Decred is a first generation cryptocurrency which forked Bitcoin and introduced several innovations considered far ahead of its time in 2013.
Many of Decred’s features were later incorporated into next generation platforms.
Having the same amount of supply and similar monetary policy to Bitcoin, Decred attempted to solve two main problems in Bitcoin’s original architecture:
- Centralized governance, which made coin decisions 100% dependent on developers while alienating stakeholders and investors;
- Lack of incentive for miners to hold coins after mining.
Decred’s solution to both these problems introduced innovations which are used to this day on several next generation cryptocurrencies.
Is Decred Mineable? If so, how is it mined?
Specifically, Decred’s PoW mining stage uses 14-rounds of Blake256 encryption algorithm, then it moves onto a Proof of Stake verification stage where the blocks are either accepted or invalidated by investors holding DCR coins on the network.
The hybrid mining system in Decred rewards miners for their hardware and energy investment in the Proof of Work stage, then it rewards stakeholders for their DCR investment in the Proof of Stake stage.
The hybrid system gives Decred investors incentives to both contribute to the network security via mining and also hold DCR coins for the long term. Unlike exclusive Proof of Work coins, miners are rewarded for not dumping their mining profits straight away, via the PoS staking stage.
Decred is capped at the same amount of maximum circulating coins as Bitcoin : 21 million. (Thus, DCR valuation can be compared to Bitcoin on a 1:1 scale.)
During this article’s latest update, there were 11.8 million Decred Cryptocurrency DCR coins in circulation.
All Time Highs and Lows
On April 25 2018 DCR achieved its all time high ATH price at U$ 99.74
Lowest price on record was recorded in December 2016, at U$ 0.395
Decred was launched in February 2016.
A whitepaper published on Bitcointalk by Jake Yocom-Piatt in 2013 got the idea rolling.
In 2013, before Ethereum and other second generation cryptocurrencies were developed, basically every coin was forking the Bitcoin source code.
Decred introduced a new idea to the mining scene: to combine proof of work and proof of stake into a hybrid system.
This mixed mining system would reward miners for not dumping their coins immediately as they were earned, since holding DCR coins would be required to validate blocks mined in the preceding PoW stage.
Decred allows on-chain governance as well, a feature well ahead of its time when it was introduced.
Decred was founded with the purpose of solving the self-governance puzzle as well as empowering stakeholders.
In contrast, Bitcoin does not empower big BTC bag holders. The governance power in Bitcoin is held centrally by developers who control who can commit changes to the main Github repository. Thus, Bitcoin does not give investors and stakeholders a voice in the governance process.
Decred was one of the first coins to empower those holding significant positions in DCR, by making the mining system hybrid and through on-chain governance where votes are cast by investors.
What makes Decred Different?
Similar to Bitcoin, the Decred is Cryptocurrency which strongly focuses on community input, sustainable funding, and development as well as an open governance. The decred’s unique proof-of-stake protocol serves multiple purposes. It provides end-user and stakeholder metrics to support any consensus updates. The DCR promotes governance as the key and the use of mining pools.
The usage of mining pools could be more efficient and more convenient. In the contrast to PoS and PoW, mining pool only requires little computing resources to share the work and reward from miners to miners.
Who is behind DCR Decred?
The founders of decred originally worked on the development of Bitcoin in a project called biscuits. The team is headed by Jake Yocom-Piatt with its strong community in Reddit, Telegram, Discord, and other social media networks. The organizer stated that the more time you spend in Bitcoin, you will learn about the issues in governance.
This fact puts a significant attention on the governance of cryptocurrencies and the birth of Decred. The DCR coins are based on an innovative consensus voting model to empower stakeholder in a 100% open source method. This allows the community to make the decision together which can also make the network grow with scalability.
The upcoming features for decred include a stakeholder-directed DAO, lightning network support, enhanced privacy, and decentralized control of development funds. This makes the project worth following.