Blockchain 101 Episode 73 – Anonymous Crypto Asset – Dash

Dash debuted on January 1st, 2014, offering a higher degree of anonymity than Bitcoin.

Dash has 3 transaction options.

First option is similar to that of Bitcoin;

Second option is InstantX, without the need for miners to compete to process transactions. This allows transactions to be completed in seconds.

Third option is anonymous transactions. Transactions between parties cannot be traced through the blockchain.

How does Dash carry out anonymous transactions?

Dash utilizes “Masternodes” in addition to regular nodes. Masternodes provides a series of functions such as carrying out anonymous and instant transactions.

Those who wish to carry out anonymous transactions submit a request, and the masternodes carry out coin-mixing.

Typically, 3 transactions are mixed together.

For Example :
All those present put their money on the table, mix the cash, take back the same amount they put, and they will not know who the cash belonged to. That is coin-mixing.

After mixing, the network is unable to determine the parties involved in the transaction.