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Decred is a cryptocurrency similar to bitcoin in nature, but which uses a hybrid Proof-of-Stake and Proof-of-Work system. Some people say that it is bitcoin as it should have been when it was created. Its unit of currency or token is known as a ‘decred’ (DCR). With this coin, there has to be an input from the entire community, a mechanism that ensures no one individual person or group has complete control of the flow of transactions. It was developed by a group of former bitcoin network members who felt that miners were taking undue advantage of others and killing the idea of decentralization. Decred aimed at solving this problem by creating a network that was of the people, by the people, and for the people.
What is Decred?
So, what is this marvelous coin that will render mining firms useless? Is it coming to take over the mighty Bitcoin? While Decred is not yet about to reach the heights of its predecessor, it is gaining ground quickly. Since its launch on February 8, 2016, it has grown a tremendous 6,000%.
Unlike bitcoin that only utilizes PoW to confirm and add transactions or blocks on to its network or blockchain, decred uses a hybrid system of PoS and PoW. It has a community-based system ingrained into its blockchain giving freedom to all users and participants. It uses its own unique cryptography to control the creation of new coins and to secure transactions on its blockchain.
Decred was launched on February 8, 2016, but the project began a little earlier, around April 2013. The people behind the development of this coin remain anonymous. They are only loose connections to some pseudonymous names like Tacotime and ingsoc. It has a maximum supply of 21 million coins. Its adjusts after every 21.33 days or about 6,144 blocks. The coins reduce by a factor of 100/101, with the block starting again at about 31.19 coins.
Decred is unique in that it tries to bring back the original idea of decentralization that bitcoin operated on. Bitcoin’s PoW encouraged individuals around the world where electricity costs are low to design machines that gave them an undue advantage in the mining process. These mining firms soon eroded the decentralization idea as only a few people had control of the network. Decred wants to bring back this fairness by allowing users to have fair participation irrespective of their hardware.
Decred Key Features
- Hybrid consensus system.
- Allows users to participate directly (community-based governance).
- Does not require specialized mining hardware.
- Free and open source project.
- It is a self-funding project.
- Supports free speech.
- Universal fungibility.
Decred has adopted a different method of mining from that of bitcoin. It has a hybrid system of validating transactions that are PoW and PoS. In the PoW mechanism, you get rewarded for solving a cryptographic problem or puzzle that requires advanced computational power. The more your computational power, the more likely you are to get rewarded. This method has a disadvantage though as those with more resources may take unfair control of the network. In the PoS mechanism, you invest a stake of your coins and get rewarded based on what you invest. The more coins you stake away for a given period of time, the more your reward. This system does not require you to have specialized computers or hardware. This, however, may be problematic since there those in the system that already hold a substantial amount of coins.
Developers, thus, came up with a hybrid of both PoS and PoW of mining decred. In this system, stakeholders have to vote to verify or validate the blocks miners add on to the blockchain, creating a balance between the two. Once a block is created, the system randomly selects 5 tickets from the stakes who vote to validate that particular block. If the block gets 3 or more votes, it is added on to the public ledger. Every transaction is validated at least two times to prevent possible cases of stakeholders colluding. There are always about 40,960 active tickets to select from, making it the possibility of selecting tickets from the same group very unlikely.
DCR is the token, coin or currency used in the Decred network. It is also called “Decree” coined from decentralized credit. It is a multiplatform currency that is supported by Windows, Linus, and Mac. You can use the coin to pay for online transactions. It is also supported by various web, desktop, mobile and hardware wallets as well as various exchanges.
It has a maximum supply of 21 million coins. Its adjusts after every 21.33 days or about 6,144 blocks. The coins reduce by a factor of 100/101, with the block starting again at about 31.19 coins. Currently, the circulating supply is 6,811,085 DCR with the total supply being 7,231,085 DCR.
Decred (DCR) Price Growth
At its launch, one DCR was just about $1.2. like all digital currencies, Decred cryptocurrency price is extremely volatile. With all the hype, coupled with the promises of bringing back open governance and decentralization, the coin has seen a 6000% growth. It is currently retailing at $75.49, with a market cap of $514,153,851.
In January 2018, it once hit an all-time high of $121.7, with a market cap of $796,890,591. If you had purchased Decred worth $1000 dollars at its launch, you would now have about $60,000. Though its price seems to have stabilized, this coin seems to have hopeful prospects. Its features such as cross-platform wallets, cross-chain atomic swaps and smart contracts couple with the community-governed system may propel this currency to greater heights.
How to Buy Decred
If you want to buy Decred coin, here are a few simple steps that you can follow.
- You need to first set up a Decred wallet. Download the web wallet from the official Decred website.
- The second step is to find a suitable exchange where you will buy the coins. Remember, you cannot use fiat currency to buy Decred, so you have to buy another coin such as Bitcoin or Ether and exchange it for Decred.
- Once you fund your preferred exchange with either Bitcoin or Ether, you can then find BTC/DCR or ETH/DCR pairs and place the trade.
- Once you have your coins in the exchange, don’t leave them there, transfer them to your preferred wallet. You will simply copy your wallet address and paste it on the exchange when prompted to do so, then simply click on send.
- The coins will be sent to your wallet. Make sure you confirm the transaction to ensure that the coins are moved successfully. They are safer in your wallet than in the exchange. Preferably, you should use a hardware wallet as it is more secure.
- You can also get Decred by having someone pay you using the coins directly to your wallet. A few exchanges like Changelly and LiteBit accept fiat currency for Decred.
As noted above, it is safer to store your coins in a wallet rather than living them in an exchange. Here are a few wallets you may want to consider.
This is a Graphical User Interface (GUI) web wallet for storing Decred. It is a hot storage as it is connected to the internet. With this wallet, you not only store your coins, but you can also buy PoS stakes for voting in the Decred community. This wallet is among the best options for storing Decred since it designed specifically for that purpose. Here is how to set up this wallet
- Download the software from the decred website.
- Install the software by simply double-clicking on it.
- The wallet is now ready for use. you will have a shortcut on your desktop to access your wallet.
CLI (Command Line Interface) Wallet
This is a web wallet and by extension a hot storage. It uses code instead of clicks.
- Download the required files first.
- Once you have the files, extract them into a folder. These files are dcrctl, dcrwallet and dcrcd.
- Ensure your computer is connected to the internet to download the blockchain. Make sure to download all of it.
- Follow prompts to run the wallet and you are set to receive your coins.
Decred Web Wallet
As its name suggests, this is a webwallet that you can store your decred coins. With this wallet, you can receive, store and send your coins to other wallets. You can also monitor your transaction history. You can create more than one account on one browser, and it has a feature where you can share the wallet.
Creating this wallet is super easy
- Go to the decred website
- Click get started. You are now ready to receive and send coins.
Best Decred Exchanges
There are various exchanges that you can buy Decred from. We’ve highlighted a few of these.
This is a cryptocurrency exchange based in the United States (US). It began in December 2014 and has since grown as a reputable exchange. It was developed by Bill Shihara, Richie Lei, Ryan Hentz and Rami Kawach.
Here are some of its pros:
- Provides the following pairs for DCR; DCR/BTC, DCR/ETH
- Supports multiple altcoins about 250.
- Supports fiat currencies.
- Does not support leverage and margin trading.
- Trading fees a bit high.
- Complaints of accounts being disabled.
This exchange was developed in 2014 by Adam Clark and Rob Dawson. It boasts of being a one-stop shop for all crypto trading and information. Here are some of its advantages and disadvantages
- Supports local fiat currency in New Zealand.
- Supports over 400 cryptos.
- Trading pains include BTC/DCR, LTC/DCR, USD/DCR.
- Does not support margin trading.
This is a crypto exchange based in the US. Supports major coins such as bitcoin and ether. You will find trading pairs of BTC/DCR and ETH/DCR. You simply exchange your BTC or ETH for your preferred DCR.
- Keeps the majority of deposits offline for safety.
- No fractional reserves.
- Poor customer support.
- Complaints of coins being held up.
- Displaying incorrect customer balances.
To sum up…
As you see Decred does its best to create incentives for everyone to make Decred better all the time. It tries to somehow make the impact from the miners and the users equal.
Now, after learning about various aspects of Decred you can decide yourself whether it really is the better version of Bitcoin or not. We hope this article was helpful for you. Make sure to check out our website regularly for more comprehensive guides, reviews, analysis, and articles. Thank you for reading and we look forward to seeing you next time.
We advise you to do your research before making a decision to invest in this coin. Even then, try and start with small amounts.