Power of Dash – Venezuela’s adopted Cryptocurrency

Dash is an Altcoin, i.e. a cryptocurrency other than Bitcoin. It is open source and is a form of decentralized autonomous organization (DAO). Dash is different from other cryptocurrencies like Straits or Ethereum which serve the purpose of being development platforms. It advocates peer-to-peer decentralized electronic cash which is almost as liquid as real cash.

Even though it’s built upon Bitcoin’s core code it has a lot of impeccable new features. Just like BTC, Dash has its own Blockchain, community and wallet infrastructure. Dash has a total supply of 18 million coins.

It was instituted in January 2014 by Evan Duffield and was earlier known as Xcoin. Dash is currently quoted at around 192.97 USD. This next generation digital currency has a market capital of 1.61 Billion Dollars.

Hyperinflation in Venezuela

It is cardinal to understand why the Bolivarian Republic of Venezuela, a country on the northern coast of South America underwent hyperinflation before we dive into the country’s voluminous usage of Dash.

The three root causes of this wheelbarrow economics could be attributed to any one of the following reasons:

  • The Government in Venezuela had an external debt of around $185 billion. The country did not generate enough revenues to pay off their debts which lead to the preposterous printing of Venezuelan Bolivar.
  • Venezuela is the fifth largest oil exporter in the world. With the decrease in oil prices, the government had to undergo a lot of complications to service their debt obligations.
  • The officious government kept obtruding in the development of the private economy.

 

The figureb below depicts a hurricane-like inflation in Venezuela at around 4000 percent in 2017.

 

The Introduction of Dash

The upsurge of Dash has given Venezuelans a relief from the economic problems that had damaged the country. While hyperinflation devalued bolivars, Dash has multiplied nearly 25 times in the past one year.

The coin, being fast and efficient in terms of transactions, opened up new international trade opportunities.

Dash became the solution to hyperinflation, economic crisis and trade embargoes.

About 500 merchants in Venezuela have started accepting Dash. It has grown to critical mass, and its adoption has exceeded all the other cryptocurrencies in the region combined.

Below, we can see how Dash has an edge over some of the other famed Cryptocurrencies in the world:

Attributes
Dash
Ethereum
Bitcoin
Speed

Super-Fast;
Block Size is 2MB;
Transaction Time 2.39min;
56 tx/sec

Fast but significantly slow when compared to Dash;
12 tx/sec

Very slow compared to its peers; It can take up to 60 minutes to get a transaction through the Bitcoin Blockchain

Year-to-Date Performance

10,000%

7,500%

1,500%

Volatility

Moderately Volatile

Quite Volatile

Extremely Volatile

Miner Rewards

For each created block, the miner receives 45% of the reward, the holder of the master node receives 45%, and the remaining 10% remains in the system.

Only the miner is rewarded with 5 ETH. No rewards for the node holders.

Only the miner is rewarded with 25 BTC. No rewards for the node holders.

User Interface

Excellent

Satisfactory

Below Average

The vital rationale behind why Dash is treasured over other coins is because of its revolutionary user interface.

The Decentralized API

The excellent experience is made possible by the Decentralized API. The API acts as the communication line between the front-end user and the Dash coin network. Crypto addresses are substituted with a username which gives it a Paypal-like feel. Any network changes can be made under the hood, without troubling the user.

Dash is for Everyone

“Aimed at the everyday user, it makes things so easy, your grandmother could use it”. That’s how the coin is branded. When we talk about the entire country adopting a cryptocurrency, we don’t focus on a bunch of tech-geeks using them, but everyone from an Uber driver to an industrialist being comfortable to exchange them on an everyday basis.

Dash has negligible security issues, insanely fast transactions, addresses the scalability issues, a strong governance structure taking care of all the unwanted affairs, and extremely low transaction fees. These features make it extremely desirable to get adopted in any country, especially in Venezuela where the countrymen are looking for an alternative to their own currency.

People talk about Bitcoin having a Market Capital and Network Effect much larger than any other coin. However, they forget that it is the present that is being talked about. Dash has achieved quite a bit of recognition considering the fact that it is just 3-years-old. This Crypto coin, being remarkably user-friendly, already has success, and there is no uncertainty to its luminous future.

Picking up from where Bitcoin left off, Dash eventually advances towards consummating Satoshi’s vision of a quintessential peer-to-peer cash system.


Would you like your country to have a system as strong as Dash? Let us know in the comments section below.

Data Scientist with keen interest in Banking and Fintech

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