Dash, just as Bitcoin, is an open source peer-to-peer electronic currency/cryptocurrency, featuring advanced capabilities and instant transaction, private transaction, and decentralized governance. It is the first privacy-centric cryptocurrency based on the Bitcoin framework. It proposes a series of improvements to the Bitcoin network resulting in the creation of a strongly anonymous cryptocurrency, with tamper-proof transactions. The network also features a secondary peer-to-peer network incentive aimed at providing services to the Dash ecosystem.
Its network is powered by a two-tier architectural mechanism. One of the tiers consists of miners who are involved in securing the network and entering transactions into the blockchain, while the other tier facilitates the advanced features of Dash through the number of masternodes incorporated. Dash is considered the first Decentralized Autonomous Organization thanks to its decentralized governance and budgeting system which allows voting and fund allocation mechanism, which can be used to bypass the internal tensions of Bitcoin and block size debates.
However, this kind of approach has not come without its own set of setbacks. The consensus is great for a number of reasons except fast decision making. Some of the problems facing open source projects and decentralization are development planning, funding and funds management. The ideal solution to this problem is the creation of a non-profit organization that would be in charge of maintaining the core protocol and promoting projects. However, as demonstrated by Bitcoin Foundation controversies, the really exist no connection between users and community in a way that would be beneficial to all parties involved.
DASH is famous for its products including PrivateSend, InstantSend and Masternodes. Privatesend is made up of numerous modifications based on Coin Join. This is done through the use of masternodes instead of exhausting the capacity of a single website, by using masternodes to the chain by mixing and restricting mixing to certain denominations. The implementation of PrivateSend into the DASH platform allows masternodes to use special network codes called DSTX to submit transactions and thereby providing additional privacy to the end-users.
InstantSend is a service that allows for a transaction to be processed and recorded almost instantly. This system solves double-spending problems with lower confirmation time. Under this system, various inputs can be locked to certain transactions and verified by consensus of the masternodes network. If anyone attempts to make any conflicting transaction and blocks are rejected under the InstantSend system, and if a consensus seems farfetched, verification of transactions in done through standard block confirmation.
Dash takes a different approach to restricting inflation of mining. The network reduces the supply of the token by 7% every year. Other cryptocurrencies result to halving their supply annually. This funding system has witnessed growth with a treasury system that provides $14000 funding per month.
What is Dash blockchain? Pros and cons:
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