- 51% Attack
- A condition in which more than half the computing power on a
cryptocurrency network is controlled by a single miner or group of
miners. That amount of power theoretically makes them the authority on
the network. This means that every client on the network believes the
attacker’s hashed transaction block.
- A Dash address is used to Send/Receive a Payment on the Dash network. It contains a string of
alphanumeric characters, but can also be represented as a scannable QR
code. A Dash address is also the public key in the pair of keys used
by Dash holders to digitally sign transactions (see Public key).
- In mathematics and computer science, an algorithm is a self-contained
step-by-step set of operations to be performed. Algorithms perform
calculation, data processing, and/or automated reasoning tasks.
- Since Bitcoin was the first cryptocurrency and has the largest market
capitalization, it is considered as the reference. An altcoin, or
alternative coin, is any cryptocurrency other than Bitcoin.
- Anti-Money Laundering techniques are used to stop people from making
illegally obtained funds appear as though they have been earned
legally. AML mechanisms can be legal or technical in nature.
Regulators frequently apply AML techniques to Dash exchanges.
In computer programming, an application programming interface (API) is
a set of routines, protocols, and tools for building software and
An API expresses a software component in terms of its operations,
inputs, outputs, and underlying types, defining functionalities that
are independent of their respective implementations, which allows
definitions and implementations to vary without compromising the
interface. A good API makes it easier to develop a program by
providing all the building blocks, which are then put together by the
- An application-specific integrated circuit (ASIC), is an integrated
circuit (IC) customized for a particular use, rather than intended for
general-purpose use. For example, a chip designed to run in a digital
voice recorder or for high-efficiency Dash mining
is an ASIC.
- ATM / BTM
- A Dash ATM is a physical machine that allows a customer to buy Dash
with cash. There are many manufacturers, some of which enable users to
sell Dash for cash. They are also sometimes called ‘BTMs’ or ‘Dash
AVMS.’ Dash is supported on several ATMs.
- Backlog generally refers to an accumulation over time of work waiting
to be done or orders to be fulfilled.
- The process of making copies of a computer file to ensure its
integrity in case of loss, theft, or damage. Dash allows users to
make backup copies of their digital wallets.
This protects against losing one’s money in the event of a computer
crashing or losing one’s mobile device. This would be the equivalent
of being able to backup the cash in your wallet, so that if you lost
it, you could restore the cash from a backup.
- Bitcoin 2.0
- This is a term explaining the next new level of Bitcoin projects which
started as a fork of Bitcoin but extended their code into the next
level of Blockchain Projects (Smart Contracts, Decentralised
- A blockchain
is a distributed database that maintains a continuously-growing list
of data records hardened against tampering and revision. It consists
of data structure blocks — which exclusively hold data in initial
blockchain implementations, and both data and programs in some of the
more recent implementations — with each block holding batches of
individual transactions and the results of any blockchain executables.
Each block contains a timestamp and information linking it to a
- Transactions on the Blockchain are collected in “blocks” which
record and confirm when and in what sequence transactions enter and
are logged in the block chain. Blocks are created by users known as
“miners” who use specialized software or equipment designed
specifically to create blocks.
- Budget System / DGBB
- The development of Dash and the Dash ecosystem is self-funded by the
network. Each time a block is discovered, 45% of the block reward goes
to miners and 45% goes to masternodes. Ten percent is withheld by the
network and used to fund projects that are approved by the masternode
network. This process is known as Decentralized Governance by
Blockchain (DGBB). For a fee, anybody can submit a
proposal to the network, and will be paid directly by the blockchain
if approved by the masternodes. The Budget System is sometimes called
the Treasury System; the two terms are interchangeable.
- Cloud Wallet
- Third parties that will store your Dash on their servers for you, so
that you can access your funds from any device connected to the
internet. If their website is hacked or if their servers are damaged,
you run the risk of losing your Dash. Any online wallets should be
secured with strong passphrases and 2FA. You cannot make backup copies
of your online wallet, because you do not have access to the private
keys. We do not recommend that you store large quantities of funds in
- Coinbase transaction
- The first transaction in a block. Always created by a miner, it
includes a single input which constitutes the block reward. This is
split between the miner and a deterministically chosen masternode.
- Cold Storage
- A method of generating and storing private keys completely offline.
One could use a desktop or laptop computer disconnected from the
internet, a dedicated hardware wallet, a USB stick, or a paper
- Confirm(ed) Transaction
- When a Dash transaction is made, a miner must verify that the
transaction is valid. When the inputs and outputs are verified, the
transaction is included in a block in the blockchain. The transaction
can then be considered complete and irreversible. The confirmation
number increases as more blocks are added to the blockchain.
- Confirmation Number
- The number of confirmations for a specific Dash transaction. Zero
confirmations means that the transaction is unconfirmed. One
confirmation means that the transaction is included in the latest
block in the blockchain. Two confirmations means the transaction is
included in two blocks, three confirmations for three blocks, and so
on. The probability of a transaction being reversed (double spent)
diminishes exponentially with every block and subsequent confirmation.
Six confirmations is usually considered “safe” and irreversable.
- Confirmed Transactions
- Transactions that are processed by miners and considered irreversible,
usually after six confirmations. In the case of InstantSend, funds can
be considered irreversible after a few seconds, but must still be
written to the blockchain (and thus “confirmed”).
- A central processing unit (CPU) is the
electronic circuitry within a computer that carries out the
instructions of a computer program by performing the basic arithmetic,
logical, control and input/output (I/O) operations specified by the
instructions. The term has been used in the computer industry at least
since the early 1960s. Traditionally, the term “CPU” refers to a
processor, more specifically to its processing unit and control unit
(CU), distinguishing these core elements of a computer from external
components such as main memory and I/O circuitry.
- A cryptocurrency (or
crypto currency or crypto-currency) is a medium of exchange using
cryptography to secure the transactions and to control the creation of
- Cryptography or cryptology (from Greek κρυπτός kryptós, “hidden,
secret”; and γράφειν graphein, “writing,” or -λογία -logia,
“study,” respectively) is the practice and study of techniques for
secure communication in the presence of third parties called
adversaries. More generally, cryptography is about constructing and
analyzing protocols that prevent third parties or the public from
reading private messages; various aspects in information security such
as data confidentiality, data integrity, authentication, and non-
repudiation are central to modern cryptography. Modern cryptography
exists at the intersection of the disciplines of mathematics, computer
science, and electrical engineering. Applications of cryptography
include ATM cards, computer passwords, and electronic commerce.
- Dark Gravity Wave
- In concept, Dark Gravity Wave (DGW) is
similar to Kimoto Gravity Well, adjusting the difficulty levels
every block (instead of every 2016 blocks like Bitcoin) by using
statistical data of the last blocks found. In this way block issuing
times can remain consistent despite fluctuations in hashpower. However
it doesn’t suffer from the time-warp exploit.
- Dash was initially launched as XCoin and then rebranded to Darkcoin and
- Originally launched as Xcoin and later renamed to Darkcoin, the
currency was later renamed “Dash” to avoid association with the
darknet markets. Dash is a portmanteau of “Digital Cash.” Dash is an
open source peer-to- peer cryptocurrency that solves many of Bitcoin’s
problems. Dash’s features include PrivateSend, InstantSend,
Decentralized Governance by Blockchain (DGBB), a 2nd tier network
(referred to as the masternode network). See the Features page for a full list of Dash’s features. See this
- Dash Client
- Dash clients are software programs used to interface with the Dash
network. They store the private keys needed to conduct Dash
transactions as well as a copy of the entire blockchain. A Dash client
connects to the Dash network and becomes a node in the network. A node
shares and propagates new transactions with the rest of the network,
creating a robust decentralized infrastructure.
- Dash Core Wallet
- The Dash Core Wallet (known also as the QT
wallet) is the “official” Dash wallet that is compiled by the Dash
Core Team and allows both PrivateSend and InstantSend. The DashCore
wallet will download the entire blockchain and serve it over the
internet to any peers who request it.
- Dash Evolution
- This is a 3 tier network Dash developers are presently building. It
will make Dash as easy to use as PayPal, while still remaining
decentralized. See the Evolution page for more
- A distributed denial of service attack uses large numbers of computers
under an attacker’s control to drain the resources of a central
target. They often send small amounts of network traffic across the
Internet to tie up computing and bandwidth resources at the target,
which prevents it from providing services to legitimate users. Dash
exchanges have sometimes been hit with DDoS attacks.
- Decentralized computing is the
allocation of resources, both hardware and software, to each
individual workstation or office location. In contrast, centralized
computing exists when the majority of functions are carried out or
obtained from a remote centralized location. Decentralized computing
is a trend in modern-day business environments. This is the opposite
of centralized computing, which was prevalent during the early days of
computers. A decentralized computer system has many benefits over a
conventional centralized network. Desktop computers have advanced so
rapidly that their potential performance far exceeds the requirements
of most business applications. This results in most desktop computers
remaining nearly idle most of the time. A decentralized system can use
the potential of these systems to maximize efficiency. However, it is
debatable whether these networks increase overall effectiveness.
- Desktop Wallet
- A wallet is a piece of software that stores your Dash. There are many
different wallet options, but it is imperative to choose a secure one.
We recommend any of the following: Dash Core Wallet / Dash Electrum Wallet / Hardware Wallets
- This number determines how difficult it is to hash a new block. It is
related to the maximum allowed number in a given numerical portion of
a transaction block’s hash. The lower the number, the more difficult
it is to produce a hash value that fits it. Difficulty varies based on
the amount of computing power used by miners on the Dash network. If
large numbers of miners leave a network, the difficulty would
decrease. Dash’s increasing popularity and the availability of
specialized ASIC miners have caused the difficulty to increase over
- Digital Wallet
See this link for full documentation on wallets.
A digital wallet is similar to a physical wallet except that it is
used to hold digital currency. A Dash wallet holds your private
keys, which allow you to spend your Dash. You are also able to make
backups of your wallet in order to ensure that you never lose access
to your Dash. Digital wallets can exist in many different forms and on
- Desktop Wallet (Dash Electrum Wallet, Dash Core Wallet): Wallet programs that you install on a laptop
or desktop computer. You are solely responsible for protecting the
wallet file and the private keys it contains. Make backup copies of
your wallet files to ensure that you don’t lose access to your
- Mobile Wallet (Android, iOS): These wallets can be downloaded through Google
Play or Apple (iTunes) App Stores. Mobile wallets allow you to use
Dash on-the-go by scanning a QR code to send payment. Make backup
copies of your mobile wallet files to ensure that you don’t lose
access to your funds. Due to security issues with mobile phones, it
is advised that you don’t store large amounts of funds on these
- Online/Cloud/Web Wallet (Exodus,
MyDashWallet): Third parties that will store
your Dash on their servers for you or provide an interface to access
your Dash with you providing the keys, so that you can access your
Dash from any device connected to the internet. If their website is
hacked or if their servers are damaged, you run the risk of losing
your Dash. Any online wallets should be secured with strong
passphrases and 2FA. You cannot make backup copies of your online
wallet, because you do not have access to the private keys. We
strongly urge that you NEVER store large amounts of Dash in any
online wallet or cryptocurrency exchange.
- Hardware Wallets (Trezor, KeepKey,
Ledger, Nano): A hardware wallet is a specialized, tamper-proof,
hardware device that stores your private keys. This device is able
to sign transactions with your private key without being connected
to the internet. However, you must have an internet connection to
send the transaction to the Dash network. This allows your private
keys to be accessed easily while still keeping them securely
protected. This is widely regarded to be the safest form of storage
for your Dash.
- Offline/Cold Storage (Paper wallet):
A special wallet that is created offline and is never exposed to the
internet. Accomplished by using software to generate a public and
private key offline and then recording the generated keys. They keys
can be printed out on paper or even laser-etched in metal. Copies
can be made and stored in a personal safe or bank deposit box. This
is an extremely secure way to store Dash. There is no risk of using
software wallet files, which can become corrupt, or web wallets,
which can be hacked. NOTE: USB sticks are not safe for long-term
(multi-year) storage because they degrade over time.
- Digital Signature
- A digital signature is a mathematical mechanism that allows someone to
prove their identity or ownership of a digital asset. When your
digital wallet signs a transaction with the appropriate private key,
the whole network can see that the signature matches the address of
the Dash being spent, without the need to reveal the private key to
the network. You can also digitally sign messages using your private
key, to prove for instance that you are the owner of a certain Dash
- Electrum Wallet
- Dash Electrum Wallet is a lightweight
wallet that does not require you to download or sync the entire
blockchain, making the wallet lighter and faster. However, it is
missing certain features such as PrivateSend and InstantSend.
- In cryptography, encryption is the process of
encoding messages or information in such a way that only authorized
parties can read it. Encrypted messages which are intercepted by a
third-party are indecipherable gibberish without the private key. In
an encryption scheme, the plaintext message is encrypted using an
encryption algorithm, generating ciphertext that can only be read if
decrypted by the intended recipient. For technical reasons, an
encryption scheme usually uses a pseudo-random encryption key
generated by an algorithm. Increases in computing power have “broken”
many past encryption algorithms, but a well-designed modern system
such as AES-256 is considered essentially “uncrackable.”
- Escrow Services
An escrow is:
- a contractual arrangement in which a third party receives and
disburses money or documents for the primary transacting parties,
with the disbursement dependent on conditions agreed to by the
transacting parties; or
- an account established by a broker for holding funds on behalf of
the broker’s principal or some other person until the consummation
or termination of a transaction; or
- a trust account held in the borrower’s name to pay obligations such
as property taxes and insurance premiums.
A trusted escrow service is often used when purchasing cryptocurrency
or other goods/services over the internet. Both the buyer and seller
will choose a trusted third-party, the seller will send the item (or
currency) to the escrow agent, and the buyer will send the purchasing
funds to the escrow agent as well. Once the escrow agent is satisfied
that both parties have satisfied the terms of the agreement, he/she
will forward the funds and the product (or currency) being purchased
to the appropriate party.
- Evan Duffield
- Founder and first Lead Developer of Dash. Inventor of X11, InstantSend
and PrivateSend. Before creating Dash, Evan was a financial advisor
and holds a Series 65 license.
- The current price of one Dash compared to the price of other
currencies, like the US dollar, Yen, Euro, or Bitcoin. Because most
trading volume takes place on the BTC/DASH markets, price is often
quoted in fractions of a bitcoin. For instance, the price of one Dash
at the end of March 2017 was 0.08 (bitcoins per Dash). An excellent
site for following the exchange rate of Dash is CoinMarketCap. Businesses wishing to reduce the risk
of holding a volatile digital currency can avoid that risk altogether
by having a payment processor do an instant exchange at the time of
- Faucets are a reward system, in the form of a website or app, that
dispenses rewards in the form of a microdash or Duff, which is a
hundredth of a millionth Dash, for visitors to claim in exchange for
completing a captcha or task as described by the website.
- Fiat Gateway
Fiat money has been
defined variously as:
- Any money declared by a government to be legal tender.
- State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.
- Intrinsically valueless money used as money because of government decree.
Examples include the US dollar, the Euro, the Yen, and so forth.
- Financial technology, also known as
FinTech, is an economic industry composed of companies that use
technology to make financial services more efficient. Financial
technology companies are generally startups trying to make financial
processes more efficient or eliminate middle- men. Recently many
fintech companies have begun utilizing blockchain technology, which is
the same technology that underpins Dash and Bitcoin.
When the blockchain diverges or splits, with some clients recognizing
one version of the blockchain as valid, and other clients believing
that a different version of the blockchain is valid. Most forks
resolve themselves without causing any problems, because the longest
blockchain is always considered to be valid. In time, one version of
the blockchain will usually “win” and become universally recognized as
valid. Forks can, however, be extremely dangerous and should be
avoided if possible.
Forking is most likely to occur during software updates to the
network. Dash uses a Multi-Phased Fork (“Spork”)
system for greater flexibility and safety.
- Full Nodes
- Any Dash client that is serving a full version of the blockchain to
peers. This can be a user running a Dash Core wallet on his/her
desktop, or it could be a masternode. Full nodes
promote decentrailzation by allowing any user to double check the
validity of the blockchain.
- Every unit of the currency is worth the same as any other unit.
- Genesis Block
- The very first block in the block chain.
- A graphics processing unit (GPU), also
occasionally called visual processing unit (VPU), is a specialized
electronic circuit designed to rapidly manipulate and alter memory to
accelerate the creation of images in a frame buffer intended for
output to a display. GPUs are used in embedded systems, mobile phones,
personal computers, workstations, and game consoles. Modern GPUs are
very efficient at manipulating computer graphics and image processing,
and their highly parallel structure makes them more efficient than
general- purpose CPUs for algorithms where the processing of large
blocks of data is done in parallel. In a personal computer, a GPU can
be present on a video card, or it can be embedded on the motherboard
or — in certain CPUs — on the CPU die. Certain cryptocurrencies use
mining algorithms which are most efficiently run on GPUs.
- Hardware Wallet
- Hardware wallets are among the safest type
of wallet for storing your Dash. Your private key is protected inside
a piece of hardware, and is never exposed to the internet. You are
still able to sign transactions as normal, making it both safe and
- A mathematical process that takes a variable amount of data and
produces a shorter, fixed-length output. A hashing function has two
important characteristics. First, it is mathematically difficult to
work out what the original input was by looking at the output. Second,
changing even the tiniest part of the input will produce an entirely
- The number of hashes that can be performed by a Dash miner in a given
period of time (usually a second).
- See InstantSend
- InstantSend technology uses the masternode
network to “lock” transaction inputs, preventing Dash from being
double-spent. Unlike Bitcoin, where it takes an hour or longer for
transactions to fully confirm, transactions using InstantSend are
“locked” and irreversible after only a few seconds.
- The ability to buy and sell an asset easily, with pricing that stays
roughly similar between trades. A suitably large community of buyers
and sellers is important for liquidity. The result of an illiquid
market is price volatility, and the inability to easily determine the
value of an asset.
A masternode is special type of full node
that performs services for the network and is paid a portion of the
block reward. Masternodes require proof of ownership of 1000 DASH.
Masternodes serve as the second tier of the Dash network, and power
InstantSend, PrivateSend, the Budget System.
- Miners process transactions on the Dash network and
publish them on the blockchain. As a reward for doing this, miners are
paid 45% of the block reward.
- Mobile Wallet
- These are wallets available on mobile devices (iOS + Android).
- Multi-signature addresses provide additional security by requiring
multiple people to sign a transaction with their private key before
the transaction can be sent. For example, in 2 of 3 multisig, two out of three possible signatories have to
sign a transaction for it to be processed. Multi-signature addresses
are commonly used by exchanges and other organizations that are in
possession of large sums of cryptocurrency, since it makes theft much
- A node is any device running Dash wallet software. Full nodes are
software clients that have downloaded the entire blockchain and serve
it to other clients on Dash’s peer-to-peer network.
- Over the counter (OTC) trades are trades that occur off exchanges. In
an OTC trade, a buyer and seller trade with each other directly, or
through an intermediary. OTC trading is useful when a person wants to
either buy or sell a large amount of cryptocurrency and is afraid that
a large buy or sell order will move the price (called “slippage”).
- Peer-to-peer. Decentralized interactions that happen between at least
two parties in a highly interconnected network. An alternative system
to a ‘hub-and-spoke’ arrangement, in which all participants in a
transaction deal with each other through a single mediation point.
- Paper Wallet
- Paper wallets are offline wallets, printed
on paper for safety. If properly secured and stored they are
considered the safest way to store cryptocurrency.
- Privacy is the ability of
an individual or group to seclude themselves, or information about
themselves, and thereby express themselves selectively. The boundaries
and content of what is considered private differ among cultures and
individuals, but share common themes. When something is private to a
person, it usually means that something is inherently special or
sensitive to them. The domain of privacy partially overlaps security
(confidentiality), which can include the concepts of appropriate use,
as well as protection of information. Dash includes PrivateSend, which
allows users to maintain financial privacy.
- Private Key
- A private key is a long alphanumeric passcode that allows Dash
to be spent. Every Dash wallet contains one or more private keys which
are saved in the wallet file. The private keys are mathematically
related to all Dash addresses generated for the wallet. Because the
private key is the “ticket” that allows someone to spend Dash, it is
important that these are kept secure and secret.
- PrivateSend obscures the source of funds in order
to maintain financial privacy between users. It can be turned on or
off at the users’ discretion.
- Proof of Work - PoW
- Consensus mechanism that keeps all nodes honest by requiring
computational power to be expended in order to create new blocks.
Miners must use expensive equipment and burn electricity to add blocks
to the blockchain. Without a consensus mechanism of some sort, any
node could add blocks to the chain and the network’s nodes would never
agree on which chain was valid.
- Proof of Stake - PoS
- Consensus mechanism that relies on ownership of a cryptocurrency to
maintain the blockchain. In Proof of Stake systems, each owner of the
currency can use their wallet to “stake,” and there’s a small chance
that they will be chosen to create the next block and add it to the
chain. In this way consensus is maintained across all nodes. Proof of
Stake saves electricity and does not require specialized computer
hardware. It does however suffer from several pitfalls, including the
“nothing at stake” problem. Since no electricity is consumed, in the
event of an attack it is actually beneficial for Proof of Stake nodes
to “vote” to accept both the legitimate chain and the attacker’s
- Public Key
- The public key is derived from the private key but is not secret
and can be revealed to anybody. When a private key is used to sign
messages, the public key is used to verify that the signature is
- Pump and dump
- Inflating the value of a financial asset that has been produced or
acquired cheaply, often using aggressive publicity and misleading
statements. The publicity causes others to acquire the asset, forcing
up its value. When the value is high enough, the perpetrator sells
their assets, cashing in and flooding the market, which causes the
value to crash. This is particularly common in markets with low
liquidity, such as some altcoins.
- QR Code
- A two-dimensional graphical block containing a monochromatic pattern
representing a sequence of data. QR codes are designed to be scanned
by cameras, including those found in mobile phones, and are frequently
used to encode Dash addresses.
- Satoshi Nakamoto
- Satoshi Nakamoto
is the name used by the person or people who designed Bitcoin and
created its original reference implementation.
- The Dash development team created a mechanism known as a “spork” by which updated code is released to the network, but not
immediately made active (or “enforced”). Communication is sent out to
users informing them of the change and the need for them to update
their clients. Those who update their clients run the new code, but in
the event of errors occurring with that new code, the client’s blocks
are not rejected by the network and unintended forks are avoided. Data
about the error can then be collected and forwarded to the development
team. Once the development team is satisfied with the new code’s
stability in the mainnet environment – and once acceptable network
consensus is attained – enforcement of the updated code can be
activated remotely. Should problems arise, the code can be deactivated
in the same manner, without the need for a network-wide rollback or
- Tainted Coins
- Taint is a measure of correlation between two (wallet) addresses. It
is only important if the user is trying to remain anonymous.
- Test Dash, used on testnet.
- Testnet is a network only for testing (parallel to
the mainnet), test wallets, test coins, test masternodes, test miners,
and test users all simulate their mainnet counterparts in a safe
environment where errors or forks are not harmful.
- An anonymous routing protocol used by people wanting to hide their
- Transaction Block
- A collection of transactions on the Dash network, gathered into a
block that can then be hashed and added to the blockchain.
- Transaction Fee
- A small fee imposed on some transactions sent across the
Dash network. The transaction fee is awarded to the miner that
successfully hashes the block containing the relevant transaction.
- Unconfirmed Transactions
- Transactions that are not yet processed by miners or held via
InstantSend are “unconfirmed on the blockchain.” Unconfirmed
transactions can be reversed and should not be considered as “final.”
- Vanity Address
- A Dash address with a desirable pattern, such as a name.
- Virgin Dash
- Dash received as a reward for mining a block or running a masternode.
These have not yet been spent anywhere and are “virgin.”
- The measurement of price movements over time for a traded financial
asset (including Dash).
- A method of storing Dash for later use. A wallet holds the private
keys associated with Dash addresses. The blockchain is the record of
the Dash balances (and transactions) associated with those addresses.
- A white paper is an
authoritative report or guide that informs readers concisely about a
complex issue and presents the issuing body’s philosophy on the
matter. It is meant to help readers understand an issue, solve a
problem, or make a decision.
- X11 is a hashing algorithm created by Dash
Core developer Evan Duffield.
- Zero Confirmations
- This is a transaction without any confirmations from the blockchain.
It is technically reversible (unless InstantSend was used).
- A transaction (tx) consists of one or more inputs and one or more
outputs. The vin is the list of inputs to the transaction, and vout is
the list of outputs. Masternodes require a 1000 DASH vin (exactly that
amount) in order to work.