In addition to traditional Proof of Work (PoW) rewards for mining Dash, users are also rewarded for running and maintaining special servers called masternodes. Thanks to this innovative two tier network, Dash can offer innovative features in a trustless and decentralized way. Masternodes are used to power PrivateSend, InstantSend, and the governance and treasury system. Users are rewarded for running masternodes; 45% of the block reward is allocated to pay the masternode network.
PrivateSend gives you true financial privacy by obscuring the origins of your funds. All the Dash in your wallet is comprised of different inputs, which you can think of as separate, discrete coins. PrivateSend uses an innovative process to mix your inputs with the inputs of at least two other people in a single transaction, so the value in Dash never leaves your wallet. You retain control of your money at all times.
InstantSend technology will allow for cryptocurrencies such as Dash to compete with nearly instantaneous transaction systems such as credit cards for point-of-sale situations while not relying on a centralized authority. Widespread vendor acceptance of Dash and InstantSend could revolutionize cryptocurrency by shortening the delay in confirmation of transactions from as long as an hour (with Bitcoin) to as little as a few seconds.
ChainLocks are a feature provided by the Dash Network which provides certainty when accepting payments. This technology, particularly when used in parallel with InstantSend, creates an environment in which payments can be accepted immediately and without the risk of Blockchain Reorganization Events.