Dash is an open-source peer-to-peer (P2P) cryptocurrency primarily used in the payments industry. Dash provides a form of money that is easy to carry, affordable, divisible, and fast to transact. It can securely make online or in-person payments with only a small transaction fee. Dash improves upon the Bitcoin project and aims to be the most user-friendly and scalable payment system in the world.
![](https://www.claimfreedash.com/blog/wp-content/uploads/2022/01/3.png)
How does it work
Like Bitcoin, Dash is based on distributed ledgers that contain all transactions, also known as blockchains. The blockchain is secured through a consensus mechanism. In the case of Dash and Bitcoin, this consensus mechanism is Proof of Work (PoW). But Dash works a little differently than Bitcoin because it has a two-tier network. The second-tier network is powered by masternodes (also known as full nodes), enabling features such as financial privacy, instant transactions, decentralized governance, and a budget proposal system