Decred is a cryptocurrency that supports Windows, macOS, and Linux. It appeared relatively recently but has already gained popularity. The founders of the startup are seeking to take the asset to a leading position to squeeze out the functionally outdated Bitcoin. The tradeshow editorial team has studied the nuances of cryptocurrency and is ready to disclose them to readers.
Emergence
In 2013-14 development of a new cryptocurrency based on the blockchain system began. It had to solve the scaling problem that makes it difficult to use Bitcoin. So in 2016, the Decred cryptocurrency appeared, allowing for the first-ever successful consensus on-chain voting.
The long development period (2-3 years) was not in vain. Decred uses innovative consensus voting technologies. About two and a half years have passed since the launch of the cryptocurrency. During this time, the Decree managed to enter the top 30 largest digital currencies in terms of capitalization.
In a short period, the creators of the project managed to bring their product to high positions.
PoW and PoS hybrid
DCR’s advanced consensus system allows two mining models to be successfully combined:
Proof-of-Work (“proof of work”) involves the use of computing power to mine tokens. The main task of the security protocol is to prevent DDoS attacks. The idea is borrowed from Bitcoin.
Proof-of-Stake – The use of cash contributions to vote on important issues. Verification of completed transactions is also performed for a fee. This protocol minimizes the risk of network capture by hackers, who gain a monopoly of actions if they take over 51% of the capacity. The protocol is used in the DASH cryptocurrency.
Such a system evens out the balance between miners and other project participants. Double protection makes the network as secure as possible.
Advantages and disadvantages
The positive aspects of cryptocurrency include:
- absolute decentralization;
- profitability of mining with video cards;
- application of innovative solutions;
- use of two security protocols;
- atomic transactions;
- continuous improvement of the system;
- the ability to sign the transaction using the confidential program Schnorr.
The disadvantages are:
- relatively low demand;
- the skeptical attitude of many market participants;
- low cost of coins.
A special feature of DCR is its full compatibility with the BTC platform. Thanks to PoS, all users of the system are involved in the development of the project. Transaction orders have a limited period of existence, which allows them to be automatically closed after a certain time.
Perspectives
In the initial stage, cryptocurrency developers carried out an active marketing policy, and organized a lottery among investors. This attracted the initial investment in the project. In 2017, against the background of the general growth of the cryptocurrency market, the capitalization of Decred also increased.
But from January 2018, the decline began. The growth dynamics of the Decree decreased, but it managed to enter the top 30 largest cryptocurrencies in the world.
The main reason for the slow growth rate is ineffective marketing, which makes it difficult for a startup to grow. In technical terms, cryptocurrency has every chance of reaching a leading position. The system uses innovative solutions. Besides, the coin continues to be constantly improved.
Decred is a promising cryptocurrency product that lacks the impromptu push to become a top digital currency. Although there is an opposite opinion, the adherents of which consider the Decree to be another “empty shell” that will be lost in the shadow of Bitcoin.
Features and technical implementation
The main features offered by Decred:
• A hybrid consensus system that combines the principles of proof-of-stake (PoS) and proof-of-work (PoW).
• Availability of useful technologies for the network, such as the Lightning Network.
• The ability to conduct cross-chain transactions between different cryptocurrencies.
• Multi-platform wallet.
• Open and transparent uncensored platform.
According to users, Decred is a reliable project. Its rapid development also speaks in favor of this.
Mining
Mining is the process of verifying the authenticity of transactions for which miners receive DCR coins. Decred supports two methods of transaction verification at once:
1. Proof-of-Work (PoW). Transactions are formed into blocks, which are then verified by miners. When a block is confirmed, it is permanently placed on the Decred blockchain. Anyone ready to provide the power of their computer for computing can become a miner. You can mine in a pool, it is more efficient.
2. Proof-of-Stake (PoS). This is a vote that requires little or no computing resources. The scheme works as follows: Decred coins are used to buy tickets that give the right to vote on the network. For each block, 5 tickets are randomly selected to confirm the previous block.
