What Is Dash Coin?
Dash is an open-source blockchain and cryptocurrency focused on offering a fast, cheap global payments network that is decentralized in nature. According to the project’s white paper, Dash seeks to improve upon Bitcoin (BTC) by providing stronger privacy and faster transactions.
Dash, whose name comes from “digital cash,” was launched in January 2014 as a fork of Litecoin (LTC). Since going live, Dash has grown to include features such as a two-tier network with incentivized nodes, including “masternodes,” and decentralized project governance; InstantSend, which allows for instantly settled payments; ChainLocks, which makes the Dash blockchain instantly immutable; and PrivateSend, which offers additional optional privacy for transactions.
How Does Dash Coin Mining Work?
The Dash coin was first introduced as a marketing tool in 2014. The aim was to create a digital currency that could be traded like a with efficiency and without gas fees like on Ethereum ERC-20 Blockchain Protocol. It should be able to function just like a physical currency. Since then the popularity has grown tremendously and it has been accepted by merchants worldwide.
The process of mining the Dash coin is similar to how a person would mine any other type of currency. Once a person has mined a certain amount of Dash that person then starts a campaign to sell that many units of the coin to people interested in purchasing it. Once this is done a new block of coins are generated and the old ones are recycled into the new coins.
The Dash currency is traded on all popular decentralized exchanges. Unlike most other digital currencies, though it is actually mined using a special kind of algorithm that makes the process of finding these coins much easier than with other currencies. After the algorithm is used to find these coins it is necessary for the miners to apply what is called a ‘proof of balance’ to make sure that they are actually mining the correct amount of coins. Mining these coins is therefore a lot easier than with other currencies and the Dash coins are therefore more widely accepted.