The past couple of days have been exciting for those interested in the digital currency Dash. After weeks of rather boring stability, the price and volume are increasing at the same time that questions about bitcoin's future are gaining serious media attention.
For those already familiar with Dash's fundamentals, the rise in price isn't a surprise. Dash solves a number of the problems facing bitcoin and is primed for the type of merchant adoption that bitcoin simply wasn't built for.
A recent article on forklog touches on some of the arguments for why a scaleable alternative to bitcoin is needed.
The three things we find so promising about Dash are 1) the ability to secure instant transactions, 2) a protocol based mechanism for funding the Evolution (pun intended) of Dash, and 3) incentives for supporting a robust network capable of scaling to meet the needs of future adoption.
The past couple of weeks we've seen people complaining about the length of time it can take to confirm a bitcoin transaction. What used to take about 10 minutes was taking hours or days. Now, the obvious solution was to increase the transaction fee when sending bitcoin, but how long is that going to be viable? With Dash, transaction can be locked by a quorum of masternodes in a split second. With instantaneous locked transactions merchants can safely accept a payments without fear of a double-spend. These instant transactions are secured by miners later on.
A real-world example can be found on the exchange EXMO. EXMO recently started supporting Dash instant transactions for trading. I tried it myself. I was able to trade some Dash less than a minute after sending it to the exchange. Compare that to other exchanges that require 12 traditional confirmations that take about 30 minutes. Time is money.
Growing a project as complex as bitcoin or Dash is expensive. In hindsight, the solution was really quite obvious, but Dash was the first project to implement funding through the protocol. Each month, a percentage of the blockchain award is distributed to projects that help the project grow. While this alone was a revolutionary idea, it gets better. It is up to the individuals supporting the network through masternodes to vote on the projects that should be funded. Each masternode gets a vote so you end up with individuals who are vested in the project taking the time to determine the best way to spend the funds.
This is the space where Node40 lives. Dash incentivizes the support of a robust network by paying people to run the second tier nodes called masternodes. These masternodes are full nodes that perform other services such as instant transactions mentioned above.
The brilliant point about incentivizing nodes is you can require the node operators to meet minimum requirements. And because masternode owners are compensated for doing so the network maintains remarkable stability.
Visit dash.org for more information
The points mentioned above just scratch the surface of why Dash is a fantastic alternative to bitcoin.
Want to run an incentivized masternode?
If you already have Dash or bitcoin, you can setup an incentivized masternode through Node40 in a matter of minutes.
If you need some additional help, send us an email firstname.lastname@example.org and we will be happy walk you through the process.