In the last year the cryptocurrency market has almost tripled its capitalization up to $160 billion, which confirms the rising market trends for this technology since its inception. But with so many new cryptocurrencies being developed in recent years, some wonder about the differences between the various options — and which is best.
Bitcoin was launched in 2010 and has secured a stronghold as a market leader, but even so, many competitors are offering options, such as Dash, that are giving prospective users a reason to take another look.
Dash blockchain was developed by Evan Duffield in 2013 when he discovered a couple of key weaknesses in the bitcoin technology, including lack of privacy and lack of speed. He hoped that developing Dash would solve both challenges while providing additional features. Here is a quick guide to the major differences between Dash and Bitcoin you can use to determine which option is best for your situation.
The founder of Dash understood that users wanted more speed when verifying transactions. For example, it takes an average of 20 minutes to confirm bitcoin transactions, with many merchants requiring up to six confirmations before they will accept a transaction. This can add up to an hour for a single transaction.
To solve this challenge, Dash created InstantSend, a service that allows near-instant transaction speed. The decentralized technology guarantees and confirms payments in about four seconds. As the popularity of cryptocurrencies continues to grow, transaction speed will become increasingly important for face-to-face transactions, and slow transaction times will no longer be an option.
One key difference between Dash and Bitcoin is the cost to conduct transactions. Bitcoin’s transaction fees range based on a variety of factors, including the block size and time of day. For example, when large quantities of transactions are waiting to be processed, miners prioritize transactions that pay larger fees. Some users complain that they must pay a few dollars or more to process a single transaction. Bitcoin users can wait and do transactions during the less-busy evening and weekend hours, when transaction fees are lower, but this adds one more level of complexity to routine transactions.
The fees to transact using Dash are much lower — typically pennies rather than dollars. For example, Dash has recently managed to get its average transaction fee to one year low ($0.0264) while reaching an all time high number of transactions per day (over 35,000), surpassing other cryptocurrencies such as Litecoin.
One of the benefits of cryptocurrencies is that they’re not governed by a centralized entity, such as a government or financial institution. However, the exact governance structures of bitcoin and Dash are different. For example, bitcoin is governed by peer review. Changes can be made, but only through a rough consensus among its most active contributors. As a result, making important decisions and changes can be slow.
Similar to bitcoin, Dash mining is not regulated by a centralized entity, but one major difference is that there is a formal voting system in place. When changes are needed, there isn’t a long, heated debate. Instead, a vote takes place, a decision is settled on and action is taken — or not taken — within a short period of time.
Many users of cryptocurrency appreciate that it’s a private and secure method for conducting transactions. Bitcoin is said to be anonymous, but since the history of each transaction is made visible to everyone, some say that isn’t enough privacy.
Dash has a privacy feature called PrivateSend, which is a coin-mixing service. The technology works to add privacy and security so that transactions can’t be directly traced to the parties involved.
Dash Evolution is a new Dash development that will make digital cash easy to use and access for all users. Anybody will be able to setup an account on the blockchain, add contacts, and pay them by name with a single click. This will simplify payments enormously and facilitate the adoption also by those who aren’t technologically savvy. Many consider this project to be the future of payments because purchases from websites or mobile apps will be very simple and will keep technical information such as the complex Blockchain addresses away from the user interface.
The best way to determine which cryptocurrency is right for your situation is to ask, “What are my exact needs?” Maybe you don’t conduct many transactions, so for you, high transaction fees aren’t a huge problem. Or perhaps private transactions are a plus but not a sticking point. Prioritize what is most important and weigh those factors against the pros and cons of each cryptocurrency to find the best option for your situation.
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