As a project built on the Bitcoin codebase, initiated by Evan Duffield starting in 2014, after two name changes from Xcoin to Darkcoin, in 2015, this cryptocurrency officially changed its name to DASH and has maintained this name to the present. So, what exactly is DASH coin, the purpose of creating DASH, and how it differs from BTC, you can see the information right here.
Contents
- 1 What is DASH coin? Is DASH a good investment?
- 1.1 Concept of DASH Network, What is Dash coin
- 1.2 Who is founder of DASH coin?
- 1.3 Basic Differences Between Dash, Bitcoin, and Litecoin
- 1.4 What Are the Most Notable Features of DASH Coin?
- 1.5 Who Are DASH’s Competitors?
- 1.6 What has been the price trend of DASH coin?
- 1.7 Should You Invest in DASH Coin?
- 1.8 Where to Buy DASH Coin, Which Exchanges are Reliable?
- 1.9 What are DASH Coin Wallets?
What is DASH coin? Is DASH a good investment?
Concept of DASH Network, What is Dash coin
DASH is a blend of Digital and Cash.
Dash operates efficiently as two separate yet related entities.
- Dash Network is the blockchain platform that facilitates financial transactions.
- DASH coin is the digital currency powering the Dash Network.
There are two main ideas behind the creation of Dash:
- Dash was created to solve issues regarding scalability, transaction costs and processing speed of Bitcoin. Dash facilitates faster money transfers with lower costs.
- Dash was also created to provide transaction privacy as blockchains have a public ledger open to the public. This is the main reason why Dash initially started with the name XCoin in January 2014 and then rebranded to Darkcoin in February 2014. Finally, it had to change its name to DASH in March 2015 after some illegal activities were facilitated through this cryptocurrency.
Basic information of DASH coin:
- Blockchain: DASH
- Maximum supply: 18,900,000
- Circulating supply: 12,044,051
- Current DASH coin price: $ 32.84
Who is founder of DASH coin?
The founder of DASH is Evan Duffield – a software developer who has worked at many companies including Warped AI, iAcquire, Wells Fargo, and Verizon Wireless. He is also known as a data analysis expert and holds a Series 65 certification in finance.
DASH was created by Evan Duffield in 2014, but in 2017, he stepped down as CEO of the project and handed over the reins to Ryan Taylor.
Currently, DASH is operated by Dash Core Group, Inc. (DCG) – one of the organizations working for the Dash Network. Each month, this group is directly funded from the blockchain if approved by the network.
Basic Differences Between Dash, Bitcoin, and Litecoin
DASH | LITECOIN | BITCOIN | |
Year of release | 2014 | 2011 | 2009 |
Total supply | 18.900.000 | 84.000.000 | 21.000.000 |
Consensus algorithm | POW/POS | POW | POW |
Transaction speed / Blocking time | 2.5 minutes | 2.5 minutes | 10 minutes |
Token | DASH | LTC | BTC |
What Are the Most Notable Features of DASH Coin?
Masternode was invented as a unique feature of the Dash network and forms a second layer used to ensure the blockchain is always ready for all participants. Masternodes also perform several other functions related to the health and efficiency of the network, such as administration, secure data storage for users, processing transactions for lightweight wallets, and facilitating instant and private transactions.
Dash is the first digital currency to offer safe instant transactions based on the masternode network. Unlike conventional blockchains, where confirmation of transactions in a block is required, Dash uses a network of masternodes to confirm that the funds designated in a transaction have not been spent and then locks them within 1-2 seconds so they cannot be spent again until the transaction is completed. Any transaction that attempts to use the same funds will be rejected by the network, even in the case of a 51% attack.
A mnemonic seed is a set of 12 or 24 words representing a specific cryptographic key sequence that controls your Dash balance. As spending Dash involves signing to create transactions, losing or giving your mnemonic seed to someone else is akin to losing or giving away your Dash. However, since the mnemonic seed is only used when creating or restoring a wallet, it can be used to recover access to Dash if your phone or laptop is stolen. This is a significant advantage over traditional cash in your wallet, which would be lost forever if stolen.
Used for legitimate purposes and often required to achieve personal or commercial privacy for sensitive transactions.
However, this feature was the reason DASH had to change its name twice as some illegal activities were facilitated through PrivateSend.
Who Are DASH’s Competitors?
With the goal of developing DASH as a replacement for traditional payment methods, DASH coin faces numerous competitors from both the cryptocurrency market and traditional credit cards, Fiat currency:
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Level 1: DASH competes with Litecoin and Bitcoin Cash
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Level 2: DASH also directly competes with Visa, Mastercard, Paypal, Amex, Apple Pay…
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Level 3: DASH also faces competition from other privacy-focused cryptocurrencies like Monero and ZCash.
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Level 4: DASH competes directly with cash currencies like USD, EUR, Chinese Yuan, Japanese Yen…
=> There are too many competitors DASH has to face. If it wants to become a widely used alternative payment method, DASH needs to offer superior features that people are willing to abandon old methods for.
What has been the price trend of DASH coin?
Please see the chart below for the price trend of DASH coin over the past year:
To view the DASH price trend by day, select 1D, by week select 1W, by month select 1M, 3M, 6M, and from the start of market entry to now, select ALL.
2014: The chart shows that when DASH first entered the cryptocurrency market, its price was around $10.
2015 – 2016: DASH coin’s price still hovered around $10 and didn’t show much progress.
2017 was a historic year when DASH’s price soared above $1500, becoming a digital payment method accepted by some brands in the US.
2018: After peaking above $1500, by the end of 2018, DASH’s price dropped to around $80 due to cryptocurrency crackdowns in countries like Japan, affecting the entire market, not just DASH.
2019 continued to be a year of decline for DASH, with its price around $40.
In 2020, early in the year, DASH’s price rose above $130, then gradually decreased, stabilizing at $60 – $70.
2021 was a year of fluctuation for DASH, with Bitcoin’s boom affecting the entire market. In May, DASH’s price at times exceeded $450, then hit a low in July around $110, and rose again to around $270 in late August and early September.
Current price of DASH is $ 32.84
Should You Invest in DASH Coin?
First, let’s look at the advantages that DASH coin possesses:
+ DASH offers better privacy and higher transaction speed compared to Bitcoin.
+ All Dash coins are equal and interchangeable.
+ Transaction costs are much lower than Bitcoin.
+ Dash cryptocurrency can finance its own development (when a DASH coin is mined, 45% goes to miners, 45% to Masternode, and 10% to fund the operation of the DASH network).
Everyone in the Dash cryptocurrency community has the opportunity to voice their opinions and contribute to development.
DASH has a limited supply, making it scarcer over time and potentially increasing its value.
Then, the disadvantages that DASH coin still possesses include:
There have been criticisms that DASH is not truly decentralized, as many vital functions are carried out by Masternodes. If someone controls the majority of Masternodes, they could potentially control the Dash network.
+ DASH is also facing fierce competition from other cryptocurrencies developed for payment purposes, privacy-focused coins, and traditional payment methods like Visa, Mastercard, Paypal, cash…
+ DASH has been exploited for illegal transactions and may come under scrutiny from regulatory bodies.
+ DASH has suffered from technological errors, leading to the mining of 1.9 million DASH coins (10% of the supply) within the first two days of launch.
+ DASH does not support smart contracts like some of the newer cryptocurrencies.
Where to Buy DASH Coin, Which Exchanges are Reliable?
Among these exchanges, Binance is currently the largest cryptocurrency exchange that you can consider.
What are DASH Coin Wallets?
To store DASH tokens, you can choose from the following types of wallets:
– DASH is a digital currency built on the Bitcoin codebase with similar technology but has addressed some of Bitcoin’s drawbacks such as slow processing speed, high fees, and lack of privacy.
– DASH has undergone two name changes as it was previously exploited for illegal transactions due to its privacy features.
– DASH is a fork of Litecoin, which in turn is a fork of Bitcoin, fundamentally DASH and Litecoin are quite similar.
– DASH surged above $1500 at the end of 2017 but fell to around $80 by the end of 2018, showing significant volatility and high investment risk.
– DASH faces intense competition from the cryptocurrency market and traditional payment methods.
– Should you invest in DASH? The answer depends on individual assessment; if you invest, do not allocate a large amount of your capital to it.
Through this, we hope you have understood what the DASH coin project is, as well as its advantages and disadvantages. If you have any questions or something to share, please leave a comment for further discussion.
