Hi, I'm Amanda B Johnson and you're watching DASH: Detailed

The cryptocurrency network Zcash is set to launch on October 28th, which is either forthcoming or has already happened, depending on when you watch this video Zcash is based on Bitcoin and its primary differentiator from Bitcoin is that users have the option to encrypt the details of their transactions This means that the sender address, the recipient address, and the amount sent can be obscured from public view on the blockchain Now some have been asking around online about how Zcash compares to Dash and I'm of course happy to oblige And now I could make comparisons between what I consider to be inconsequential technical details such as differences in mining algorithms or block times or coin emission rates, that sort of thing

But as someone who is confessedly only interested in the medium- to long-term outcome of cryptocurrency competition, I will instead focus on a chart which I have dubbed: Amanda's Six Prediction Metrics for Long-Term Success The six metrics I'll be using to compare the two networks provided that Zcash does in fact launched on October 28th — are Governance, Trajectory of Infrastructure, Independence of Development, Privacy for User, Double-Spend Protection in Real-Time, and User-Friendliness at Protocol Level So let's begin First: Governance, which is a fancy word for decision-making process Decision-making mechanism

How are decisions made? Zcash's governance is exactly the same as Bitcoin's It has no additional improvements, which is to say that if any portion of the network seeks a change in development which is not coming from the team who currently has commit access to the current code base, there are only option is to write their own reference client and attempt a fork This type of fork making has been debated for years in Bitcoin — of course unsuccessfully as no forecast happened — and has actually happened in Ethereum, resulting in two different Etheria, Ether, Ethereum Two of them anyway This is the most rudimentary form of governance and Dash of course has this capability

It can certainly be forked The main differentiator in Dash's voting mechanism is for users — rather stakeholders — to be able to poll one another before hand to see who, if anybody, actually wants to fork This may sound simple but it makes all of the difference in terms of huge development changes because if one knows ahead of time that a large portion of the network wants to fork one, can confidently execute it without worrying that a surviving Dash classic chain will survive and compete with you In short the voting mechanism allows all major investors to get an answer to the question, should we fork or not? Is it safe to fork or not? Within less than 24 hours For rudimentary governance Zcash gets half a checkmark and for investor controlled cryptographically provable voting Dash gets a full checkmark

Number two: Trajectory of Infrastructure By this I mean that with the economic incentives or disincentives built into running hardware for the network, is that network going to tend to expand and decentralize in its hardware across the world? Or that going to tend to shrink and centralized? Here again Zcash offers no improvement over Bitcoin in that the only type of hardware it subsidizes is mining Being a proof-of-work network this means that over time if the network survives, mining will tend to centralize into pools as it helps to stabilize miner payouts and there will as a result be fewer and fewer Zcash nodes across the world In contrast the Dash network subsidizes both types of hardware that it needs for its network to run, namely miners and full nodes Or in this case masternodes, Dash's masternodes are paid a full forty-five percent of its block reward — the same as the miners — in exchange for holding a thousand Dash collateral and performing the network's privacy and instant confirmation functions

Because Dash's block subsidies go to both types of hardware, Dash's node infrastructure to dollar investment ratio is the highest out of all existing cryptocurrencies and continues to grow actually For a block reward that subsidizes mining and only mining, just like Bitcoin, Zcash gets half a checkmark and for a block reward which subsidizes mining and masternodes in equal measure Dash gets a full checkmark Three: Independence of Development And by this I mean that it is the block reward itself or blockchain reserves or anything like that which funds development rather than grants and handouts from third parties who almost invariably would like something in return for their contribution Now guidance and labor for Zcash's development is said to be planned to come right out of the Zcash foundation

This chart here shows the percentage of block reward that is planned to go towards supporting the Zcash Foundation for assuming developmental purposes at very least But this subsidy expires four years after Zcoin's launch, leaving the network with developers seeking a paycheck And we've seen what happens when developers are left wanting a paycheck In contrast 10% of Dash's block reward — also called its treasury — is set to indefinitely be paid to keep development independent And furthermore, unlike Zcash whose development payouts are hard-coded to a specific receiving address, in Dash it is the voters who can decide whom to pay and whom not to pay

And anyone can be hired or fired at any given time For this effort to remain independent in development for four years, Zcash gets half a checkmark and for the effort to remain independent and development indefinitely, Dash gets a full checkmark Number four: Privacy for User, which as it sounds is the ability for a user to opt to obfuscate the trail of their coins on the blockchain as they are sent from point A to point B Now in Zcash this offering is it based on a bit of cryptography known as a zero knowledge proof That is to say that when a user broadcast their transaction to miners, the miners are able to tell whether it's valid or not based upon whether that user was able to generate a string of information that they only would have been able to generate if they did in fact own the corresponding private key

This feature is said to be available on demand to users who would like to employ it In contrast, in Dash the privacy feature is offered via coin mixing that is executed for users by the masternode network in this way the various private keys of various users are able to be trustlessly swapped with one another, which is to say that users need not revoke their private keys during any period of time during the mixing However, it is not available on demand in that people must mix before they seek to send the transaction and depending on how much Dash there is to be mixed this can be time-consuming in the current iteration and user base For these reasons Zcash gets a full check for privacy and Dash gets a half Five: Double-Spend Protection in Real-Time

And by this I mean the ability of the currency to be used in retail environments where the merchant needs to be quite sure at the moment they receive payment that they can confidently give the customer the good or service they've purchased and not worry that that transaction will be reversed within minutes Zcash offers no double-spend protection whatsoever and so anyone trading would need to wait the up to two-and-a-half minutes which is the Zcash block time, to get a first confirmation Dash, in contrast, thankfully has developed a way of querying quorums of masternodes to offer locks on inputs of transactions so that users who desire to pay an additional fee to get InstantSend can receive five confirmations in less than a second, enabling real-world retail transactions to take place sans the fear of getting double spent For this Zcash receives no checkmarks and Dash gets one And six: User-Friendliness at the Protocol Level, which is to say that your mother or — let's get crazy — even your grandmother would feel comfortable using the system as a replacement for the type of money they've been using their entire lives

And I say protocol level because there are many third-party centralized services who are more than happy to make cryptocurrencies easy to use As an example Bitholla or Coinbase or any of these other services which make Bitcoin feel more like PayPal But at the end of the day they are a centralized party running a centralized server which could be DDoSed at any old time And if they were offering a widely, globally used money, a simple DDoS attack would be the end of money as we know it not going to happen

Not acceptable When I asked Zooko Wilcox today on Twitter — by the way Zuko being the founder of Zcash — he — thank you for your time and kindly response — responded that there is no such plan or roadmap and that he hopes that third-party services make those kinds of offerings Again, making Zcash no different from Bitcoin in terms of its ability or non-ability to be safely used by a non-tech savvy person without relying on trusted third parties In very deep contrast you will find at Dashorg/Evolution a highly detailed road map of a forthcoming product offering called Evolution which will offer PayPal-like feeling things like usernames and the ability to have transactions moderated and password resets and joint accounts and etc etc on the protocol level itself

Now it's not yet been released, and certainly remains to be seen So in this case where Zcash gets no checkmark, Dash gets a half a checkmark And that wraps up the scoring for Amanda's Six Prediction Metrics of Long-Term success and so when we add up the tallies Zcash comes in with two-and-a-half and Dash comes in with double that at five So if that's really the case what's with all the seeming hype? Why do so many enthusiasts and investors and developers seem to think that something really big is about to be born here? Well I have a sort of theory that is That in the crypto sphere, which is very small in terms of the global population, there are primarily and perhaps even almost entirely two types of buyers and two types alone One is the type of buyer who's self-identity and self-esteem is based heavily on considering themselves to be early adopters This theory was strengthened in my mind recently when MIT released the results of a study that they had been conducting unbeknownst to me on those graduates that they gave Bitcoin to in 2014 If you don't recall, in late 2014 all MIT graduates were offered a hundred dollars worth of free Bitcoin

But what I didn't know is that there were people who were making sure that a portion of the graduates — the portion which considers themselves early adopters — they made sure that they got access to the Bitcoin after everybody else The study's authors then found that because of their delayed access to the technology these formerly early adopters shunned it and sold it within a week or two of having been given it This led the study's authors to surmise that this type of person — the type of person who prides himself on being an early adopter — would rather not participate in a new technology at all rather than come into it a little later than his peers Now that's investor type one Investor type two is the kind of person who wants to make a buck or ten or a hundred on trading cryptocurrencies but has a lack of understanding in the fundamentals of the various cryptos

Because of this, he looks to authority figures to tell him what he should and shouldn't buy Lest you think I'm alone in this theory check out this little gem from the movie "The Big Short" in which the movies hero character — the one who in real life made hundreds and hundreds of millions of dollars shorting the housing market — check out what he has to say about what many or most speculators do when deciding what they should buy or sell: "People want an authority to tell them how to value things but they choose this authority not based on facts or results, they choose it because it seems authoritative and familiar" Familiar and authoritative Authoritative and familiar the very publicly named list of pre- investors and Zcash are both familiar and authoritative And so it well maybe that not only Zcash potentially but the entire crypto sphere is populated primarily with these two types of people: one, the type who desperately want to be seen as early adopters because it makes them feel good in their hearts and, two: the types would like to make a buck but don't really understand what is what and so wait to be told what is good and what is bad by familiar authoritative figures

What remains to be seen however, is whether any of us fast-talking, deal-making, wanna be wolves of block street can actually make a product which the average person pays to use It's a wild wild west out there in currency competition land May the best coin win That's been it for DASH:Detailed Subscribe for a new video every Wednesday and we'll see you next week

In both the Bitcoin and Ethereum networks rather large business critical decisions have divided the online communities pretty severely Think about how a centralized company could work — they know who their stakeholders are they probably know how to email them, or call them And so it's not at all novel to get a poll of what an organization wants, it's just that in a decentralized blockchain-based network a new way has to be invented of doing it