Dash Coin Explained

Everything You Need to Know About Its History and Technology

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Dash is a cryptocurrency founded in 2014 based on the Bitcoin project. Dash is based on a decentralized peer-to-peer network meant to allow for the cheap and easy flow of currency. Today, Dash coins are accepted by many retailers and mined by individuals around the world.

Cryptocurrencies like Dash have become a popular investment opportunity in recent years. Before you start purchasing Dash coins or any other digital currency, it’s important to understand what you’re getting yourself into. In this guide, you’ll learn everything you need to know about Dash and how to start investing.

What Is Dash Coin?

Dash is a cryptocurrency based on a decentralized peer-to-peer network. Like many digital currencies, it’s designed to allow for fast, easy, and affordable online payments without going through the traditional financial system.

Dash was launched in 2014 by its founder Evan Duffield and was based on the Bitcoin project. It has many similarities to Bitcoin and other popular cryptocurrencies, including its decentralization and cryptography security. But it also has some notable differences, including its speed.

In recent years, Dash has expanded its efforts to encourage businesses to accept Dash. In the first quarter of 2021, more than 4,350 merchants accepted Dash coins, and there were more than $3.64 billion in payments involving Dash.

Special Features of Dash Coin

Dash’s most notable feature is its InstantSend, which allows for instant transaction confirmation. Most currencies have a delayed transaction time because a certain number of blocks must pass before the transaction can be verified.

Each block that must pass is known as a confirmation, and in general, the more confirmations required, the longer the transaction takes. Cryptocurrency transactions often take between 15 minutes and an hour to finalize.

But the Dash network uses what are called “masternodes.” These masternodes provide for a second layer of support to ensure the blockchain technology is prepared to process all transactions.

The masternodes verify the authenticity of funds for a particular transaction and lock them down within 1-2 seconds so that those funds cannot be spent again before the confirmation of the current transaction. 

That’s how the masternodes reduce transaction time and keep the Dash network performing safely, healthy, and efficiently. They secure user data and process and facilitate instant and private transactions.

  Dash Coin
Inception January 18, 2014
In Circulation/ Total Supply (as of July 7, 2021) 10,219,982.47 DASH/ max supply 18.92 million
Special Feature InstantSend

How To Mine Dash Coin

Like most cryptocurrencies, Dash coins are obtained through a process called mining, where individuals use computers to solve difficult math problems. Each time someone successfully solves one of the problems, they add a new block of Dash to the blockchain.

Dash coins are mined using a process called Proof of Work (PoW) mining, where computer processors solve math problems defined by an X11 hashing algorithm. The algorithm was designed by Dash’s founder to reduce power and allow for a fair distribution of the currency.

While solving a math problem might not sound all that difficult, these algorithms actually require highly specialized computers that can be expensive. To help reduce costs and time, many miners participate in mining pools, where people work together to solve the problems and release more Dash.

Total Supply of Dash Coin

As of July 2021, there are more than 10.18 million Dash in circulation, with a maximum supply of between 17.74 million and 18.92 million. Unlike Bitcoin where miners get the entire reward, about 10% of the reward for mining Dash coin goes towards the budget proposals for the development of the Dash project.

These future budget proposals are subject to future voting behavior, and so it can’t be known for certain how much of Dash coin shall be utilized for this purpose making the maximum supply of currency uncertain. 

The creators expect that Dash will continue to be mined for about 192 years. Based on their estimates, the final coin supply will be mined by the year 2254.

Rewards for Mining

The first Dash coin was mined on January 18, 2014. When someone mines a block of Dash coins, they receive a block reward as an incentive. The block reward decreases by 7.14% each year.

How To Buy Dash Coin

You can purchase Dash coins on any trading platform that trades cryptocurrency. You can buy Dash on many of the top cryptocurrency exchanges, including Coinbase, Kraken, and Binance. 

As we mentioned previously, Dash has instant transaction verification. As a result, there won’t be a delay before your Dash coins appear in your account. Keep in mind that many cryptocurrency exchanges have trading fees, which vary from one trading platform to the next.

Wallets

When you purchase Dash or any other cryptocurrency, you’ll also need a wallet to access it. 

Dash is compatible with many different types of wallets, including mobile wallets, desktop wallets, hardware wallets, paper wallets, web wallets, and a text wallet.

Wallet Type Dash Compatible Wallets
Mobile Wallet Dash
Edge
Coinomi
Jaxx Liberty
Dash Electrum
Spend
Exodus
Bitnovo
Desktop Wallet Dash Core
Dash Electrum
Exodus
Coinomi
Jaxx Liberty
Guarda
Hardware Wallet Trezor
Ledger
KeepKey
SafePal
D’CENT
Cobo Vault
Ellipal Titan
NGRAVE
SecuX
Paper Wallet Dash Paper Wallet
Web Wallet Guarda
Magnum
MyDashWallet
Text Wallet Dash Text

The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.