Decred (DCR) Demystified: A Beginner’s Guide
When you say the word, most often, people think of “bitcoin”, the original digital currency. But, in fact there are 1000s more other cryptocurrencies in existence today. According to this estimate by CryptoCoinCharts, there are 4600+ digital currencies and counting.
In today’s article, we’re focusing on one such altcoin that has massive potential – the Decred coin (DCR). Industry leaders in the crypto-space state Decred as “The Bitcoin the way it should have been.”
Let’s spare a few minutes looking at the mission of Bitcoins – in 2009, Bitcoin was introduced as an alternative to existing fiat currencies. It aimed to be a decentralized currency, free from any central authorities and regulatory agencies. Simply put, it was “A coin for the people and by the people.”
While this idea was revolutionary, sadly bitcoin fell in to the clutches of “oligarchy.” Meaning, a few miners who had the means to invest in expensive mining equipment were able to control the supply and demand, ultimately the price of Bitcoin.
Thus, Bitcoin failed to keep up with its original mission. Enter Decred.
What is Decred (DCR)?
Launched on 8th February, 2016 Decred is a decentralized blockchain platform. The aim of this project is to emerge as an open, self-funded, progressive platform.
Just like several other altcoins, Decred uses the principles of cryptography to secure the transactions on the network and for creating new tokens on the platform. It has a public ledger aka the blockchain that contains the records of all transactions that occurred on the network.
The developers of the Decred platform state that this network is highly simple and straightforward to use, even for amateurs who are new to the world of digital currencies. With just a few clicks, a user can send, receive and even mine the coin. What more, Decred also offers several intuitive command line tools that help to improve the overall customer experience.
Decred is a result of a group of like-minded individuals who dreamt of a true decentralized currency, where no one central person or team can dominate the rest of the community. Thus, Decred was born.
In Decred, everyone has the right to voice their opinion. Both users of the token and miners have the same rights and contribute equally to the growth of the community.
There’s plenty of developments happening behind the scenes at Decred. To understand the true potential of this technology, you need to have a clear idea of the platform and its working. Without further delay, let’s get started.
Overview of Decred (DCR):
According to CoinMarketCap.com, here are the details:
- Network – Decred
- Token – DCR
- Overall Rank – 30
- Current Market Price – $64.48
- Market Cap – $525,584,919
- Trading Volume (24h) – $2,223,730
- Circulating Supply – 8,100,760 DCR
- Total Supply – 21,000,000 DCR
Two Things that you Should Know about Decred
- Decred ensures that users and miners exert the same amount of influence on the community.
One of the biggest drawbacks with Bitcoin is that developers had relatively lesser power. Even if a bright, upcoming developer had a brilliant idea that could revolutionize the system, he/she couldn’t implement it, as he lacked the support of the community.
Not in Decred. This project believes that the biggest strength of any digital currency is its community. So, in Decred any developer can suggest his/her idea, win the support of the community and implement it. Thus, Decred keeps itself updated and flourishing.
- Decred Encourages and Supports Community Members to make the System Better
Since, it’s official launch two years back, Decred has progressed by leaps and bounds. The Decred team was even invited to deliver a talk on Coinbase. This led to a dramatic increase in the prices and today the currency is worth around $56 USD. This is a significant increase compared to the initial launch price of just $1 USD.
Bitcoin may have been the super power of the cryptocurrency world but now there are plenty of other altcoins that are making huge strides, and Decred is one among the top altcoins that has massive potential and community support.
Decred – Demystified
It runs on open-source digital currency principles. It makes use of both PoW (Proof-of-Work) and PoS (Proof-of-Stake) consensus algorithms. It has an in-built governance system that helps to resolve conflicts and address the other day-to-day challenges of a decentralized cryptocurrency.
This unique hybrid consensus protocol adopted by Decred ensures that any user, be it a novice or an experienced person can take part in the Decred project, irrespective of whether they have powerful mining machines or not.
The Decred Team and Community
The project organizer is Jake Yocom Piatt, an expert in open-source software and a pioneer in the cryptocurrency space. He is the one who ensures that the development team and overall Decred community work together and communicate via open communication channels.
Apart from Jake, several other expert developers who are part of the Decred dev team. The most notable of this is Dave Collins, who along with Jake Piatt was one of the core Bitcoin developers.
The developer and user community of Decred regulates the project and plays a vital role in all decision-making processes. The Decred community interacts with the project in two primary channels – formal and informal.
The formal channel is via the blockchain and the informal communications happen via an online community forum.
The original developers of the Decred project are former developers of Bitcoin, who were dissatisfied with how Bitcoin turned out. For more information on the developer team and Decred community, check out their official page.
Decred has an active presence on several forums like Telegram, Slack, reddit and other social media networks. Any one can join these forums and contribute to the community.
Everything you Need to Know about the Decred Coin (DCR)
DCR is the official token aka digital currency of the Decred network. Though it doesn’t have any formal ties with bitcoin, it aims to be a far better currency than BTC. With faster transactions and total decentralization, DCR hopes to become the preferred digital coin for day-to-day operations.
The maximum supply of DCR is limited to 21 million coins. (21, 000, 000)
Just like Bitcoin, Decred is mineable. The mining process involves three major actions:
- Ensure the stability and safety of the network
- Provide bookkeeping services to the blockchain
- And, introduce new tokens (coins) to the network
How to Mine Decred Coins?
Simply put, here mining refers to minting new coins. For mining, you need two components – a software program and upgraded hardware. When it comes to the software, you can either mine solo (meaning you get the whole booty) or connect with a pool of other miners to pool your resources (and share the earnings with the team). And, higher the hardware configuration, the more you can earn from the mining process.
The official miner of Decred is the GoMiner. You can download this software for all leading OS. Apart from this Decred also lists two other unofficial miners – the SGMiner and the CCMiner.
Remember that each mining program has a particular hardware requirement. So, make sure that you read the instructions carefully, to avoid any damages to your system.
Where to Buy Decred Coins?
If you don’t want to spend and invest your time on mining DCR, then you can purchase it from any one of the popular cryptocurrency exchanges that list it. Decred can be exchanged for popular digital currencies like Bitcoin, Doge and several others. It is to be noted that it can be even purchased with fiat currencies.
Decred is listed on the following crypto exchanges – FEX, Poloniex, Bittrex, Bisq, Tux Exchange, BleuTrade, Zhaobi and Cryptopia. You can trade Decred for other cryptocurrencies at Changenow, Godex, Evercoin, ShapeShift, and CoinSwitch. Apart from these, you can purchase Decred with Euro at LiteBit and with AUD at Coinspot.
Where to Store Decred?
Just like all other digital currencies, you can store Decred in a software or hardware-based wallet. The Decrediton wallet is the official wallet for DCR and it’s available for download for MacOS, Windows and Linux operating systems.
If you prefer a third-party wallet, then Exodus is a great option. It’s a secure, multi-cryptocurrency and user-friendly wallet that is available for a wide variety of operating systems.
Price History of Decred
Decred didn’t have a great start in the beginning. In fact, the price of DCR remained flat since the time of launch up to March 2017. During March of last year, the value of the coin increased to $16 USD and since then, the altcoin has seen a steady growth. It reached an all-time high of around $121.70 at the start of this year, when all altcoins saw a major spike in their prices.
Roadmap – Decred’s Plans for the Future
The Decred developer community has charted a detailed roadmap for the years ahead. This includes several elements like – implementing a lightning network, decentralized control of development funds, a stakeholder-monitored DAO, advancements to the security of the network and much more.
Moreover, the PoS voting system in place is sure to have a positive impact on the decisions taken by the community. So, it can be safely said that the Decred project and the DCR coins are headed on the right track.
Image via Google
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