Anna KeyWed, Nov 4, 2020 3:26 PM
Decred: Next Level Of Decentralization
Decred (DCR) is a self-funded, decentralized, open-source cryptocurrency launched on February 7, 2016, by former Bitcoin developers, seeking to solve some key problems of the Bitcoin network.
What Is Decred?
The goal of Decred creators was to make a crypto ecosystem that works and develops independently and has a flexible consensus system that allows it to find a balance between common currency users and miners.
Their experience with the Bitcoin network has shown that the decision-making process becomes more centralized over time due to the concentration of resources in the hands of large professionally mining companies.
The network manages the voting Protocol on the blockchain using a hybrid system algorithm that combines Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanisms. Thus, all participants may have their impact on the development of the platform: PoW-miners are getting rewards for providing computing power for validating transactions in the network and generating new tokens, and PoS-miners, if having a certain amount of Decred coins, have an opportunity to vote and make significant changes and receive rewards for verifying transactions.
To provide stakeholders with access to management, creators made an open-source Politeia voting system, which operates outside the blockchain. Token holders can time-lock their coins to buy so-called "tickets" that will allow them to take part in voting for or against submitted proposals. The ticket entitles the holder to verify transactions and, accordingly, to receive a reward.
Also, the developers of Decred went a slightly different way to solve the scaling problem, deciding to make reward reductions less drastic. So, every 6144 blocks the miner's reward diminishes by 1%.
Decrediton is the official Decred desktop wallet, available on Windows, macOS, and Linux. The only significant disadvantage of Decrediton, like any other thick wallet, is the loading of the entire Decred blockchain, which will require a considerable amount of disk space.
The Decrediton Сommand-Line Interface is more suitable for advanced users, as it has a set of extra features that allow users to participate in PoW/PoS validations and receive rewards for PoS mining.
Decred Web wallet is a perfect solution for beginners. There's no need to download additional software. This wallet has a simple user interface and supports all the necessary functions for working with coins: sending and receiving assets, making transactions with multi-signatures;
Ledger and Trezor hardware wallets, best for those who are seriously concerned about the safety of assets, also work with Decred. Multi-platform Exodus, Coinomi, or Atomic Wallet are suitable for working on a PC or smartphone.
Decred’s Past And Future
For the first time, a six-fold increase in DCR price occurred in January 2017, when a wide range of crypto investors drew attention to the coin. In April 2018, the rate of the Decred reached its maximum and was $139.94 per coin, but analysts don't know for sure, what affected the price changes at that time. Rapid growth by the middle of 2018 changed for a gradual but long-lasting decrease. As of November 3, 2020, the Decred price is $11.82.
Experts are quite positive about the future of the Decred. Currently, the principal directions of development are improving the PoS-mining system, developing marketing, and launching a decentralized exchange service. According to the team, this will reduce the influence of speculators on the price determination process and increase the liquidity of tokens.
To summarize, the Decred project seems to has taken all the best from Bitcoin, meantime full decentralization, self-financing and harmonious conditions for miners and investors are the key features that make this project attractive to users.