What is Dash
Dash is an open source peer-to-peer cryptocurrency with a strong focus on the payments industry. Dash offers a form of money that is portable, inexpensive, divisible and fast. It can be spent securely both online and in person with only minimal transaction fees. Based on the Bitcoin project, Dash aims to be the most user-friendly and scalable payments system in the world.
How does it work?
Dash, like Bitcoin, is based on a decentralized ledger of all transactions, known as a blockchain. This blockchain is secured through a consensus mechanism; in the case of both Dash and Bitcoin, the consensus mechanism is Proof of Work (PoW). Dash works a little differently from Bitcoin, however, because it has a two-tier network. The second tier is powered by masternodes (Full Nodes), which enable financial privacy, instant transactions and the decentralized governance and budget system.
Decentralized Governance by Blockchain (DGBB)
Governance in a decentralized project is difficult, because by definition there are no central authorities to make decisions for the project. In Dash, such decisions are made by the network, that is, by the owners of masternodes. The DGBB system allows each masternode to vote once (yes/no/abstain) for each proposal. If a proposal passes, it can then be implemented (or not) by Dash’s developers. The masternode system is referred to as Proof of Service (PoSe), since the masternodes provide crucial services to the network. In fact, the entire network is overseen by the masternodes, which have the power to reject improperly formed blocks from miners.
What Dash aims to solve?
Dash aims to be the most user-friendly and scalable payments system in the world. It tries to solves this problem with a form of cryptocurrency that is portable, inexpensive, divisible and fast.
What are the features of Dash?
Two-tier network (PoW and PoSe)
2.6 minute block time, 2MB blocks, ~56 transactions per second
Transaction anonymity using PrivateSend
Instant transactions using InstantSend