DASH is a unique cryptocurrency in the broader market for several reasons. Among the most notable is that the cryptocurrency is a form of decentralized autonomous organization (DAO). As a DAO, DASH is governed by its community of users, mainly the Masternodes in the network who oversee various decisions on the DASH blockchain along with other community shareholders.
DASH is one of the more distinguished cryptocurrencies that uses a Masternode system, which is used in combination with proof-of-work (PoW), and the Masternodes enable several distinct features — including InstantSend and PrivateSend transactions.
DASH has a large community of users and developers that is supplemented by the Dash fund, which is a community fund that absorbs 10 percent of block rewards from mining to fund the network’s development using a proposal and voting mechanism among community members.
InstantSend, PrivateSend, and Merchant Adoption
As corollaries to the primary initiative of functioning as a reliable digital payment method for online merchants and consumers, privacy and speed are core focuses of DASH as well. Privacy and speed are provided by Masternodes as services called PrivateSend and InstantSend, respectively.
PrivateSend is designed to obfuscate the origin of funds sent across the DASH network and relies on mixing transaction inputs between users to mask transaction details. Special messages are sent to Masternodes to perform transaction input mixing, and the mechanism supports the goal of DASH being a fungible cryptocurrency.
InstantSend is based on the DASH network’s second layer of Masternodes that enable transaction confirmation times to be reduced — providing a crucial advantage to online merchants. InstantSend works by Masternodes voting in ‘quorums’ on the authenticity of specific transactions, subsequently locking them into a future block’s production without waiting for the confirmation time typically required for transactions appended to blocks.
InstantSend and PrivateSend have made DASH popular among online merchants, with DASH citing more than 4,800 merchants as using the network for payments.