5 reasons why Dash will Be the Winner in the Cryptocurrency race
In 2017, the total capitalization of the cryptocurrency market increased by a fantastic 34.6 times, after which the correction began. However, according to many experts, we will soon see continued growth. In particular, Jesse Powell, the executive director of Kraken, in an interview with CNBC announced a forecast that by the end of 2018, the total capitalization of the cryptocurrency market will exceed a record $1 trillion.
At the same time, it is worth noting that the share of Bitcoin in the total capitalization is steadily decreasing (from 61.4% at the beginning of 2017 to 38.6% at the beginning of 2018). One of the reasons for this trend is the technological limitations that do not allow Bitcoin to get really widespread.
John Oliver, one of the most popular TV hosts in the United States, in an episode dedicated to Bitcoin, told about a recent case when the organizers of a Bitcoin conference were forced to stop selling tickets for BTC due to technical difficulties, which raises questions about the viability of this currency.
Such stories suggest that the trend of reducing the share of Bitcoin in the coming years will continue and the main growth will fall on alternative cryptocurrencies, since many of them have much more advanced technologies and a higher potential to become widespread in the payment market. But how to determine which of them has a better chance of leadership?
Dash finds application in real life, which is the foundation of its growth
One of the most important incentives for the growth of the capitalization of any cryptocurrency is its applicability in real life. This parameter distinguishes speculative dummy projects from truly promising products.
The main application of blockchain technology, according to its creator, is the replacement of existing centralized money. Nevertheless, none of the currencies in the top, except Dash, positions itself in this way. Other projects aim at technology platforms without a clear niche and purpose.
The purpose of Dash is to massively penetrate into the daily lives of hundreds of millions of people as a means of payment, and there are all the prerequisites for this.
While Bitcoin transaction fees reached $40 at the end of 2017, the Dash commission costs less than $0.01, and with the help of Instant Send technology, funds reach the addressee instantly. These two simple arguments expand the potential field of Dash usage to the widest possible limits.
Add anonymity and decentralization to these arguments,and you get a project that has the potential of such giants as Google and Apple.
Dash's mission is to make digital cash accessible and easy to use, even for people without special computer skills. Anyone can create a blockchain account, add a list of their contacts and transfer money by their name. Purchases on the Internet and from mobile devices will be possible with one click.
Dash is the first cryptocurrency with stable long-term financing
Most cryptocurrencies have unstable financing models. For example, the development of Bitcoin, NEO, IOTA, Litecoin is funded on a voluntary basis by large companies and exchanges, the same model is used in Bitcoin Cash, which is funded by Roger Ver and, as they say, Chinese miners.
The motivation of the sponsors remains mysterious, each of the groups is accused of being biased and pulling the blanket over themselves. Indeed, such a financing model is a fertile ground for the emergence of a conflict of interests.
Currencies from another group, to which, for example, Ethereum, EOS, NEM, Qtum, Nano, Stellar and many others belong, are financed by a token sale and holding a part of the currency in the fund, and there are no specific plans for further financing after the fund's reserves are exhausted, which should alarm cautious investors. It is difficult to imagine that the project will develop steadily for decades, if at the same time it does not have transparent and stable sources of funding.
As for Ripple, it is privately financed, but such a model is by definition opaque, which reduces the investment attractiveness of this asset and raises questions about the motivation of everyone associated with Ripple.
Monero financing differs from others by a system similar to crowdfunding, which partially solves the problem, but nevertheless does not answer the question "Where will the money come from if serious spending is necessary?" â€” after all, it is not always possible to raise the necessary amounts with the help of donations, which is proved by the current financial situation of Monero.
It is difficult to imagine that the project has been developing steadily for decades, if at the same time it does not have transparent and stable sources of funding
Dash stands out-at the moment when a reward for a new block is generated, 10% of the amount is not distributed until the end of the month, during which initiative teams can make a budget proposal to the community and request the amount available within the unallocated budget.
If at least 10% of shareholders vote in favor of this proposal, it will receive funding at the end of the month.
The money received in this way is directed to the development of the project â€” in particular, to pay for the work of the development team and marketing. Through the mechanism of budget proposals, about 6000 Dash is allocated monthly for the development of Dash (about $3,000,000 at the beginning of 2018), which is one of the parts of the foundation on which the long-term development of Dash is built.
In addition to Dash, none of the top 15 cryptocurrencies has a stable financing model. A similar mechanism is the basis of Cardano, but at the moment it is declared, but not implemented.
Dash has an effective management system
Like financing, the management systems of most cryptocurrencies contain obvious disadvantages. If in the case of Bitcoin it does not exist at all and the community develops in an anarchic way, which leads to regular splits and forks (fork-English "fork", that is, the division of the original currency into separate independent ones), then Vitalik Buterin reigns supreme in Ethereum, which is an obvious risk of a key figure in management (key person risk).
Unlike Bitcoin and Ethereum, Dash's management model is based on the experience accumulated in the business environment, where the project is managed by directors appointed by shareholders. In Dash, the role of shareholders is played by large holders of funds, the so-called master nodes (investors who own more than 1000 Dash). Master nodes have the right to vote on all key issues of the company's development, including the selection of key positions, such as CEO, CFO, CTO, etc.
I think it is quite obvious that the motivation of shareholders, whose long-term well-being depends on the success of the project, is much higher than the motivation of independent teams or individual leaders, whose motives remain unclear to a wide range of investors, whose ambitions, whim or even health problems can jeopardize the entire project.
Dash's management model is based on the experience accumulated in the business world
The management mechanism underlying Dash allows you to avoid conflicts within the community. This is achieved through decentralized voting on all important decisions.
Having a clear and unambiguous voting method allows the community to remain united even when it is forced to face a very dynamic environment that requires making difficult decisions about the direction of development, and to guarantee the timely execution of these decisions.
A simple example: in early 2017, when the Dash Core Team published a proposal to increase the block size to 2 MB, a consensus was reached within 24 hours by voting and the proposal was approved. Compare this with Bitcoin, where the debate on the topic of block size lasted about three years.
In addition, Dash is spared from the risks associated with the loss of a leader, which, for example, is exposed to Vitalik Buterin's Ethereum, rumors of whose death dropped the exchange rate by 11%.
A strong team. Mechanisms of motivation and internal competition
Internal voting and long-term funding made possible the emergence of another advantage of Dash â€” a strong team.
Dash developers can be removed at any time by voting, which creates a natural motivation for moving forward. This compares Dash favorably with some other projects in which leaders can rest on their laurels until the money from the tokens sold runs out.
In addition, a long-term source of funding opens up the opportunity for Dash to offer some of the highest salaries in the industry and thus attract the strongest specialists. Since the founding of Dash, the development team has grown to 30 full-time employees, 20 remote employees and dozens of volunteers.
In our opinion, these arguments make Dash one of the most competitive cryptocurrencies on the market, and the prospect of its mass popularization as a payment system opens up the possibility of Dash's widest distribution.