Review on Decred by Saleh Bayramli

Decred is a cryptocurrency based on an open source blockchain. Decred was established by crypto enthusiasts who discovered that due to the existence of mining pools, Bitcoin's decision making has become increasingly concentrated over time.

Decred uses a hybrid algorithm of ProofofWork and ProofofStake. DCR token holders can verify transactions and vote on different proposals to earn engagement rewards. However, Decred implements a simple mining process, similar to Bitcoin. 60% of Decred tokens go to miners, 30% of tokens go to voters, and 10% is used to further enhance Decred. Unlike Bitcoin, miners get 100% of tokens.

Decred also aims to implement the Lightning Network. Lightning runs outside the blockchain, improving network scalability and processing speed.

Decred is now one of the most promising cryptocurrencies thanks to its speed, willingness to improve, and ability to collect user feedback.

I invested in Decred due to sentiment and herd tracking. In hindsight, this was a wrong decision.

What if the market value of 850 million in May 2018 is the highest watermark? What if it was as tall as Decred?

Decred reached a peak of 0.0163 BTC a year earlier than June 2017, and dropped by nearly 90% to 0.0016 in 2019, and is now approximately 0.002 BTC per DCR.

Decred is such a bad investment that there is only a 3-month window in 2016 and a 3-month window in 2019. Decred can be purchased and calculated in BTC.

Currently, the market capitalization is 240 million US dollars, which is still overvalued in my opinion.

Decred is unique and interesting. It is a hybrid of Proof of Work and Proof of Stake, which means that you can get rich rewards for voting on proposals (or it may become very inflated by forgetting to vote).

Decred developers are the team behind BTCD, one of the main customers of Bitcoin Node. They are working hard to add Segregated Witness and perform cross-chain atomic swaps. This seemed to be a very compelling investment at the time, and its market value was only a mere US$5 million!

In addition to the low valuation and the team, there are two main arguments about why closed altcoin investors are attracted to fill bags of Bitcoin with DCR.

The first is governance. The main difference between Bitcoin and Decred is that in Decred, governance is integrated by voting on proposals. Therefore, the Decred community likes to say that it is fork-proof.

For example, suppose the Decred developers want to add Segwit; they actually encrypt it and send it to the protocol vote so that if the vote is "yes", it will merge and start working immediately.

It's quite new. Many people have seen the value of such a governance system, but Bitcoin has received Segregated Witness, and it has become more powerful and difficult due to internal conflicts between Bitcoin factions that fought in the Battle of Segwit2X . In addition to coding proposals, there are other types of proposals on

Decred. People can submit marketing proposals.

Although this is a novel idea and a very interesting feature, the DCR cryptocurrency directly competes with Bitcoin. Therefore, it is likely to fail.

This also does not make Decred anti-fork. If a bad guy like Roger Ver decides to copy the whole of UTXO and make Decred Cash, then Decred's chain government can't prevent off-chain attacks.

Bitcoin Cash is not Bitcoin, it actually has nothing to do with Bitcoin: one of the first Bitcoiner decided to make his own coin and copy / paste the established Bitcoin UTXO in his coin. This is an external social attack that cannot be explained at the protocol level. Decred is not a "fork test" in this way.

Except for the arduous and insurmountable task of competing with Bitcoin as a currency, it turns out that Decred's on-chain governance value proposition is not that interesting.

The cryptocurrency market does not seem to attach importance to on-chain governance. Look at the major altcoins; Ethereum, Bcash, BcashSV, Litecoin, Ripple, EOS, etc.

All these elements are highly concentrated in 1-2 entities.

"Crypto" investors don't care about decentralization, let alone governance.

So yes, if Bitcoin uses a mix of POW + POS, the security of Bitcoin can be increased by about 20 times, but the computing power of Bitcoin is so important that its security is already 20 times better than that of other Altcoins.