Dash (formerly known as Darkcoin and XCoin) is an open source peer-to-peer cryptocurrency and the first decentralized autonomous organization (DAO).[1][2][3] It features instant transactions, private transactions and a self-funded, self-governed organizational structure.[4] Dash is a fork of the Bitcoin software[5] and is referred to as an altcoin.[6]
History
Dash was launched in January 2014 by Evan Duffield.[7] The original name was XCoin[8] before rebranding as Darkcoin and then Dash in March 2015.[9] The name 'Dash' is a portmanteau of 'Digital Cash'.[10]
As of August 2018, Dash's market capitalization was around $1 billion, making it the 14th largest cryptocurrency.[11]
Decentralized Autonomous Organization (DAO)
Dash's self-funded, self-governed organizational structure, referred to as the treasury system[5] or decentralized governance by blockchain,[2] makes Dash a decentralized autonomous organization. A global network of masternodes act as shareholders, voting monthly on proposals for improving Dash's ecosystem.[11][5][7] Approved proposals are funded from the treasury, which receives 10% of all newly created Dash, with 45% allocated to miners and 45% to masternodes.[7]
Masternodes
Masternodes are servers on the Dash network that enable InstantSend and PrivateSend transactions, as well as governing the network by voting on proposals.[12][13] This is in addition to the functions performed by a standard 'full node' (hosting a copy of the blockchain, relaying messages and validating transactions on the network).[12][14] Masternodes were first introduced in March 2014 as part of Dash version 0.9.[8]
Running a masternode requires ownership of 1000 Dash to prevent Sybil attacks (where an attacker creates a large number of malicious nodes to disrupt the network's operation).[15] Masternodes are also required to have a static IP address and meet minimum requirements for CPU, RAM, disk space and network bandwidth.[12] To incentivize their operation, they receive 45% of all newly created Dash (with 45% going to miners and 10% to the treasury).[7]
A proof-of-service consensus protocol ensures that masternodes are online, responsive and have their blockchain up-to-date.[16]
Some masternodes are operated by companies (e.g. Neptune Dash Technologies Corporation) rather than individuals.[17][18]
InstantSend
InstantSend is a feature of the Dash protocol allowing transactions to confirm in under two seconds at the point of sale.[9] InstantSend was introduced in February 2015 as part of Dash version 0.11.1.[8]
Masternodes validate and lock the inputs of each InstantSend transaction, working in random groups of ten chosen by a deterministic algorithm that uses the current block hash as a source of ramdomness.[16][19] The response received from the majority of nodes in a group is treated as correct.[16]
Dash-funded organizations
The Dash DAO funds a number of organizations and projects. As of August 2018, it had granted a total of $33 million worth of Dash, with $2.3 million allocated to projects in developing countries.[20]
Cannabis industry
Alt Thirty Six is a Dash-funded company based in Tempe, Arizona, that provides a payments platform for the legal cannabis industry in the United States.[21][22][23] It received $496,000 in funding from Dash's treasury.
Dash Core Group Inc.
Dash Core Group Inc. is a Delaware C corporation responsible for developing Dash's core software.[24][25] The company is owned by a legal trust whose beneficiaries are the Dash masternodes.[25] It requests funding from the treasury in the same way as other Dash-funded organizations, with masternodes voting monthly on each request.[11][25] The current CEO is Ryan Taylor.[21][26]
In August 2018, Dash Core Group announced a partnership with Latin American mobile phone company 'Kripto Mobile' to produce mobile phones pre-loaded with Dash, for sale in Venezuela and Miami.
Venezuela
The Dash DAO has invested about $1 million in Venezuela, where hyperinflation has led to rapid adoption of the cryptocurrency by merchants.[11] As of May 2018, an organization called Dash Venezuela has held 8 conferences aimed at community outreach and promotion of the cryptocurrency.[27] It promotes Dash as a method of payment and operates a Spanish-speaking technical support centre for problems related to Dash.[27]
References
- ^ Galt, Juan S. (12 September 2015). "DASH – The First Decentralized Autonomous Organization?". Cointelegraph.
- ^ a b Stevenson, John (29 May 2018). "City academic makes link between cryptocurrency trading and machine learning". City, University of London.
- ^ Prusty, Narayan (27 Apr 2017). Building Blockchain Projects. Birmingham, UK: Packt. p. 9. ISBN 9781787125339.
- ^ Grant, Terry (18 Jan 2018). "Dash, Arizona State University Elevate Blockchain Research, Offer Graduate Course and Scholarships". FullCircle, Arizona State University.
- ^ a b c Garg, Yash (10 Jan 2018). "Dash Gives ASU a Grant to Fund Blockchain Initiatives". ASU Blockchain Research, Arizona State University.
- ^ McLannahan, Ben; Cornish, Chloe (20 Dec 2017). "Ex-Goldman Bankers Launch Crypto Fund For Rich US Investors". Financial Times.
- ^ a b c d Kauflin, Jeff (22 Dec 2017). "Dash Is Up 8,000% In 2017. Is This 'Darkcoin' A Better Version Of Bitcoin?". Forbes.
- ^ a b c "Dash Release Notes - Older Releases". GitHub. Retrieved 2018-08-03.
- ^ a b Eha, Brian (26 June 2017). "Can Bitcoin's First Felon Help Make Cryptocurrency a Trillion-Dollar Market?". Fortune.
- ^ "The U.S. town where Bitcoin thrives". Quest Means Business. April 2018. CNN International.
- ^ a b c d Williams-Grut, Oscar (2018-08-23). "A cryptocurrency is making huge inroads in Venezuela as inflation runs wild — and it's not bitcoin or the petro". Business Insider.
- ^ a b c Prusty, Narayan (27 Apr 2017). Building Blockchain Projects. Birmingham, UK: Packt. p. 20. ISBN 9781787125339.
- ^ Lee, David; Low, Linda (21 Jun 2018). Inclusive Fintech: Blockchain, Cryptocurrency And ICO. Singapore: World Scientific. p. 219. ISBN 9789813238657.
- ^ Antonopoulos, Andreas (12 Jun 2017). Mastering Bitcoin: Programming the Open Blockchain. California: O'Reilly Media. p. 196. ISBN 9781491954348.
- ^ Bergman, Adam (2 Mar 2018). "Taxation Of Cryptocurrency Proof Of Stake Transaction Fees". Forbes.
- ^ a b c Prusty, Narayan (27 Apr 2017). Building Blockchain Projects. Birmingham, UK: Packt. p. 21. ISBN 9781787125339.
- ^ Dow Jones & Co. (n.d.). "DASH Stock Price". MarketWatch.
- ^ "Genevieve Roch-Decter and Nicole Marchand discuss Neptune Dash Technologies". Market Call. 19 Jun 2018. BNN Bloomberg.
- ^ "Transaction Locking and Masternode Consensus" (PDF). GitHub. Retrieved 2018-08-27.
- ^ Cuen, Leigh (23 Aug 2018). "Even If It Fails: Why Dash Could Have a Lasting Impact on Crypto Adoption". Coindesk.
- ^ a b Moore, Heather (24 Aug 2018). "Cryptocurrency Dash aims to give mainstream money a run". 3TV/CBS5.
- ^ Adams, John (18 May 2018). "Crypto starts to chip away at cash's dominance in legal pot shops". Payments Source.
- ^ Heun, David (13 Jun 2018). "Alt Thirty Six joins B2B cannabis marketplace to digitize pot payments". Payments Source.
- ^ Irrera, Anna; Chavez-Dreyfuss, Gertrude (2 Aug 2017). "Bitcoin 'clone' sees a slow start following split". Independent.
- ^ a b c Chester, Jonathan (2018-08-20). "A New Signal Of Maturing Cryptocurrency Markets: Corporate And Foundation Investment Arms". Forbes.
- ^ Malandrino, Jill (23 May 2018). "Cryptocurrency and Retail: What the Future Holds". Nasdaq.
- ^ a b Santambrogio, Clelia (15 May 2018). "Dash Venezuela continuará incentivando la adopción de la moneda a nivel personal, empresarial y de emprendimiento". Computerworld Venezuela (in Spanish).