Undoubtedly, users who have used wallet services that supported both Dash and Dashcoin have easily gotten confused about which coin is which. Some users have been in a state of confusion, thinking the two altcoins are related currencies, but in fact, they are not.

They stand for two different coins with different functions and founders. Each of these coins is alike in that they have anonymous sender qualities, although each one uses a very different method to get these results.

Anonymous Features

Anonymous cryptocurrencies are the favored choice of a very big group of users who believe that completely untraceable transactions are the future. There has been a huge demand for anonymous cryptocurrencies in illicit black market deals.

Still, it serves a brighter purpose, too: it allows anyone to engage in transactions without ever having to worry about being traced by a third-party organization or hacker.

Simply said, people like their transactions to be entirely anonymous as it eliminates the possibility of information being misplaced or stolen by identity thieves.

Notably, JP Morgan is among the largest banks in the world that offer anonymous cryptocurrencies. Because of the benefits it offers to both the user and the company, they believe that this is the way of the future. While DASH and DSH do this, their approaches to obtaining the data differ.

Dash vs. Dashcoin

Dashcoin often gets confused by users of Dash who are trying to trade their holdings and see DSH pop up on the list of currencies. The important thing to note is that Dashcoin has nothing to do with Dash whatsoever and, in fact, has been derived from a much older currency, Bytecoin. In turn, Bytecoin uses what is called cryptonote. In short, it is a way of scrambling and obscuring addresses, as well as sending logs of transactions. To that end, the ring signatures and one-time-use addresses get generated for every transaction.

Dash does the same thing but through a completely different mechanism called “darksend”. This is a method that blends multiple transactions together to anonymize transaction IDs.

Mining Organization

The functions are quite similar between the two, but the requirements for verification and mining differ significantly. Dashcoin, a derivative of Dash through Bytecoin, is much easier to mine. It only requires a standard CPU with average processing power to participate in the mining community.

In contrast, Dash requires considerably more mining and verification power, especially for transactions that utilize its PrivateSend (formerly Darksend) protocol. This process involves multiple steps of obfuscation, increasing the demand for processing power.

Additionally, Dash relies on the traditional proof-of-work (PoW) mining verification, similar to Bitcoin. Over time, this method has proven to be less efficient in terms of energy consumption and processing power. Its PoW system forces miners to compete against each other to verify transactions, rather than working together to achieve consensus, as newer proof-of-stake protocols allow.

Conclusion

In any case, Dash and Dashcoin are alike only in their names. The wholly hidden framework and technology of each platform are completely different. Dashcoin is an offspring of an anonymous cryptocurrency project called Bytecoin, which aims to offer “automatically mutating” anonymous cryptocurrency. They have developed a code based on the famous cryptonote technology, and they do not trust developers because of the virtual currency’s decentralized nature.

Dash employs the same verification procedures as Bitcoin and can offer the same anonymity as DSH does. Because of these two features, the money is not as effective in mining and sending. The main difference is that Dash introduced the ability for users to be anonymous; it isn’t a cryptocurrency in and of itself.