What is Dash?
There is a lot of interest in the Dash price because for the past several years it has occupied a spot near the top of the cryptocurrency market cap charts.
The reason that Dash is in-demand is that it was created to address two particular needs.
Dash prides itself on being private, (nearly) instant, and secure. With transaction confirmations taking 4 seconds, they’re available even faster (1.3 seconds) for those who choose to pay a small fee using something called Instant-Send. This makes it possible to actually buy a cup of coffee with cryptocurrency, just like cash.
Why is Dash important?
Dash is fungible. What this means is that one unit of dash can be substituted for another unit of dash, much like how one dollar can be traded for another dollar, regardless of where that dollar has been. As part of a dash transaction, once dash is mixed through a dash-native feature called PrivateSend, all previous history is cleared, making it impossible to distinguish one dash from another.
This lack of history helps dash stay fungible, which is a significant characteristic for it to have cash-like characteristics.
Since the digital cash is not held by a bank, purchase histories are private and they can never be tracked or intercepted. Transactions occur near instantaneously, with low or even zero fees because there’s no bank in the middle charging you. What’s more, many businesses accept dash already — web hosts, VPN providers, web stores, marketing services, online games, and online casinos.
How does Dash work?
Dash was created as a hard fork of bitcoin in order to emphasize privacy, which the dash developing team found lacking in bitcoin’s system. It features a protocol-level, trustless mixing service called PrivateSend. In essence, this means that units of dash are moved around and mixed up on the way from point A to point B in order to make transactions truly anonymous. Because dash started with the bitcoin codebase, it was immediately compatible with all existing merchant, exchange, and wallet software written for bitcoin. It takes two-and-a-half minutes for a transaction to appear on the dash blockchain.
Dash doesn’t need to reach unanimous community consensus to make significant changes to the codebase, so it’s not at risk of hard forking due to changes in the core code. (One example of a hard fork happened in late 2017, when bitcoin core was forked over a scaling debate. The result of the fork was the creation of bitcoin cash.) Instead of the forking model, dash developers set up a system for voting democratically on major changes, with a system of master nodes.
A master node is an individual who holds enough dash to have a “stake” in the ecosystem and enables dash-specific functions like Instant-Send and PrivateSend. Think of these master nodes as something like voting shareholders. They vote on things such as what should happen with new projects, who should get funding from the treasury, and which direction development should go.
Dash’s price seems correlated to the rest of the cryptocurrency market, meaning as other prices of leading cryptos move up or down, so too does the price of dash.
The dash price hit an all-time high of $1493.59 on December 20, 2017.