Dash (DASH) vs Bitcoin Cash (BCH): Cons and pros of both crypto projects

Dash vs Bitcoin Cash: pros and cons of both crypto projects

Dash (DASH) vs Bitcoin Cash (BCH): Cons and pros of both crypto projects

Dash (DASH) vs Bitcoin Cash (BCH): Cons and pros of both crypto projects

The founder and ideologist of the Dash currency (DASH) is Evan Duffield. On January 18, 2014, the XCoin (XCO) coin appeared, which a month later became known as Darkcoin. On March 25, 2015, it received its current name, DASH (short for Digital cash – digital cash).

The Dash system is full of nodes, very similar to the nodes in the Bitcoin network. They differ from the nodes of the bitcoin system only in that they must provide a certain level of service. The key allows the Dash wallet to remain completely private when it is in one mode.

Bitcoin Cash (BCH) is a cryptocurrency, a fork of Bitcoin. The purpose of the offshoot is to get rid of some of the shortcomings of its progenitor. Specifically, Bitcoin Cash offers its users benefits such as secure transaction verification, low fees, open-source innovation, and limitless growth prospects.

Dash and Bitcoin Cash algorithms

DASH is a cryptocurrency designed to ensure the privacy of its users. It has a two-stage peer-to-peer network, financially motivated to provide services to the entire Dash network. Confirmation of operations and generation of new blocks can be carried out in three ways at the choice of the sender:

  1. Standard transaction. When entered into the blockchain, the transfer is considered unconfirmed. Then the block is decrypted and validated by other users.
  2. Instant-X transaction. Information about the deal is transmitted to ten random nodes (masternodes), which immediately add the block to the chain as confirmed. In this case, the transaction processing speed can be only a few seconds. Higher fees are charged for the use of Instant-X technology, but this method is effective in retail and other areas where the speed of payment processing is important.
  3. PrivateSend. Thanks to the coin mixing service, all DASH coins are identical and interchangeable. This allows for anonymous transactions. The PrivateSend service is built into the cryptocurrency, easy to use, decentralized and safe for the average user. PrivateSend is limited to 1000 DASH per mixing session and requires multiple sessions to accurately anonymize large amounts of money. PrivateSend slows down the speed of transaction confirmation and increases the costs of the participants in the transaction, but helps to maintain their confidentiality.

The Bitcoin Cash algorithm is not much different from the structure of Bitcoin. The main differences are a new way of signature hashing and protection from duplicate blocks. Similar to Bitcoin, transactions are guaranteed by miners. A copy of the blockchain is recorded on the user’s PC. The result is complete transparency of transactions.

The Proof-of-Work consensus algorithm verifies transfers and confirms the legitimacy of receiving coins. Participants with large hardware capacities (miners) calculate a hash zone that stores information about transfers and their movements across the blockchain.

The miner gets paid in BCH for his hardware power. The block size can hold more information than Bitcoin. This adds stability and popularity to the system. At the same time, the overload of Bitcoin Mempool (list of unconfirmed transactions) is completely excluded. The complexity of the calculations is adjusted hourly, and the block is calculated in 10 minutes. For customers, this means fast transactions with low fees.

To rank transactions, a system is used in which miners are paid in digital coins. The commission is about 29 US cents per transaction. You can transfer any amount of money to the most remote point in the world, paying less than a third of a dollar for the transfer.

Pros of Dash (DASH) and Bitcoin Cash (BCH)

When it comes to cryptocurrency, the pros and cons can vary depending on what the user intends to do with the currency – for example, be it interest-bearing assets or fast digital money.

Pros of Dash (DASH)

Among the advantages of the Dash cryptocurrency (DASH) are:

  1. Wide access. DASH can be bought or sold on most cryptocurrency exchanges in most countries. DASH is a relatively large cap token. DASH is fairly common, with the exception of crypto-hostile exchanges that are privacy-oriented.
  2. An efficient exchange medium. Higher transaction speeds and lower fees make DASH the most efficient medium of exchange.
  3. Confidentiality. Darkcoin’s original privacy properties were maintained in Dash, autonomously hiding the origin of transactions, senders, and other details, grouping transactions together to turn it into one new transaction, unlike the original senders.
  4. Validators can stake DASH coins to receive passive block rewards. Validators or nodes attribute user-owned DASH as part of a consensus mechanism in order to receive monetary compensation for providing essential services for processing transactions and securing the network.

Pros of Bitcoin Cash (BCH)

The advantages of Bitcoin Cash (BCH) include:

  1. Complete openness. No one controls or owns the cryptocurrency. You do not need to get permission from anyone to use it.
  2. Anonymity. Owner identification is not tied to transactions. This allows you to make payments without censorship and without obligatory identity disclosure, as in centralized banking systems.
  3. Transparency. All transactions are recorded on the globally open blockchain. Anyone can track the entire history of coin ownership.
  4. Distributed network. Her work is supported by a large community whose members use special equipment. This ensures the reliability and long-term storage of information.
  5. Clear rules. Nodes follow a protocol for agreeing on the state of the ledger. It is subject to change, but it requires serious action and the support of the majority of the network participants. This makes cryptocurrency a system where users create something akin to a social contract.
  6. Immutability. The technology works in such a way that once a record is made on the blockchain, it remains there forever and does not change.
  7. Security. Proof of work protocol means that miners compete with each other to add blocks to the chain that forms the ledger. The energy costs and high hardware requirements associated with Proof-Of-Work increase network security. The principle is based on mathematical game theory, when the blockchain attack is so complex that a hacker, even hypothetically, cannot profit from hacking.

Cons of Dash (DASH) and Bitcoin Cash (BCH)

In addition to the specific advantages of both cryptocurrencies, they also have disadvantages that any potential user should be aware of.

Cons of Dash (DASH)

Among the main disadvantages of the Dash crypto project (DASH) are:

  1. DASH does not have the same powerful network effect as large-cap cryptocurrencies.
  2. Owning and running a masternode requires 1000 DASH to be hosted, and there are currently over 5000 masternodes in existence.
  3. Lack of academic or institutional support. Dash is fully self-funded through its technical development.
  4. Strong competition. Dash is forced to compete with other functional and efficient cryptocurrency projects with similar properties, such as Monero, Ripple, Zcash, and others.

Cons of Bitcoin Cash (BCH)

The disadvantages of the Bitcoin Cash (BCH) cryptocurrency include:

  1. Low investor confidence due to the low degree of difference with BTC.
  2. Low acceptance rate.
  3. The essence of Bitcoin Cash does not differ from the original currency. There are no innovative features or development opportunities. Even the name Bitcoin Cash does not mean in any way that the network allows working with fiat.
  4. The maximum emission is the same as that of BTC – 21 million.