Decred
Decred is a hybrid proof-of-work proof-of-stake (PoW/PoS) cryptocurrency with a heavy emphasis on community engagement, open governance, and sustainable development funding. It makes use of its on-chain governance and hybrid consensus method to make sure that a tiny group cannot control the transaction flow or modify Decred without the approval of the community. The project uses a decentralized treasury to support its own growth.
Combining the terms "decentralized" and "credits," the name Decred was developed. Since the word "credit" relates to "money as it once was," the team decided that these words best express the Decred idea.
A suggestion for a cryptocurrency called Memcoin2 was presented in the Bitcointalk forum in April 2013, and it was adopted by Company 0 in 2014. TacoTime, a user, proposed creating a new coin. The users "_ingsoc" and Jake Yocom-Piatt of Bitcointalk also had this viewpoint.
The group came up with a strategy to create a Memcoin2 consensus mechanism that combines Proof-of-Work (PoW) and Proof-of-Stake (PoS). In 2016, Decred, a completely new project, was developed as a result by Company 0. The outcome was a hybrid PoW/PoS consensus mechanism that was fair and extremely safe and was created using the btcsuite codebase, a fork of the Bitcoin codebase. Decred is not a fork of Bitcoin, though. It is an autonomous blockchain and a stand-alone cryptocurrency instead.
The co-founders, who are professional Bitcoin developers, are Jake Yocom-Piatt, Dave Collins, David Hill, John Vernaleo, and Josh Rickmar. Before starting their own cryptocurrency project, they engineered btcsuite using golang.
Decred is a cryptocurrency that seeks to address some of Bitcoin's serious faults, namely governance and funding. Today, anyone can contribute to Bitcoin, but only a tiny handful of developers decide which improvements get integrated into the bitcoin Core repository, giving this group of programsrs probably the most control. Decred has created on-chain governance, a method that gives all stakeholders the opportunity to vote on improvements like technical suggestions and project budget, to tackle this issue.
Proof-of-Work: This consensus technique requires a user to give the processing power of their system in order to manage network transactions and create the blocks that make up the blockchain.
When a new block is created, users are rewarded, which encourages them to mine. This incentive is distributed between Decred's PoS users and the development fund.
Proof-of-Stake: This consensus technique depends on users "locking" a part of their DCR funds in exchange for a ticket (and eventually a vote) and a reward.
When a DCR is locked, it is regarded as the "Ticket Price" and cannot be exchanged until it is released. A ticket is created and then moved to the ticket pool where it waits to be processed in batches.
| Basis | Decred (DCR) | Bitcoin (BTC) |
| Purpose | To contribute to the solution of the scalability issue that has troubled Bitcoin | Decentralized digital currency |
| Founded | 2016 | 2009 |
| Founder | Jake Yocom-Piatt and a number of other contributors | Satoshi Nakamoto (alias) |
| Market Cap | Over $300 million | Over $300 billion |
| All-Time High | $247.35 (April 2021) | $69,045 (Nov 2021) |
| All-Time Low | $0.43 (Dec 2016) | $0.06 (July 2010) |
| How long did it take to hit $100? | 22 months | 51 months |
| Notable Supporters | | Jeff Currie (Goldman Sachs) Peter Theil (Venture capitalist) Christine Lagarde (IMF) Marc Andreessen (Early internet Pioneer) |
| Supply Cap | 21 million | 21 million |
| Initial Distribution | Mining | Mining |
| Mining Method | GoMiner GPU | ASIC |
| Consensus Method | Proof of Work Proof of Stake | Proof of Work |
| Network Hash Rate | Up to 422Ph/s | Up to 100Qh/s |
| Difficulty Increase | Every 2016 blocks | Every 2016 blocks |
DCR is recognized as the native currency on the Decred network. DCR can be utilized within the Decred network for value storage and peer-to-peer transactions. To take part in the POS consensus and Decred governance, DCR users can stake their coins in order to acquire tickets, a non-tradable crypto asset on the Decred network. In order to validate blocks created by POW miners and cast votes on Decred governance proposals during voting periods, five tickets are randomly chosen from each block using a Poisson distribution.
DATE | NEWS/EVENTS | IMPACT |
06/08/2022 | Decred is on the rise as new innovations are being introduced | +75% Increase |
07/05/2022 | TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath | -38% Decrease |
16/04/2022 | Decred prices surges after the announcement of the upcoming Decred hard fork | +45% Increase |
21/10/2018 | Binance will list Decred on its platform | +32% Increase |
CONCLUSION
Decred is everything that Bitcoin was meant to be but fell short of when it was made available to the public. Although it isn't the most well-known cryptocurrency, it is a good project that many analysts think will be effective for a very long time. Early adopters of Bitcoin who desired to build something better comprised the Decred founding team. Apparently, they have, and the only thing they require is being widely accepted as a form of payment by retailers. Decred will appear as a major player in the cryptocurrency market once steps are taken in that direction.
