In 2017, the total capitalization of the crypto market increased by the fantastic 34.6 times, followed by a correction and sideways movement of the market. This continued until the end of 2020, and then the cryptocurrency market showed a rapid upward movement. To date, the total value of all cryptocurrencies is over $1.5 trillion.
Bitcoin, Ethereum, and some other popular cryptocurrencies have grown by 200-300% in a few months. However, there are still very promising and well-known coins that have not even surpassed their previous historical maximum of 2017. One of these coins is Dash. We are going to talk about this project in-depth and discuss its prospects for 2021 in this article.
in real life
One of the most important incentives for the growth of capitalization of any cryptocurrency is its applicability in real life. This differentiates speculative dummy projects from truly promising products.
The main application of the first cryptocurrency was to replace existing centralized money. However, none of the currencies position themselves this way but Dash. Other projects are tagged with technology platforms or considered a store of value.
Dash’s goal is to massively enter the daily lives of hundreds of millions of people as a means of payment, and it has all the chances to do it.
While Bitcoin transaction fees can be as high as $40, Dash fees can be as low as $0.01. InstantSend allows funds to reach the recipient instantly. These two simple reasons expand Dash’s potential use case to enormous levels. Add anonymity and decentralization, and you’ve got a project that has all the chances to be as successful as Google, Apple, or Amazon.
Dash’s mission is to make digital cash affordable and easy to use, even for people with no computer skills. Anyone can create a blockchain wallet, add a list of their contacts, and use the coins to shop online. With modern anonymous exchanges, anyone can easily transfer DASH to BTC and vice versa in one click.
Crypto financing models
Most cryptocurrencies have volatile funding models. For example, the development of Bitcoin, NEO, IOTA, Litecoin is funded by large companies and exchanges voluntarily. The same model is used in Bitcoin Cash funded by Roger Ver.
Currencies from another group, where Ethereum, EOS, NEM, Qtum, Nano, Stellar, and many others belong, are financed through token selling and holding of a part of the currency in the fund. Moreover, there are no specific plans for further financing after the fund’s reserves are depleted. This should alert cautious investors. It is hard to imagine that a project will develop steadily for decades with no transparent and stable funding sources.
Dash Developer Funding
At the moment, when a reward for a new block is generated, 10% goes to a special fund. This fund acts as a grant for developers. The money received in this way is directed to the development of the project, in particular, to pay the development team and marketing. About 6,000 Dash are allocated monthly for the development of Dash (about $1,500,000 in February 2021) through the budgeting proposal mechanism. It is one of the foundation pieces of Dash’s long-term development.
Dash Management System
Like funding, the governance systems of most cryptocurrencies have obvious flaws. In the case of the Bitcoin project, the community is developing in an anarchic manner. This leads to regular splits and forks. Vitalik Buterin has absolute power over Ethereum, which is an obvious key person risk.
Unlike Bitcoin and Ethereum, Dash’s governance model is based on experience gained in the business environment, where shareholders appoint directors to lead and manage the project. The role of shareholders in Dash is played by large holders of funds, the so-called master nodes. They are investors who own more than 1,000 Dash. Masternodes have the right to vote on all key issues in the development of the company, including the selection of key positions such as CEO, CFO, CTO, etc, as well as their dismissal.
Dash’s governance mechanism tries to avoid conflicts within the community. This is done with the help of decentralized voting on all important decisions.
Besides, Dash is free from the risks connected with the loss of a leader, unlike Vitalik Buterin’s Ethereum. By the way, the fake news of his death dropped the rate by 11%.
Internal voting and long-term funding revealed another Dash advantage. It has a really strong team and high competition within it. Thus, Dash developers can be displaced by voting at any time, which creates a natural motivation in the team to move forward and develop. This is one of the main features that makes Dash so attractive and promising. It sets Dash apart from other projects whose leaders just rest while the money from the sold tokens is running out.