What is Dash (cryptocurrency)?
Dash is a cryptocurrency developed by Evan Duffield in 2012 and first presented to the public in 2014. Its goal is to become a user-friendly digital alternative to traditional fiat money (cash). Dash aims to accomplish that purpose by becoming the easiest to use and most on-chain scalable cryptocurrency. Its PrivateSend function enables you to anonymize your funds and transactions by breaking them into specific denominations ( 0.01, 0.1, 1, 10 Dash) and by mixing them with funds from two other clients.
The process would go as follows:
- Break the transaction inputs into different denominations
- The transactions are then sent to masternodes (we will explain this concept further below), informing them of your interest to mix the funds. Masternodes don't receive any identifiable information, thus making it impossible to identify you.
- Once two other users have sent the same request, the masternode commands the wallets to send the transaction to themselves, but on a different wallet address.
- This process is automatic every time you make a transaction (no intervention from your part is required). photo source: https://dashpay.atlassian.net/wiki/spaces/DOC/pages/1146924/PrivateSend
What is a masternode?
A masternode is a server connected to the Dash network, used to perform specific tasks related to PrivateSend and InstantSend features. As a rule, they are rewarded with a certain percentage of the transactions going through - this concept is called Proof of Service. Anyone with 1000 DASH or more can set up a masternode and start earning interest over time.
What is the use of the DASH cryptocurrency?
Similarly to Bitcoin, DASH is a transactional currency. In other words, it is used to transact value from point A to point B, in a fast, obscure and reliable way.