As cryptocurrency continues to become popular, people are learning about the need to take control of the Blockchain. Well, there are benefits of having a cryptocurrency that does not have a central authority, but there are cons for that as well.
Decred was launched to fix the issues that many enthusiasts face while using bitcoin or Ethereum, which is providing a secure currency that has “decentralized governance.”
What is Decred?
Decred is a secure digital currency that seeks to ‘fix the issues in bitcoin.” Founded in 2016 by the Decred Organization, this cryptocurrency has an innovative consensus platform that provides a voting model to help stakeholders make the rules that suit their blockchain. In short, it enhances the autonomy in the crypto world.
In their press release published by Coin Desk in December 2015, the Chicago-based developers say they took a case study of Satoshi’s initial bitcoin client and tried to make it work for unsupported operating systems.
They named their project ‘BTCSuite.’ The company aimed at fixing all issues associated with the development of the bitcoin platform and further making it possible for users to agree on how they can remodel Blockchain platforms.
The inspiration behind Decred
Decred began as an ‘airdrop’ project in which users would contribute ideas to shape the future of the coin, to encourage users to register and join the network. The founders believed that they could create a beneficial symbiotic relationship to keep the coin updated.
This inspired the creation of the Decred coin. While defining Decred, Jacob Yokom-Piatt, the chief executive at Company O, who funded the development of btcsuite, said that it’s a coin that gives power back to the users.
He added that btcsuite provides a consensus rule that makes funds available for the creation and improvement of software and platforms. He noted that the coin’s rules would free “current and future developers from obligations to outside parties.”
So, what benefits does Decred (DCR) seek to bring into the blockchain?
For instance, to make any change in the Bitcoin platform, at least 51 percent of the miners must agree on the change. While it harnesses security, it also makes it difficult to keep the platform updated as the miners don’t know where other users live or who they are. This creates the need to have a governance system, which can be responsible for such issues. Decred aims to solve this problem.
This digital coin may not be as popular as Ethereum or Ripple, but it could outrank them on performance and features. The fact that it was founded after Bitcoin and Ethereum makes it more heuristic. Decred looked at faults that Bitcoin and Ethereum faced and built in areas to create a superior coin, in regards to its blockchain technology, company principals, and its general technology.
The Decred platform adheres to a basic democratic rule. It’s possible to make changes to the platform as long as the majority of members agree.
Fortunately, this doesn’t in any way open up the systems for manipulation. Primarily, the coin is built on the Blockchain technology before it is anchored on public proposals. The blockchain system provides a secure ‘technology of things.’
Secure and fair consensus system
All the ideas and transactions you contribute to the platform are secure and transparent. Decred provides a creative proof-of-work (PoW) as well as a Proof-of-Stake (PoS) consensus system for voting. Thus, the only ideas that get incorporated into the development and improvement of the platform are those that earn the highest number of votes.
Again, the members take part in the ratification and the improvement of the protocol. This requires both staking and mining. Anyone is free to bring up the proposals for improvement.
The Decred Assembly vets these proposals. The Assembly is comprised of senior users who have elected. Projects that win receive funding. To top it all off, users who take part in the improvement of the platform receive rewards from the company. The system makes the payments automatically to create efficiency and transparency.
Free and open-source
One of the most vital ways to trust a coin is first to check if its software code is open-source. An open sourced code makes it free to test and assess its strengths and weaknesses. Decred affirms that all the software developed in its name shall remain free and the code shall always be open for public scrutiny.
Lighting Network and quick transactions
DCR is also incorporating the Lightning Network. This light provides an off-the-Blockchain payment method to increase the speed of payments.
The network makes such payments to be nearly instant.The Lighting Network payment method involves two users who want to send money to a third party. Thus, they form a joint account in which they recharge an equal amount of money. When they want to make a transaction together, they send each other promissory notes which changes the balance available in the box.
For instance, if Kim and Tim open a Lighting Network box with 50 DCR, each will need to contribute 25 DCR. When Kim wants to send 5 DCR to Tim, she will send a note to Kim showing the new updates to their LN box. Thus, Kim will have 20 DCR (5 less), while Time will have 30 (5 more). This works as on as the limits are the same as the amount in the box.
Strengths of Decred
The power of any cryptocurrency lies in its efficiency, membership numbers, and commitment. Decred is a community-driven digital currency that seeks to address decentralization in a way that doesn’t hurt the platform but grows the community.
Thus, members are involved in updating, improving and maintaining the network. As a result, its greatest strength lies in the membership. The developers are esteemed and experienced as most of them have previously worked with btcSuite.
The open source Go-code nature of the BTEC suite project offers inspiration to DCR. Thus, as far as the programming is concerned, there is a reason to trust the digital currency.
Weakness of Decred
The main source of strength of the Decred (DCR) coin is its community base. It’s the platform users who are mainly tasked to bring forward ideas, up-votes and maintenance tips. The Organization then uses these tips to grow the coin.
Thus, the greatest weakness for DCR would lie with this same community. If the community fails to plan and implement contemporary developments, it might end up being overtaken by cryptocurrencies that do.
Decred is a game changer in the world of cryptocurrencies. It offers a decentralized administered platform on which members, miners, and stackers can bring changes through a transparent consensus method.
The nature of DCR is such that it’s based on suggestions from members and the inspiration to learn from the challenges of bitcoin. It therefore, has a great potential to receive traction among crypto users.