Decred is a community-driven cryptocurrency that aims to provide a fully decentralized, equitable, and autonomous cryptocurrency substitute to traditional money.
In the existing system, power helds by a centralized entity such as a bank or the government. Decred allows members of the public to own and manage the system, set the regulations, and steer the project’s course.
Decred dates back to 2013 when an unknown Bitcointalk user known only as TacoTime began a discussion and released the Memcoin2 whitepaper. Another anonymous user, ingsoc, collaborated with TacoTime. At the beginning of 2014, it emerged that TacoTime was also working on Monero, a prominent cryptocurrency.
The TacoTime MC2 concept was presented to Jake Yocom-Piatt, the CEO of Company Zero, by _ ingsoc. At the time, Company Zero’s primary concentration was on the creation of btcsuite, a Go-based full-node Bitcoin implementation. Many notable projects, like Ethereum, BitGo, Factom, OpenBazaar, and the Lightning Network group, utilize their code, which is highly respectable in the crypto industry. Eventually, the two teams came together to create Decred.
Decred was first a cryptocurrency that could be an alternative of Bitcoin. Bitcoin’s main concerns, according to Company Zero, are governance, developer finance, and PoW miners wielding too much power. Decred offers those who own the currency additional authority.
Is Decred a Fork of Bitcoin?
No. Former Bitcoin engineers founded Decred. They were dissatisfied with the way the cryptocurrency was run. They examined what made Bitcoin effective and what they might offer by incorporating codified governance from the beginning. The goal was to build a structure that allowed anyone with skin in the game to control and manage the system, define the rules, and steer the project in the right direction.
The outcome is a one-of-a-kind blockchain with a hybrid PoW+ PoS consensus algorithm that adds an extra layer of protection and formalizes governance.
What Makes Decred Different from Bitcoin?
Decred’s hybrid PoW+ PoS approach matches incentives amongst miners and voters. It has also shown to be more costly to attack than pure PoW.
Decred’s built-in codified governance enables it to implement adjustments to its consensus rules without having to resort to hard forks. Only stakeholders with real stakes in the outcome can vote to approve Treasury funding, ensuring the project’s long-term viability.
DCR holders may choose to participate in the PoS system. Particularly, paying 30 percent of the block rewards to the Decred network’s administrators is similar to paying 60 percent of the block rewards to the Decred network’s security miners.
Staking can also provide a good return on investment and give long-term investors a say in choices like changing the consensus guidelines and approving Treasury spending. When users add value to the Decred ecosystem, they have more opportunities because the Decred Treasury may pay for such services.
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