By the end of 2017 - early 2018, Dash had come to the top ten most popular cryptocurrency. Many experts and users of trading platforms monitor its development. Analyzing Dash specialists, first of all, compare the quality of this payment system with others.
Not surprisingly, Bitcoin is still the benchmark for comparison, because it is a pioneer in this field. At the time of writing, there were hundreds of texts on the Internet devoted to both Bitcoin and Dash, which showed the advantages and disadvantages of each trading platform. However, there is still not enough information on what is best in each project.
We asked about it Alexander Kitchenko, who is an expert in the field of cryptocurrency, researcher, investor and member of the Bitcoin Foundation:
"For starters, it's important to understand two things: Dash is an altcoin, alternative cryptocurrency, which provides greater anonymity for transactions. Bitcoin is a "pioneer", he continues to lead in terms of capitalization, but it is known that his level of anonymity is not as high as everybody imagined".
Thus, we have a situation in which each of the payment systems has its pros and cons. What should we choose? Every user, who has decided to devote his time to this area, face a hard choice. To find the answer you need to read hundreds of articles, interview representatives of different views on the situation. And we did it!
In order to get an answer to this question, we need to go a little deeper into the history of Dash payment system and its development. Even at this stage of the review, users can already notice one simple reason for comparing Dash with Bitcoin: Dash is an altcoin, that is, an alternative, and it also based on Bitcoin's ideas.
The Dash creator is Evan Duffield. His idea was the improvement of the system of Bitcoin - the currency that had got under his skin for several years. Bitcoin's problem is not full anonymity of transactions, which is confirmed by our expert:
«Government operations against darknet and its users prove conclusively - if desired, you can track Bitcoin's users».
Evan set a goal: to achieve complete anonymity of the transaction and he achieved the goal, but Bitcoin's developers did not want to change the code of their system and defended its primacy. That's why, for a couple of days, Duffield created his own payment system, which, fortunately, began to work successfully.
Also, the creator of Dash introduced 11 hash functions. It made mining more complicated and created healthy competition among the miners. That idea became another advantage of Dash. Finally a speed of transactions also became a breakthrough in the field of pay in cryptocurrency.
We have already known the reasons for creating Dash and found out what Evan wanted to achieve. It's time to answer the question: How does Dash manage to be better than the long-existing and established Bitcoin?
This is a payment-mixing service that has been improved and added to the Dash system. It is based on combining several inputs and outputs for a single transaction. Such a program allows you to make user actions completely anonymous. Tracking the trade is practically impossible. Creating a hierarchical system is considered an attempt of tracking. It was based on inputs and outputs. However, such an attempt came to nought. That's why no one has yet been able to track down the payment path of Dash.
PrivateSend divides the amounts of user transactions into different parts (1, 10, 100), each of which goes through its anonymization stage.
First-time users of cryptocurrency often meet the word "Masternodes", but do not understand very well what it is. Masternodes are servers or network nodes that provide anonymity. Masternodes are managed by volunteers, after investing a deposit in 1000 Dash. This step excludes the possibility to track users by scammers. For their work, the owners of Masternodes receive 45% of the funds from the miners who have found a new block.
Mixing in PrivateSend is done by Masternodes. Each user chooses from two to eight shuffles, but there may be more. The more Masternodes take part in the mixing, the more difficult it is to track the way of payment.
Just this service of the fastest transactions allows Dash to overtake even widely promoted Bitcoin in speed! Each translation is checked in the Masternodes network based on the consensus mechanism.
Conflicting transfers to InstantSend are rejected, and the lack of the ability to "come" to consensus leads to the confirmation of the transaction according to the standard mechanism.
It is just InstantSend that allows Dash to execute its transactions with the maximum speed of one minute. Ideally it goes less than 40 seconds. This process with Bitcoin takes one hour and more!
Сryptocurrencies on the trading platforms use the algorithms SHA-256, and the algorithm of Dash was made by Evan Duffield. It is based on the application of 11 hashing functions, which makes mining on the basis of the trading platform difficult. Evan wanted to create a healthy eco-system, allowing the miners to compete fairly. It is with the help of X11 that you can prove the work is done (a user search for a response to the task specified by the program, which is quickly and easily verified by the computer, allows you to exclude the intruders).
Other additional advantages of Dash are the following: the algorithm for adjusting the complexity of mining (DGW), having its own wallet with a high level of anonymity and decentralized management. Thanks to the latter, all disputable questions about the system are solved by majority voting, which allows to optimize the work as much as possible.
It is difficult to argue that at the moment the level of Dash's capitalization is lower than that of Bitcoin. According to the expert we interviewed:
«In the long term, we should expect some shift in capital towards more anonymous cryptocurrencies, one of which is Dash. Nevertheless, today Bitcoin remains the leader, with which the absolute majority of alternative cryptocurrencies are traded in a pair».
The higher level of Bitcoin only shows the foresight of a few years in the development and popularity of the payment system, but in no way about the ideal, because this particular trading platform was perfected by Duffield, Dash creater.
It is possible to briefly characterize the advantages of the Duffield payment system as follows:
- the highest anonymity of transactions. Rememberl, any attempts to track Dash did not lead nowhere;
- speed of transfers;
- more profitable management Masternodes system;
- 11 cryptographic hashing functions;
- Dark Gravity Wave;
- existence of its own wallet with high level of anonymity;
- decentralization of management.
We are ready to agree with our expert that Dash has to go through a difficult path among a huge number of competitors, because the world of cryptocurrency grow and develop constantly. However, if Bitcoin could gain such popularity in a few years what can make its improved version? If you did not know before which cryptocurrency to prefer, which rate could be profitable for investments, what financial gain you could get, the answer has already been found. Do not waste time, meet - Dash!
Find out more about Dash - here