Decred is one of the few cryptocurrency projects that have withstood the test of time. Decred, which stands for decentralized credit, aims to address a number of severe shortcomings in Bitcoin’s governance. This includes the consensus process, and mining/development centralization that its main developers highlighted.
In a nutshell, Decred is a self-governing cryptocurrency similar to Bitcoin. Despite the fact that creators previously featured Decred on our YouTube channel in 2018 again in 2019, it is about time to revisit this interesting idea.
Decred is a genuine contender for the greatest cryptocurrency in existence, owing to the use of the Lightning Network. Thanks to the continuous development of the decentralized governing platform Politeia, and the new inclusion of privacy technology similar to Monero.
Decred’s Epic History
Jake Yocom-Piatt is the first character in Decred’s chronology. Yocom-Piatt is the co-founder of Conformal Systems, a private and security-focused open-source software firm. He became interested in cryptocurrencies after learning about Bitcoin in 2011. In the following years, he developed btcsuite, a platform for Bitcoin developers.
Yocom-Piatt was astounded by the extent of centralization and tribal mentality in the Bitcoin ecosystem while dealing with other engineers. He observed, in particular, that Bitcoin mining had become alarmingly centralized. The companies like Blockstream, a blockchain technology firm, wielded enormous power inside the Bitcoin design community.
Yocom-Piatt, like btcsuite, essentially ignored when he expressed his worries to the community. This prompted him to consider developing a new cryptocurrency that is similar to Bitcoin except without the flaws in the proof-of-work consensus mechanism.
It includes the noxious governance framework in the development community that resulted in multiple forks and the absence of truthful funding for Bitcoin programmers.
The Memcoin2 whitepaper, which explained a mixed proof of stake/proof of work consensus mechanism, presents to Yocom-Piatt in 2014 by an unknown developer named _ ingsoc. Another unnamed developer named TacoTime wrote the MC2 whitepaper that year he launched the well-known privacy coin Monero.
Yocom-Piatt eventually gave up after months of urging from _ ingsoc to look into the MC2 architecture. With the help of _ ingsoc and TacoTime, Company 0 started researching a new blockchain with a blended consensus mechanism. Decred first proposal was in 2015, with the primary network being live in 2016.
Unlike most other cryptocurrencies, did not have an initial coin offering. Rather, in 2016, 8% of the program’s finite amount of 21 million DCR pre-mines and distributed. The 4% goes to developers and the remaining 4% is airdropped to nearly 3000 early backers.
DCR produces at a value of just under $1 USD per coin when it was first released. Despite being influenced by Bitcoin, Decred is neither a fork of Bitcoin nor is it a token on Ethereum or any other network; that is its own blockchain.
What Does DCR Do?
In the cryptocurrency sector, DCR aspires to offer a substitute to Bitcoin as a store of value. DCR utilizes Decred’s ecosystem for voting, staking, and powering services that are currently under construction, such as Decred’s decentralized exchange.
Considering Decred is a community-driven project, what DCR can and will use for will most likely evolve over time.
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