What is Dash and how does it work as a form of digital currency? We have put together this detailed guide to answer all the important questions about this leading cryptocurrency and explain its key features, such as PrivateSend and InstantSend. Here at HiExchange, you can easily exchange your Dash to PayPal, WebMoney or Skrill as a part of our Cryptocurrency to PayPal and other Digital currencies exchange service.
If you know what dash is and just want to exchange some of you dash to PayPal, it’s better to skip this article and just do your exchnage at HiExchange. But if you want to know more about Dash and how it Works, continue read on as we have gathered all necessary information for you to DYR about DASH.
What is Dash?
Originally, Dash was developed and known as Darkcoin to ensure anonymity. The project founder redefined the aims of the currency later on and called it Digital Cash or Dash. Using a cryptocurrency that is focused on providing customers with the independence to enjoy the ease of modern shopping, but still want the special features of virtual currency. It helps them to easily and affordably transfer cash anywhere, anytime, and to anyone.
Dash has collaborated with over 4,800 service providers and retailers to make this possible, ensuring consumers can find everything they are after. This currency is quick to buy and purchase as well. To this date, consumers have invested almost 1 billion Dollars on Dash to pay for goods and services. Although Dash offers a simpler and faster way of payment, it provides companies with several incentives, such as instant settlements, no chargebacks, and zero commission.
How Dash Benefits us?
In the sense of improving the architecture of Bitcoin, Dash is credited with having some fascinating features in its ecosystem. This ultimately resulted in an additional layer of protection of privacy, higher overall network throughput, quicker settlements, and faster propagation of messages through the network. In reality, Dash benefited from its stimulated two-tier network architecture, a model adopted by the project, rather than the typical single-tier found in most cryptocurrency projects.
This alternative design of the network allowed a wide range of additional services to be introduced, such as the decentralized mixing feature known as PrivateSend and the instant transaction settlement known as InstantSend. Dash has proven to be ideal for the payments industry, where long waiting times at Point of Sale terminals for network confirmations would not be acceptable.
In addition, the governance structure of Dash makes it one of the most decentralized cryptocurrency projects to date and enables members who are involved among its community to vote democratically on the strategic decisions of the organization.
What is InstantSend in Dash ecosystem?
InstantSend is a Dash protocol feature that allows instantaneous transactions on the Dash blockchain using transaction locking and masternode consensus. InstantSend enables Dash to compete with current centralized payment systems that deliver short transaction times, such as VISA. This is offered by InstantSend Dash technology, but in a decentralized and trustless way.
What is Dash PrivateSend?
PrivateSend, a feature of Dash protocol, is a decentralized coin mixer function that is built to boost financial privacy for users by obscuring the origin of funds. The intent behind PrivateSend is to preserve the fungibility of Dash coins by removing its network history.
Dash works in amazing ways
Like Bitcoin, Dash often depends on miners to verify transactions in exchange for which the blockchain token rewards them. However, by introducing the idea of Masternode, Dash has made some adaptations to the method. By depositing a minimum of 1000 DASH, miners will obtain the status of a Masternode. This provides them with the special status to carry out essential network operations. For example, they are responsible for processing Instant Transactions (InstantSend) and Private Transactions (PrivateSend) along with overseeing the general governance and treasury of blockchain.
The existence of Masternodes not only enhances network stability, but also ensures rapid transaction speed. Because this needs extra effort and resources, the help they provide is sufficiently rewarded. 45% of the incentives go to all of the miners, while 45% is given to Masternodes. The remaining 10% of the coins are reserved as funding for potential network ventures and upgrades,. The cryptocurrency utilizes a comparable protocol with public and private keys to send and receive money. This unique method of managing transactions not only helps the transactions to be processed and checked at a rapid rate, but also by properly rewarding miners, it ensures that those who put in excessive effort do not leave the platform.
Dash vs. Bitcoin: What’s the difference?
The key difference lies between the algorithm used by Dash and Bitcoin to mine coins. Dash uses the X11 algorithm, a modified version of the Proof of Stake algorithm. It also utilizes Conjoin mixing on its blockchain to scramble transactions and make privacy possible. On the other side, bitcoin uses a Proof of Work algorithm.
Dash creators wanted a new blockchain to be unleashed, free of the typical vulnerabilities. Dash developers created their new blockchain, with instant payments running on a network of incentivized Masternodes, to be the world’s first self-funding and self-governed blockchain protocol. Here are some of the main features that Dash introduced which Bitcoin does not benefit from:
- Masternodes: In comparison to Bitcoin, Dash introduced Masternodes to allow users to protect the network with payments and to add cool transactional features such as InstantSend. 1,000 dash is invested by Masternode operators to host a Masternode. For every Dash block that is mined, Masternode operators get 45 percent of the reward. Each operator earns a monthly reward of approximately 7 dashes.
- InstantSend: For sending and verifying transactions in seconds, InstantSend uses the instantX Masternode function. The block propagation of Bitcoin takes 10 minutes on average, and 6 typical conformations could even take an hour for large transactions.
- PrivateSend: Although Bitcoin transactions are pseudonymous and can be traced back to the users, PrivateSend transactions have been introduced by Dash that allows Dash users to opt for maximum privacy in their transactions.
- Decentralized Self-Sustainable Government: The Dash blockchain is self-funded, while Masternodes are incentivized and can rule the blockchain with 1 vote per Masternode. The Network Creation and Promotion Budget are allocated to a portion of each block, currently 10 percent. This implies that, unlike Bitcoin, where donations are voluntary and non-incentivized, Dash developers and promoters receive compensation for their contributions.
- Transaction Speed: Thanks to the second-tier incentivized masternodes network, Dash was created with the idea of making improvements on top of the Bitcoin protocol, bringing built-in privacy features, a more decentralized network with its Decentralized Autonomous Organization (DAO) governance model, and extremely stable, fast, and inviolable transactions. Costs of transactions, which are mostly much smaller in the case of Dash than with Bitcoin, are another key distinction between the two cryptocurrencies.
- Rewards: With Bitcoin, the mining rewards are exclusively provided to miners, with Dash they are divided between miners, masternodes, and Dash’s treasury, which is crucial for its self-funding and self-reliant model.
With hi.exchange you can exchange your Dash or Bitcoins for PayPal or Webmoney. If you want to learn more, read Exchange Your Cryptocurrency to PayPal: Crypto Exchanging Made Easy.
Why use Dash?
Dash brings a number of unique benefits to the table, apart from decentralization and other advantages provided by a blockchain-based cryptocurrency. Below you can read a number of such benefits:
Recognition as a Currency
As mentioned before, Dash is accepted by more than 4,800 merchants as a viable digital currency that enables users anywhere in the world to pay for goods and services.
Dash has Low Fees
The average transaction fee is also lower than one cent, which means that customers do not have to pay significantly to benefit from the convenience and efficiency of the digital currency.
Transactions with Swift
Unlike Bitcoin, which can take up to minutes to process transactions, the transaction is verified in seconds by the Dash network, making shopping fast and easy.
On any online cryptocurrency exchange, you can quickly buy DASH, and it is easy to receive it from friends and family. Moreover, you can get it from an ATM near your in some specific locations.
If you have some Dash burning a hole in your pocket, you can always exchange Dash to PayPal on hi.exchange.
How to Buy Dash?
You can buy and sell Dash in many different ways, all of which come with a different set of benefits, drawbacks, and degrees of complexity. The fastest and easiest way to buy Dash is via direct purchase from instant exchanges through fiat currencies. Compared to some of the better cryptocurrency exchanges, this method of purchasing Dash has some drawbacks due to the less favorable exchange rates provided by most service providers.
Changelly, Shapeshift, Simpleswap, and Airtm are a few examples of instant exchanges. They all offer the possibility for users to purchase Dash without having to log in by simply entering a wallet address and using a credit/debit card for payment. Crypto exchanges, which offer real-time exchange rates and charge certain fees for the service, are the most common form of buying Dash. The official Dash website provides a list of all cryptocurrency exchanges that support Dash.
Other means of purchasing Dash include specialized ATMs and over-the-counter exchanges that allow the direct purchase at an agreed-upon price of Dash coins from either a business or peer-to-peer. The drawaback of this method is that such locations are limited.
How Do the Exchanges Work?
In order to deposit or withdraw money, cryptocurrency exchanges sometimes put users through a KYC process. They provide a multipurpose wallet to their users (which should not be used for savings) and access to a certain number of digital assets listed. Users who want to buy Dash coins from an exchange should first register with the exchange platform and then check their identities until they can access bids and offers from an address book.
They can then put a bid at the correct price to buy the desired amount of Dash and wait for the order to be fulfilled. Dash is classified under the ticker DASH at more than 100 exchanges, including Binance, Poloniex, Bittrex, Bitfinex, Kraken, Bithumb.
After buying Dash coins, in order to be able to keep them as savings, you will require a wallet. There is no better option than using a software or hardware wallet if you are looking to defend your tokens from cyberattacks. A few of the suggested wallets include:
- Dash Core, Dash Electrum, Exodus, Guarda (Desktop Wallets)
- Dash Anrdoid, Edge, Coinomi, Jaxx Liberty, Dash Electrum, Abra (Mobile Wallets)
- Trezor, Ledger, KeepKey, SafePal, Ellpal Titan (Hardware Wallets)
Lastly, remember that before making any investment decisions, whether in the cryptocurrency market or elsewhere, you must always invest an amount you can afford to lose; anyways, keep hi.exchange in mind in case you want to exchange your interest for cash or you just want to exchange your Dash to PayPal, you can count on hi.exchange for the least amount of commission and the lowest rates on the market, without any KYC.