What is Decred? (DCR) || A beginner’s intro
Decentralized Blockchain Governance
What is Decred? 🧐
Decred is similar to Bitcoin in many ways and even the developers that created it was previously working on the bitcoin protocol. The reason that they all left to create their own currency at the beginning of 2016 was that they wanted to fix what they saw as flaws with Bitcoin. Stopping it from reaching its true potential as a truly decentralized currency.
As Bitcoin has kept growing since its inception so has the mining operators. This has caused a centralization of the power that these companies have over bitcoins decision-making and future, causing consensus of changes to the protocol can be very hard to reach. Something that was made especially clear during the Segwit2X drama in 2017.
Decred is aiming to solve this blockchain governance problem and by doing so removing the need for contentious hard forks like what happened with Bitcoin Cash. The way they do this is through an internal voting system where everyone in the network can weigh in on any issues or proposals of changes. Not just the miners such as in other currencies like Bitcoin.
Governance is however not the only thing the currency is aiming to do. A huge step forward for Decred was announced during the fall of 2017 after an on-chain atomic swap was completed between the massive cryptocurrency Litecoin and Decred. We’re not going to dive into the technicals in this article but this means that owners of the two coins can now trade and swap between the currencies peer-to-peer, without the need of a middleman or trusted third party such as an exchange.
While this technology and feature is still in a very early mode it shows off the skillset of a very active developer team behind Decred.
From hovering around $0.5 at the beginning of 2017 Decred has seen a meteoric rise with many of the other altcoins the last year, peaking at around $122 in the month of December. However, at the moment the price is at $86 with a circulating supply of 6,7M DCR, giving the currency a market cap of $582M, according to CoinMarketCap.
The technical aspects of DCR 🖥
The maximum amount of coins: Same as Bitcoin – 21 million
Block time: 5 minutes – The average time it takes for every new block of transactions to be processed.
Current block reward: 22.4 DRC – The number of new coins that are created with every new block.
Consensus method: Decred is using a hybrid design that combines both proof of work and proof of stake, where 60% of newly generated coins go to PoW miners, 30 % to PoS voters and the rest for development.
Pre-mine: 8 % of the coins was pre-mined, where half went to a distributed airdrop and half to paying back costs for the company and developers that created the project.
The future for Decred
The lightning network, that now has been implemented on Bitcoins main-net, is one of the key features the developers behind Decred are working on. This will through utilizing what’s called the second-layer give the currency instant transactions at a very low cost by not having to record every transaction on the blockchain.
Other features being worked on also include a stakeholder-directed DAO, which purpose is to in a decentralized way control the funds set aside for development, and better privacy attributes for transactions done over the network. Having such an active and powerful community definitely makes the project move fast and an interesting one to follow for sure.
Website – https://www.decred.org/
Community – https://www.decredible.com/community/
Wallet – https://www.decredible.com/wallet/
Where to Buy – https://binance.com/