Short for Decentralized Credit, Decred (DCR) is one of the many cryptocurrencies that looks to resolve the problems that Bitcoin has. Trying to bring decentralized finance, Decred has managed to stay among one of the top 50 coins by market cap. With the recent price rise in Decred during this Coronavirus pandemic, it looks to rise higher than its #36 rank at the time of this writing.
Co-Founder Jake Yocom-Piatt
Launched in 2016 by Company 0 ("zero") by Co-founders Jake Yocom-Piatt, Alex Yocom-Piatt, Dave Collins, David Hill, John Vernaleo, and Josh Rickmar, are all Bitcoin developers that created the btcsuite for Go programming language.
With the same 21 million max supply as Bitcoin, Decred did not have an Initial Coin Offering (ICO) but had an airdrop to hand-selected participants to those that signed up and to developers. Developers were also able to purchase more tokens in a premine token sale where they were able to obtain 4% of the total supply at a rate of $0.49 per coin.
Decred initially started with just Proof-of-Work (PoW) consensus, however, it became the first crypto project that had an on-chain vote in 2017 to have the consensus protocol changed. The consensus is now a hybrid of PoW and Proof-of-Stake (PoS) and being called Proof-of-Authority (PoA). The changes added smart contracts and allowed for a more scalable network.
Since the change to PoA, mining rewards are distributed as 60% to the PoW miner, 30% goes to PoS voters, and 10% goes to a Decred development study.
Decred's PoS part of their system works a bit differently than others. Holders can buy tickets that allow them to take part in the staking process. Each block only takes 20 tickets at a time and you have to wait to get mined in a block. If you want to be included in the block quicker, you can pay fees. Once you are mined in a block, your ticket will be "immature" and is held outside the lottery pool until roughly 20 hours have passed or 256 blocks. Once your ticket enters the lottery pool, you will be entered to be 1 0f 5 validators that are randomly chosen. The lottery is designed to give a ticket holder a 50% chance of being chosen within 28 days. If your ticket hasn't been chosen within the 28 days, then there will be a 99.5% chance of being chosen before it expires after 4 months.
At the time of this writing, one ticket currently costs an estimated 135 DCR or $1,560 but is down compared to its all-time high back in 2017. The ticket price has since been steadily growing.
Along with its PoS ticket growth, Decred continued its growth after its hard fork that changed its consensus protocol to PoA. They implemented the Atomic Swaps feature and had their first swap between DCR and Litecoin (LTC).
One of the more notable recent news was the implementation of the Lightning Network for Decred for off-chain micropayments and helps alleviate the main Decred blockchain from network congestion.
While it may not be considered a part of growth, there's is somewhat of an easter egg that shows recognition to Decred in a bit of a mainstream way. We got to see Decred get a little spotlight on the Netflix series Altered Carbon.
In an episode of season 2 of the show, cryptocurrencies are used as a means of payment in the year 2400. You can see price tags are shown in Bitcoin and other Altcoins. Decred seems to be featured among the few that were seen.
For the past couple of years, Decred has been building its Decentralized Exchange (DEX) feature that also leverages using Atomic Swaps that is similar to Airswap's protocol. The initial framework was released at the end of July in 2019 but has yet to officially launch the DEX. They are continually working on it as we can see that the latest commit on their Github shows it was submitted 2 days ago from the time of this writing.
One of the latest proposals offers for a research grant to have more metrics and charts that are specific to Decred so the data can be better used to understand Decred's network and also offer more information to potential investors.
The proposed research is primarily targeted at two groups:
General cryptocurrency enthusiasts/investors who are seeking to learn more about Decred as a protocol and DCR as an asset. Aim is to build confidence and fundamental understanding on WHY Decred is a sound asset/protocol.
Institutional Investors by providing sound, detailed and evidence based research supporting an investment thesis.
In short this proposal covers the following two billable categories.
- Developing Git Issues for dcrdata with specific requirements for integrating a set of metrics developed by myself and PermabullNino into dcrdata charts.
- Continued data driven analysis and fundamental research into Decred performance with deliverable papers and social dissemination.
There is the DEX to look forward to and the plans are to hopefully see it released this year in 2020. However, with the current Coronavirus pandemic, we'll have to see how everything plays out as now there are tons of delays or cancellations on projects and the market is going through its struggles as the rest of the world markets are. Hopefully, this is where Decred and the rest of the crypto can be put to use and shine as having one of the benefits is that it can help mitigate the spread of any virus with contactless payments and no physical bill or card to touch on a global scale. With the added benefits of decentralized finance, it now seems the time more than ever to have access to the cryptocurrency market to help economies.
This is not investment advice. Do your own research.