The Ultimate Dash Frequently Asked Questions List for 2020

  1. What is Dash? What does 'Dash' mean?

  2. Dash is loosely based on the design ideas of Bitcoin, the world's first decentralized cryptocurrency. Cryptocurrency is a medium of exchange backed by cryptography. A decentralized cryptocurrency keeps track of all transactions by all addresses on a peer-to-peer shared record. The main innovation of Bitcoin is the Blockchain, which breaks up the record of transactions into blocks, each one crypographically connected to the previous. Dash adds a coin mixing wallet called PrivateSend for even more privacy. Dash is traded on bitni.com.

  3. How does Dash work?

  4. Blockchain based cryptocurrencies like Dash work by grouping transactions together in data blocks, then linking the blocks cryptographically. The chain of blocks is stored across decentralized nodes, and distributed as peer-to-peer shared files. Quantities of Dash are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. The user's wallet keeps track of all their Dash addresses and adds up the balance. Dash's wallet has an option of mixing coins for extra privacy.

  5. Who invented Dash? How was Dash created? Who is behind Dash?

  6. Dash was created by Evan Duffield as an attempt to technically improve Bitcoin, by increasing the generation of new blocks to once every 75 seconds instead of 10 minutes, and using Equihash as the hash function. The first tweak makes transaction times faster. The second makes mining on consumer hardware easier. Dash is maintained by the Dash Foundation, and released as open source, so anyone can build on it.

  7. What is Dash used for?

  8. Dash is used for anything money is used for - buying, selling, donations. But Dash can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Dash have value?

  10. Dash has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Dash has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Dash coins are there? What is the Dash maximum supply?

  12. The maximum supply of Dash is limited to 18.9 million. The amount of Dash mined is reduced by 7.14% every 210240 blocks, which is 383 and a quarter days. By the year 2246, the rewards will be so small it will take 231 years to produce a single coin. In the year 2477 the reward will be effecively 0, thus mining will end with no coins left to mine.

  13. What is a Dash transaction? How do Dash transactions work?

  14. A Dash transaction is a transfer of value from one address to another. The transaction spends the outputs of previous transactions as it's input. The entire value of an output is spent, so any remainder may be sent back to the sending address - this is called the "change". A transaction is created by a user on their Dash client software, then broadcast out to all the other nodes and becomes part of the Blockchain.

  15. Are Dash transactions anonymous? Can Dash be traced?

  16. The blockchain is a public record of all transactions by all addresses. Dash is specifically designed to be extremely difficult to link the history of transactions. An address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an human identity, the Dash user is safe. There is no way to "trace" a Dash address to the person using it - unless they leave clues connecting their Dash address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. What is Dash mining? How is Dash mined? How does Dash mining work?

  18. Dash mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Mining hardware is designed to the hashing function as quickly as possible. Miners are paid a small transaction fee for including new transactions in blocks. Mining also creates new Dash coins, which go to the miners - except in the case of Dash, some coins go to Masternodes.

  19. Can Dash be taxed? Are Dash gains taxable? Are Dash transactions taxable?

  20. Dash was not designed to be taxed. If no one reports their Dash gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Dash balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Dash ATM work? Are Dash ATMs safe? Are Dash ATMs anonymous?

  22. Dash ATMs allow a customer to buy Dash by inserting physical cash, like a vending machine, or send Dash to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Dash ATM is from a trusted manufacturer and operator, it should be safe to use. Different Dash ATMs have differing AML/KYC requirements.

  23. Can Dash scale?

  24. Dash has scaled to handle millions of transactions per month. Dash is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Dash was modified from Bitcoin as an attempt to help to solve scaling issues, by creating a new block every 2.5 minutes instead of 10, which allows transactions to be processed faster.

  25. Can Dash be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Dash stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Dash be hacked?

  28. If the Dash network could be hacked, it would have already happened. The blockchain is decentralized across thousands of independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Dash exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Dash stored? Where to store Dash?

  30. The data of all Dash transactions is stored in a public ledger (blockchain) distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the blockchain. So the blockchain is stored in the cloud - not on a centralized server, but on thousands of independent nodes. Each user's Dash balance is also kept track of in their wallet.

  31. What is a Dash wallet? How do Dash wallets work?

  32. A Dash wallet stores all of the user's Dash addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Dash? Where is Dash used?

  34. Millions of people everywhere in the world use Dash for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Dash useful if they are not already using it. Dash is also used as an investment and a hedge against inflation.

  35. Who accepts Dash? Where is Dash accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Dash to convert to other currencies, of course.

  37. Why is Dash the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Dash is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Dash crash? Will Dash crash?

  40. If Dash were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Dash's low after it's all-time high of over a thousand dollars is in the scores of dollars. For Dash to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Dash a good investment??

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Dash has not reached Bitcoin's high, it has performed relatively well, going from pennies to over a thousand dollars at it's high - a pretty good investment.

  43. Where to buy Dash? How to get Dash?

  44. Exchanges are where Dash is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Dash without ID? Is there a way to get Dash without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Dash without SSN, you've come to the right place.

  47. Can I get Dash without KYC? Is it possible to buy Dash without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Which cryptocurrency to buy? Should I buy Bitcoin or Dash? Dash vs Bitcoin?

  50. In many ways, Dash is technically superior to Bitcoin. It has much faster transaction times. It is much harder to link/trace transactions. However, Dash doesn't have the massive publicity that Bitcoin has (not all of Bitcoin's publicity is good, but apparently there's no such thing as bad publicity). And that's why Bitcoin is priced much higher. Many more people know about Bitcoin than Dash.

  51. Is Dash publicly traded?

  52. Most Dash trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Dash, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Dash reach 1000? Can Dash reach 10000? Can Dash reach 100K?

  54. Thousands, tens of thousands, or even hundreds of thousands for a Dash coin may seem speculative, but Dash's high is almost several thousand dollars. Dash started out at practically nothing and rose in a parabolic curve to it's high thousands of times higher than the starting price. $10000 is only about six times higher than the all time high. If the long term trend continues, Dash could reach new highs orders of magnitude greater.

  55. How long is a Dash transaction time?

  56. A new block on the Dash blockchain is added about every 2.5 minutes. The number of transactions in each block is limited to several hundred. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Dash transaction time can be as short as the generation of one block in 2.5 minutes. However, 6 levels of blocks is needed for irreversibility, thus the safe transaction time is 15 minutes.

  57. How many confirmations for a Dash transaction?

  58. A Dash transaction can be tentatively completed in as little as 1 confirmation in 2.5 minutes. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 6 levels of blocks and thus 6 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is a Dash transaction fee? How much does a Dash transaction cost?

  60. A Dash transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. The average fee for a transaction is around 0.00005 DASH, which in USD is a fraction of a penny. Lots of factors affect Dash transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

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