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Dash is the shortened name for the coin’s intended use, digital cash. The project launched in early January 2014 as “XCoin,” which like Litecoin – is a Bitcoin software fork (one of the earliest). It, therefore, follows that the similarities between Dash & Bitcoin are plentiful; however, much like Monero & Litecoin, key features make Dash a distinct & now proven frontrunner for the race to become the single, universal digital currency.
Dash, contrary to its peers, has a two-tier network split into regular nodes & master nodes.
Typically, as you see in Bitcoin, Litecoin, & Monero, all nodes are inherently equal. No node holds more weight, or say, in a decentralized network than any other node. The standard node operations range from creating & managing a transaction wallet to strictly mining.
The Dash community, on the other hand, has two types of nodes: nodes & masternodes. It follows that masternodes carry more weight & different operations than regular nodes.
This is all we meant earlier with a “two-tier network.”
Dash is significantly different in how its community self-governs. Nodes in the Dash network perform similar network functions to other cryptocurrency nodes — namely transacting & minting new coins through mining. Masternodes, on the other hand, are a much more critical group of nodes within the Dash ecosystem.
The masternode layer represents those that are responsible for governing the Dash community as a whole. It costs 1000 Dash (placed in escrow) to operate 1 masternode. And yes — they get paid for taking on this community leadership role:
The block reward is split between miners and masternodes, with each group earning 45% of the block reward. The remaining 10% of each block reward funds the “budget” or “treasury” system.
In addition to overseeing minor specialized Dash transactions such as InstantSend and PrivateSend, masternodes are in charge of two overall large responsibilities: voting on Dash protocol changes & managing the Dash treasury for self-funded projects.
Undoubtedly, Dash’s brilliant brand & superior marketing are a direct result of this innovative way of funding Dash development through a masternode-directed treasury. The Dash community has effectively found a way to self-fund it’s development as it scales; compared to the multiple other ways that cryptocurrency projects attempt to raise funds to continue (such as registering as a non-profit, relying on corporate backing or raising VC cash).
How can you buy DASH?
You first need to buy Bitcoin or Ethereum on Coinbase and then transfer it over to your account at Binance to exchange it for DASH. If you get stuck or need help, send us a message through our Facebook page or email and someone on staff will walk you through the process.