When anybody says cryptocurrency, everyone thinks about Bitcoin. Yes, Bitcoin is the flag bearer of crypto but there are hundreds and hundreds of cryptocurrencies available in the market which has some real applications solving real issues. one such coin is Decred. It was made to solve the flaws of Bitcoin.
Decred is designed to provide a high level of privacy and anonymity to the users and it is working on a wide variety of platforms.
What is a Decred coin?
Before crypto, people ruled by an authoritarian financial system, suddenly the first cryptocurrency came to light, and the name was BITCOIN. Soon Bitcoin took the world by storm, and now it holds the crown of the cryptocurrency revolution in the world, but with time it has suffered from a lot of governance issues, and Decred was solely made to solve these problems.
Decred is a blockchain-based cryptocurrency designed to solve the scalability problem of bitcoin.
In the current economic system, Governments and Banks hold the power; they make the rules, whereas, in Decred, the community holds the power and has authority to control the direction of this project.
We can sum it up in one sentence,
“Decred is community money”.
Decred is a blockchain-based cryptocurrency, which majorly valued the input provided by the community; it supports open governance and ensures continued funding for its development. It uses the hybrid version of the two main consensus algorithms.
And it has three main aspects:-
1. Security – In any financial system, security is the foundation principle and over time Decred has proven that it is more difficult to attack than Bitcoin, solely because of its hybrid protocols.
2. Adaptability – It makes sure that the process of changes in the protocols should be fair and adaptable.
3. Sustainable – Stakeholders which have an actual will in the Decred ecosystem have the power to vote.
What is the history of Decred?
Bitcoin was meant to be working on the principle of decentralization, but soon those people who developed Bitcoin and the people who helped them became frustrated when they saw a centralized development team forcing their opinion upon the community. So, they left Bitcoin and decided to make a company named “company 0” and under its umbrella, they have launched Decred on 8, February 2016.
That team was led by Jake Yocom-Piatt.
The main purpose behind this was to create a truly decentralized cryptocurrency, in which, everyone in the community has the power to own, operate and make the rules in the system, accordingly.
In 2015, this company shows the drawbacks of Bitcoin regarding its governance, funding, and power distribution, and to overcome those challenges Decred was found. It aims to provide more power to the people who hold their coins (DCR) and provide them an alternative to Bitcoin.
How Decred (DCR) works?
Decred uses the mining process to mint new DCR coins like any other cryptocurrencies and for that, they follow two main consensus algorithms:
1. Proof-Of-Work – It involves users providing their computer processing power to the
Blockchain for creating new blocks and in return they’ve got the reward in the form of DCR.
2. Proof-Of-Stake- Users locked some of DCR funds and obtain voting rights as well as rewards. Locked funds called “ticket price”, it is non-transferable until it is unlocked. When a ticket is created, it goes to the ticket pool to be processed. Voting tickets give the holder the right to validate a block when chosen.
How do you invest in Decred?
1. Purchase Decred using fiat money. Various online wallets are providing this service.
2. You can also mine it.
3. By participating in its voting process.
4. By contributing to Decred.
5. By selling goods or services to someone who has Decred.
What is the current price of Decred?
Decred can adapt and overcome challenges and can innovate at a rapid pace. Decred’s security, privacy and scalability, and decentralization attract investors to invest in this project.
It has a maximum supply of 21M just like Bitcoin, and 13M DCR are in circulation, its market cap is around $1.7B, and now each Decred (DCR) coin is worth around $168 according to coinmarketcap at the time of writing. It is listed in the major cryptocurrency exchanges and after some ups and downs, it is gradually climbing. It is now in the #53rd position among the top 100 cryptocurrencies.
Is Decred a good investment?
Team of Decred was working day and to build a decentralized exchange for the Decred ecosystem, the name is DCRDEX, this project is finally available now. It provides the service of swapping between Decred, Bitcoin, and Litecoin and they are working on adding Bitcoin cash and Ethereum coin into their exchange. So as they expanding their infrastructure the chances of their growth will increase. I think it is a good investment considering the long-term goal.