51% Attack: Is a condition in which more than half of the computing power in a cryptocurrency network is controlled by a single miner or group of miners. So theoretically that computing power make them the authority on that network and are the ones that can make decisions about the currency.
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 sign digitally the transactions.
Altcoin: 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 other cryptocurrency than Bitcoin.
ASIC: An application-specific integrated circuit (ASIC), is an integrated circuit (IC) customized for a particular use, rather than for general-purpose use.
ATM / BTM: A Dash ATM is a physical vending machine that allows the customer to buy Dash with cash. There are many manufacturers that enable users to sell Dash for cash. They are also called “BTMs” or “Dash AVMS” and Dash is supported on several ATMs.
Backup: It is known as the process of making copies to a computer file to guarantee its integrity in case of loss, theft, or damage. Dash allows users to make backup copies of their digital wallets, protecting the customer’s money. Meaning that the customer is able to restore its digital cash.
Bitcoin 2.0: This is a term that explains the next new level of Bitcoin projects which started as a fork of such cryptocurrency but extended their code into the next level of Blockchain Projects (Smart Contracts, Decentralized Voting).
Blockchain: A blockchain is a distributed database that maintains a continuously-growing list of data that is protected and in constant review. It consists of structured blocks which exclusively holds individual transactions. Each block contains a time stamp and information related to the last block.
Blocks: Transactions in the “blockchain” are collected in blocks that record and confirm when a transaction is valid enters in the blockchain. The blocks are created by “miners”, they use a specialized software (ASIC or GPU) to create them.
Budget System / DGBB: In the development of the Dash ecosystem, is self-funded by the Dash network. Each time a block is created, the 45% of the reward of the block goes to the miners, 45% goes to the masternodes and the 10% is used by the network to finance projects by the masternodes. The budget system is also called the Dash Treasury.
Cloud Wallet: Cloud Wallets are third parties that will save your Dash on their servers for you, so that you can access to your funds from any device connected to the internet. The main risk is that if your web is hacked or if the servers are damaged, you run the risk of losing your Dash. Any online wallet must be secured with strong passphrases and two-factor authentication (2FA). Another disadvantage is that you cannot make backups of your online wallet because you don’t have access to your private keys. That’s why we don’t recommend to store big quantities of Dash in this type of wallets.
Cold Storage: Is a method to safeguard your funds and private keys offline. There are different ways to do it: by using a computer or laptop offline, a device called “Hardware Wallet”, or a paper wallet.
Confirm(ed) Transaction: When a Dash transaction is made, a miner must validate that transaction. Once the miner valid the transaction, is included in a block to the blockchain. At that moment the transactions is considered completed and irreversible.
Confirmation Number: It is the number of confirmations to a Dash transaction. Zero confirmations mean that the transaction is not confirmed. One confirmation means that the transaction is included in the last block of the chain. Two confirmations mean that the transaction was included in two blocks, three confirmations in three blocks and so on. The probability that a transaction is reversed (double spent), is exponentially diminished with the confirmation of each block. When a transactions had six confirmations is considered as “safe” and irreversible.
Confirmed Transactions: Confirmed Transactions are the transactions processed by the miners and considered irreversible, usually with six confirmations. In the case of InstantSend, the funds can be considered as irreversible after a few seconds.
Cryptocurrency: A cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units called tokens.
Darkcoin: Darkcoin was the second name given to Dash after its creation. The first name was Xcoin.
DarkSend: DarkSend was the original name of PrivateSend.
Dash: Originally launched as Xcoin, and then its name changed to Darkcoin, later its name changed again to “Dash” to avoid the association to the markets of the darknet. Dash is the abbreviation of “Digital Cash”. Dash is a peer-to-peer and open code cryptocurrency that solves many problems of Bitcoin. Among the most outstanding characteristics are: PrivateSend, InstantSend, The Decentralized Governance by the Blockchain (DGBB), and a second layer of the network (the masternodes network).
Dash Evolution: This is a third layer of the Dash network, which is being built currently by the Dash developers. It will make Dash as easy to use as PayPal, while still remaining decentralized. See the Evolution page for more information.
Decentralized: The decentralized computing is the placement of resources (hardware and software), in an individual work station. On the other hand, the centralized computing is when most of its functions are carried out by a central system in a specific location. The decentralized computing is currently trending. This type of system had a lot of benefits over the conventional centralized systems. Currently, many desktops are obsolete according to the current requirements, but the decentralized computing can use the potential of this devices to maximize their efficiency.
Digital Wallet: Is similar to a physic wallet but with the difference that is used to save digital coins. A Dash wallet safeguard your private keys which allows you to spend your Dash. Also you can make backups to secure your funds. The digital wallets can be in different devices:
Desktop/Software Wallet (Electrum, Dash QT): Are programs installed on your computer or laptop. In this wallet, you are the only responsible to protect the archive of your wallet and the private keys that it contains. Make backups in case you lose or your computer is damaged.
Mobile Wallet (Android, iPhone – DashWallet): These wallets can be downloaded from Google Play (Android) or AppStore (iOS). They are the wallets for smartphones and tablets, these allow you to use your Dash on your day-by-day since you can scan the QR code to send a payment. We recommend to make backups so you don’t lose the access to your funds in case of losing your phone, or your phone is damaged. We also recommend NOT TO store many Dash in these type of wallets. A good example is that these wallets are compared to a pocket wallet where you save your cash, while Desktop Wallet can be considered as a safe-deposit box in which you can store more money.
Online/Cloud/Web Wallet (Exodus): Already explained before.
Hardware Wallets (Trezor, KeepKey, and Ledger Nano): Is a special device to store your private keys (and your cryptocurrencies). These devices have the capacity to sign your private keys without being online. However, you must be connected to the internet to send a transaction to the Dash network. These devices allow you to have access to your private keys in an easy way and at the same time to protect your funds. This is considered as the safest way to save your Dash.
Offline/Cold Storage (Paper wallet): Is a wallet created offline and is never connected to internet. These wallets are created by using a software that generates the private and public keys. Then, the keys can be printed in a paper or metal. The backups can be saved in a safe place such as a safe-deposit box or any place that the user consider is safe. This is an extremely safe way to store your Dash since is not connected to the internet or inside a computer, they are secured from any attack or hacking.
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.
Exchange: It is also called “Digital Currency Exchangers” (DCEs). They are enterprises that allow people to exchange their cryptocurrencies to fiat money. They charge commissions to use their services. We recommend you not to store big amounts of money in these platforms since they are exposed to hacking and cyber attacks.
Exchange Rate: Is the current price of one Dash compared to the price of other fiat currencies, and this is determined by the offer and demand of Dash in the exchanges. A reference site to know the price of Dash is CoinMarketCap.
Faucets: Is a reward system that uses an app or website that gives as a prize small amounts of Dash (or Duff, the smallest unity of Dash). Usually the users win games or they complete tasks to receive this prize. It is considered as one of the ways to enter to the cryptocurrency system without having any capital. One of the most famous sites to earn Dash by just playing is: dash.red.
Fiat Gateway: It is an exchange, ATM, or other service that allows the conversion of fiat currency (Dollars, Euros, etc.) to Dash, and viceversa.
Fiat money: Fiat money. It have been defined in different ways:
Examples: Dollar, Euro, Bolivar, Colombian peso, etc.
Fintech: Is the abbreviation of Financial Technology, it is an economic sector composed by enterprises that use technology to make the finance services more efficient. Usually, the Fintech enterprises are small startups that try to make the process more efficient and to eliminate intermediaries. Recently a lot of Fintech enterprises have begun to use the blockchain technology during their processes, products and services.
Fork: Is a separation or division of the blockchain mainly because of different opinions according to the functioning and the future of the project or cryptocurrency. It is more probably that the fork occurs during the software update of the network. Dash uses a multi-phase fork system (called Spork) to be more flexible and secure.
Full Nodes: It is any software that interacts with the Dash network, and provides service exclusively to this network. This can be a QT Wallet, a computer or a masternode. Full Nodes promote the decentralization letting any user to make a double verification of the blockchain.
Hash: It is a mathematical process that take a variable amount of data and it produces a smaller and modified data. The hashing has two main characteristics: first, it is very hard mathematically to predict the input data by seeing only the output data; and second, by changing a small part of the input data, the output will be completely different.
Hashrate: The number of hashes that can be performed by a Dash miner in a given period of time (usually is the quantity of hashed made in a second).
InstantSend: Is a unique technology from Dash, which is managed by the masternodes network to ensure the transaction, preventing the double spent. It is different from Bitcoin, where the transactions can take more than an hour to be completely confirmed, the transactions that are made with InstantSend are confirmed in a few seconds
Mining: It is the process in which miners confirm the transactions and they publish it on the blockchain. As a reward for doing this job, the miners receive the 45% of the earnings of the block.
Node: Is any device that executes the software of a Dash wallet. Full Nodes are nodes that have downloaded all the Dash blockchain and they provide services to the network.
OTC: Is the abbreviation of “Over the Counter”, are exchanges that occur outside the Exchanges. In an OTC exchange, a buyer and a seller negotiate directly or through an intermediary. Usually this exchanges are made when a person wants to buy or sell a big amount of a cryptocurrency and is afraid that the exchange modifies the price of the currency.
P2P: Is the abbreviation of “peer to peer”. This term is commonly used in the transactions where the buyers and the sellers interact and negotiate directly.
Private Key: Is an alphanumeric code that allows to spend Dash. All the Dash wallets contain one or more private keys which are saved in the wallet’s archive. It is what allows you to send Dash to someone else and that’s why it must be stored in a safe place.
PrivateSend: This option hides the source of the funds of a transaction, which allows the privacy among users. This characteristic can be used when the user desires to.
Proof of Work – PoW: It is a consensus mechanism that maintains the “honesty” of the nodes by requesting them a computing power for the creation of new blocks. The miners must buy expensive equipment and spend on electricity to add new blocks to the blockchain. Without this consensus mechanism, any node can add blocks to the blockchain and the nodes network would never agree in which chain is valid and which one is not.
Proof of Stake – PoS: It is a consensus mechanism based on the “stake” of a cryptocurrency to maintain the blockchain. In this type of consensus mechanism, every owner of the cryptocurrency can use its wallet to “stake”, and there is a probability that they are chosen to add the next block to the chain. In this sense, the consensus is maintained through all the nodes. The Proof of Stake saves electricity and doesn’t require specific equipment. However, has some disadvantages, for example: since it doesn’t consume electricity, in case of an attack, is as profitable to the nodes to vote in the PoS to accept the legitime chain or the attacker’s chain.
Public Key: The public key is derived from the private key but is not secret and can be revealed to any person. While the private key is used to sign messages, the public key is used to verify that that sign is valid. It is the analog of the number of the bank account where you receive funds.
Satoshi Nakamoto: Satoshi Nakamoto is the name used by the person or group of people that designed Bitcoin and created its original reference implementation.
Transaction Fee: It is the fee that the users must pay to send any transaction on the Dash Network. The fee is assigned to the miner that hashed and published the transaction.
Unconfirmed Transactions: The unconfirmed transactions are those transactions that are not processed yet by the miners (transactions that didn’t use InstantSend) and therefore are not confirmed on the blockchain. This type of transactions can be reversed and they cannot be considered as completed.
Wallet: It is a mechanism to save Dash to use it later. A wallet stores the private keys associated to the addresses.
Whitepaper: A white paper is an authoritative report or guide that explains briefly about a complex topic and shows all the structure and philosophy if a project. It helps the readers to understand a topic, answer some questions or solve a problem. Usually the white paper is the guide used by any enterprise that will create a cryptocurrency, to explain their business plan and what will be the use of their cryptocurrency.
X11: X11 is a hashing algorithm created by Dash Core developer Evan Duffield.
Zero Confirmations: Is a transaction that doesn’t have any confirmations on the blockchain. These are reversible transactions unless InstantSend is used.