Decred in favor of decentralization
Although it originated from a hard fork of Bitcoin, Decred is second to none in the world of cryptocurrency. It is the first digital currency to integrate two distinct consensuses into its system. The combination of PoS and PoW protocols helps maintain currency decentralization and reduce the risk of centralization. The platform has successfully developed an efficient payment system called the Lightning Network. Discover more details in this article.
Presentation of cryptocurrency
Decred or DCR consists of a cryptocurrency. The course of Decred is around twenty dollars with a 24-hour trading volume of 86.420.885 €.
What is Decred?
Decred is defined as a decentralized virtual currency managed by its community. The project was undertaken by around twenty developers from the Bitcoin universe. These developers have grown tired of centralizing virtual currency to the point of launching a new cryptocurrency. Decred is from a fork of Bitcoin.
It is a scalable open source project that takes into account the opinion of the whole community before deciding on a decision. The Decred system is characterized by a hybrid consensus system which combines Proof-of-Work (proof of work) as well as Proof-of-Stake (proof of stake). Its main objective is to find a compromise between the wishes of miners and users through hybrid mining.
The decentralized and democratic protocol
In order to bring more technical improvements to the blockchain, the Decred team is seeking the participation of volunteer developers from around the world. The system uses the Decred programming language. This language has the advantage of being quick and easy to use.
Developers who are interested in developing virtual currency are invited to register by filling out a form on the official Decred website. To attest to their competence, they are invited to post URLs that prove their past work. In case of default, they only have to send an email to the teams explaining their motivations.
Characteristics of Decred
To ensure better decentralization, Decred has started distributing 8% of the mined tokens since its launch in 2016. Of this 8%, 4% was paid to developers and the other 4%, or 1.68 million tokens, were were awarded to the first 5,000 participants. These tokens were paid for free and at that time had a value of 0.5 dollars. Their value is now multiplied by 100 and the price of Decred begins to stabilize.
The development of the project is self-funded and open. The cryptocurrency uses the Blake -256 hash algorithm. On January 18, 2016, the platform organized an airdrop during which the 4% of tokens were distributed free of charge. Today, the price of Decred is of 11.13 €.
The Decred developers are the primary users of Bitcoin. Only, they found an ineffective mode of operation of virtual currency. Between the mining procedures and the decision-making, Bitcoin ended up centralizing and the mining companies hold much of the power in the improvement procedures.
Bitcoin’s other hard fork, Bitcoin cash, Bitcoin Gold and Bitcoin Diamond, have failed to eliminate weak spots in their parent currency. On the contrary, they encouraged division within the community. Decred thus aims to reduce this excessive centralization and avoid another division. This is the reason why all ideas are taken into account before making any decision.
How does cryptocurrency work?
Decred uses proof of work as well as proof of hybrid stake to validate his blocks. It is a unique system of its kind which involves a specific mode of operation.
Pow and hybrid PoS
The Proof-of-Work system involves the use of computing power to validate transactions and create new tokens on the network. The Proof-of-Stake system talks about the use of funds to vote on network development issues and to validate transactions.
These two systems work together. PoW miners get 60% of the total rewards while shareholders have voting rights in decisions and receive 30% of the total rewards. The remaining 10% is used to subsidize the project.
The Lightning Network
Decred wants to set up the Lightning Network. It looks like an off-block payment method that many other virtual currencies have wanted to integrate into their system. To operate, the protocol requires two users who regularly perform transactions by DCR.
The two users create a Lightning Network box and pay 20 DCR for example. If one wishes to pay 2 DCRs to the other, it suffices to update the distribution of their box by assigning 12 DCRs to the beneficiary against 8 DCRs to the sender. This update does not need to be sent to the blockchain to be validated. This instrument authorizes micropayments and ensures greater scalability outside the blockchain.
The pros and cons of this cryptocurrency
The digital currency resulting from a hard fork of Bitcoin presents ambitious projects which raise some advantages and disadvantages.
Total decentralization is the main advantage of the Decred network. The entire community participates in decision-making. Unlike Bitcoin, the risks of centralization are reduced, since the decision-making power is in the hands of all members.
Decred is the first cryptocurrency that uses two consensuses at the same time (PoW and PoS). This operating mode places users and minors on an equal footing. Between 2016 and 2018, the course of Decred went from 1 dollar to 90 dollars! The price of Decred continues to progress.
The only drawback is the use of the Lightning Network box. Its mode of operation is very complex. This difficulty hinders users from using this new system, even if virtual currency has generated real excitement since its creation.
How to buy this cryptocurrency?
Now is a good time to invest in Decred in view of its progressive price. Here is the method to get DCR tokens.
DCR tokens cannot yet be purchased directly with fiat money. To get it, you have to buy other cryptocurrencies, like Bitcoin and Ethereum. These are easily available on platforms such as Localbitcoin, CEX.io or Coinbase.
After purchasing the cryptocurrency, then begin the transfer to exchange platforms like Bitrex. The latter offers to exchange BTC and ETH tokens for DCRs. By validating the procedures, you will get your DCR tokens.
Storage of Decred
In addition to cryptocurrency exchange, virtual currency storage is included in the functions of the Bitrex platform. The latter is renowned for its level of security and the reliability of its platform.
The Decred platform has its own portfolio called Decred Wallet. It offers to store your parts in a safe location. The risk of piracy is reduced in comparison with storage in Bitrex. Other wallets like Trezor or Ledger Nano S are also available.