Dash Electrum focuses on speed, low resource usage, and provides a simple user experience for Dash. Startup times are instantaneous because it works in conjunction with high-performance servers that handle the most complicated parts of the Dash system.
Dash Electrum trust the servers?
Not really; the Dash Electrum client never sends private keys to the servers. In addition, it verifies the information reported by the servers using a technique called Simple Payment Verification. Read the Xtrgate Dash info below to make things clear in your mind.
How safe is the seed?
The seed created by Dash Electrum has 128 bits of entropy. This means that it provides the same level of security as a Dash private key (256 bits long). In fact, an elliptic curve key of length n provides n / 2 bits of security.
What are changes of address?
The design and workflow of the Dash Electrum wallet is based on a concept called “wallet generation seed”. This seed is a unique, randomly selected list of twelve words. A Dash Electrum wallet uses its seed as a template to generate addresses.
To understand the problem solved by the seeds, go to the Electrum Receive tab. Then open the folding entry marked Change.
Dash is an electronic money system, which means it shares a lot in common with the process of using paper bank notes. Although some cash payments involve an exact change, many do not. You tend to “overpay” when you use cash, and expect to receive the difference in exchange. Perhaps surprisingly, this is how Dash transactions work as well. If the full balance of an address is not required for a given transaction, the rest is sent to a new, unused address under the control of the same wallet. This address is generated deterministically (rather than randomly) from the wallet seed, which means that any other wallet will also regenerate change addresses in the same order from the same recovery seed and will have access to balances.
How is the wallet encrypted?
Dash Electrum uses two separate levels of encryption:
Your seed and private keys are encrypted using AES-256-CBC. Private keys are decrypted only briefly, when you need to sign a transaction; for this you must enter your password. This is done in order to minimize the amount of time during which confidential information is not encrypted in your computer’s memory.
Wallet file encryption is enabled by default since version 2.8. Their goal is to protect your privacy, but also to prevent you from requesting Dash in a wallet that you do not control.