Is it profitable to trade Decred

Decred is a self-funded cryptocurrency powered by a hybrid algorithm that combines Proof of Stake and Proof of Work to achieve consensus between miners and common participants. Among the founders of the project are specialists who previously worked on the Bitcoin blockchain. They tried to take the best characteristics of “virtual gold” while getting rid of the main mistakes.

Occurrence, creators

Decred’s development lasted for a year and a half – at that time it was functioning, but with limited capabilities. After a series of checks and tests, on April 20, 2017, the creators released the full version of the product. As they stated: this is a “landmark event” for the cryptocurrency community. The concept of the platform is based on the Bitcoin code combined with the optimal qualities of other projects. Among them:

  • scalability of the network; increasing the speed of transactions; combining PoS and PoW algorithms;
  • the anonymity of payments and product use;
  • implementation of smart contracts;
  • Lighting Network support.

The creators showed a truly ideological approach inherent in the world of cryptocurrencies – they wished to remain anonymous and still do not advertise their participation. But they do not hesitate to say that they worked on the creation of Bitcoin.

From official sources, we only know that they are working on the project:

  • 14 programmers;
  • 19 marketers;
  • 8 designers.

In addition, unlike most cryptocurrency startups, Decred did not conduct an ICO or attract outside investment. Perhaps the only person openly declaring that he is involved in the creation of Decred is Jake Yocom-Piatt, who is the founder of Company 0. This company has also been repeatedly seen contributing to the Decred project.

Before the launch of the finished platform, 8% of the coins (of the total amount of 21 million) were found by pre-mine – 1.68 million DCR. These coins are distributed as follows:

  • 50% – between the first members of the Decred community;
  • 50% – remained with the creators.

Funding for the project was provided by Company 0, as well as by some random investors, with no promises of return.

Taking into account development, the cost of launching Decred is $ 300 thousand. This amount was paid to the developers. Another $ 115,000 is reserved for related expenses. Company 0 decided that premise would be the fairest way to pay for expenses.

At the same time, not a single developer received DCR for free – they either received the coins they got (50% of the pre-mine) as payment for their work, or bought them for their own money. At the same time, programmers were prohibited from trading Decred assets during the first year after launch, and Company 0 – for two years. The remaining 50% of the pre-mine – DCR 840,000 – was donated to the community via an airdrop.

Platform features

The concept is based on the principles necessary for the stable operation of a system that allows the use of an autonomous currency:

  • The hybrid consensus algorithm (PoW and PoS), among other things, improves the security of the infrastructure.
  • The Lightning Network add-on functions on top of the blockchain, which provides instant transactions outside the main network. This protocol reduces system load and improves scalability.
  • Atomic swaps are a technology that allows you to exchange assets from different blockchains. For the first time, the Decred project implements the possibility of direct exchange of DCR for LiteCoin, without using exchanges and exchangers. Other directions are gradually emerging.
  • The blockchain uses transaction signatures using the schnorr program. Such signatures ensure the privacy of payments while removing the unnecessary load from the main system – transactions are canceled if they do not receive confirmation from the network for a long time. In addition, Decred wallet users can cancel the transfer if it was created by mistake. 
  • Zero-Knowledge Communication is another version of the technology that ensures the privacy and security of the system using special communication streams.

Taking into account these features, the following advantages can be distinguished:

  • Users can control the execution time of transfers – if the network is overloaded, the transaction can be sent through the Lightning Network or canceled altogether.
  • The project creates a system with a large number of participants, which requires constant consideration of diverse opinions. At the same time, new users are not infringed in any way compared to those who came earlier.
  • The position of freedom of speech and the right to speak provides an opportunity to propose ideas, without censorship and prohibitions. Constructive and forward-looking proposals will be reviewed by the community and developers.
  • Free access to the open-source software of the project.

The disadvantage of the platform is that full-fledged smart contracts are still not implemented on it – they still have limited capabilities. Therefore, the creation of decentralized applications based on Decred is still available only in simple online versions.

Perspectives

Decred looks like a viable and promising platform. In the context of a global market correction, the coin has lost ground, but the project remains one of the most popular in the cryptocurrency market. The team continues to work and implements previously outlined plans, albeit with minor delays. Quality updates are planned for 2019, including:

  • implementation of full-fledged smart contracts; 
  • improved scalability;
  • launch of mobile applications;
  • creation of a decentralized exchange.

Most likely, these updates will have a positive effect on the coin rate, so the project can be considered a profitable investment. In conclusion, I would like to note once again that this project has been created, launched, and continues to develop without attracting external investment. Therefore, no matter what happens to him, no one can accuse the team of deception or fraud. Most likely, the lack of funding is the reason for poor marketing.

Nevertheless, work on the technical part of the project is being carried out very intensively – this is noticeable in the already implemented updates and the plans for the future.