• Believes that the problem of market Volatility could be solved by instant cryptocurrency confirmations such as those provided by Dash’s InstantSend and ChainLocks.
• The InstantSend functionality of Dash locks in transactions instantly, taking an average of less than two seconds to finalize a payment.
• Additionally in July, Dash activated ChainLocks, immediately locking in blocks as permanent which increase security and trustworthiness.

Ryan Taylor, CEO of the Dash Core team, believes that the problem of market volatility could be solved by instant cryptocurrency confirmations such as those provided by Dash’s InstantSend and ChainLocks.

This was expressed on a recent episode of Abra Money 3.0 podcast in which Abra founder and Ceo, Bill Barhydt elaborated on the issue of market volatility which affects Dash much more than Bitcoin due to its significantly smaller market capitalization.

He believes that instantly confirmed transactions can balance out the problem of volatility.

To quote Bill Barhydt,

“The volatility issue is real. It’s even more real for a smaller cryptocurrency like Dash, which has about 25% higher volatility than Bitcoin does. One of the points of interest that Dash has is its speed, in any case, since unpredictability after some time can be diminished if the time itself is packed. When we have exchanges that honor InstantSend transactions, or honor one confirmation, it can allow them to only take cryptocurrency fluctuation risk for a period of a couple of minutes. Through the span of 60 minutes, the cost of Bitcoin or any of these benefits can change drastically. Throughout two minutes, not really. One of the appropriate responses we have to the instability issue is in case you’re extremely simply getting in and getting pull out, Dash’s speed offers points of interest.”

The InstantSend functionality of Dash locks in transactions instantly, taking an average of less than two seconds to finalize a payment. Since April, this has been implemented as the default for all transactions. Additionally in July, Dash activated ChainLocks, immediately locking in blocks as permanent.

These specific functionalities considerably increase the security and trustworthiness of Dash transactions, both immediately and after the first confirmation in a block (roughly after 2.5 minutes).

High market volatility is one of the primary reasons why cryptocurrency has had to struggle both as a medium of exchange and also as a store of value.

There is a concurring opinion on both volatility statistics and opinions that Bitcoin may not make a good store of value at this stage of development as an asset. Cryptocurrencies with lower market valuations can typically expect this to be the case to an even greater degree.

Dash offers many advantages by providing faster transactions and combating market volatility. However, Taylor points out the issue that there are not many exchanges and the rise of many new services with similar features.

To quote him,

“Now that’s dependent on the exchanges themselves supporting these features. They don’t all support it. Some of them are still in the mentality of “you need six confirmations” regardless of your security model. And so we have to go out and educate the exchanges, answer questions about different scenarios: “What happens if I don’t see a ChainLock?” “What happens if I don’t see the InstantSend lock?” “How do I manage risk in certain edge cases?”

Nonetheless Taylor also sees the advantages of instant confirmations in combating volatility and finds it attractive enough to entice more and more exchanges to provide explicit support.

“We have to go out and educate them on how to accept these, how to recognize the InstantSend locks and so on, and recognize the benefits to them. Exchanges that honor InstantSend, it’s probably obvious, see higher volumes. They see higher trading volumes” says Taylor.

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