DASH is, as you have said, a crypto currency that allows anonymous and instantaneous transactions, making it an electronic counterpart to cash.
How is this technically realized?
Unlike other crypto currencies, DASH uses a network of servers that perform more tasks than the typical nodes. That is why they are also called master nodes. This is a decentralized network, since in principle anyone can start their own master node.
For instantaneous transactions, a randomly selected group of master nodes – the so-called quorum – can block transactions so that double spending is avoided. With the help of this quorum, the payee knows after a little more than a second that the payment has been securely received. This makes DASH a suitable solution for fast transactions such as buying a computer.
Master Nodes also give users great privacy by deleting the transaction history of individual coins on request, thereby increasing the fungibility of the currency.
In addition to anonymity and instantaneous transactions, the third keyword that comes to mind about DASH is the special governance system: not only the miners, but also the operators of the master nodes as well as other stakeholders who support the public relations work for the digital currency receive a share of the royalties collected through the mining and transaction fees.
How is it guaranteed that the money is shared fairly between these parties?
In my opinion, the governance system is the greatest strength of DASH! Through this system everyone can make his contribution to the development of the network.
This guarantees that the fate of the crypto currency is not only in the hands of the miners and a defined circle of developers. Anyone can submit a proposal to the network.
They can ask for a consensus decision of the whole network on important questions or ask for help to start realizing ideas to improve the digital currency or its ecosystem.
These proposals are voted on by the network itself (i.e. the masternode operators), ensuring that these funds are made available to projects that the network finds valuable.
On the last question, I would like to go back over it: one could say that the governance system of DASH is reminiscent of a DAO. Now we know about the end of the best known DAO. Do security concepts exist that make something like the DAO exploit impossible?
Well, DASH’s code is based on Bitcoin’s – which has proven to be extremely robust through many tests. In addition, the code that governs governance has been stable and unhacked since mid-2015.
The code is tested before each new release according to all rules of the art and is open source, so that everyone can take a closer look at this code themselves.
The operators of master nodes are, as you have already briefly explained, those who decide which proposals are accepted or rejected. If a project is approved and a certain amount of money is available to the submitters, how is this distribution regulated? Is there a kind of Smart Contract or how do you guarantee that the project will receive the requested amount?
The network itself regulates the payment to the addresses of the approved projects. Every month, all approved proposals whose outstanding amounts are within the budget are paid directly by the block chain itself. This is done with such banned “super blocks”. The process is completely automated and nobody can intervene here.