Dash is a digital currency that came into view in 2014. Based on the BTC project, Dash works on a decentralized peer-to-peer network, allowing an easy and affordable flow of the currency. Dash has been a popular cryptocurrency choice among investors. As of July 2021, the circulation cap of Dash Coins is 10,219,982.47, whereas the total supply is 18.92 million.
Many retailers have already begun accepting Dash to sell their services or products online worldwide. Only in the first quarter of the following year, over 4,400 merchants included Dash coins in their accepted payment methods, whereas users spent $3.64 billion for paying through Dash Coins.
Whether you invest in buy Dash or any other cryptocurrency, it is vital to research the factors necessary to make a wise decision for your trading portfolio. So, let’s begin the journey now…
What is Dash Coin?
As mentioned earlier, Dash is a cryptocurrency that works with a peer-to-peer network. It allows fast, affordable, and easy online payments without having to involve any third parties like a bank or other financial institutes. Evan Duffield launched Dash with the primary concept of the bitcoin project. Therefore, Dash possesses several similarities to BTC, including cryptography security and decentralization. It also comprises various remarkable features like speed, which is a notable difference between the two cryptocurrencies. Only in the first quarter of the following year, over 4,400 merchants included Dash coins in their accepted payment methods, whereas users spent $3.64 billion for paying through Dash.
Masternods of Dash Coins
Besides several similarities of bitcoin and other digital currencies based on decentralization, Dash coin enjoys numerous distinct features. Instant Send, for example, is the most notable feature of Dash coins that helps users ensure an instant confirmation for their transactions.
This feature makes Dash significantly unique because most cryptocurrencies take time to confirm transactions due to the involvement of specific number of blocks that need to pass before verifying the transaction. This confirmation time becomes longer when verifying more transactions. Cryptocurrency transactions may take 15 minutes to an hour to complete.
However, the Dash network uses ‘masternodes’ to confirm the transactions. These masternodes work offer additional support to prepare the blockchain technology to process every transaction sent by the user or miner. Masternodes take up to two seconds to verify the validity of funds for a specific transaction and finalize it.
It means no user can spend those funds again unless they get their current transaction confirmed. With masternodes, you can considerably reduce transaction time and enjoy the consistent, safe, efficient, and healthy performance of the Dash network. Masternodes also protect user data and facilitate instant transactions.
Dash Coin Mining
Like digital currencies, you can obtain Dash coins through a mining process, wherein individuals employ advanced computers to solve complicated mathematical algorithms. Every time individual can add a dashed block to the blockchain by solving the complicated algorithm.
The Proof of Work (PoW) is a process to mine Dash in which individuals use computer processors to solve an X11 hashing algorithm designed by Evan Duffield. The algorithm aims to ensure a fair distribution of the funds.
Solving complicated mathematical problems requires highly specialized and expensive hardware. Many individuals participate in cryptocurrency mining pools to reduce time and costs. A mining pool is a platform where crypto miners work together to solve algorithms and obtain more Dash coins.
There are over 10.18 million Dash coins in circulation at present. On the other hand, the present supply of Dash continues to be between 17.74 million and 18.92 million. Dash miners do not get the entire mining reward since 10 percent of the Dash coin gets reserved for the development work of the future project.
These potential future proposals involve future voting behavior. Accordingly, it is almost impossible to identify the required number of Dash coins for voting purposes. It also means the maximum supply of cryptocurrency is unknown. The founder of the coin estimates that the final coin supply is more likely to go through the mining process by the end of 2254.
Buying Dash Coins
Dash coins are available on almost all crypto trading platforms, such as Kraken, Binance, and Coinbase. Thanks to instant transaction verification, Dash appear almost immediately in your crypto account. You will also need a digital wallet to hold and access your crypto assets. Several digital wallets can be compatible with Dash, including hardware wallets, desktop wallets, paper wallets, and mobile wallets.