FREE DASH COIN FAUCET PART 1
What is Dash?
Dash (formerly known as Darkcoin and
XCoin) is an open source peer-to-peer cryptocurrency that offers all the
same features as Bitcoin but also has advanced capabilities, including
instant transactions (InstantSend), private transactions (PrivateSend),
and decentralized governance (DGBB). Dash's decentralized governance and
budgeting system makes it the first decentralized autonomous
organization.
Dash uses a two-tier architecture to power its network. The first tier
consists of miners who secure the network and write transactions to the
blockchain. The second tier consists of masternodes which enable the
advanced features of Dash.
History
Dash was originally released as XCoin (XCO) on January 18, 2014. On
February 28, the name was changed to "Darkcoin." On March 25, 2015,
Darkcoin was rebranded as "Dash." Dash is a portmanteau of "Digital
Cash."
Within the first two days of launch, 1.9 million coins were mined, which
is approximately a quarter of Dash's current supply (as of March 2017).
Creator and lead developer of Dash, Evan Duffield, attributed the
so-called "instamine" to an error in the code "which incorrectly
converted the difficulty, then tried using a corrupt value to calculate
the subsidy, causing the instamine." Once the problem was resolved, Evan
offered to relaunch the coin without the instamine, but the community
overwhelmingly disapproved. He then suggested an "airdrop" of coins in
order to broaden the initial distribution. The community also
disapproved of this proposal. As such, the initial distribution was left
alone and development of the project continued.
At the time the currency was launched, the cryptocurrency space was
riddled with scams. Dash was one of the few survivors from that era. The
Dash Core Team, responsible for developing the currency, has now grown
to 30 full-time employees, 20 part-time employees, and dozens of unpaid
volunteers. All Core Team employees are paid from Dash's budget system
and therefore are not reliant on donations or sponsorships that can lead
to conflicts of interest. To date, Dash has solved such vexing issues
as slow confirmation times, block size increases, decentralized
governance, and a self-funding development budget.
According to CoinMarketCap, in June 2017 the daily trade volum
PrivateSend
Masternode distribution worldwide, excluding IPv6 and Tor nodes (as of March 2017)
PrivateSend is a coin-mixing service based on CoinJoin, with numerous
modifications. These include using masternodes instead of a single
website, chaining by mixing with multiple masternodes, restricting the
mixing to only accept certain denominations (e.g.: 0.01 DASH, 0.1 DASH, 1
DASH, and 10 DASH, etc.), and passive mode. The maximum allowed for a
PrivateSend transaction is 1000 DASH.
Later iterations used a more advanced method of pre-mixing denominations
built into the user's wallet. The implementation of PrivateSend also
allows masternodes to submit the transactions using special network code
called DSTX, this provides additional privacy to users due to the
deadchange issue present in other CoinJoin based implementations such as
DarkWallet and CoinShuffle.
In June 2016, DarkSend was rebranded to PrivateSend.
In its current implementation it adds privacy to transactions by
combining identical inputs from multiple users into a single transaction
with several outputs. Due to the identical inputs, transactions usually
cannot be directly traced, obfuscating the flow of funds. PrivateSend
makes Dash "fungible" by mixing the coins in the same denomination with
other wallets, ensuring that all coins are of the same value.
InstantSend
InstantSend is a service that allows for near-instant transactions.
Through this system, inputs can be locked to specific transactions and
verified by consensus of the masternode network. Conflicting
transactions and blocks are rejected. If a consensus cannot be reached,
validation of the transaction occurs through standard block
confirmation. InstantSend solves the double-spending problem without the
longer confirmation times of other cryptocurriencies such as Bitcoin.
In June 2016, InstantX was rebranded to InstantSend.
Masternodes
Unlike Bitcoin's single-tier network, where all jobs on the network
are performed by miners, Dash utilizes a two-tier network. Certain
network functions, such as creating new blocks, are handled by the
miners. The second tier of the Dash network consists of "masternodes"
which perform PrivateSend, InstantSend, and governance functions.
Masternodes require 1000 DASH as collateral to prevent sybil attacks.
That collateral can be spent at any time, but doing so removes the
associated masternode from the network. Because masternodes provide
vital network functions, the block reward is split between miners and
masternodes, with each group earning 45% of the block reward. The
remaining 10% of each block reward funds the "budget" or "treasury"
system.
Governance and funding
Dash is the first decentralized autonomous organization powered by a
Sybil proof decentralized governance and funding system. Decentralized
Governance by Blockchain (DGBB), often referred to simply as the
"treasury system" is a means of coming to consensus on proposed network
changes and funding development of the Dash ecosystem. Ten percent of
the block rewards go to this "treasury" in order to pay for projects
that benefit Dash. Funding from the treasury system has been used to
hire additional developers and other employees, to fund attendance at
conferences, and to fund integrations with major exchanges and API
providers.
Each masternode operator receives one vote. Proposals are eligible for
funding according to the following formula: (YES VOTES - NO VOTES) >
(TOTAL NUMBER OF MASTERNODES * 0.1). If there are more proposals that
meet that criteria than there are budget funds for the month, then the
proposals with the highest number of net votes will be paid. Community
interaction with proposal submitters is done through the dash.org
forums, or through community-driven websites, like DashCentral. These
websites allow proposal submitters to provide multiple drafts, then
lobby for community support before finally submitting their project to
the network for a vote. After the submitter has enough support, the
network will automatically pay out the required funds in the next super
block, which happens monthly.
The funding system has seen revenue growth. In September 2015, the
treasury system provided $14,000 in funding per month. Due to increases
in the value of Dash, as of May 2017 the treasury system provides over
$650,000 per month in funding. The treasury system has created a
positive feedback loop, whereby additional development increases the
value of Dash, which increases the amount of funding provided by the
budget system.