“Decentralized Blockchain Governance”
According to cryptocurrency standards Decred is still new in the blockchain/crypto ecosystem. The functionality of Decred is based on an open source protocol. It was established by many crypto-enthusiasts who spotted that BTC decision making gets more centralized over a period of time, as a result of many mining pools.
Their main systems are derived from a Proof-Of-Work and Proof-Of-Stake algorithms. The Decred coin holders have the option to vote on different proposals and be hands on with the decision making when it comes to the future of Decred Ecosystem as a whole. They still offer a straight forward mining process the same as the rival Bitcoin (BTC). The scale to effect is 10% is used to further improve the blockchain, 30% of the coins go to the voters, and 60% goes to the miners.
Check out also: Cryptocurrency Buy and Sell Trade Signals
It can be said that Decred is one of the most promising cryptocurrencies at the moment. They plan to implement Lightning Network, it operates out of blockchain and in so doing improves scalability and the processing speed of the network. In the next paragraphs we will look further into what Decred is all about and why it exist.
What is Decred?
When it comes to technological innovation, Decred is up there as one of the front runners. The platform’s blockchain technology employs a PoS system for proper validation. It allows for effectiveness when blocks are mined. After the mining, the blocks are then validated before they are shared among the miners. Decred operates on a unique mechanism which has actually helped the coin retain its status and is very stable at the moment. It’s growth percentage has been one of the highest in the market. If there are any cryptocurrencies that will tip to reach the level of Bitcoin in market cap and price, DCR will surely be among them.
Decred makes use of a hybrid blockchain technology. It’s a mining/validation system that allows users to gain both from staking and mining. Although it’s still reliant on ASIC, running solo nodes or staking pools may yield more returns than mining. Since both miners share rewards for their efforts, they always try to work together and create the perfect mining platform to excel.
Decred combines the efficacy of Bitcoin and the low cost of altcoins to bring investors the best platforms they can think of.
Then it comes to viability, the platform stands out among others in its class. It allows for more community management in the handling of projects within the platform. As stated, nobody owns DCR, the community voting process allows stakeholders to take the best decision that will be in the best interest of the cryptocurrency.
The platform has high standard safety features. It’s almost impossible to hack into the system because of the blockchain technology it operates in. Moreover, the system makes use of a user-activated voting system which empowers users with permission to participate in the voting process. There are several security measures that have been taken to make sure the platform remains safe and secured from hackers and unauthorized users.
Investors will have the full confidence that their investment is intact. It also gives a strong sense of security, knowing you have privacy when carrying out transactions on the platform. Its modular architecture is one of a kind in the industry. All these projects have given the DCR token a lot of hype, which has seen it increase in price in recent months. It’s always among the top gainers every month. Some cryptocurrencies may have upward price movements but not all are consistent and stable. Some may go upwards and suddenly fall flat within the space of a month. But DCR has been rising steadily despite the unfavourable market conditions. So many investors are already thinking that the coin will be a holy grail in the future. If there is any coin with a potential to compete favorably with BTC for market share and price, then DCR is certainly heading to the right direction to be that coin.
Some investors may be skeptical about investing in DCR, considering that fact that it’s still in its infancy stage, there are a lot of good vibes coming from the coin. All the recent projects and technological upgrades show that the development team is working tirelessly to make DCR a great cryptocurrency. Only time will tell what the future holds for the coin. But at the moment, DCR is really doing well.
Who created it?
To most the origins of Decred is unclear as there is not much information regarding this on the web. First thing that should be acknowledged is the fact that the founders and developers have no interest in the spotlight. To them open source projects are more empowering than being in the limelight which many folks tends to gravitate towards.
The date Decred was brought into existence is April 2013, when an anonymous person with the cover identity name “Tacotime” engaged a thread on Bitcointalk titled ‘want to make an altcoin that actually changes something?’ Tacotime replied on the 3rd of April 2013 saying he wanted to start an altcoin but needed people to do the coding. A few days passed and Tacotime started a new thread and in the tread he published the whitepaper ‘Memcoin2 (MC2): A Hybrid Proof-Of-Work Proof-Of-Stake Crypto-currency’. The real identity of TacoTime is still unknown till today. – Source
Why does it exist?
To quote the Decred Whitepaper:
Memcoin2 (MC2) offers several unique features that make it an attractive alternative to other crypto-currencies, and an important mechanism to research through scientific c inquery the various economic, social, and technical behaviours that result from participation in the crypto-currency system.
One of the main reasons why Decred exist is to use a community-based governance model which is built on blockchain technology. DCR has always maintained that they are looking to compete favourably with the top rated cryptocurrencies in the market. With this statement, they have really impressed an onlooker who may be waiting for them to put their statement into action. The hybrid algorithm is an advanced system that is made to look very simple to utilize.
One of its major features of the platform is the fact that it allows both proof of stakes and proof of work. It means that users can choose to participate through voting or be a miner. However, the main concern for the cryptocurrency is their use of ASIC protocol, which many have seen as a setback to their ambitious goal to become the best rated.
Apart from that setback, the project offers cross chain capabilities and smart contracts that ensure atomic swap. With this feature, its possible for investors to use one wallet to hold different heterogeneous cryptocurrencies.
Of all the similarities Decred (DCR) has with BTC, the most similarity that caught attention is the bullish trend of both coins in recent times. Since it was developed and added into the cryptocurrency market, DCR has immersed more than 11000% in growth. At the recent bear trend, many cryptocurrencies shed a lot of price, but DCR grew even to the surprise of the most optimistic investor.
When an individual wants to invest in a coin, one of the most important thing to consider is the stability of the coin. In this area, DCR has offered a lot, and it’s still offering. It is one of the most stable cryptocurrencies. DCR has been doing really well in terms of market capitalization and unit price. It’s growth pattern has been likened to that of Bitcoin when it was first developed. Apart from sharing similar development traits with BTC, the cryptocurrency was created to serve almost the same purpose Bitcoin’s developers had in mind.
Just as Bitcoin doesn’t have a central authority where decisions are passed through, DCR shares the same trait. Decisions are made by stakeholders and no particular individual is said to be the founder of the cryptocurrency. Because of this autonomy, it has allowed the coin to grow without any restrictions. Rules are set and decisions are taken after a voting had been conducted by the stakeholders. This is part of the reasons why the cryptocurrency has continued to do well in the market despite all odds against it.