Difference between DASH and Bitcoin
- Bitcoin takes too much time to be accepted in point-of-sale(POS) application due the requirement for the network to varify the transactions.
- Dash is based on the work of Satoshi Nakamoto with built-in privacy functions.
Dash Masternode Network
- Full node servers running P2P networks receieve updates and events about the network
- The new reward scheme has been proposed Microsoft Research and Bitnodes incentive program
- Nodes provide the network with the ability to synchronize and fast broadcast messages throughout the network.
- Dash masternodes have high availability and provide the standard amount of service needed to the network to take part in the masternode reward program.
- Masternodes are full nodes, just like the bitcoin network but the owner of the node must provide a standard of service and and a collateral to participate.
- The operator must have control over 1000 DASH should be online to provide service.
- Masternodes are all paid from the block reward program, 45% of all DASH is dedicated to this program.
- The reward for a particular day can be calculated using the formula (n/t)*r*b*a
n is the number of masternodes an operator controls
t is the total number of masternodes
r is the current block reward (presently averaging about 3.3 DASH)
b is blocks in an average day. For the Dash network this usually is 576.
a is the average masternode payment (45% of the average block reward)
- A special algorithm is used to create a pseudo-random ordering of the masternodes.
- This is done so every masternode as a random chance of being selected to verify the transactions
- Let us assume the dash network has 4800 active masternodes.
- Each masternode as a collateral of 1000 DASH, which means 4,800,000 DASH is collateral.
- To control the Dash network an attacker would need to buy 1000 DASH on the open market. Buying this amount is almost impossible as the price would also increase linearly.
- There is also the pseudo-random order generator which does not guarantee the transactions validated will be from the attackers node.
- The status of the node is broadcasted to the network using protocols.
- Only two messages are needed to activate your Masternode:
- Masternode Announce Message
- Masternode Ping Message
- Other messages are proof-of-service message, PrivateSend,and InstantSend.
- Masternodes are formed by having 1000 DASH in a single address in the Dash wallet and will make it capable of being propagated across the network.
- A secondary private key is used henceforth for signing.
- Cold mode is possible by using the secondary private key on two different machines
- The “hot client”, the machine holding the 1000 DASH, signs the 1000 DASH input including the secondary key in the message.
- The “Cold client” see the message which includes the secondary key and activates as a masternode.
- Now the “hot client” can deactivate and leaves no possibility of an attacker gaining access to the masternode.
- When a masternode is started it sends a “Masternode Announce” message to the network.Message: (1K DASH Input, Reachable IP Address, Signature, Signature Time, 1K Dash Public Key, Secondary Public Key, Donation Public Key, Donation Percentage)
- After that a ping message is broadcasted proving the node is still alive. Message: (1K DASH Input, Signature (using secondary key), Signature Time, Stop)
- Dash believes in a standard teustless implmentation to improve privacy.
- PrivateSend is an extended version of the CoinJoin by employing a series of improvements such as decentralization, strong anonymity by using a chaining approach, denominations and passive ahead-of-time mixing.
- Lets say 0.5 BTC was sent. Private send will break apart the transaction to, for example, 0.3+0.19+0.01=0.5
- The more transactions going through the mixer exponentially increases the difficulty
- These sessions though can be de-anonymized at any point in the future.
- Using masternode Quorums, users can send and receive DASH instantly.
- Once there is a quorum, the transaction is locked and can only be spent on that transaction. This transaction lock takes around 4 seconds.
- This feature allows point-of-sale applications and also face-to-face transaction.
- X11 hashing algorithm makes it ASIC resistant.
- Mining supply: There is a reduction of 7% of supply per year.
- Dash Text SMS Wallet Launches in Venezuela Enabling Transactions Without Internet.