DASH is a digital cash, working on p2p protocol. It’s originally Litecoin hard-fork which was created in 2014 by Evan Duffield and then rebased to become a fork of Bitcoin in 2015.
Bitcoin is not the currency which is convenient for everyday use. First of all the system can handle only 6 transactions per seconds, every block created in 10 minutes and transaction fees are significantly high, so the common user will have to wait at least several minutes to have his transaction accepted by miners.
That’s why Evan Duffield, impressed by the idea of Bitcoin wanted to improve it, but the core members would never allow him to do so because it will mean the change in the core’s code.
He decided to create his own cryptocurrency, which will have significant improvements in the whole ecosystem.
First of all - what is the node? According to bitcoin wiki - node is a computer connected to the bitcoin network (Bitcoin Core). Full node means that the computer fully verifies all of the rules of Bitcoin. It is a server running on a p2p network, that allow peers to use them to receive updates about the events on the network. It means that they store a lot of data and need a significant upkeep and care.
They provide clients with the ability to synchronize and quick propagation of messages throughout the network.
The main role of full nodes is to update the information about the latest transaction and newly created blocks to prevent the system from double spending, attacks, and etc. These nodes are very important to the health of the network.
It’s one of the DASH improvement that incentivizes users to participate in the development of the network. The Masternodes are like full nodes, but they have some additional requirements, first of all, they should make investment counting 1000 DASH and they’re also provides a certain service to the network.
Why such an investment is needed? If 1 DASH counts around $220 the Masternode should invest $220000 in the DASH network. He will also get dividends from his work and it means that his work will be in full interests with the positive ecosystem development.
This allows the users to pay for the services and earn a return on investment. Masternodes are all paid from the same pool of money, approximately 45% of the total block reward is dedicated to this program. You can read more about the reward system in Dash here.
Masternode has a lot of power and influence in the system. The significant improvement in the DASH system is that it can’t be governed by one MasterNode. If some would like to manage 50+% of the Masternode he will be needed to buy at least 5,000,000 DASH, that will increase the price of the currency at the rate of thousands. Which will be almost impossible.
There is either Good Actors or Bad actors as a Masternodes.To reduce the possibility of people using the system to their advantage nodes must ping the rest of the network to ensure they remain active. This work is done by the Masternode network by selecting 2 quorums per block. Quorum A checks the service of Quorum B each block. Quorum A are the closest nodes to the current block hash, while Quorum B are the furthest nodes from the said hash.
Masternode A (1) checks Masternode B (rank 2300)
Masternode A (2) checks Masternode B (rank 2299)
Masternode A (3) checks Masternode B (rank 2298)
All work done to check the network to prove that nodes are active is done by the Masternode network itself. Approximately 1% of the network will be checked for each block. This results in the entire network being checked about six times per day. In order to keep this system trustless, we select nodes randomly via the Quorum system, then we also require a minimum of six violations in order to deactivate a node.
PrivateSend maintains fungibility by swapping coins among users to break the traceable history of the coins. It works on the principle of joint payment when different users who a willing to make transactions mix together to make it harder to track or identify a concrete user.
PrivateSend adds privacy to transactions by adding multiple identical inputs from a lot of users and then sending them to multiple outputs. Since the transaction flow cannot be traced, the privacy of the transaction is maintained. To mix users with PrivateSend requires at least three participants.
This feature speed up transactions speed.
By utilizing Masternode quorums, users are able to send and receive instant irreversible transactions. Once a quorum has been formed, the inputs of the transaction are locked to only be spendable in a specific transaction, a transaction lock takes about four seconds to be set currently on the network. If consensus is reached on a lock by the Masternode network, all conflicting transactions or conflicting blocks would be rejected thereafter, unless they matched the exact transaction ID of the lock in place.
For now, DASH is on the 14 place on the coinmarketcap capitalization list with the amount of more than $ 1.8 bln dollars. This currency has a significant meaning for the real world markets. Because it can be useful for merchants, and with high transactions speed and modest fees - can be a really useful asset for internet trading. You can by DASH in ATM, and in Canada you can even exchange it on the CAD via smartphone.
There are many wallets that support this coin.
You can use full node wallet, which you can download from the official website. It’s strongly encrypted, but weights more than 11 GB your disk space. There are also plenty of mobile apps.
You can hold, send, receive and exchange DASH in Atomic WAllet. Which is a light and convenient decentralized platform, providing a high-security performance, friendly UI and has a lot of features.