Decred (DCR) Research

Decred (DCR) Research Details

Decred (DCR) Decred

INTRODUCTION

Decred is a hybrid proof-of-work proof-of-stake (PoW/PoS) cryptocurrency with a heavy emphasis on community engagement, open governance, and sustainable development funding. It makes use of its on-chain governance and hybrid consensus method to make sure that a tiny group cannot control the transaction flow or modify Decred without the approval of the community. The project uses a decentralized treasury to support its own growth.

Combining the terms "decentralized" and "credits," the name Decred was developed. Since the word "credit" relates to "money as it once was," the team decided that these words best express the Decred idea.


HISTORY AND FOUNDERS

A suggestion for a cryptocurrency called Memcoin2 was presented in the Bitcointalk forum in April 2013 and it was adopted by Company 0 in 2014. TacoTime, a user, proposed creating a new coin. The users "_ingsoc" and Jake Yocom-Piatt of Bitcointalk also had this viewpoint.

The group came up with a strategy to create a Memcoin2 consensus mechanism that combines Proof-of-Work (PoW) and Proof-of-Stake (PoS). In 2016, Decred, a completely new project, was developed as a result by Company 0. The outcome was a hybridPoW/PoS consensus mechanism that was fair and extremely safe and was created using the btcsuite codebase, a fork of the Bitcoin codebase. Decred is not a fork of Bitcoin, though. It is an autonomous blockchain and a stand-alone cryptocurrency instead.

The co-founders, who are professional Bitcoin developers, are Jake Yocom-Piatt, Dave Collins, David Hill, John Vernaleo, and Josh Rickmar. Before starting their own cryptocurrency project, they engineered btcsuite using golang.


REASON TO BUILD THE PROJECT

Decred is a cryptocurrency that seeks to address some of Bitcoin's serious faults, namely governance and funding. Today, anyone can contribute to Bitcoin, but only a tiny handful of developers decide which improvements get integrated into the bitcoin Core repository, giving this group of programmers probably the most control. Decred has created on-chain governance, a method that gives all stakeholders the opportunity to vote on improvements like technical suggestions and project budget, to tackle this issue.


BASE OF PROJECT

Proof-Of-Work- This consensus technique requires a user to give the processing power of their system in order to manage network transactions and create the blocks that make up the blockchain.

When a new block is created, users are rewarded, which encourages them to mining. This incentive is distributed between Decred's PoS users and the development fund.

Proof-Of-Stake- This consensus technique depends on users "locking" a part of their DCR funds in exchange for a ticket (and eventually a vote) and a reward.

When a DCR is locked, it is regarded as the "Ticket Price" and cannot be exchanged until it is released. A ticket is created and then moved to the ticket pool where it waits to be processed in batches.


DCR VS BTC: SIMILARITIES AND DIFFERENCES

Basis

Decred (DCR)

Bitcoin (BTC)

Purpose

To contribute to the solution of the scalability issue that has troubled Bitcoin

Decentralized digital currency

Founded

2016

2009

Founder

Jake Yocom-Piatt and a number of other contributors

Satoshi Nakamoto (alias)

Market Cap

Over $300 million

Over $300 billion

All-Time High

$247.35 (April 2021)

$69,045 (Nov 2021)

All-Time Low

$0.43 (Dec 2016)

$0.06 (July 2010)

How long did it take to hit $100?

22 months

51 months

Notable Supporters

 

Jeff Currie (Goldman Sachs) Peter Theil (Venture capitalist) Christine Lagarde (IMF) Marc Andreessen (Early internet Pioneer)

Supply Cap

21 million

21 million

Initial Distribution

Mining

Mining

Mining Method

Gominer

GPU

ASIC

Consensus Method

Proof of Work

Proof of Stake

Proof of Work

Network Hash Rate

Up to 422Ph/s

Up to 100Qh/s

Difficulty Increase

Every 2016 blocks

Every 2016 blocks


USE CASE

DCR is recognized as the native currency on the Decred network. DCR can be utilized within the Decred network for value storage and peer-to-peer transactions. To take part in the POS consensus and Decred governance, DCR users can stake their coins in order to acquire tickets, a non-tradable crypto asset on the Decred network. In order to validate blocks created by POW miners and cast votes on Decred governance proposals during voting periods, five tickets are randomly chosen from each block using a Poisson distribution.


MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

16/04/2022

Decred prices surges after the announcement of the upcoming Decred hard fork

+45% Increase

21/10/2018

Binance will list Decred on its platform

+32% Increase


CONCLUSION

Decred is everything that Bitcoin was meant to be but fell short of when it was made available to the public. Although it isn't the most well-known cryptocurrency, it is a good project that many analysts think will be effective for a very long time.

Early adopters of Bitcoin who desired to build something better comprised the Decred founding team. Apparently, they have, and the only thing they require is being widely accepted as a form of payment by retailers. Decred will appear as a major player in the cryptocurrency market once steps are taken in that direction.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.