Dash：The Dark Coin

2022-05-13, 15:33

Xcoin was a product of Litecoin’s Hard Fork (split). It has since changed into Dark Coin and, subsequently, DASH.

DASH is fully decentralized, runs on its blockchain, and is an altcoin.

DASH coin has the unique feature of using Masternodes for block creation, transaction verification, and other blockchain activities.

DASH as Dark Coin had high privacy and anonymity protocols.

The encryption protocols in Dark Coin were different from other blockchain technologies, which made the coin controversial.

It was believed that Dark Coin could be used for money laundering, terrorism financing, and other illegal transactions.

To clear these controversies and add more smart features, the developers changed from Dark Coin to DASH.

Some of the distinct features of DASH include Masternodes, splitting block rewards, and a two-tier network structure.

The blockchain network is fully decentralized and open to all developers.

Today, I have lost count of the number of applications leveraging blockchain technology, and they are all doing fine in the crypto market.

One of those “unpopular” cryptocurrencies is DASH Coin. Over the years, the DASH coin has changed its name and has been a subject of controversy.

While the developers are putting all efforts to clear the controversies and make it a (widely) acceptable coin like Bitcoin, it continues to suffer setbacks.

In this article, we shall define the DASH coin, why it is regarded as a Dark coin, and the controversies surrounding this blockchain token over the years.

Let's dig in!

What Is DASH?

Image: Capital.com

DASH was launched on the 18th January, 2014, by Evan Duffield.

DASH was initially launched with the name “X coin;” it was later changed to Darkcoin, and in March 2015, the name was changed to DASH.

DASH is an altcoin and was forked from another blockchain platform, Litecoin.

DASH is a Decentralized Autonomous Organization (DAO).

Block creation and transaction verification on DASH are done by a subset of its users called Masternodes.

In the whitepaper detailing the launch and reason for the launch of DASH, the digital token is described as a privacy-centric cryptocurrency.

DASH token is designed to ensure user privacy and anonymity.

Having identified the definition of DASH and the reason behind its development, we shall move to the days of DASH being a “Dark coin.”

DASH: The Dark Coin

Image: Cointelegraph

Likely, you might never have heard of Dark Coin. It is also possible that you do not know that the Dark Coin of those days is now called “DASH.”

Dark Coin was primarily designed to ensure user privacy and anonymity. You can carry out several transactions on the blockchain without a trace.

Even though DASH is an open-source, decentralized blockchain token, it has robust encryption protocols.

Before being renamed DASH, experts believed that the Dark Coin, due to its anonymity, was used in Darknet marketplaces. It was widely believed that virtual tokens of this nature were used in Money Laundering and financing terrorism.

Darkcoin suffered significant setbacks due to these controversies. The token was delisted across several trading platforms, and the crypto market became wary of transactions involving the Dark coin.

Darkcoin was an Anonymity enhanced cryptocurrency ( AEC), similar to Monero and Zcash. These tokens could help scale through anti-money laundering mechanisms and bypass combating financial terrorism regulations (CFT).

In a significant move to change the idea behind the launch of this Xcoin and the narrative of the general public about the cryptocurrency, the name was changed from DarkCoin to DASH on the 25th of March, 2015.

DASH stopped being an anonymous token to become a medium of daily transaction. In a bid to clear itself of the past controversies, DASH built a scalable digital payment system.

This payment system is cheap and easy to use. For example, in Venezuela, the DASH payment system is one of their viable alternatives for transactions.

Venezuela’s currency is worthless due to the civil unrest and hyperinflation ongoing. The citizens now use DASH as their means of “survival.”
Another giant stride by this cryptocurrency developer is their investment in research. DASH is funding a blockchain research lab at Arizona State University ( ASU).

The partnership between DASH and ASU is expected to improve research in blockchain advancement and a Corporate social responsibility program that provides scholarships for undergraduate and graduate research fellowships.

Experts say the efforts by developers of DASH to clear it of its past controversies are yielding result and the “era of Darkcoins” are over.

Distinct Features of DASH: The Dark Coin

Image: Shutterstock

These are some of the features of Dash;

Masternodes

Masternodes run DASH. These Masternodes are a subset of users on DASH, and they simplify the verification and validation of transactions (process) on the blockchain network.

The master nodes have a starting stake that is equivalent to 1000 DASH. As of August 2021, DASH has 4,614 master nodes scattered across various terminals.

Two-tier Network Structure

DASH uses a two-tier network structure for its mining activities and verifying transactions. The first tier is the Proof of work mechanisms, and the second tier is the Masternodes.

Using a two tier-network structure brings about efficiency.

Splitting Block Rewards

DASH pioneered a self-funding model that splits block rewards between three stakeholders. The Masternodes and the Miners get 45% each, and the treasury gets 10% of the block reward.

The treasury’s 10% reward is used to finance developmental plans and projects at DASH.

Conclusion

Metamorphosing from Xcoin to Darkcoin and then DASH, the cryptocurrency has always been striving to become a regular means of transaction.

Developers of DASH had to change the name from Darkcoin to DASH to give it a new outlook. Coupled with other plans and activities, the token is gaining the acceptance of crypto enthusiasts and is expected to maintain its momentum.

Author: Valentine. A, Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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