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Review on Decred by Jackie Chan
Decred is designed to build upon the perceived flaws of Bitcoin. Specificallyโฆ
Decred is designed to build upon the perceived flaws of Bitcoin. Specifically that Bitcoin is at risk of becoming too centralized and that it was too easy for large mining interests to dominate the dialogue over the future of the blockchain. To rectify these problems Decred is designed to be as democratic as possible.
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Pros
- Decred has a 10% subsidy on all block rewards. This is to pay for future improvements to the network and the fund is accessible by anybody whose ideas are accepted, not just the core team. In order to ensure that both miners and ordinary users have a say in how the blockchain develops, Decred joins Dash in combining Proof-of-Work and Proof-of-Stake consensus methods. Decred uses a decentralized lottery to select PoS miners to vote of PoW blocks. The PoS and PoW subsidies account for 60% and 30% of each block subsidy, with 10% being set aside to compensate developers for future work. This system is similar to the Proof-of-Activity system developed by Iddo Bentov, Charles Lee, Alex Mizrahi and Meni Rosenfeld.
Cons
- Decred uses a combination of Proof of Work and Proof of Stake consensus methods. This is a fairly unique system designed to prevent either miners or large stakeholders from dominating the network. his method of voting has two advantages. First, it allows for users to direct the use of the development funds acquired from the 10% subsidy. Secondly, it allows Decred to sidestep the controversy that resulted from the Bitcoin Cash hard fork. It is impossible for a hard fork to take place without the support of the majority of the community.
