Bitcoin and Dash are relevant cryptocurrencies worldwide; however, each one has special characteristics and some differences, which are necessary to know to have a better understanding of said cryptocurrencies.
What is Bitcoin?
Bitcoin is an open-source cryptocurrency based on blockchain technology. It works as a means of electronic payment exchange used to acquire products and services (like any other currency). It is a decentralized currency since it does not depend on a bank, company, or government. Bitcoin appeared in 2008 and was created by a character named Satoshi Nakamoto.
Bitcoin uses a proof-of-work (PoW) system to prevent counterfeiting and “double spending” and reach consensus among the nodes that make up the network through the exchange and verification of information. Bitcoin uses blockchain technology, which works as a “digital accounting book” that is proof of external modifications. All the transactions that are carried out daily are recorded, and the history that can be verified of all operations carried out.
What is Dash?
Dash made its appearance in 2014, being called Xcoin (XCO); a short time later, it was renamed Darkcoin, and finally Dash. It is the first autonomous and decentralized organization with two levels in its architecture to manage the network. The first level is made up of the miners, who have responsibility for security in the network, and are registered in the operations in the blockchain, on the other hand, is the second level, which is made up of the master nodes (masternodes), which are nodes within the chain of blocks (blockchain) that are used to perform transactions quickly.
Main differences between Dash and Bitcoin
Next, we will share the main differences between Dash and Bitcoin:
1.- Its creator
In Dash’s case, its creator is Evan Duffield, whose identity and other personal data are known. On the other hand, the creator of Bitcoin is Satoshi Nakamoto, whose real identity is not known, which has led to various theories and hypotheses about his real name.
2.- Price and demand in the market
One of the most notable differences between Dash and Bitcoin is its price and demand in the market; as many will know, Bitcoin has a higher value and demand in the market, which is due to several factors, such as its age (pioneering cryptocurrency), price range over the years, is based 100% on blockchain technology, has a greater number of laws that support or regulate it, it is accepted by more businesses and people, etc. All these factors increase confidence among users, which influences its price and demand in the market.
Dash uses the services of private operations (privateSend), which has a function that allows hiding the details of its operations, in addition to the information about who issues and receives payment. On the other hand, Bitcoin requires for its management, programs, and/or applications that allow the nodes and wallets to be executed. Nodes participate directly in the network and can relay operations, as well as mine and validate blocks and transactions. On the other hand, wallets can carry out operations without having to store the entire chain of blocks (blockchain), using simple verification of payments to consulting the chain of blocks; due to these special characteristics, the information of Bitcoin operations cannot be 100% hidden, as some of its data can be externally audited or verified.
4.- Transaction time
Transactions in Dash are made and confirmed almost instantaneously, taking a time between 1 and 2 seconds thanks to its instant transactions system (instaSend) in addition to allowing private transactions and budgets thanks to the master nodes. On the other hand, in Bitcoin, an operation takes about an hour to be definitively approved since a transaction must receive at least 6 confirmations to be valid within the Bitcoin network.
5.- Consensus system
Making changes to the Bitcoin network is very difficult due to the number of people who use it and who must agree, leaving only the option called hard fork (sudden change) to make significant changes. In Dash’s case, it is the master nodes who decide to make changes to the network, which greatly speeds up the ability to make major changes to the network.
What do you think about this topic? Do you know of another difference between Dash and Bitcoin that you would like to share?
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