Dash Adoption on the Rise: Dash-enabled Smartphone Booming in Venezuela

Nuno Teodoro

After its announcement in late August, more than 7000 units of the new Dash-enabled phone have already been sold in Venezuela.

The Dash-enabled phone, KRIP, is the result of a partnership between Dash and Kripto Mobile Corporation. Featuring five different models, the KRIP phone comes with a built-in Dash wallet and ecosystem, including some Dash in a paper wallet and several crypto apps such as Uphold (crypto exchange) and Bitrefill (gift card). The Dash Merchant team supports consumers setting up the phone and redeems the Dash from the paper wallet.

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“Money is changing, so should your phone” - KRIP Slogan

 

 

In order to reach citizens without smartphone or reliable internet access, which still represent a substantial portion of the Venezuelan population, Dash has developed Dash Text. Announced in November, Dash Text allows anyone to create a wallet and transact cryptocurrencies using an SMS-based system.

Over 3000 Dash wallets have already been created using this new system. One of the co-founders of Dash Text, Alejandro Echeverría, has stated that the use of Dash Text is mostly concentrated on rural regions:

 

 

“In % rate, rural has almost 100% of Dash Text wallet (natural reasons). But in the city the rate has been very high since people have noticed that using Dash Text is easier than using the normal smartphone wallet (no downloads/ internet required) and since our POS from Dash merchant already has the Dash text feature it is very convenient to use Dash Text for everything.”

 

 

Amidst the worst economic crisis in national history, Venezuelan citizens are playing a key role in the adoption of cryptocurrencies. From local grocery shops to major retailers, airline companies to large food chains such as KFC and Subway, there is a long list of merchants who accept cryptocurrency payments (Dash alone claims to have a list of 2400+ merchants).

How Cryptocurrencies are Helping Venezuela

Venezuela prospered under the leadership of former president Hugo Chavez. The growth however, proved unsustainable, as it was overly reliant on oil products, the cornerstone of the Venezuelan economy.

These factors made Venezuela an apparently fertile ground for crypto adoption. President Nicolas Maduro this year decided to experiment with the first ever national cryptocurrency, the Petro - although many have questioned the as well as the credentials of the asset's whitepaper, as well as the government's claim that it is backed by oil.

As the bolivar lost most of its value, to the point of being worth less than the paper it was printed on, many Venezuelan citizens have turned to cryptocurrencies to combat inflation. Crypto adoption has also helped citizens with financial inclusion, allowing access to a variety of different financial services - e.g. savings - that otherwise wouldn’t be available.  

Buying food, medicine, and basic goods - many times ordered from other countries due to supply shortages - has also been made possible due to cryptoassets.

The Monero Hard Fork – Did it Help GPU Miners?

Monero, the open-source altcoin created to provide fungibility, privacy and decentralization, successfully underwent a hard fork on 9th March, 2019, resulting in a hash rate plummet of over 80% and a purge of ASIC miners from the network. This is the latest development in Monero’s ongoing war against ASICs, which is designed to prevent too much centralisation of mining hash power. But what exactly does it mean for GPU miners?

The War with ASICs

Monero performed its first anti-ASIC hard fork in April 2018 to counter ASIC machines such as the Antminer X3. The Monero Core Team vocalized specific concerns over government manipulation or imposed regulation of the network and has consequently committed further to increasing ASIC resistance, building its strategy on making scheduled hard forks to prohibiting ASICs from engaging with the network.

In deliberately excluding ASIC mining, Monero is committed to CPU and GPU miners, and resisting centralisation. Preventing potential 51% attacks is doubly important for a privacy coin like Monero, and as mining farms grow in size and the number of hash-power-for-hire marketplaces increases, it’s important to remain committed to this path. The recent Ethereum Classic attack in January shows that it is possible to carry out a 51% attack, even on an altcoin with a fairly high market capitalization.   

The one danger is that over time, Monero’s commitment to its six-monthly hard forks may be unsustainable. This is because community consensus becomes increasingly harder to achieve – the last fork spawned four Monero spin-off projects.

 The Implication for GPU Miners

Monero’s introduction of the anti-ASIC Proof of Work protocol saw hash rates plummet by 83%, boosting profitability for GPU miners who typically mine other more profitable coins. However, the hash rate is already beginning to climb, recovering to 313.75 Mh/s from 95 Mh/s.

The drop in hash rate made Monero one of the most profitable coins to mine for a time, but through the laws of supply and demand, the hash rate is already equalizing. The market didn’t rally in response to the hard fork as one might have expected, the sluggish response may be because most mining farms and GPU mining rigs require too much manual effort to change mining algorithms – although software is becoming more sophisticated.

Monero Network Hashrate

Monero’s upgrade has also introduced further security-oriented changes to the dynamic block algorithm to help mitigate potential ‘big bang’ attacks. Sticking to its privacy coin roots, the upgrade further introduced a dummy encrypted payment ID, improving the homogeneity of each transaction.

The latest hard fork is therefore a significant improvement on Monero’s founding principles of privacy, security and decentralisation which should be welcomed. Plus, it’s a boon to GPU miners, and demonstrates that if you’re agile, there’s still money to be made through GPU mining.

Matt Hawkins, CEO at Cudo Ventures

Matt Hawkins is a distributed computing expert and entrepreneur. He founded and sold a data centre business and is now applying his knowledge, network and his enthusiasm for crypto market and technology developments in Cudo Miner. Matt believes decentralised computing is better for the environment, and Cudo’s vision is to help make computing more ethical and sustainable – whether its reducing waste or creating innovative ways to support good causes.

http://www.cudominer.com