Dash coin also known DSH and formerly known as Darkcoin and Xcoin is one of the first privacy-centric cryptocurrency. One of the reasons behind the popularity of dash coin is it provides the flexibility of either going anonymous or public with your transactions. Among its peer cryptocurrency options, it is first of its kind in this regard. Usually cryptocurrencies are either public or private by default.
Apart from strict privacy protocols where only you have access to your financial information, dash coins are also distinctive due to the speed of transactions. Dash transactions get completed within four seconds.
How do dash coins work?
Dash coins work in the same way as bitcoins but unlike the single-tier networks of Bitcoin, it is utilizing two-tier networks. Let’s see how these two networks work together to make dash coins one of the best current options of cryptocurrency.
First tier is designed on the same blueprint as of Bitcoin where user relay transactions to the network and then miners put these transactions to blockchain. The innovation and rapidity of dash coin comes with second tier that contains masternodes. These are special servers that add speed, privacy and decentralization to the networks.
Masternodes: Infrastructure on which Dash network build
Masternode servers can be setup with 1000 Dash coins, a dedicated IP address. Server should be able to run 24 hours a day. Connection loss of less than an hour can be sustained by masternodes. Decentralized system of masternodes provides necessary privacy to transactions. Every user can act as an auditor to ensure the integrity of public ledger without compromising the confidentiality of others. Using chaining approach, passive ahead-of-time mixing and denominations used by masternodes help in making the dash coins transactions secure and private.
InstantX is a feature in masternode which generates a lock once a transaction is made on the network. This lock basically ensures that the Dash coins involve in the transactions can’t be double-spent and rejects any attempts to spend the locked transactions. This feature enables the confirmation of dash transactions within four seconds.
What is Dash coin minus masternode?
It will be just another Bitcoin where users have to wait for block confirmations. It takes six confirmations in single tier network for transactions to get fully cleared. Therefore transactions in Bitcoin can take up to an hour.
Setting up a Dash account
If you are interested in Dash coins then you can enter the world of this anonymous cryptocurrency in few simple steps.
Get a Dash wallet
Dash wallet is the software you will use to send, store and receive dash coins. They are easy to use and it is advised to protect them with strong password.
Get some Dash coins
Through wire transfer, you can buy dash coins from reliable cryptocurrency exchanges. In few locations, they can also be purchased through auto teller machines. Stay up-to-date and use your dash coins wisely to reap the benefits of this digital currency.