Decred review: All you need to know about Decred
Many cryptocurrency platforms are coming on the market but only platforms with an innovative and revolutionary concept are able to emerge in the crypto world and attract tons of customers. When someone talks about cryptocurrency, the first thing which comes to our mind is “Bitcoin”. Bitcoin had a vision of creating decentralized currency so that no one can control the currency except the customer itself. But soon, Bitcoin got controlled by so-called “oligarchy” who were especially Bitcoin miners. They were lucky enough to get their own expensive mining equipment and now they have complete control over the supply and demand thereby controlling the price of Bitcoin. Some Bitcoin developers who were not happy with this and dreamed of creating a decentralized currency with no hungry oligarchies came together to form Decred, a decentralized currency who endows the decision making and decentralized governance ability on the Blockchain.
What is Decred?
Decred is a progressive and a self-funding digital asset which is quite similar to Bitcoin but has one major difference. Launched in 2016 with a prime focus to encourage community input and decentralized governance into the Blockchain. It also aims at providing sustainable financing and development by creating a hybridized consensus system for generating a balance between the users and the miners. The balance between the users and the miners make this robust cryptocurrency quite impressive as the user doesn’t just have to rely on the miners for using Decred. Normally, with other Cryptocurrencies, the miners who are responsible for the infrastructure have considerable influence as compared to users whose control is almost negligible. But, Decred has worked over the years to root this thing out by maintaining a balance between the tow end-users. The Decred platform also makes use of hybrid proof-of-stake mining algorithm constraining a small group (oligarchy) to take control of the mechanism of the transaction without the consent of the community.
When it was launched on February 8, 2016, the currency received mixed reviews from crypto enthusiast as it was clearly targeting Bitcoin. However, the blend of decentralization and democracy in making peer-to-peer transactions was later accepted by many professional due to its secure and reliable network and the ability to give a direct and spontaneous response to the community requests for new features.
Who is behind Decred?
The emerging cryptocurrency is backed by a strong team which comprises of many Blockchain experts and many big names in the crypto world. Yocom Piatt, the CEO of the company and the organizer of the project has created this platform for the people and has kept a low profile without worrying about the recognition. The dedicated team incorporated the best proof-of-work and proof-of-stake algorithm to address some of the greatest issues with Bitcoin. Even, many Bitcoin users have moved to Decred as the users are entitled to get more generated tokens. With Decred mining pool, 60 % of the generated token goes to the users, 30% is for the proof-of-stake voters and just 10 % is kept by the development team. The company team has its presence in Discord, telegram, Reddit, BitcoinTalk and other popular social media platforms.
What was the problem with Bitcoin Blockchain?
The Bitcoin enthusiasts and the early cryptocurrency adopter in their team spotted inefficiency in the operation of BTC. As mining of cryptocurrency has evolved, Bitcoin decision-making algorithm has become more centralized instead of becoming decentralized, with the largest mining companies holding the major chunk of power in the process of Bitcoin improvement. In addition to this distortion, for further improvements in the BTC can be put into practice with a soft fork, but, almost all these enhancements that comprise of a significant change to the Bitcoin software can be made possible by utilizing a hard fork from the old Blockchain. This was on display a few months back with the innovative proposal of SegWit2x hard fork on the Bitcoin Blockchain. Debates happened and the community was disrupted and scared about the future of the network. Eventually, the hard fork was reclaimed because it failed to get support from enough miners, exchanges, and institutional users. The team at Decred feels that this centralized power of the miners and institutional users proves to be a devastating energy in the improvement of the Blockchain. If the community doesn’t agree on the utilization of any hard fork from the old Bitcoin Blockchain, the independent factions can also make use of their own hard fork fracturing the BTC community. For example, we have come across Bitcoin Cash, Bitcoin Gold and Bitcoin Diamond.
What problems can be solved by Decred?
Decred works in reducing hard forks especially the ones which divide the community. Although the company has come up with a fully driven hard fork, the Decred’s voting protocol allows users to vote for the changes before implementing anything. Basically, the platform aims to solve the problem of Blockchain governance by utilizing a hybrid poof-of-stake (PoS) and proof-of-work (PoW) mining algorithm with an intonation that the decision-making process can be decentralized. With voting on different proposal and agenda, they can put forward their own idea. Any activation of the code is done purely on the basis of the votes and with the help of community rather than only stakeholders. Also, the company is looking forward to incorporating features like Lightning network much before other Cryptocurrencies.
How does Decred work?
To start with the platform, first, you have to download the Decred software. You can choose a number of methods to get a node in the network and exchange Decred in your wallet. The company has the sleekest and intuitive platform to help beginners use their Blockchain technologies. Even, the developers have published a guide for installation for beginners. The combination of proof-of-stake (PoS) and Proof-of-work (PoW) ensures that each block is mined with the correct nonce and ratified by more than two verifiers. It removes the weaknesses of both proof-of-stake and Proof- of-work individually while the rewards for miners remain the same. Along with that, the three or more verifiers also get a small reward. The proof of stack is only for users who own DCR where you use DCR to buy tickets for participating in proof of stake system. The ticket will be mined but you have to wait for a period which can be as low as 28 days to as high as 4 months. The chances of your ticket entering the mining pool and choosing are 50% before 28 days and 99.5% before ticket expire (4 months). Once the ticket is chosen, you will validate a block and the price of the ticket and a staking reward will be sent to your Decred wallet.
How to get started with Decred?
Decred provides the users or miners with three main ways to interact with the project:
The Wallet – It is used for sending and receiving funds along with participating in the Proof-of-Stake mining.
Proof-of-Work Mining – The high-end computing powers are used to validate transactions on the network and create new Decred coin tokens.
Proof-of-Stake Mining – The funds are utilized to vote on significant network development issues and validation of transactions for rewards.
All you need to get started with sending or receiving funds is a wallet address which can be easily created from any Decred wallet generator. The sleek and innovative technology makes it easier for the transactions to complete that too within 5 minutes.
Key Principles of Decred
The team at Decred abides by a certain set of principles to make sure that its technology is beneficial to the customers. The key principles through which Decred is bounded are as follows:
1) Free and Open-Source Software
All software developed by the team of Decred should be free and open source so that it can be used by anyone.
2) Multi-Stakeholder Inclusivity
The multi-stakeholder inclusivity is an initiative where it is necessary to maintain an active effort to accept a different set of users and views. Ideally, the company has to include everyone without any consent, but, it is bound to stick to all pertinent bodies of law in the jurisdictions.
3) Free Speech and Consideration
Everyone has the right to speak and express their opinions and concepts without perturbing about the censorship. The opinions shall tend to be constructive speech and should be primarily based on truth and reason.
4) Fixed Finite Supply
Issuance is limited and immutable as it is made mandatory that the total range of coins in Decred shall not be modified at any cost. The entire offer for Decred is 20,999,999.99800912 coins according to per-block grant that adjusts every block in 6,144 blocks which are around 21.33 days by modifying and decreasing it by an element of 100/101. The genesis block grant starts at 31.19582664 coins.
5) Incremental Privacy and Security
The company should give the highest priority to privacy and security in order to avoid the complexity of implementing something. Also, the company continues to incorporate additional privacy and security with smart technology on an incremental and normal basis to counter possible attacks of hackers and on-demand by the customers.
6) Universal Fungibility
Universal Fungibility is another important principle which Decred operates as it is prominent to actively monitor the attacks against it and find and incorporate countermeasures as and when necessary.
How to create a Decred wallet?
The process of creation of new Decred wallet on the Decred platform is very simple. Just follow these steps and make a wallet in just a few minutes.
Step 1: For creating your own wallet, you have to head to their website link and create an account. Hover to the “Download wallet” link, click and save the file on your hard drive.
Step 2: After saving the file on your computer, click on it to run the installation process. The wallet installation will start and the wallet will start syncing indicating that he Blockchain download has begun.
Step 3: If you wish to skip the process, you can click on the “skip” button. If you do it, it will take you to a screen where you will see the end number of words.
Step 4: When you progress to the next step, you will be expected to make an entry of the seed word one by one and later choose a paraphrase to encrypt and secure the Decred wallet further. By Paraphrase, even if the hacker gets your password, he will be required to enter the paraphrase to remove funds from your account.
Step 5: after doing all these steps, your Decred wallet will be generated and you will be all set to interact with the Decred Blockchain.
Step 6: For obtaining the wallet address, you have to head to the “receive link” button and you will be provided with the wallet address and the QR code. From here, you can generate extra addresses when necessary.
How to buy Decred?
There are many exchanges which you can use for the purpose of purchasing Decred coins with fiat currency. Although the direct purchase of Decred coins is not possible, you can use Bitcoin or Ether and transfer it to DCR. Here are the platforms which you can use for buying Decred with your credit or Debit card.
Changelly is a popular platform which allows you to transfer your Bitcoin or Ether for Decred coins (DCR). The process is simple and the processing speed is amazing.
This Russian based exchange endows an error-free platform for buying and slewing Cryptocurrencies. One thing to be aware of is the high exchange fees for the sophisticated and hassle-free transaction.
This cryptocurrency exchange or online shop in New Zealand lets you buy Bitcoin or Ether with fiat currency and later exchange it for Decred.
The largest strength of the Decred Company is its community and the strong relation of its team with the cryptocurrency background. The upcoming Lightning network and many other innovations are going to increase the market share of the Decred coin and help it contribute more to the public Blockchain. With great mining pools, there is a lot of scope for the miners along with the decentralized governance which is acting as a strong concept for the users.
Website – https://www.decred.org/