Dash (DASH) is one of the top cryptocurrencies and one of the first altcoins forked from the Bitcoin protocol. Dash was created as digital cash and an alternative cryptocurrency to Bitcoin. As Bitcoin’s fork, Dash was developed on the same principles as the first cryptocurrency. Dash has a block time of 2.5 minutes, whereas the Bitcoin block generation time is ten minutes.
The governance of the network is established through DAO. The Dash network previously operated on a Proof-of-Work (PoW) protocol before transitioning to the X11 hashing function. Four years after the initial launch of the crypto, a consensus was reached in 2018 to mine DASH coins using the Proof-of-Work (PoW) algorithm in combination with the X11 hash function. With eleven rounds of hashing and 2.5-minute block time, Dash enables swift payments through its decentralised system.
The Dash whitepaper describes the crypto as the first privacy-centric cryptographic currency. The currency has since been repurposed to pose as a direct medium for daily transactions—digital cash that can be spent anywhere. Dash offers fast and privacy-oriented payments for businesses and individuals, aiming to become a mainstream digital payment method.
Dash coins (DASH) are mineable. Dash previously relied on a Proof-of-Work (PoW) protocol for mining. However, after a consensus was reached in 2018, Dash made a significant change to the mining system by switching to the X11 hashing function. The X11 hashing function has 11 rounds of hashes and is a form of Proof-of-Stake (PoS) protocol. Dash combines PoW and X11 to facilitate fast payments on the network. X11 reduced power consumption, making the system more efficient and resolving the problem of network clogs found in Bitcoin.
Dash enables transactions through both mining and masternodes. Dash users also rely on masternodes to simplify the validation and verification of transactions on the network. Masternodes represent full nodes with a bond of collateral (i.e., stakes). The starting stake for masternodes is 1,000 DASH units available in the user’s system. Masternode verification creates a circle of trust and represents a scalable solution because fewer nodes are needed to validate and verify transactions.
Block rewards are paid out in DASH coins and are split between masternodes (45%), miners (45%), and the Dash treasury (10%).