Decred – DCR

Decred – DCR crypto

Decred is a decentralized hybrid blockchain that uses the Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanism simultaneously. The hybrid consensus system enables it to maintain the balance between the miners and the users. 

What is Decred – DCR?

The true advantage of blockchain technology was known after the introduction of Bitcoin into the market. Bitcoin not only made transactions anonymous, but it also redefined how payments can be made through the blockchain in a decentralized atmosphere. However, with time the decision-making process could be seen getting a bit centralized in the Bitcoin community.  

Therefore, as a fork to Bitcoin and to give a better alternative to the cryptocurrency markets, Decred was introduced. Decred balances the decision-making process by giving equal voting power to all DCR holders which does not allow large organizations to have a monopoly in their ecosystem.  

In the Decred network block, rewards are distributed among the PoW miners, Pos stakeholders, and the ecosystem-funding Treasury which in turn reduces the influence of a single entity or an individual.  

General info about Decred – DCR

So, let us draw our attention to what makes Decred different from other blockchains and how it can be used by users to make transactions simpler.  

Mining

When it comes to a PoW consensus system, the miners of a particular cryptocurrency have primary control over the governance of the blockchain and any major changes to the system. But in the case of Decred, it has integrated an additional PoS system, which allows the DCR holders to stake or lock their holdings thereby giving them a chance to enter a lottery that will decide who will vote for consensus on the next block.  

This system is structured in such a way that 60% of the block reward goes to the validators (PoW), 30% is allotted to voting stakeholders (PoS), and 10% goes to the Decred Treasury which is then used for funding the project.  

Lightning Network  

Decred’s Lightning Network is a Layer 2 protocol that runs on the Bitcoin blockchain. With the integration of Lightning Network, developers can build and deploy dApps.  

And compared to layer 1 blockchain it enables higher throughput, quicker and low-cost transactions.  

Staking

By staking DCR coins you can participate in the Decred governance which allows you to confirm the validation of blocks, make, and enforce blockchain consensus rules, participate in decision-making processes of future development.  

Once DCR coins are staked, non-transferable tickets or votes are allotted to the stakers. Ticket holders can cast a single vote for each ticket they hold. They can vote on-chain to validate the blocks proposed by miners. And once voting is completed each ticket generates the original ticket price and a reward for the owner of the ticket.  

Projects on Decred – DCR  

There are projects on the Decred blockchain that makes transactions smooth and safe. We have listed a few of them for your understanding.  

Decredition  

Decredition is the desktop graphical user interface (GUI) that is used to interact with the DCRWallet. The wallet application requires a user to download the entire Decred blockchain and requires a fair amount of hard drive space on a device.  

However, by doing so it creates an opportunity for anyone willing to become a miner, receive rewards, plus voting and governance rights.  

Mobile Wallets  

Mobile Wallet does not require users to download the entire blockchain. And since it operates using Simplified Payment Verification (SPV) mode which reduces the need for much of resources and data plans from a phone.  

The Decred Mobile Wallet can be downloaded for iOS and Android devices. Currently, users cannot vote on proposals using the Decred Mobile Wallet. 

DCRDEX 

As the name suggests, DCRDEX is a decentralized exchange that makes use of atomic swaps to enable cryptocurrency trading in a completely trustless, peer-to-peer fashion.

 

Decred does not charge any trading fees and makes of the Lightning Network payment channels to facilitate scaling with future adoption.

The Team and Roadmap 

The Decred mainnet launched in February 2016, to revolutionize the blockchain industry. Decred was founded by Jake Yocom-Piatt, who has previously worked as a developer on Bitcoin.  

Just like BTC, even DCR token has an optimum cap of 21 million tokens of which around 13.34 million is in circulation and around 8% was mined before the launch of the protocol.  

The DCR coin is staked to participate in the governance of the Decred ecosystem. DCR can also be used by traders to take advantage of the feeless structure of DCRDEX.

It will also be used to incentivize the developers working for improving the protocol.

Use case of Decred – DCR

As mentioned, just like BTC, even DCR token has an optimum cap of 21 million tokens of which around 13.34 million is in circulation and around 8% was mined before the launch of the protocol. 

The DCR coin is staked to participate in the governance of the Decred ecosystem. DCR can also be used by traders to take advantage of the feeless structure of DCRDEX.  

It will also be used to pay the developers working for improving the protocol.

Where to buy and sell Decred – DCR?

Decred is currently ranked at #67 and #75 on Coinmarketcap and Coingecko, respectively. It can be purchased on various well-known exchanges, including:

What do we think about Decred – DCR?

Jake and the other core developers aimed at creating a democratic cryptocurrency that would solve the governance problems persisting in the existing blockchains. And the answer to that goal was Decred a hybrid blockchain with dual consensus mechanisms.  

This novel approach did solve the problem of governance where even if an attacker controlled 51% or more of the network’s computing power the stakeholders involved in the governance can detect malicious actions and vote to reject the addition of illegitimate blocks.  

Although, in recent times a new set of advanced PoS cryptocurrencies have emerged which might limit the long-term potential for Decred. And environmental concerns about PoW blockchains continue to remain in the markets. Due to which the PoS-only blockchains like Algorand and Ethereum will be preferred more over Decred which comparatively lacks scalability.

Conclusion about Decred – DCR

I personally do not think that there is much room for Decred to grow eventually until there are some major developments in its ecosystem. We’ll make sure to keep our eyes on them.

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