DASH is making its case as the best payments based cryptocurrency. On November 11th, DASH Force News reported that DASH ran a stress test on its network. Results were even better than expected. The previous record of processed transactions on the DASH network was 464,000. In this stress test, it processed over 3 million transactions in a 24 hr period. This is FAR more than Ethereum (527k), XRP (399k) or Bitcoin (246k) in the same 24 hour period.
DASH cares about payments and privacy (see more below on both), but one key we can agree on is fast processing and confirmation times are necessary to be a payments token for the West. After all, we already have Visa and Mastercard. The median transaction fee was 0.03 cents (the same as before the test), and the largest backup of transactions in the mempool was 31,000. The mempool is where transactions sit on the blockchain waiting for confirmation.
This answers a few important payments questions regarding DASH including:
- Can the network handle lots of transactions?
- Can the network scale up?
- Will confirmation times slow considerably as the network tries to scale?
- Do fees stay consistent?
So far the answer to all these questions is Yes. I hope it will continue. As a continuation of DASH's impact in Venezuela, the DASH Text SMS payment by text service just launched in one of DASH's biggest markets. If you want to learn more about DASH aside from what you see below, the DASH Core Group just released its Q3 report with information about the network, testnet & mainnet, and DASH Core Group's operations as the leading development group on the cryptocurrency.
Now for more of the nuts and bolts on DASH, let's take a 50,000 foot view.
For those unfamiliar, let's look at some basics on DASH. First, I wrote an article about why Venezuelans love DASH, and here is some more info.
DASH is an open source p2p cryptocurrency payment coin. Its primary purpose is to provide more privacy based payments through cryptocurrency.
Type: POW Blockchain with Masternode Support (Proof of Work)
Initial Distribution: ZERO (no pre-mine of coins)
Current Supply: 8.4 million
Max Supply: 17.74 million to 18.92 million
Emission Type: Fixed (Supply and known method of reducing block rewards)
DASH is a decentralized POW cryptocurrency with 2 focus areas: Payments and Privacy. The project was founded and the first block mined on January 18, 2014. Their goal is to become the Paypal of cryptocurrency and make payments as secure, fast, and private as possible. DASH is becoming one of the go-to options for payments in high inflation, weak fiat currency countries, most notably Venezuela.
DASH believes that instant transaction confirmations are required to be successful as a payment based cryptocurrency. To achieve this the block times are 2.6 minutes (unlike every 10 minutes for Bitcoin). Block sizes are currently 2MB and on-chain scaling will allow DASH to go up to 400MB. The stress test was a way to test on-chain scaling.
Using InstantSend and PrivateSend, transactions can be processed instantly and anonymously on DASH. To enable these transactions, DASH employs Masternodes. A masternode is someone who holds 1000 DASH, which they must prove by broadcasting to the network, who then runs a node on the network and has voting rights. There are 5,027 of them today. In every block mined, 10% goes to fund further development of DASH and budgetary proposals/governance, 45% goes to the masternodes, and the other 45% goes to the miner.
DASH uses the X11 chained POW hashing algorithm and can be mined with CPU, GPU, or ASIC chips. X11 provides 11 hashes making it one of the safer cryptographic hashes used in the cryptocurrency market. Unlike Bitcoin, who restricts supply with its halving of the block reward every 4 years, DASH reduces its block reward 7.14% every year.
There was no pre-mine of DASH and there are currently ~8.4 million issued with a soft supply cap of 17.74 to 18.92 million. With the 1000 DASH requirement for a masternode, the 5,027 masternodes control just over 5 million of the 8.4 million DASH currently available (59%).
Resources to Learn More About DASH
DASH Core Group, the lead developing team on the project
Ryan Taylor, CEO
Holger Schinzel, QA
Fernando Gutierez, CMO
Robert Wiecko, COO
Glenn Austin, CFO
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