Cryptocurrency, Dash included, is the technological marvel of the modern age, employing innovative approaches to build distributed, peer-to-peer, robust, efficient networks for the transmission of value. However, Dash has a particular advantage over many projects: its tech is balanced by using economic principles to maximize efficiency, not just technological improvements. Here are six ways Dash leverages economics to solve problems that would otherwise be technical.
(Each of these below points has its own article going into greater detail, click the title for the link)
1: Incentivized nodes to enable long-term scaling
Growth of a project to a large scale can necessitate infrastructure able to support significant volume of transactions and data. Running a node, therefore, can become very expensive with heavy use of the network, and without compensation it can become a burden to run the nodes necessary to run the network. Dash incentivizes nodes by paying regular rewards, which allows them to easily afford the hardware and bandwidth requirements to run a strong and healthy network.
2: Internal development budget to avoid both open-source and “ICO problem”
Projects with no funded development can suffer from either lack thereof or the ease of being taken over by outside entities willing to pay developers in exchange for influence. Many Ethereum-based projects are funded by ICOs, which can raise a great deal of funding quickly, but suffer from a lack of economic incentives once developers have no market signals to keep them focused and efficient. Dash solves both of these issues by both funding development internally and making pay contingent on approval from the masternodes, ensuring that developers both have the means to carry out their work and the economic incentives to continue to deliver top-notch results.
3: Investor-driven governance ensures prudent decision-making
As mentioned above, Dash’s...