Since the creation of Bitcoin, cryptocurrency has expanded far beyond Satoshi’s original vision of a decentralized peer-to-peer electronic cash system. Especially with the advent of Ethereum, we see blockchain technology being applied to practically every business case, whether it makes sense or not. With each industry that blockchain technology enters, it will face challenges unique to that industry, whether they be technical, legal, or cultural.
Dash, of course, is laser-focused on becoming “digital cash,” i.e. fulfilling Satoshi’s original vision as outlined in the original Bitcoin white paper. Bitcoin itself is apparently abandoning that goal, and Bitcoin Cash is just getting started, which means that Dash—with its InstantSend and PrivateSend features—is strongly positioned to dominate that market in the long term. However, that doesn’t mean there won’t be significant hurdles to overcome. Here are four of the most notable challenges.1) Scaling
Everyone by now knows about blockchain technology’s scaling problems. By their very nature, blockchains don’t scale well, for they typically require copying of all data to every node on the network. Bitcoin has this problem, as does Ethereum, Dash, Monero, and any blockchain-based technology. If a project doesn’t need a large number of transactions to succeed, then perhaps it won’t encounter scalability issues in the near future. But digital cash, in particular, faces a very serious scaling problem, one which Bitcoin Core has apparently decided to solve by becoming a store of value rather than a cash system. But projects like Dash and Bitcoin Cash that seek to be digital cash absolutely must address the scaling issue.
Fortunately, significant steps have already been taken to address this challenge. The incentivized Masternode network has the potential to scale to much greater hardware capacities than the volunteer Bitcoin node network. Further, the Dash core team is already de...