How Does Dash Work?
Dash operates on a decentralized network, which means that transactions are processed by a network of nodes, rather than by a central authority. Transactions are confirmed and processed through a consensus mechanism called “Proof of Service.” This mechanism helps to ensure the security and integrity of the network. Dash uses a two-tier network structure for improved efficiency.
- First tier: The first tier is a proof-of-work system where the mining devices solve complex mathematical problems. When a miner finds the correct solution, they can add a new block of transactions to Dash’s blockchain.
- Second tier: Dash’s masternodes are the second tier. These masternodes are responsible for Dash’s InstantSend and the CoinJoin features and they are also allowed to vote on governance and funding proposals.
Every time a block of transactions is added to the Dash blockchain, it generates rewards. The rewards are split into three ways:
- 45% to miners.
- 45% to masternodes.
- 10% to Dash’s governance budget.
What is Dash Cryptocurrency?
Dash is an open-source cryptocurrency and an altcoin that was forked from the Bitcoin protocol. It offers fast, cheap payments anywhere in the world and aims to provide a user-friendly experience and privacy equal to cash.