KuCoin AMA Series - Dash - Full Transcript
Dear KuCoin Users,
13:00-14:00 on Monday, May 11, 2020 (UTC+8), KuCoin hosted an AMA (Ask-Me-Anything) session with Dash in the in the KuCoin Exchange Telegram Group.
Guest: Mr. Fernando Gutierrez - Dash Core Group CMO
Host: Ms. Alicia Kao - KuCoin Senior Partner
1,000 USD worth of Dash has been presented to users as red envelope giveaways during and after the AMA session (including random and lucky red envelopes)!
Introduction to Dash: Dash is a fork of Bitcoin that focuses on the payments use case. It has introduced a number of industry-first innovations - including masternodes, LLMQs, ChainLocks, and InstantSend - that collectively deliver a more scalable, fast, reliable, cost-effective, and familiar user experience. The Dash network is also the longest-running decentralized autonomous organization, utilizing on-chain governance to allocate network resources toward projects and organizations that support the network.
Official Website: https://www.dash.org
Whitepaper: Click to View
Q&A from KuCoin
1. For those that don't know Dash very well, can you please introduce your project on a high level?
Dash is a cryptocurrency that focuses on payments. It is digital cash. It's code is based on Bitcoin, but it has introduced a number of industry-first innovations on top of it -including masternodes, LLMQs, ChainLocks, and InstantSend- that collectively delivers a more scalable, fast, reliable, cost-effective, and familiar user experience. The Dash network is also the longest-running decentralized autonomous organization, utilizing on-chain governance to allocate network resources toward projects and organizations that support the network.
2. I heard KuCoin and Dash are going to announce something, care to do it here in front of our gracious attendees?
We do have something exciting to announce. KuCoin has just integrated InstantSend allowing for 0 confirmation deposits, withdrawals, and transactions of Dash on the KuCoin platform! This feature is a major part of Dash's growth and why we are used for multiple use cases. In short, it is speed and low cost of use. When you transact with Dash and InstantSend, the transaction time is near instant, including settlements. I think everyone wants to know what this integration means for them? InstantSend, in conjunction with ChainLocks, allows a user to send Dash instantly and with complete security, for a fraction of a cent. It allows for 0 confirmation trading without the risk of double spending. That is because the Masternode network validates the transaction and will make sure that the miners include it. Masternodes are an additional layer on the network that perform certain functions for the network. Once they validate that the requirements are met, the transaction is locked for 25 blocks. This all happens automatically within a second or two. KuCoin's integration allows them to detect these transactions and credit the user far more quickly as 0 confirmations with an InstantSend transaction have the security of 25 blocks!
3. Though I get the feeling you have more cards up your sleeve, you know we all love good news, can you tell us more good news about Dash?
Before I move to that, let me elaborate a bit more about the meaning of the integration for KuCoin users. This integration allows KuCoin users to take advantage of market opportunities before anyone else. Using the speed of Dash, a user can instantly move Dash from one exchange into another. It does not end there. The integration will allow KuCoin to support more payment processors who use Dash, and enhance the overall user experience.
For exchanges, as more people move Dash across exchanges, a network of liquidity begins to build, resulting in deeper order books, less slippage, more accurate prices of Dash, and avoids larger issues such as networked liquidity. All of this without any sacrifice to security.
And now, going back to more good news... Once again, you're right, there is another announcement to go along with this.
KuCoin and Dash are launching a series of opportunities for KuCoin users to win Dash to celebrate the integration! Beginning tomorrow, May 12th, KuCoin will launch a competition rewarding the users who deposit the quickest.
There will be several rounds starting from tomorrow and will last for some time. We will be posting more information shortly.
4. Sounds like you and KuCoin are working on a few things together. We're about to break again before coming back to the live portion of the AMA. But before we do that, I have one last question. I have read in several places that Dash is among the most secure cryptocurrencies out there. Is that the case? If so, how?
That's a great question, actually that is true. Dash is among the most secure cryptocurrencies out there largely as a result of our release of ChainLocks last year. ChainLocks prevents chain reorgs and makes Dash 51% attack proof.
The way it works is through something called a Long Living Masternode Quorum (LLMQ). A group of randomly selected masternodes are responsible for observing, and subsequently affirming, newly mined blocks: When a block is mined, members of the quorum broadcast the signed message containing the observed block to the rest of the Quorum. Should a minimum of 60% of the quorum see the same new block, they collectively form a ChainLocks signature message that is broadcasted to the rest of the network. When a client receives a ChainLocks Signature, it will reject all blocks of the same height that do not match the block mentioned in the message. The result is a quick and unambiguous decision on the “correct” blockchain. This makes reorganizations prior to this block impossible.
5. You mentioned Masternodes, what role do they play in the Dash network?
Masternodes are powerful servers backed by collateral held in Dash, and are designed to provide advanced services and governance on the blockchain. Masternodes have been a critical part of the Dash network ever since Dash invented the concept of masternodes soon after the project’s inception in 2014.
Masternodes host full copies of the blockchain and provide a unique second layer of services to the network, facilitating advanced functions such as InstantSend, ChainLocks, and in the future, usernames on the blockchain.
At the moment, Masternodes must be backed by a collateral of 1000 Dash, and in return for the services they provide to the network, they receive regular payments from the network. The collateral requirement prevents malicious actors from setting up servers to control that layer. Currently there are around 4600 masternodes.
As part of Dash’s DAO network, a voting system was put in place to allow the network to vote on strategic initiatives and grants for initiatives submitted by individuals and businesses.
Masternode operators can vote each month on up to 10% of the block reward to fund community projects supporting the Dash ecosystem.
6. As we know that Dash is famous for its Decentralized Autonomous Organization (DAO) governance model, can you please tell me more about the Dash Treasury and voting mechanism that supports Dash Core Group and funds projects from the community? And how does that work and can anyone fund their projects through that system?
Of course! The way it works is let us say you have a great idea on a use case, activity, technology, etc. that will ultimately benefit the Dash network. However, you need $X amount to get your idea off the ground. You would then put together a proposal with the amount you would require to make this a reality.
That proposal is then submitted to Dashcentral.org or app.Dashnexus.org at a cost of 5 Dash. This 5 Dash is to ensure the user thinks through the plan and idea prior to submitting (should the proposal pass, the user can recoup the 5 Dash spent to post the proposal).
The Masternode owners then vote on your proposal. If the proposal gets a net vote (yes votes minus no votes) approval of 10% of the MNOs, your proposal passes and you will receive your requested funds.
Sometimes the system is also used to ask the network to vote on important matters so decisions are made fast. This voting system has been a large source of our growth.
The funding comes the block reward. Most cryptocurrencies are developed to distribute 100% of block rewards to miners. Dash took a different approach.
Block rewards are split three ways: 45% to miners, 45% to masternode owners, and 10% goes to the Treasury that pays the approved proposals.
Dash Core Group and community organizations all over the globe get their resources this way and compete with each other for the funds, with no special privilege in the code for anyone.
7. Many seem to believe Dash is a privacy coin, so Fernando, is Dash a privacy coin?
That is great question. The simple answer is no, but let me elaborate. Dash has always been a payments focused cryptocurrency, however, our first feature release was a coinjoin integration into the Dash desktop wallet, which we called PrivateSend.
We continued to focus on the overall user experience for payments and have released a number of additional features including InstantSend, Chain Locks, and Dash Platform which are all aimed at making Dash an ideal payments network. However, the perception that Dash was a privacy-centric coin had already begun to take root in the media because it was our first unique feature, despite evidence to the contrary.
We actually wrote an article on this analyzing the regulatory guidelines around the FATF travel Rule. You can see the article about why we are not a privacy coin here: https://blog.Dash.org/Dash-complies-with-the-financial-action-task-force-fatf-guidelines-including-the-travel-rule-a4c658efc89d
To summarize some of the key points though:
1 - Dash is a fork of Bitcoin without any changes to the transaction ruleset. Dash is built upon a fully transparent blockchain with all inputs, outputs, and amounts fully auditable on the blockchain.
2 - Bitcoin has since deployed CoinJoin as well and is widely available through tools, desktop wallets, and mobile wallets. In fact, through these third party wallets, there are more robust methods of privacy available for Bitcoin.
3 - PrivateSend is only available on one desktop wallet.
4 - We have actually processed a PrivateSend transaction on the Bitcoin Network (following the same mechanisms and steps as Dash’s) showing the results for Bitcoin and Dash are identical.
We are assisting our partners all over the globe in their conversations with regulators either in a proactive manner or assisting when they need help. Regulators in some nations require exchanges to be able to detect and report private transactions. Dash is partnered with many KYC/AML service providers that allow exchanges and money services businesses to meet all compliance obligations in the exact same manner as they would for Bitcoin.
We have also been staying on top of latest regulations and proposals for them to ensure we are able to take an active role to the extent we can on raising awareness about Dash’s transparent blockchain through videos, articles, and other means. As a result of the discussions and evidence we have been providing to exchanges we have had a very high rate of reversals of delisting decisions.
Free-Ask
Q：In your opinion, which next-generation DApp killer will appear in the near future in the Dash ecosystem .... Can you see this, is it games, finance, social networks or in another category?
A：I think it will be in finance. In payments to be more specific. Payments is a huge use case. We all do many payments everyday. But the traditional financial system is broken for many people. Cryptocurrencies can help there, but the UX is so horrible that nobody uses them. Dash Platform will help solve this. Developers will be able to create applications that will make paying with Dash as easy as with any non-cryptocurrency app that you may use now. With the added benefit of the decentralization and censorship resistance of cryptocurrencies.
Q：What is the difference between hosted Masternode and self-operated Masternode?
What are the requirements that a user needs to run a Dash masternode?
A：In order to set up a masternode a user needs two things: prove the ownership of 1000 Dash and provide a server that will work for the network that needs to be configured in a certain way. There are many guides to do this available in the Dash forums and wiki.
The 1000 Dash stay on the user's local wallet. They are not spent or accessed by anyone. But if the user moves them, his masternode will stop getting payments. The server has to be connected 24x7 and provide the services that the network needs. If that doesn't happen, he doesn't get paid either.
Because keeping a server online 24x7 is sometimes tricky, there are services that will host it for you in exchange for a price. That is a hosted masternode: you keep the local wallet, but they maintain the server. A self-hosted one is when you do both things directly.
Q：Currently, If we pay through Visa or mastercard! then also transactions are made within seconds! Then why we should use Dash coin as payment?
A：With Visa or Mastercard you don't really hold the money. You have an entry in a database and they can block or change anything if they want. This means that you are not fully free to use your money as you please. Sometimes they will decide that certain uses are not allowed and you won't be able to use your card for that. That doesn't happen with Dash. Your money is yours. You decide what you do with it.
Also, Dash is way cheaper that credit cards. A transaction costs a fraction of a cent, almost free. Credit cards charge a percentage of the transaction to the merchant, usually between 1% and up to 5%... in some higher risk scenarios it can be even higher! Many merchants absorb this cost and the user doesn't see it, but that doesn't mean that the user doesn't pay it, it is hidden in the price. Without that cost, prices can be higher. In fact, some merchants will charge a fee to pay with credit card. Nothing of this is relevant with Dash. As I said, transactions are virtually free.