What Is Decred?

What Is Decred?

Decred was launched by Chicago-based Company 0 in February 2016 and is an open and progressive cryptocurrency with a system of community-based governance integrated into its blockchain. It aims to address some of the drawbacks of Bitcoin such as the fact that although the Bitcoin blockchain is decentralized, it is only a small minority of miners who hold the voting rights. Decred hopes to accomplish Bitcoin’s original goal of creating decentralized finance.

Decred uses Proof-of-Activity for consensus – a hybrid of Proof-of-Work and Proof-of-Stake –making it the first crypto project to allow a protocol change through an on-chain vote in June 2017. Token holders can validate transactions virtually in exchange of rewards as well as vote on network proposals. Stakeholders use their Decred tokens to avail a ticket that if selected randomly would allow the ticket holder to act as a block validator. Unlike in Bitcoin where the miner would receive 100% of the token mined, in Decred, the PoW miners receive 60% of generated tokens, 30% goes to PoS voters, and 10% is allocated to a development subsidy. This system of distribution allows developers to be awarded payment for their work contribution toward the proposals, provided the community gives the payout a green light.

Decred DCR

Similar to Bitcoin, Decred has a supply of 21,000,000 DCR. Its price peaked at $125.58 on January 12, 2018. Decred did not take the ICO route, but did an airdrop of 282.64 DCR to 2972 chosen participants in 2016.

A little over a year before the bull market skyrocketed, developers purchased 4% of the total supply (840,000 new coins) in a premine token sale at a rate of $0.49 per coin.

Bittrex, Poloniex, Upbit, and OOOBTC are a few cryptocurrency exchanges that support Decred DCR. Although Tether, Nano, and Ethereum are paired with it on some exchanges, Bitcoin is the one most commonly used. Over $1 million worth of DCR is traded on a daily basis.

Decred wallets

Decred has three official wallets. The first one, Decrediton, is a graphic UI wallet compatible with Windows, Linux, and macOS. The second is a browser-based wallet called Webwallet that is accessible on any device. The third one meant for advanced users is Command-line app suite and is a cross-platform command-line wallet. Decred is also supported by the Exodus cryptocurrency wallet.

Leave a comment

Your email address will not be published. Required fields are marked *