Cryptoindex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 1000 coins applying over 170 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.
You can find our previous reviews here:
Binance Coin. Review
IOTA. Review. August - 2018
NEM.Overview
Ethereum Classic.Review
TRON overview.
Cardano - review. Future plans.
Ripple - review. Further Perspectives
Litecoin. June'18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May'18 overview
Ethereum. May 2018 overview
Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.
Today’s review: Dash
What is DASH?
The project is an open decentralized platform, based on blockchain technology. According to the developers, the main advantages of the platform are speed, privacy, and security of payments. DASH released its tokens on January 18, 2014. Initially, the coin was called Darkcoin. In essence, it is a fork of Bitcoin, similar projects to DASH are Bitcoin Privet, Bytecoin, Zcash. At the time of writing, Dash is ranked 14th in terms of market capitalization as ranked by CoinMarketCap.
Mining Dash.
Similarly to Bitcoin, you can mine DASH. The reward received for mining is 90%, shared and distributed between the miners and the operators of master classes. There was controversy over the mining setup because when the network was launched, about 30% of the total number of coins were mined within the first hour of mining, miners were able to extract 500,000 Dash. This number is exceptionally high, however, the total increased to 1,000,000 coins within 7 hours, and a further 400 000 more in 36 hours (a total of 1.9 million Dash).
According to the developers, this was a bug in the coding, which then led to "extra mining". The conflict occurred amongst the community members, causing a huge wave of discussions.
In order to start using Dash’s platform you need to have 1,000 coins in your account. The system is based upon a voting system. The first shareholders received more "rights" than other owners in the network. For example, if you have 30,000 coins, then your vote is equivalent to the votes of 30 users.
The right to vote gives the right to influence:
The maximum offer of coins in the system;
Commissions
Technical parameters of the protocol
DASH and privacy
I discovered Bitcoin in the middle of 2010 and since then it has taken hold of my mind. In a couple of years, in 2012 I began to really think about how to add anonymity to Bitcoin. I found about 10 ways to do this, but after the release, my code did not want to include in Bitcoin. The developers wanted the basic protocol to remain largely unchanged, and this also applies to everything else that is based on it. This was the birth of the Darkcoin concept. I implemented the X11 algorithm over the weekend and found that it works surprisingly well and solves the problem of fair distribution of the reward, that it can become a good basis for launching the cryptocurrency. I actually laid a similar growth curve in X11, in which the miners must fight to create even a small advantage, just as it was in the early stages of Bitcoin development. I think this is necessary to create a living ecosystem
Evan Duffield, March 2014
Dash is the first truly anonymous cryptocurrency that does not provide an opportunity to third parties to gather information about the transactions, its sender, or the recipient. Dash was the first platform to use the "token mixer" concept. This technology ensures complete anonymity of transfers due to the fact that it "mixes" some coins with others in random orders and selections. The details of the transaction remain anonymous based on the information recorded in the blocks. The user can choose from two to eight rounds of "mixing", increasing security of the trade details, however, there are some exceptions.
Advantages:
- The presence of a two-tiered architecture, which at times speeds up the process of implementing unique updates and improvements.
- The anonymity of payments: nobody can know where, when and how many coins have been sent. Unlike Bitcoin where payments are published in the blockchain for public viewing, Dash is a completely private system.
- The mining process is concluded with minimum commissions.
- Have own private wallet
Disadvantages:
- The popularity of this cryptocurrency is not as great as Bitcoin.
- The number of miners is much lower.
- Due to a developer error, the first miners received more advantages than others. Perhaps this was done deliberately...
Conclusion:
Due to conflicts and disagreements that occurred during the first stage of the development of the cryptocurrency, the platform has not been widely adopted, but at the same time it holds a good position in the market and is included in the TOP-15, which means that there is still interest in DASH. The need for anonymity and security of payments is still a concept in which market participants require.
Potential investors should be ready for the risks. In this network you need to hold a minimum amount Dash coins (1000 coins) which could be costly to accumulate, on top of this, should you want voting rights you will need to pay 5 DASH coins for the privilege.
At the time of writing, a Dash coin is 0.658% of the total of the CryptoIndex portfolio.
You can always check the current CIX100 composition at our MVP platform: http://cryptoindex.ai/
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