Placeholder Image

Subtitles section Play video

  • 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

  • Dash.org/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