|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.|
|Address||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.
Wikipedia definition: https://en.wikipedia.org/wiki/Algorithm
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
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 programmer.
|ASIC||An application-specific integrated circuit (ASIC) /ˈeɪsɪk/, 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 a 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 at Lamassu |
|Backlogged||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 has the unique feature of allowing 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 Voting,....)|
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 hold exclusively 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 previous block.
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. 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 online wallets.|
|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 wallet. To learn more, visit our Cold Storage Guide Section.|
|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 confirmation. In the case of InstantSend, funds can be considered irreversible after a few second 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.
Wikipedia definition: https://en.wikipedia.org/wiki/Cryptocurrency
|Cryptography||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 / DGW|
In concept, 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.
|Darkcoin||Dash was initially launched as XCoin and then rebranded to Darkcoin and finally Dash.|
Original name of PrivateSend. See PrivateSend.
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). For a full list of Dash's features, see: https://dashpay.atlassian.net/wiki/x/JIAR
Wikipedia definition: https://en.wikipedia.org/wiki/Dash_(cryptocurrency)
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 infrastructure
This is the 3 tier network Dash developers are presently building. It will make Dash as easy to use as PayPal, while still remaining decentralized.
|DDoS||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: DashCore Wallet / 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 time.
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 many devices:
|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 address.|
Electrum 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."
An escrow is:
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 Lead Developer of Dash. Inventor of X11, InstantSend and PrivateSend. Before creating Dash, Evan was a financial advisor and holds a Series 65 license.|
Digital currency exchangers (DCEs) or bitcoin exchanges are businesses that allow customers to trade digital currencies for other assets, such as conventional fiat money, or different digital currencies. They can be market makers that typically take the bid/ask spreads as transaction commissions for their services or simply charge fees to customers and serve as a matching platform. Do not store large amounts of money on any exchange. Several prominent exchanges have been hacked, and others have stolen users' funds and disappeared. Only deal with reputable exchanges, and only put as much money on an exchange as you are willing to lose.
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 each transaction.
|Faucet||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.|
An exchange, ATM, or other service that allows the conversion of fiat currency (Dollars, Euros, etc.) to Dash, and allows the conversion of Dash to fiat currency.
Fiat money has been defined variously as:
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 QT 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.|
|Fungible||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.
These 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 convenient.
|Hash||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 different output.|
|Hashrate||The number of hashes that can be performed by a Dash miner in a given period of time (usually a second).|
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.
|Liquidity||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 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.
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.
These are Wallets available on mobile phones (iPhone + 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 more difficult.
Read more about Multisig here.
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.
|OTC||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.
These 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.
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 chain.
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 valid.
|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.|
The Dashcore 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.
The Dash development team created a mechanism 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 client update.
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 identity online.
A collection of transactions on the Dash network, gathered into a block that can then be hashed and added to the blockchain.
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.
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."
A Dash address with a desirable pattern, such as a name.
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.
Wikipedia definition: https://en.wikipedia.org/wiki/White_paper
X11 is a hashing algorithm created by Dash core developer Evan Duffield.
Wikipedia definition: https://en.wikipedia.org/wiki/Dash_(cryptocurrency)#X11
|Zero Confirmations||Is a transaction without any confirmations from the blockchain. It is 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.