DECRED CRYPTOCURRENCY- Everything you should know about Crypto
Decred? What is it? Actually, it is the short form of ‘Decentralized Credit’. So, the topic of the hour is Decentralized Credit Cryptocurrency. Sounds very technical and not an easy topic to understand, but actually it’s not that tough too. And after you complete reading this article, you will surely know it all! So, before going directly into the topic, there are a few terms, which one should know. This will help in understanding Decred Cryptocurrency more easily.
Below are the terms:
1. Cryptocurrency- A cryptocurrency is a virtual or digital currency. This currency uses cryptography for security purpose. Because of this feature, it makes the counterfeit by the intruders very difficult. Most of the cryptocurrencies are decentralized systems in nature and the decentralized systems are based on blockchain technology. The blockchain is a distributed ledger which is enforced by disparate networks of different computers. The organic nature of the cryptocurrency is its biggest allure. Also, it is not issued by any central authority that makes it free from any manipulation or interference from the government.
2. Bitcoin- Bitcoin is an example of cryptocurrency. Yes, it is electronic cash. This is a digital currency which is decentralized without any central bank or any single administrator. It is sent from one user to another user on the bitcoin of peer to peer. This requires no intermediates.
WHAT IS DECRED?
So, like Bitcoin, Decred is also a cryptocurrency. But Decred aims to solve the key issues which were associated with Bitcoin. Though Bitcoin is decentralized somewhat the voting rights are only held by a very small minority of miners. Decred (DCR) belonging to cryptocurrency prioritizing decentralized governance and decision making on the blockchain. This bitcoin incorporates fundamental changes from Bitcoin protocol based on the accomplishment of decentralizing goals. The developers of Decred believe that network protocol for incorporating improvements will allow these options to become the optimal cryptocurrency.
Decred was introduced by a Chicago based company in the year 2016 to resolve the issues of Bitcoin. And with this to achieve the goal of Bitcoin’s which was to create decentralized finance. For consensus, Decred utilizes Proof-of-Stake and Proof-of-Work hybrid which is called Proof-of Activity. With this feature, it was possible to become the first crypto project, which approved a protocol alteration by the help of vote which was to-chain in June 2017.
The Co-founders of Decred Cryptocurrency are Alex Yocom-Piatt, David Hill, Dave Collins, Jake Yocom-Piatt, John Rickmar and John Varnaleo. They have also experienced developers of Bitcoin. They before launching their crypto-project developed btcsuite by using the golang.
HOW IT IS DIFFERENT?
The feature of Decred Cryptocurrencies makes it different and makes it unique. Here are the standout features of the cryptocurrency:
- 1. In other cryptocurrencies, small investors are excessively influenced by the miners. But, in Decred Cryptocurrency, it is not so as it is autonomous.
- 2. While most of the cryptocurrency lacks the characteristic of being universally fungible, Decred Cryptocurrency has this unique feature.
- 3. Decred Cryptocurrency is more decentralized as compared to other cryptocurrencies.
4. As compared to other cryptocurrencies, it is must faster. This is so because it uses the Lightning Network Integration feature. One would be surprised, as this Decred Cryptocurrency takes half the time Bitcoin takes for a transaction.
· Decred cryptocurrency employs LN i.e., Lightning Network for the instant micropayments process for smart contracts in DCR. This process is similar to that of Bitcoin but it takes half the time for transaction Bitcoin takes. The processing time of Bitcoin is 10 minutes whereas for Decred Cryptocurrencies it takes 5 minutes only. This autonomous feature is a result of the application of low-latency which is an off-chain system.
· The Decision-making power of the stakeholders is given by the hybrid POW (Proof-of-Work) and POs (Proof-of-Stake) consensus of the voting system. This allows them to activate regulations and also allows having a seamless transition in between themselves. Validation of the transactions as it is on the network and generation of new tokens of Decred via computing power is done by proof of work (POW). Now, the mining of proof of stake gives access to users to vote with the holdings of Decred. The vote is done on the subject of important developments on the matter of networks and also with the option of validation.
DECRED DCR’S BREAKDOWN
As on 13thAugust 2018, Decred DCR had a market cap of worth $325,229,479. This comes from the supply of 8,281,293 DCR (max supply 21,000,000) with the rate of exchange as $39.27. $125.58 was the peak price to date, which happened on 12thJanuary 2018.
Every time Decred DCR is being mined, 30 percent goes to the voters of PoS, 60 percent comes to the POW miner in the Decred Wallet. The remaining 10 percent is the development subsidy which is occupied by Decred.
Huobi, Bittrex, Upbit, Poloniex, and OOOOBTC are the famous cryptocurrency which supports Decred DCR apart from other cryptocurrency exchanges. Though the typical pair for trading is Bitcoin but Nano, Ethereum and Tether are also being used by few exchanges.
Problems Decred aims to solve:
As we know that Decred developers are crypto-enthusiasts and early Bitcoin adopters. Since the mining operation has grown, the decision-making process of Bitcoin is now centralized. Moreover, large mining companies are holding large amounts of power over the Bitcoin improvement process. Moreover, this crypto also aims in reducing the hard forks, especially the one that divides the community.
Hybrid Proof of Work and Proof of Stake-
In Decred, the voting protocol is accomplished on the blockchain using Hybrid design, which is the combination of Proof of Work and Proof of Stake. The basic principle here is each block needs to be mined with the correct once and ratified at least three verifiers. Miners receive block rewards and staking verifiers. Here the mining is straightforward and works completely like Bitcoin.
The Proof of stake, on the other hand is open to anyone owning DCR. By using DCR, you can chose for buying tickets allowing participating in the Proof of Stake system. For this, the miner will need to include the ticket as a part of block containing 20 tickets. Once the mining is done, the ticket is then considered immature.
Decred is designed in such a way that you have 50% chance of being chosen within 28 days and 99.5 % of chance being chosen before your ticket expires.
WHAT’S IN THE FUTURE?
So, a big question comes, what is the future of Decred Cryptocurrency? Following points will throw some light on the future scope of this cryptocurrency:
· The market capitalization of Decred stands around $647 million as of June, 18. This makes Decred get a place in the list of top 30 Cryptocurrency of the world. The Decred cryptocurrency’s total supply is about around 7.1 million. The value of per unit is around $90 as of June, 18.
· This is 90 times increase from January 2018 for the investors. Also, in recent times, this is put among the big gainers.
· Through atomic swaps, the decentralized exchange will be launched by DCR in future. Because of this trading costs will be eliminated, the efficiency of the trades will be improved, and thus it will result in an additional boost in the price.
Nothing is perfect, neither is Decred Cryptocurrency. In July of 2018, as mentioned in an article by News BTC, Authorities of China arrested in a total of 20 individuals. According to them, they were involved in a scam- Cryptojacking Scam! The scam was said to be of $2.26 million.
So, this was all that was there to know about Decred – the pros and cons of it. It is now up to you to decide whether it is something you would like to try or pass in the long run.
Since its origin in 2016, Decred has progressed a lot. By 2017, the development team that created blockchain- based timestamps in Q2 2017, complete on-chain atomic swaps with Bitcoin and Litecoin in Q3. Some of the milestone the cryptocurrency makers have in mind are-
- · Android wallet and Trezor integration
- · Lightning Network
- · Decrediton Politeia integration
- · Privacy functionality
Where to Buy and Store DCR?
The best places to buy DCR are Binance and Bitterx. These are the two most famous platforms to buy and trade DCR. Similarly, the ideal place to store the crypto is Decrediton wallet. This wallet is a Graphical UI and is easy to use. The best part is the wallet is available to download Mac, Linux, and Windows operating systems. Along with this, there are other options like Exodus, Coinomi, and Atomic.
The largest strength of this cryptocoin is its community. There is a promising growth for Decred. If the developing has the potential to build great features than the adoption of Decred as good governance drives a good decision. In case, the community fails to hold or engage for rapid developments, then the cryptocoin may find itself overtaken by the new one.