What is Decred?
Decred (DCR) is a cryptocurrency and an ecosystem which allows and facilitates decentralized voting platforms and DAOs, utilizing new code written from the scratch. Decred stands for DEcentralised CREDit. Decred bills themselves as an “autonomous cryptocurrency” with a stated mission of building a platform that will “empower your ideas, give you control over decisions, at lightning fast speed, while protecting your privacy.”
History of Decred
The development Decred started in April 2014, being first announced in December 2015 and formally launched in February 2016. Decred development was funded by Company 0 and some of the costs were borne by the developers. A total supply of 21 million coins will exist in the ecosystem. 840,000 DCR were pre-mined while the same amount is kept for Airdrops. 95% of Decred coins will be mined by 2034. The Decred foundation keeps 10% of the block reward for platform development purposes.
Decred has enjoyed significant popularity in 2018, surpassing a market capitalization value of $800 million in the month of May.
How Decred Works
Decentralized governance, the core principle of a DAO, is the major selling point of Decred. Decred wants to bring in a balance between PoW miners and PoS stakeholders (the original user of the network) as with the PoW method big miners can easily ignore points raised by the smaller miners.
In Decred, PoS stakeholders can put a certain amount of coins in lock for 28 days to get voting rights. Once voted, the locked coin is unlocked and participants are paid to vote, which acts as an incentive to participate in the community and network. PoS stakeholders can upturn decisions made by the PoW stakers if they reach a 60% majority. Thus, the actual DCR coin users are in control of the network, unlike bitcoin and most other coins.
PoW stakers need to stake a minimum of 3 votes per block to receive a greater reward. Thus, while miners are still the authority, they are much like an elected government which is actually controlled by the people.
Decred is one of the most unique coins currently being traded and has some great advantages.
- Bitcoin Competitor: A new coin created from scratch, Decred is a completely new idea that uses a completely new code. Decred can be compared to bitcoin in its early days when it was proving itself to be a paradigm shift, and thus is not just another cryptocurrency.
- Democratic Governance: Decred implements a hybrid cryptographic technique of PoS+PoW to maintain a balance which bitcoin is lacking. As explained above, smaller miners and actual users of the currency can have a say in development and maintenance of the Decred ecosystem.
- DAO Facilitator: As Decred runs of a PoS+PoW environment and democratic governance is one of its key features, it should ideally be the future for DAO (Decentralized Autonomous Organization) development.
- Planned Future Features: Decred plans to implement lots of cutting-edge features like hard fork voting, Lightning Network support, payment integration and enhanced privacy.
- Early Bird Benefit: Decred is still evolving and early adopters have benefited tremendously from its evolution thus far — much like early adopters of bitcoin. It can be likened as a savings account with a comparatively high rate of interest.