Originally founded in 2014 and known as Darkcoin, Dash was designed to ensure user privacy and anonymity. The whitepaper described Darkcoin as “the first privacy-centric cryptographic currency” based on Satochi Nakamoto’s work.
To make private transactions on the blockchain possible, Dash uses Coinjoin mixing to scramble transactions.
While Dash still has encryption features, it now focuses its effort on becoming a medium for everyday transactions. “Dash is Digital Cash you can spend anywhere,” as its website boldly proclaims.
Dash is a fork of Bitcoin that is built on the X11 algorithm, a modification of the Proof of Work algorithm Bitcoin is built on.
Dash instituted Masternodes to verify and validate transactions on its network as an economic incentive. Masternodes are powerful servers backed by collateral held in Dash, in return operators receive payments for the services they provide to the network.