Dash is an instant and semi-private cryptocurrency based on the Bitcoin and Litecoin code. However, it does contain various changes and improvements that have made DASH stand out since its debut in 2014. The creator of the project, Evan Duffield, built the Dash to solve three key issues he noticed with the existing Bitcoin network: privacy, management, and transaction speed.
Dash’s primary goal is to increase the usefulness of digital cash, and the Dash cryptocurrency innovation is based on a two-tier blockchain structure. In the first layer of Dash, miners are responsible for creating new blocks and securing the blockchain. In exchange for mining blocks, miners on Dash receive 45 percent of the block reward. This is in contrast to Bitcoin, where miners receive 100 percent of the block reward. The remaining 55 percent of the block reward is allocated elsewhere, as we’ll see shortly. The second layer of the Dash architecture is designed for advanced user configurable servers known as masternodes. These masternodes process Instant Pay transactions, make it easy to mix coins, and vote on management proposals. In return for these services, the masternodes receive a 45 percent block reward. Anyone can create a masternode on the Dash network, but first you need to prove you have 1000 DASH.
Dash has an average block time of 2.5 minutes, four times faster than Bitcoin. For mining, a team of developers created a proprietary hashing algorithm known as X11 that requires sequential repeated hashing. The X11 algorithm has been shown to use 30% less power than Litecoin’s Scrypt algorithm.
Over the past four years, Dash has become one of the world’s top cryptocurrencies, and its market capitalization has consistently ranks among the top 20 cryptocurrencies despite a very competitive market.