Dash is an open source peer-to-peer cryptocurrency that offers all the same features as Bitcoin but also has advanced capabilities such as instant transactions (InstaSend), private transactions (PrivateSend), and decentralized governance (DGBB). Dash has a two-tier network of nodes as opposed to Bitcoin’s single-tier network, where all the tasks are performed by miners. Basic network tasks such as adding new blocks and writing transactions to the blockchain are performed by miners. The second tier of the network consists of masternodes which handle advanced features such as PrivateSend, InstaSend, and governance functions. To prevent Sybil attacks, masternodes are required to deposit 1,000 DASH as collateral. Dash uses X11 mining algorithm, which is resistant to ASIC mining. X11 algorithm uses a sequence of 11 scientific hashing algorithms for proof-of-work.
Instant and Anonymized Transactions: InstaSend feature on Dash ensures that transactions are confirmed in around 4 seconds. In the case of Bitcoin, it takes an average of 10 seconds to confirm a transaction and an average of 5 to 6 confirmations are required before considering the transaction complete by merchants. These longer confirmation times make Bitcoin unsuitable for face-to-face and in-store purchases. In addition, Dash offers the users an option to anonymize transactions so that a person’s identity could never be associated with an address or transaction. The lack of full-scale privacy in Bitcoin transactions might be a concern for individuals who wish to transact anonymously.
Well-defined Governance Model: Good governance and cohesiveness in the crypto community are vital for any cryptocurrency project to succeed. The Bitcoin community has been divisive for years over addressing the scalability issue, resulting in growing uncertainty over the future of the most valuable cryptocurrency. In contrast, Dash has successfully managed to increase its block size within 24 hours due to its governance structure. We believe Dash governance mechanisms will ultimately benefit its users by delivering a superior solution.