What Is Dash Crypto (DASH) How It Works & Where To Buy It?

Dash (DASH) is a scalable payments system that utilizes a masternodes system to achieve functionality. DASH is a digital currency that can be used as a medium of value to send, receive and transfer.

DASH was previously named ”Xcoin”‘ and ”Dark Coin” before rebranding to Dash in 2015. Dash is already accepted by more than 155,000 merchant stores worldwide.

DASH token is currently the 78th largest cryptocurrency in the world by market capitalization.

How Dash Cryptocurrency (DASH) Works

DASH, like many other cryptocurrencies, is essentially based on Bitcoin. Dash incorporated a streamlined two-tier system whereby optimal efficiency can be achieved.

In the first tier, a standard proof-of-work consensus mechanism is utilized and various mining devices are tasked with solving mathematical problems. When problems are solved, new blocks of transactions can be added to the Dash blockchain.

The second tier works independently from the first tier but both are required to reach consensus in the network. In the second tier, any individual who owns more than 1,000 DASH can run a masternode. Masternodes are tasked with processing unique features in the Dash protocol. Additionally, masternodes have voting rights that can be utilized when proposals and upgrades are brought about.

Upon the addition of new transaction blocks, rewards are generated. These rewards are then distributed in three ways:

• 45% of rewards are distributed to miners
• 45% of rewards are distributed to masternodes
• 10% of rewards are distributed to Dash’s governance budget

Additionally, individuals can thoroughly read through the Dash whitepaper to improve their understanding of how Dash works and the network operates.

What Is Dash Crypto (DASH) Used For?

Dash is utilized in many ways but its key features best describe its main uses:

InstantSend – An average transaction on the Bitcoin network takes around 10 minutes – this is a major factor that has systemically hindered the usage of Bitcoin as a payment solution. This has raised many questions about both the scalability and mass adoption of Bitcoin.

In order to solve this problem, Dash provides a service called InstantSend. Using this service, transactions are almost instantly confirmed by the Masternode network on Dash.

There is an extra cost for the InstantSend service over a normal Dash transaction. A normal Dash transaction gets cleared in around 180 seconds – this is still faster than Bitcoin.

But nobody wants to wait even that long! So, by paying a small fee, you can ask masternodes to clear your transaction within a few seconds.

These handy features make Dash cryptocurrency more attractive over many others like Bitcoin and Litecoin. In addition to these features, there is one more thing that differentiates it from others.

Essentially, miners become independent storage providers and users can freely share data, retrieve data (retrieval miners) and facilitate a decentralized file-sharing network that prioritizes the participants.

Making storage space accessible, affordable, and censorship-resistant to billions of people will be the main utility that drives the growth of the Dash network.

Where To Buy Dash Cryptocurrency (DASH)

Dash tokens are frequently traded and available to purchase on most cryptocurrency exchanges. Dash token saw its most significant price appreciation during January 2021, when it reached its all-time high of $188.

Five of the most popular crypto exchanges are:

1. Gate.io
2. HTX
3. KuCoin
4. BitHumb
5. Crypto.com

Individuals should also note that the safest way to store tokens is in a digital or hardware wallet. Some of the most reputable wallets are MetaMask and Ledger Nano X.

About Dash Cryptocurrency (DASH)

How long has Dash (DASH) existed?

Dash was initially released on the 15th of July 2014 by Juan Benet.

The mainnet went live in October 2020 and the DASH token saw its greatest trading volumes and price appreciation after its mainnet launch.

What’s controversial about Dash (DASH)?

The crypto market is constantly expanding with new and innovative (and some not so innovative!) projects entering the space. It’s essential to research projects, their history, founders, and other critical information before investing.

Let’s take a look at the top controversy surrounding Dash (DASH):

• It was created from Litechain – DASH was pretty much founded on controversy since it was formed after deviating from Litechain. Apparently this was handily due to a bug in the Litechain system that accidentally created this deviation. Not all are convinced that this was an accident though…

How many Dash (DASH) tokens are there?

At the time of writing, Dash (DASH) has a circulating supply of 649,499,549 DASH.

Can Dash (DASH) be mined?

People can participate in mining DASH coin as it is a mineable cryptocurrency. Unlike Bitcoin and Ethereum which use proof of work consensus algorithms and require intensive rigs to mine, Dash mining is different from classic mining.

Instead, miners don’t contribute computational power but rather contribute storage capacity. Miners earn DASH tokens for lending out storage space to users seeking to store data. This is what helps makes Dash work and work well. Private transactions in the Dash wallet help the DASH community because the average transaction fee is substantially lower.

Storage prices are therefore significantly cheaper and more decentralized than traditional storage providers.

What is the market cap of Dash (DASH)?

The following calculation to work out the market cap of any cryptocurrency:

The total amount of coins in circulation times the current market price.

Dash (DASH) Market Cap = 10,721,744 DASH x $64.51 = $649,499,549 (78th largest cryptocurrency by market cap).

Be aware that the market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Dash Network And DASH Token

Since Dash aims to offer financial solutions that are decentralized on its open source platfrom, it has become fairly popular already in the cryptocurrency space. However, it is not the only such crypto to offer this type of service.

Top competitors of Dash include Block, and big players Ethereum and Bitcoin.

What Are The Future Plans Of Dash Network And DASH Token

People want to purchase Dash because it has announced plans to further streamline the revenue rewards for storage miners, expand their market share and continue to add further utility.

As already noted, Dash faces stiff competition so it needs to be innovative to effectively carve out its own slice in the lucrative market.

Pros And Cons Of Dash Cryptocurrency And DASH

Pros:

• Decentralized data storage – The cloud storage market is currently dominated by a select few companies. This is especially concerning because they have the power to make adjustments to pricing and other crucial elements, without much pushback. This puts consumers at a disadvantage because they don’t necessarily have any influence, their only alternative is to move to other centralized competitors.

  This is where cryptocurrency (DASH) provides consumers with a much-needed decentralized and censorship-resistant option. Essentially, Dash aims to counter the powers of the monopolies and give power back to consumers.

• Low network fees – The fees incurred on digital currency and the network are considerably cheaper when compared to traditional cloud storage providers. Blockchain-based data storage providers will be a much more cost-efficient option for consumers.
• Miners are incentivized – The network’s security and functionality are facilitated by miners who lend out available storage space to users. This system ensures that there is always a financial incentive driving the network and sustaining the security and growth of the network.
• Devoid of censorship – One of the major issues with centralized cloud storage providers is that they can be influenced by central authorities. Dash digital cash positions itself as a decentralized storage provider which is devoid of censorship. Essentially, users will always be able to freely share data without the influence of any central authorities or governing bodies. Many individuals believe that this upholds the freedoms that should be an integral part of people’s rights.
• Real use case – Many projects entering the crypto space claim to provide solutions to real-world problems. More often than not these problems aren’t necessarily dire issues. Dash coins do have a use case that solves a real-world problem.

Cons:

• Major competitors – Dash network is up against giants in the industry. Its competitors include the likes of Amazon Web Services and Google Cloud. These two cloud storage providers already have a combined market share of nearly 50%. Additionally, these two service providers have already amassed millions of clients, most of which opt to choose them because of convenience and credibility.
• Lack of interest – Blockchain user adoption is rapidly increasing but it’s important to remain realistic. Blockchain-based cloud storage providers have yet to garner the interest of the masses and therefore are currently at a slight disadvantage.

  The adoption of blockchain technologies is imminent but the process might still take many years. This puts projects like dash blockchain on the backfoot when it comes to the likelihood of major user adoption.