Decred (DCR) –Many had labeled Bitcoin a failure after its downsides became noticeable. What could have been the fate of the world’s financial system if Bitcoin had made such moves at the time? It would be a disservice to consider Bitcoin a bad omen. Around the period of its launch, there was massive recession within the period particularly the economic crisis of 2009.
This school of thought should bury their face in shame for such perception. Bitcoin wasn’t a failure but an eye-opener to all. Its benefits is still reaped till this day with over 150 cryptographic currencies coming to life mainly because they wanted to change the system and partly out of their wish to changes problems found in Bitcoin.
We have another Problem-Solver
Decred is joining the fray of cryptocurrencies that want to solve existing problems in Bitcoin. Many thought it a scam but for two years of its existence, Decred had been efficient in its transactions.
It however harnessed part of Bitcoin’s mechanisms – consensus algorithm. Decred was developed as an open-source platform with the intention of mining its currency there. It was developed using the Golang programming language.
There might be issues on Decred’s Consensus Algorithm
It is public knowledge that Decred (DCR) is using Bitcoin’s Proof-of-Work (PoW) consensus algorithm. It also uses the Proof-of-Stake (PoS) algorithm. There’s seems to be usurp in the setting. Hardly can a blockchain use two consensus mechanisms at a go. Decred however defied this and combine the PoW and PoS consensus mechanisms.
The fuse of these two culminated in a new consensus mechanism – Proof-of-Authority (PoA). The Proof-of-Authority algorithm is a brainchild of the Proof-of-Activity consensus mechanism. That feeling you get when shocked by electricity is replicated here – the fusion of these algorithms pose problems for DCR.
Analysts have lent their voice to this. Their argument specifies that as a component of Proof-of-Activity, Decred’s Proof-of-Authority consensus algorithm might just hit the rocks. The given reason was the undermining of PoS and PoW algorithms by Proof-of-Activity.
Governance at its Best
Decred is what I might just describe as a democratic blockchain. Its formation using open-source technology especially haven come at a time when the blockchain technology is being cast in bad light as a result of centralization of decision-making.
During its hay days (moments before its launch), Decred was saddled with ponders of scaling through many currencies before it hardly got much funding during the Initial Coin Offering (ICO). Bitcoin for instance didn’t receive wide acceptance during its early days.
This was the basis at the time – funding was limited. The reason for this was investors’ purported belief that such projects were not independent. To position itself in the right track that’ll attract investors, Decred’s team went on to declare it a self-governing platform without any attachments to third-parties.
Perhaps that was the reason why it had massive success within the launch period. Over the years of its existence, Decred had indeed measured up to its purported self-governance. It turned heads when it attained on-chain-user-activated consensus vote. It followed this up by initiating a consensus voting model that allows participants makes decisions that are not influenced by third-parties.
Decred vs Bitcoin – the Former Wins the Race
All seemed to have been going well for Bitcoin until a few miners got more tools for its mining. What followed next was a disaster – these miners literally overthrew the system and called the shots there. They had their fingers in every pie – determining who stays in the system and being decision-makers.
Users became devastated with the scenario and many opted to leave. Six founders of Bitcoin withdrew from the platform during this time and floated Btcsuite – a tool comprising mining capabilities and full nodes. Btcsuite was written using the Golang programming language and it was meant to deploy more software for Bitcoin. The idea was a great one because we now have many platforms coming up.
It is a paradox that a platform such as Bitcoin that literally vowed to bring decentralization was found wanting when it engaged in centralized governance. Decred was then developed around this time by these six developers that broke off from Bitcoin and established Btcsuite.
What we have here is a coin that will stand the test of time. Decred is here to stay and there’s no stopping it. Decred has its token symbol as DCR and this stands for Decentralized Credits. Decred was able to outperform the three pain points of Bitcoin. Bitcoin suffered hash power attacks emanating from its mining, centralized governance (dictated by miners) and anticipating funding from third-parties.
It replaced Bitcoin’s centralized governance by using an open-source technology that lets its users and holders take decisions by themselves. You’ll agree that most coins have crowd-sales during their ICOs and the aim is to get funds for future developments. Decred instead opted for self-funding. To solve the issue of attacks, DCR’s team haven been in the system for long and taking into cognizance attacks coming from its mining, put measures in place to curtail this. Its combination of Proof-of-Work and Proof-of-Stake consensus algorithms helped put hashpower and multiple tokens under its control.
The PoW algorithm is there for mining and regulation of hash power attacks such as double spend and 51% hash rate attacks. PoS algorithm helps token holders gather more tokens and use them effectively. Either ways it is looked at, Decred has maximum security. This might be the core reason for its integration of the duo – Proof-of-Stake and Proof-of-Work consensus algorithms.
Decred’s Leadership is Unrivaled
Taking into account these impressive features, coupled with the fact that Coinbase Custody has signaled it may add Decred any time from now, it should not be doubted that the digital coin will definitely top the chart.
Although Bitcoin has more supply and is topping the chart in its trading, Decred has more prospects to offer. A secure and self-governing platform such as Decred (DCR) is far better than an unprotected and monopolistic blockchain such as what Bitcoin had proved to be.