What is Decred (DCR)?

What is Decred (DCR)?

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Decred (DCR) is a cryptocurrency based on the blockchain that was introduced in February 2016. The Decred coin and protocol were developed to enable open governance, community participation, and long-term financing plans.

Decred was designed in such a manner that the community must approve all transactions and protocol updates.

Therefore, there is no method for large Decred holders to control the protocol's functioning. Decred was significantly inspired by Bitcoin and included many of the original cryptocurrency's fundamental ideas.

 

Component Decred (DCR)
Technologies Politeia, Hybrid consensus, Lightning network
Market Capitalization $959.5 Million+
Open-Source Yes
Consensus Mechanism Hybrid PoW/PoS
Smart Contracts No
Founders/Authors Company 0 (Jake Yocom-Piatt is the founder and CEO)
Launch Date 2016
Circulating Supply of Coins 13,649,212 DCR
Maximum Coin Supply 21,000,000 DCR
Mining-based Coin? Yes
Is Decred a Stablecoin? No
Does Decred have a burn rate? No
Does Decred have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of Decred

Many of the developers on Decred (DCR) were also involved in the creation of Bitcoin, the ancestor of all cryptocurrencies.

In April 2013, a proposal for a cryptocurrency called Memcoin2 was posted on the Bitcointalk forum. A user going by the handle “tacotime” proposed the creation of a new coin.

Two other forum members endorsed the proposal. “_ingsoc” and Jake Yocom-Piatt were responsible for this.

The three people devised a strategy to create a Memcoin2 consensus mechanism that is a combination of Proof-of-Work (PoW) and Proof-of-Stake (PoS).

This resulted in the birth of a new initiative – Decred. As a result, an egalitarian, highly secure, hybrid PoW/PoS consensus was established using the BTCsuite software, a variant of the Bitcoin codebase.

Decred is a self-contained blockchain and cryptocurrency, not a fork of Bitcoin. In February 2014, actual development on the Decred project started. The mainnet was released in February 2016.

 

What makes Decred unique?

Decred, one of the first cryptocurrencies, changed Bitcoin's code to empower and reward token holders who submitted modifications to the network. Decred experimented with and proposed an innovative method for including users in its governance process in this manner.

The Decred team designed Decred as a hybrid consensus mechanism. On Decred, PoW miners confirm transactions while PoS stakers can propose changes and vote on them. 

Decred ties all of this together through a proposal system called Politeia, in which stakeholders vote on project financing, new projects, and numerous other modifications to the protocol's code.

Decred features an innovative and robust Lightning Network that was constructed on the blockchain of Bitcoin. The Lightning Network is a layer that features two scaling solutions, and it was established in the aftermath of SegWit's deployment in 2017.

With the advent of the Lightning Network, developers can now create and deploy decentralized apps (DApps) using the Bitcoin blockchain's security. In comparison to the layer one blockchain, it had a greater throughput and faster transaction confirmation times.

Payment channels such as the Decred exchange, DCR DEX, are some of the most notable use cases for the Lightning Network.

Another unique aspect of Decred is its Politia governance system. Politia was developed by Decred to foster an open atmosphere for new ideas and establish a voting mechanism for their acceptance and implementation.

Users interested in proposing prospective improvements or policy changes may do so using the Politeia public proposal online platform, which enables the submission, tracking, and debate of proposed modifications to the Decred governance model.

 

What are the main uses for Decred?

DCR is critical to the upkeep and operation of the Decred network, and consensus players are paid in DCR for devoting resources to network security.

Thus, although DCR may be transferred, received, and retained, it can also be staked to vote on future project changes and to participate in the consensus processes on the network.

 

What is the future potential for Decred?

In the short term, Decred's price prognosis, like that of many other cryptocurrencies, is quite volatile.

Decred's price is projected to continue rising in the medium- to long term. While Decred has not yet garnered widespread notice, several experts remain optimistic about the potential influence of their method.

 

Price analysis on Decred

Decred was initially launched in 2016, and its price analysis over the past 5 years are as follows:

 

  2017 2018 2019 2020 2021 to date
DCR Price High $99.72 $122.74 $35.07 $40.78 $246.9
DCR Price Low $0.46 $14.55 $13.04 $9.28 $41.11
Market Cap $610.9M $834.5M $351M $506.9M $3.17B

 

Price prediction on Decred

Based on the current price movement, crypto specialists anticipate long-term growth; the price forecast for 2026 is $803.74. With a five-year investment, revenue is predicted to increase by around +500.6%.

 

Where can you buy Decred?

Decred (DCR) can be bought, sold, and traded on the following crypto exchange trading platforms:

  1. BlockFi
  2. Binance

 

1. BlockFi: BlockFi is a one-of-a-kind cryptocurrency exchange that allows users to do more than just buy and sell digital assets; they have the option to borrow crypto, using their holdings as collateral. In addition, users can also earn interest on crypto holdings in addition to being able to apply for a Bitcoin Rewards Credit Card.

 

PROS CONS
The platform charges low fees and there are no monthly account fees Limited funding options
Users can earn interest, trade digital assets, and access crypto loans via the BlockFi app The platform is not suited to complete beginners
The US-regulated exchange Gemini insures the native wallet DEX that do not have KYC procedures cannot access BlockFi services
There are no withdrawal minimums applied  

 

2. Binance: Binance was founded in 2017 and has grown to become one of the world's biggest cryptocurrency exchanges. The exchange allows trading in major digital coins and altcoins on a spot, margin, and derivatives basis. Additionally, the platform offers crypto loans and a built-in learning school.

 

PROS CONS
There is a vast range of digital coins that can be traded There are high annual interest rates on crypto loans
There are more than 900 spot trading pairs There is a small selection of token launch staking projects available
There is a comprehensive training academy offered There is no telephonic customer support
There is peer-to-peer trading in more than 50 fiat currencies  
The exchange supports crypto staking and token launches  
Binance has a high level of trustworthiness  

 

What is Decred’s largest Competitor?

Cardano is the largest competitor of Decred.

Decred was founded and developed by former Bitcoin engineers who saw that Bitcoin's absence of a governance structure might be problematic in the future.

Decred quickly became the industry leader in governance as they were confirmed correct when a hard fork occurred in the Bitcoin blockchain in 2017 and 2018. Decred's governance structure, a first in the blockchain industry, enables token holders to offer new ideas for the project's improvement.

Following the submission of a proposal, token holders can purchase tickets that enable them to vote on whether the ideas are financed, as well as pick the technical or marketing team that will execute the job from a pool of candidates.

Charles Hoskinson is the inventor of Cardano. He co-founded Ethereum with Vitalik Buterin and was essential in its early development. Hoskinson identified flaws in Ethereum and built Cardano to address them.

Cardano's Haskell programming language is more secure and stable than Ethereum's Solidity. Additionally, all technical aspects of Cardano's platform must undergo a rigorous academic peer review process, guaranteeing the platform's basis is sound.

While the smart contract industry is rife with dubious platforms, Cardano readily stands out as a serious candidate to become the sector's leader in the next years.

 

What is the Staking and Mining Process involved with Decred?

In return for certifying the Decred network, Decred mining participants get incentives in the blockchain's native DCR currency.

A miner earns minted DCR tokens each time a block of valid transactions is added to the Decred network.

Unlike Bitcoin proof-of-work miners, who earn 100% of block rewards, Decred mining payments are distributed evenly among network members through a bespoke allocation:

  • Validators (miners in the PoW) – 60%
  • Stakeholders – 30% (PoS)
  • Treasury denominated in denominated currency – 10%

 

This reward distribution serves to guarantee that Decred PoW miners stay motivated while also establishing a clear contrast between Decred mining and the other two categories, each of which performs critical services in the network.

The Proof-of-Stake component of Decred is primarily concerned with network governance.

After staking DCR tokens, you may engage in Decred governance by validating blocks, creating, and enforcing blockchain consensus rules, voting on future development, and determining how the Decred Treasury will finance projects.

Decred PoS employs a novel architecture to manage the network governance process, rewarding stakeholders for their participation. Each DCR coin staked as part of the Decred governance system is “time-locked” and represents an irrevocable “ticket” or vote for the Decred network.

Ticket holders vote on-chain to verify PoW miners' proposed blocks and to engage in open rule change proposals — which are often yes or no questions.

Stakers can vote once per every ticket that they hold. Once a vote has been made, every ticket in the block will subsequently generate a return for its owner. This will include the original ticket price plus a bonus. On average, it takes 28 days for a ticket to be voted, but, in extreme situations, it can take up to 142 days.

The DCR-denominated ticket price varies dynamically every 144 blocks — about every 12 hours. Stakeholders may get current ticket pricing through their Decred wallets or the network's block explorer.

If Decred users do not have enough DCR coins to buy a whole ticket, they can also divide it. The Decred Politeia proposal system was established in 2018 and served as the backbone of the Decred network's governance.

Politeia streamlines the process of submitting, monitoring, and debating prospective improvements or policy changes. Politeia is also utilized to direct the expenditures and policies of the Decred Treasury.

Under the existing paradigm, a stakeholder submits a proposal, debate occurs, and the ultimate decision is reached via a week-long ticket voting.

 

What can Decred smart contracts do?

Decred (DCR) is compatible with smart contracts on the Lightning Network, which was created to facilitate quick Bitcoin microtransactions.

Unlike some other blockchains, the purpose of Decred's smart contracts is not to allow massive, immutable contracts but to enable specific new features and to give an easy-to-use and safe higher-level language for contract generation.

 

Is Decred a Good Investment?

Today, there are over 16,000 cryptocurrencies, and most of them are attempting to build on the original technology pioneered by Bitcoin, Ethereum, Dogecoin, and Litecoin, among others.

Most of these cryptocurrencies are built on the notion of becoming what Bitcoin cannot. Decred, for its part, has found little success so far, ranking in the top 100 cryptocurrencies by market capitalization.

This distinguishes Decred from the tens of thousands of other cryptocurrencies available. Decred is now a type of hidden treasure in the cryptocurrency industry.

As one of the pioneering projects using the PoW/PoS hybrid strategy, it is undoubtedly one of the most intriguing crypto projects now in existence.

 

What is the supply and distribution of Decred?

Decred intends to release 21,000,000 tokens in total. Approximately 60% of these tokens are now in circulation.

8% of the 21 million tokens were mined before the protocol's introduction. Half of these pre-mined coins were issued at the inaugural airdrop, while the other half was released to pay expenditures incurred by Company 0 throughout the protocol's development.

The inaugural airdrop was intended to compensate interested parties by providing them with complimentary Decred (DCR) tokens. Tokens were handed to people that registered in advance for the airdrop event.

 

Is Decred a viable Alternative Coin?

Yes, Decred is a good altcoin.

  • Hacking – To date, the Decred blockchain has not been compromised by hackers.
  • Security – Decred uses a hybrid PoS and PoW, which means that the blockchain is incredibly secure.
  • Technology – Decred has improved on the original technology of Bitcoin by employing technologies such as Politeia, Hybrid consensus, Lightning network, and more.
  • Potential Investment – Decred is a promising project that has attracted the attention of several investors.

 

What are the differences between Decred and Bitcoin?

The primary distinction between Bitcoin and Decred is that Decred incorporates governance via proposal voting. As a result, the Decred community likes to claim that it is fork-proof. Bitcoin's hash rate has increased dramatically, reaching new all-time highs during the bear market.

On the other hand, Decred has seen sluggish growth and periods of gradual decrease or stable hashpower during the same period that Bitcoin hashpower has continued to reach new highs.

In addition, other differences between Decred and Bitcoin are as follows:

  • Decred was developed to provide a solution to scalability issues, while Bitcoin was created to be a decentralized digital currency.
  • Bitcoin can only be mined using ASIC equipment, while Decred is ASIC-resistant.

 

  Bitcoin Decred
Price change 20/21 +400% +20%
Market Cap $800 Billion+ $959.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #1 – Original Crypto #97

 

What are the differences between Decred and Ethereum?

Ethereum is an open-source platform that is used to support the world's second-biggest cryptocurrency, allowing the design and activation of smart contracts and decentralized applications (DApps) on its own blockchain.

Decred aims to provide a more equitable power distribution between miners and users by enabling users who do not own a miner to participate directly in network consensus and serve as a check on miners.

 

  Ethereum Decred
Price change 20/21 +880% +20%
Market Cap $460 Billion+ $959.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #2 #97

 

What are the differences between Decred and Dogecoin?

Dogecoin (DOGE) was created as a joke in the United States in 2013 but soon developed a big following. It quickly gained popularity as a cryptocurrency (DOGE) for tipping content providers on social media sites like Reddit, Telegram, and others.

Decred employs a novel hybrid Proof-of-Work/Proof-of-Stake system in which miners AND consumers share power. This enables all system members to contribute constructively and harmoniously. The most significant feature that results from this is voting.

 

  Dogecoin Decred
Price change 20/21 +7,300% +20%
Market Cap $22 Billion+ $959.5 Million+
Past Hacks None None
Popularity High Very Low
Altcoin Rank #12 #97

 

What are the differences between Decred and NEO?

Decred is typically more useful than Neo and is likely to keep that advantage far into the future. In comparison to NEO, DCR coins are not as cost-effective when values are transferred.

In terms of inflation, Decred is comparable to or lower than Neo. Decred and Neo both support staking, with DCR offering a 4% annual percentage yield and NEO offering a 3% annual percentage yield.

 

  NEO Decred
Price change 20/21 +160% +20%
Market Cap $1.70 Billion+ $959.5 Million+
Past Hacks None None
Popularity Medium Very Low
Altcoin Rank #69 #97

 

What are the differences between Decred and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Decred, on the other hand, is fungible, which means that one DCR has the same value and characteristics as another DCR.

 

What are the differences between Decred and Solana?

SOL coins are about 50 times more affordable to ship than DCR coins. Because Solana is capable of 50,000 transactions per second, transactions are confirmed quicker (TPS).

Solana is a popular and massive blockchain that is in direct rivalry with Ethereum, Cardano, Polkadot, and other programmable blockchains, while Decred tries to improve on the original technology of Bitcoin.

 

  Solana Decred
Price change 20/21 +9,300% +20%
Market Cap $54 Billion+ $959.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #5 #97

 

What are the differences between Decred and Cardano?

Cardano is typically more useful than Decred and is likely to keep that advantage far into the future. Furthermore, Cardano is increasingly popular with users.

In addition, Cardano shows better price performance in the past year, and its market capitalization is 41 times that of Decreds, making it a much stronger contender.

 

  Cardano Decred
Price change 20/21 +2,100% +20%
Market Cap $42 Billion+ $959.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #7 #97

 

Which hardware wallet is the best option for Decred?

A hardware wallet is a kind of cryptocurrency wallet in which the user's private keys are stored on a physically protected device.

The best hardware options for keeping DCR tokens are:

1. Ledger Nano S: The Ledger secures Decred funds in several ways against hackers and other undesirable actors. Because the device needs both digital and physical inputs to confirm transactions, remote theft of money from a Ledger is not possible.

All data is encrypted, PIN secured, and is backed up daily, which means that users need not fear losing their private keys or their funds. In addition, users also receive anti-malware scans to guarantee the device is secure.

 

Which third-party wallets support DCR?

  1. Exodus
  2. Cobo
  3. Atomic Wallet
  4. Coinomi

 

1. Exodus: The Exodus cryptocurrency wallet was launched in July 2016 and has since been a popular alternative for many crypto aficionados. The reason for this is due to its attractive user interface and simplicity of usage.

Additionally, it is constantly adding support for new currencies, and the development staff is quite active.

 

2. Cobo: Cobo Wallet is not only a multi-coin wallet that uses PIN codes for added security, but it is also one of the most popular options for staking. Support was added for DCR from 2018, and the wallet is compatible with several other PoS coins, allowing users to stake multiple coins from a single wallet.

 

3. Atomic Wallet: The Atomic wallet is a cross-platform cryptocurrency wallet that supports many cryptocurrencies, including Decred. Additionally, the Atomic wallet has incorporated services like Changelly and Shapeshift into its wallet solutions.

 

4. Coinomi: Coinomi has grown in popularity among mobile users since its inception in 2014 as one of the most popular multi-coin wallets. The Coinomi desktop client is also available for Linux, macOS, and Windows in addition to iOS and Android.

 

Which core wallet is the best for Decred?
  1. Decred Command-Line Wallet
  2. Decrediton 
  3. DCR Web Wallet
  4. DCR Mobile Wallet

 

1. Decred Command-Line Wallet: The Decred Command Line Wallet is an open-source Decred wallet that may not be as user-friendly as the Decrediton wallet, but it is still possible to set up the wallet using some helpful installation tutorials.

Decred Command-Line wallet (CLI) has the benefit of allowing you to solo stake your DCR while also saving you money on the fees that are normally levied by staking pools.

 

2. Decrediton: The official Decred GUI wallet is the Decrediton desktop wallet. The Decrediton wallet has been around since Decred's beginnings and is completely open-source. There have been several improvements throughout the years that have made Decred's UI even more user-friendly.

 

3. DCR Web Wallet: This browser-based wallet for Decred users is called the Decred Web Wallet. To save, send and receive DCR, you may use the Decred Web Wallet with any web browser.

 

4. DCR Mobile Wallet: Decred Wallet is a smartphone application that was created specifically for the Decred cryptocurrency. The wallet was created by the Raedah group, which is a member of the official Decred development team.