What is the difference between two of these similar cryptocurrencies? This open-source cryptocurrency has unique features, and it is forked from the much popular Bitcoin protocol. The Dash network is a decentralized autonomous organization that is run by a subset of its users called “master nodes.”
But the key purpose for the creation of Dash is anonymity and privacy during blockchain-based transactions. This is where Dash separates itself from the father of all cryptos – Bitcoin. It emphasizes cheaper, faster, and more anonymous digital currency transactions.
I have discussed how Dash differs from its predecessor Bitcoin in this article. Go through this article patiently if you want to have a clear idea on that topic.
What Is Dash?
The privacy-based altcoin, and a fork of the bitcoin protocol Dash, went through several rebrandings. Initially, it was named Xcoin when Evan Duffield, the creator of the coin, first released it in the market in 2014. It faced lots of speculation in its early days. Later, the coin assumed the named Darkcoin and developed a bad reputation for itself for being used in the dark net market.
So, another rebranding was required for Darkcoin, and in 2015, it was named Dash; after this rebranding, it was no longer used for any dark market usage. Later, the Dash DAO founded a research lab for blockchains at ASU. Now it has a market cap of $4.3 billion.
The main objective of the dash cryptocurrency is to help with daily transactions. The use of that has been increasing ever since the release and the final rebranding of the network. It has expanded itself into the economically struggling country of Venezuela.
Dash vs. Bitcoin: Comparison
Currently, one Bitcoin equals to 559.39 Dash coins. However, this altcoin is a fork of the Bitcoin protocol. However, there are significant differences between both of these coins aside from their difference in value. Go through the sections below to learn about the detailed difference between Bitcoin and Dash.
Transaction Speed & Cost
The transaction process and speed of Bitcoin, are comparatively lengthy and tedious when seen side by side with Dash. Dash has an InstantSend technology allowing you to complete translation almost instantaneously.
In addition, the transaction costs are significantly lower than the transaction fees of Bitcoin. You can get a significant amount of Dash coins with the amount you pay for Bitcoin transactions. Especially when Bitcoin’s price and demand are high, the transaction fee increases exponentially.
Privacy & Anonymity
Bitcoin transactions are pseudo-anonymous. All the transaction details in Bitcoin transactions remain visible in the network. However, Dash creates room for better privacy and more anonymity.
Thanks to the PrivateSend feature of the Dash Network, the transaction information is mixed with other transactions in the network. This makes each transaction difficult to trace within the network, offering better anonymity compared to the much-craved Bitcoin.
Governance & System
There is an innovative governance structure in place for Dash, allowing the members of the community to cast votes on different proposals and decisions. In simple words, this mechanism makes Dash a fully decentralized platform.
The control of Bitcoin remains principally within the codebase developers, who are responsible for making regular contributions to it.
Dash has a cool new feature called Masternodes. The master nodes work through the master node operators, who have to invest 1000 dash coins for host master nodes. After that, the operators of master nodes will get a 45% reward for all the Dash Blocks that are mined. This unique feature is new and is absent in the older Bitcoin. Every master node operator of the Dash coin will receive 7 Dash every month.
Dash also differs from Bitcoin in being a self-funded Cryptocurrency. The self-funded cryptocurrency Dash can be controlled using a master node with one vote per master node. The technology distributes each block section for its promotion budget and development.
Therefore, it is clear that the developers and promoters of the Dash platform will receive payment for their contribution to the network. We can conclude that Dash is a self-funded blockchain, whereas Bitcoin contributors are voluntary.
Difference In Protocol
The protocol that the dash cryptocurrency follows differs from the Bitcoin. Dash is based on the X11 algorithm, which is a customized form of Proof-of-Stake protocol. On the other hand, Bitcoin follows the Proof-of-Work.
Due to the use of CoinJoin mixing, Dash is able to scramble the transaction of different users on the platform. The transaction management systems used by both Bitcoin and Dash are different from each other; this is another point that distinguishes between Dash and Bitcoin.
What Is The Current Status Of Dash?
Similar to Bitcoin and many other cryptocurrencies, Dash also has a limited market capitalization. The Dash market cap is locked at 18 million, meaning only 18 million Dash coins can be mined. When Dash was launched, about 2 million of its coins were mined.
At present, 7.4 million Dash coins have been mined. Here is a price prediction of the Dash Cryptocurrency for the upcoming years –
When compared to Bitcoin, Dash offers a much faster, and more private, economic transaction option. It is great for day-to-day transactions. Also, the governance system of the currency is based on Democracy. It is celebrated, used, and accepted across countries for its large market capitalization. On the other hand, Bitcoin is more expensive and requires a lengthy and laborious process for transaction and mining.
So, once you go through this article, the differences between Bitcoin and the currently popular altcoin Dash should be clear. However, if you need any more questions answered regarding the same, you can comment below.