Generally, the year 2017 was an eventful one in the crypto currency world. This is especially with Decred (DCR) coin which comes with a unique approach of aiming at bringing positive change to the crypto currency world. This coin has taken careful market steps unlike other crypto coins. Most of the coins in the market always jump in head first before even coming up with a full report of their listings on the exchanges. The Decred is different though. It has weighed its deliverable before hyping them out to the market.
The founders behind this coin have remained optimistic and are hoping that 2018 will be a new great chapter. They have a road map set in place and all the achievements they have to achieve by the end of the year bound to the time frame of each. The road map comes in four separate quarters throughout the year.
In this article I will guide you through a few things about Decred that you should know. These things include: the history and founders of Decred, its market performance, uses in order to enhance your understanding about the same.
History and Founders of Decred Crypto
Decred is an open source and progressive crypto coin with a community based system. It was launched in 2016 February by a company based in Chicago. The developers are the same ones who engineered the btcsuite of Bitcoin. Decred is programmed in the Golang language for programming. This system has been integrated to its blockchain in that the governance of Decred is supported by the entire community. Back in 2009, Bitcoin made way to emergence of altcoins in the crypto market. Since then,a number of coins have taken a branching route and started new coins. Decred is one of these coins. Basically Decred is a fork of Bitcoin and both have unique and interesting differences in their blockchains.
Understanding Decred Coin
Mining of Bitcoin is currently very competitive and requires just maybe cheap or free electricity to be able to generate these coins. A hardware known as the Application Specific Integrated Circuit (ASIC) is also needed by the miners of this coin. The machines used are rather expensive and only a few people can afford such. In addition, these machines are specific to mining and can never be used for something else. This proof of work algorithm just limits the mining to a powerful team of rich miners.
This is where Decred comes in. Decred aim in the crypto world is to attempt to come up with better ways that can balance this power between the miners and users. In this case,Decred is trying to come up with a way that the users who cannot afford such expensive machines can also participate directly in the consensus of this network. This is by allowing them to be the check system for the miners. That now calls for a hybrid consensus that will involve both the Proof of Stake and Proof of Work algorithm.
In Decred, the holders of Proof of Stake algorithm can be able to validate transactions made on the network virtually and then receive rewards. Moreover, the POS holders can still vote on the network proposals when need be. This gives the token holders in the network a chance to have a direct and transparent say in the projects general progress which involves use of incentives.
The stakeholders of Decred lock in the tokens of the Decred which is in turn exchanged for a certain ticket that when it is selected randomly, the specific ticket holder is able to act as a validator in the blockchain. In Decred, about 60% of the tokens which have been generated newly go to the proof of work miners while 30% goes to the proof of stake voters. The other 10% goes to the development subsidy. In Bitcoin, things are different from this anyway. This is because the entire 100% rewards go to the Proof of work miners.
Through this unique and different subsidy which has been set in place for the funds, the developers of Decred are able to pay for this own work on certain proposals. However, their pay-outs can only be approved by the community.
Both Decred and Bitcoin have 21 million coins in supply. In Decred, a percentage of 8 was initially pre-mined and split into two halves. The first 4% was distributed to what they call the airdrop while the other 4% was used to pay back costs incurred by the company as well as the individual developers who funded the project at the beginning.
The airdrops involve a system which gives free tokens to a few selected individuals who had registered for the event in good time. This event was set in place in order to create a wider scope of distribution of the tokens in order to encourage wider participation of the community.
The Atomic Swap
Decred has had a recent announcement that the Decred and Litecoin have had an on-chain Atomic swap which was aimed at directly enabling peer to peer trading in Decred. This however does not substitute some of the great features which can be offered at exchanges which are capable of offering higher trading frequency. It just allows the members of both Litecoin and Decred to do OTC (Over The Counter) trades without having to pass them through the trust of a third party.
In conclusion, Decred has proven to be a progressive crypto currency in nature. This means that it has a unique governance which allows it to evolve accordingly. This is as per how the stakeholders wish. The fact that Decred has the ability to provide unique features which are not available in Bitcoin makes the whole beauty if this coin. It focuses on development strongly and we are all hoping that it will pick up the pace and join the big leagues in a few years. Just keep your self-updated about its progress and the development before settling down to invest in it. Market analysis should always be your first step before putting your money at stake. This market of crypto currencies is a volatile one.The future is untold! I hope this article has enhanced your understanding of Decred crypto currency.