend with to grow is that other players are very important. While the focus is helping clients to understand and join the cashless system, partnering with parties such as Visa has advanced the popularity, trust, and leveraged growth. More people can now associate with Dash because they can walk to a Visa or Master Card ATM and withdraw the coins they mined in the currency of choice.
4) Dash value has maintained consistent growth over time
- To develop trust in a system, people want to see consistency. Since its founding in 2014, the Dash team has maintained focus on improving the system through regular updates to the core. This has in return yielded progressive growth that people can look to when investing in the native coin.
5) No reports of hacking since the network was established
- Since Dash was launched, there has not been a single report of hacking. The InstantSend and DarkSend features have made it possible to confirm transactions via the 2tier system. This has made more people to believe the security systems installed by Dash.
Remember that this trust always goes together with the emerging developments in the crypto industry. Therefore, Dash can only have the guarantee of growing trust if it keeps increasing the network security, building more partnerships, and enhancing operational features. The trust will also depend on the nature of looming legislation.
History of Dash
Initially, Dash was released as XCO (Xcoin) in January of 2014. A month later, the name was rebranded to Darkcoin before changing again to Dash on March 2015. At this point, Evan Duffield was still figuring out the long-term focus of the crypto and, therefore, wanted to get a name that was easy and fun to associate with.
Within the first couple of days after launching, close to two million coins (about 10% of total coins) were mined. Evan attributes this to one of the bugs created when he implemented fork of Litecoin code. The bug adjusted the mining difficulty making it easier to mine the Dash network by calculating a corrupted value to form a subsidy. The community that had mined the first coins refused to allow Evan to relaunch the coin or airdrop the network. He was forced to distribute the mined coins to the network in the subsequent months though at a very low price.
The Dash treasury system
In August of 2015, Dash added a new feature called the treasury system. The new feature called the decentralized governance by blockchain made it possible to allow the MasterNodes spread in network to vote for budget proposals for direct funding through the blockchain from a section of the block reward. This is one of the key reasons why the Dash network has been very popular because all the MasterNodes have some share to take home for maintaining the network.
After a block has been confirmed, the Dash miner takes home the bigger share while the nodes get rewarded for being part of the system with 45%. The governance system has been voted one of the best in the crypto world because of its potential to keep the growth momentum high all the time. It is the reason that Dash could easily outdo other cryptos including Bitcoin in future.
The Keiser sponsorship and Dash publicity
The Dash network recently approved a $500,000 funding to sponsor Max Keiser’s Great American Pilgrimage tour. This is one of the highly publicized tours that target educating people about Dash. The tour is expected to reach more than 700 million viewers across the globe and ask them to join the dash network.
Using their Dash-branded recreational Vehicle, Max and Stephen Baldwin focus on educating the ordinary people to come forward and join the Dash network to reap its huge benefits. They answer the common questions that most people have about the cryptocurrencies and demonstrate that they are real. This is one of the main boosters that have propelled Dash to the current high popularity.
Who Created Dash?
Dash was created by Evan Duffield. Evan wanted to create a cryptocurrency that was completely anonymous and an easy to understand bridge between crypto and fiats. Though this was really murky at the beginning, his dream has become a reality as Dash is rated among the top ten biggest cryptocurrencies in the globe.
Evan started computer programming at an early age of 15 years in the city of Arizona. By the age of 20, he had begun his career by working with companies such as Verizon Wireless, Wells Fargo, and even Warped AI (artificial intelligence). It is at this point that he developed an interest in big data analysis.
The interest in artificial intelligence made Evan to advance studies in related studies and completed the series 65. At this stage, his obsession with Bitcoin became so apparent and went ahead to create his own cryptocurrency, Xcoin that later changed to Dash.
Unlike other networks, Evan is not anonymous. He believes that people should be able to interact with him and the developer team to work on progressive improvements. With the current fast growth of Dash, there is no doubt that Evan has achieved his goal. But he is not done as the Dash lead team keeps working on new features to make Dash better.
Dash Videos and Tutorials
Dash Introduction by Evan Duffield
Virtual Corporation by Evan Duffield
Incentivized Infrastructure and Masternodes by Evan Duffield
Why Dash Is Better Than Bitcoin
Why Dash Is Superior to Bitcoin
What Stands Between Digital Currency & 'Mass Adoption'?
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