What is the difference between Dash and Bitcoin?
The main difference between Dash and Bitcoin is the consensus mechanism used to secure the network.
Dash uses a Proof-of-Stake (PoS) consensus mechanism, while Bitcoin uses a Proof-of-Work (PoW) consensus mechanism. Proof-of-Stake (PoS) is a consensus algorithm that rewards users for holding coins in their wallets. This incentivizes users to hold onto their coins, which helps to increase the value of the coin over time.
It also reduces the amount of energy needed to secure the network, as miners are not required to compete for rewards. Proof-of-Work (PoW) is a consensus algorithm that rewards miners for verifying transactions on the blockchain. This requires miners to use powerful computers and specialized hardware in order to compete for rewards.
This process requires a lot of energy and can be expensive, but it ensures that transactions are secure and immutable. Dash also has some features that Bitcoin does not have, such as InstantSend and PrivateSend. InstantSend allows users to send funds instantly with no waiting time, while PrivateSend allows users to send funds anonymously by mixing their coins with other users’ coins.
These features make Dash more attractive than Bitcoin for certain types of transactions.