Dash is an open-source cryptocurrency that came into being as a Bitcoin protocol fork. The cryptocurrency came into being in 2014 as developers sought to inherit Bitcoin founder Satoshi Nakamoto‘s initial cryptocurrency vision.
The coin was initially known as Darkcoin and sought to take privacy and anonymity in the cryptocurrency space to another level, as envisioned by Nakamoto. Co-authors Evan Duffield and Daniel Diaz described the now Dash Cryptocurrency as a privacy-centric cryptographic currency in the first whitepaper.
Just like other cryptocurrency projects, Dash has evolved with the ever-changing times in the crypto space. While it started as a privacy-centric project, it is now focused more on facilitating daily transactions, an area with tremendous opportunities.
Dash, just like Bitcoin, has a cap on the total number of coins that will ever be in circulation. The hard cap is set at 18 million coins, meaning in the end, there will only be 18 million Dash coins in circulation. Dash coins are generated in a process referred to as mining.
The mining process entails connecting powerful computers and using a specialized software program to solve complex mathematical puzzles. Miners are often rewarded with Dash coins whenever they come up with a correct answer to a puzzle resulting in the addition of a new block on the Dash blockchain.
The average block mining time on Dash blockchain is 2.5 minutes, 4-times faster than of flagship Bitcoin cryptocurrency.
How Dash Works
Dash comes with an array of features that makes it a desirable cryptocurrency. It is a preferred means of sending money given its privacy features as well as transaction speeds. The three features at the center of how Dash works are Masternodes, PrivateSend, and InstantSend.
Masternodes are simply special servers that perform critical functions on the Dash blockchain. The special servers are responsible for enabling private transactions as well as instant transactions and ensuring the governance of the system.
The Masternodes also improve the security of the network by ensuring total privacy as well as quick cash transactions. The PrivateSend feature is what ensures transactions cannot be traced back to any person. The Instant Feature, on the other hand, improves on transaction speeds by ensuring transactions are processed and approved in a matter of less than 2.5 minutes.
Factors Influencing Dash Prices
Coin supply is an important factor that affects Dash prices. The fact that there will only be 18 million coins in supply sees Dash become more valuable as supply diminishes. A spike in demand, amid limited supply, continues to drive prices higher.
Speculation is another important factor that influences Dash. Chatter that Dash is a better option for facilitating private transactions backed by fast transaction speeds also sees it elicit strong demand, conversely sending prices higher.
Dash prices are also affected by regulatory pressures pertaining to the use of cryptocurrencies. Friendly policies aimed at accelerating mainstream adoption have seen a spike in demand for the privacy-friendly altcoin, conversely sending prices higher. Similarly, regulatory pressures that result in the banning of cryptocurrencies negatively affect sentiments pushing prices lower.