Decred

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Decred is an open-source cryptocurrency, analogical to Bitcoin and built using blockchain technology.[1] It uses a mix of proof of work and proof of stake consensus protocols to verify and confirm new transactions and do provide safe functioning of the system without a possibility of a small group to dominate the network.

In cryptocurrency-related media and websites, Decred is often marked with a symbol DCR.

Design

Block rewards are split between PoW miners, PoS voters, and Decred Treasury wallet, which is used to fund the project. PoW miners get 60% of rewards, PoS voters receive 30%, and the remaining 10% are subsidized to the Treasury.

PoS voting requires having sufficient funds in the wallet (i.e. a stake), and 24/7 uptime and connection to Internet, to be able to vote and partake in consensus on new transactions verification.[2] Users, who can’t or don’t want to keep their computer constantly connected, can delegate their vote to a Voting Service Provider (formerly ‘stakepool’), for a share of the rewards in return.

This way, the PoS part of the Decred consensus supports the delegated proof of stake. This protocol enhances the technical possibility of compromising the network, but in case a Voting Service Provider acts unfavorably, the voters, who delegated their voting power, would likely dismiss their delegation to save the network from failing.[3]

History

Decred was envisioned by Company 0’s CEO Jake Yocom-Piatt in early 2014, as a continuation to Memcoin2’s attempt to cross PoW and PoS in one blockchain.[4]

Officially, the project was started on February 7, 2016, and the first software version was launched on April 25, 2017.[5]

References