Slow and Steady Wonâ€™t Win the Crypto Race: Dash into the Future with Masternodes
Many speculate about the future of cryptocurrencies, and closely scrutinize the plethora of different coins and their structural advantages and disadvantages. These speculations determine the likelihood that a cryptocurrency is built to last. For decentralized autonomous coins, in particular, a key element that will play a role in deciding the fates of these coins is whether not they are both highly secure and support quick transaction speeds to operate in a mainstream retail environment. Currently, the only way to get the best of both worlds is digital currencies that incorporate Masternodes in their architecture. On a high-level, Masternodes represent an interesting collaboration between a “proof-of-work” and “proof-of-stake” blockchains.
Masternodes are considered an unusual attribute of decentralized autonomous coins because less than 100 coins today currently utilize them (compared to over 1600 cryptocurrencies currently on the market); however, this number is steadily growing. Coins using nodes to manage their digital network systems include Dash, PIVX, Blocknet, and Zcoin. HashChain currently mines for coins with Maternode services - such as Dash - and those without, including Bitcoin. Our company began operating with 100 GPU Rigs for Dash, and has now deployed 3,395 ASIC Rigs for Bitcoin, and acquired an additional 6,000 Rigs for installation. While Bitcoin remains the most popular cryptocurrency to date, Dash is more viable as a cryptocurrency for the real world in the long term.
Dash is a peer-to-peer open source cryptocurrency that forked from Bitcoin and provides faster and more private transactions for users. It was the first cryptocurrency with a decentralized blockchain governance system, and its unique budgeting system echoes that of a DAO (Decentralised Autonomous Organization). Dash’s popularity stems from its user-centric focus, lightning speed of deals, InstantSend and PrivateSend offerings, liquidity, and low-cost transactions. These elements contribute to Dash’s main advantages as a coin, including its ability to be transparent, convenient, anonymous, fast, and constantly upgradeable. Masternodes greatly improve Dash’s ability to provide these advantages compared to other cryptocurrencies.
Masternodes are cryptocurrency nodes, which can also be described as computer wallets, that retain copies of blockchains in real-time. Coin participants can apply to become Masternodes by investing a certain portion of cryptocurrency holdings (for Dash it’s 1,000) running servers that sustain specified up-time hosting and high-speed data services. In return for running Masternodes, coin participants receive shares of monthly mining rewards. In the case of Dash, holders can also vote on the budgeting allocation for global awareness initiatives. Their shares and positions as Masternodes are dependant on their ability to maintain their data services’ hosting speeds. By incorporating Masternodes into its internal architecture, Dash properly ensures the network supports much higher transaction volumes than other networks with the right incentivization for its network server operators. In short, Masternodes greatly increase transaction and Dash network speed.
According to CoinMarketCap.com’s most recent coin comparison table, it is clear that Dash has a much faster transaction time than other leading decentralized autonomous coins at 15 minutes compared to Litecoin’s 30 minutes and Bitcoin’s 78 minutes. Dash may seem slow compared to centralized coins, such as Ripple and EOS that process transactions in seconds, but centralized coins do not offer the same benefits as decentralized coins such as security. This leads back to the canonical tradeoff between blockchain decentralization and scalability, which is a tradeoff Dash balances well.
As a result of Masternodes, Dash was created as a two-tier network; one tier is controlled by miners and the other tier is comprised of the Masternodes themselves. Masternodes conduct important aspects of Dash, including offering the capabilities previously mentioned of InstantSend, PrivateSend, and other various governance functions such as providing enhanced network security from attacks. Masternodes provide increased privacy of transactions, fast processing times, the ability to participate in governance and voting, and a system for crypto budgeting and treasury. Due to its fast transaction speed and Masternode internal architecture, Dash is poised with the capabilities to be a successful and legitimate global payments platform.