Decred: the user-governed cryptocurrency

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The universe of cryptocurrencies is wide, and the appearance of new digital coins is something that is becoming familiar. Based on the blockchain technology, each altcoin has its own features. This makes them unique and thus the diversification of cryptographic applications grows to the benefit of the user. This time we will talk about Decred (DCR).

Decred is a digital currency with a strong emphasis on community input, open governance and sustainable financing and development. It uses a hybrid “work test” and “participation test” system to ensure that a small group cannot master the flow of transactions or make changes to Decred without the input of the community. Its monetary unit is called ‘decred’ (DCR). To ensure currency integrity and prevent people from making fraudulent transactions or creating their own currencies, Decred uses a transaction logging method in its own block chain.

Decred uses a hybrid consensus system to strike a balance between miners and users to create a more robust currency. Typically, miners who operate the infrastructure exert considerable influence while users have relatively little influence. Decred allows users to participate directly in the project without the need for expensive mining equipment, which is a way to encourage the decentralization and democratization of the currency and its development.

On the other hand and as one of its most notable features, Decred fosters a multistakeholder development ecosystem that welcomes and empowers participants who want to improve existing features or build new tools for the digital currency. Anyone can submit feature proposals. The adoption of proposals is carried out by its own developers, and its financing comes directly from the Decred blockchain, as for each mined block a 10% is allocated to project financing.

Decred is building a layered governance organization that extends beyond miners and users to present and represent people from within and outside the community. Decentralization is a process, and a decentralized ledger is only the first step in that process.

decred-symbol-primary-on-blue4x

Below we review the most important aspects of Decred:

  • Novel hybridized proof-of-work/proof-of-stake (PoW/PoS) consensus system
  • Internal voting system for the addition of new features and hard or soft fork selection
  • Immutable transaction hashes (“transaction IDs”) by separating transaction signatures from the rest of the transaction data
  • Compatibility with Bitcoin transaction scripting system
  • Modularized, easy-to-use Golang btcsuite codebase
  • Approximately 21 million coins
  • Self-funded development via block subsidy

Decred has become one of the most interesting current projects, both for the current characteristics and those that will be implemented in the near future. Without a doubt, we will follow it up closely.

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