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Review on Decred by gregori cordova

the '' people's cryptocurrency '' with absolute levels of decentralization

The term decentralization is very common in the different projects based on blockchain that we know, but there are a wide variety of cryptocurrencies, exchanges and projects that do not have levels of total decentralization, since their users do not have much participation in decision-making. Decred is an open source project, created with the purpose of prioritizing the much desired decentralization that most projects seek to offer, through an innovative hybrid consensus system that takes the best of POW and POS and that rewards its users with voting power, guaranteeing the participation of the entire community in the changes that are made within the ecosystem, and thus avoiding the possible hard forks that other projects have suffered in the past such as bitcoin or ethereum. The origin of the project dates back to 2013, when a bitcointalk user announced the proposal to create a project with the same bitcoin code and that would offer more participation to the community, which caught the attention of many enthusiasts and developers who financed the project. project and decided to call it decred (decentralized credits). With the implementation of a very democratic governance system, it seeks to provide a balance between the POW and POS systems since the miners will only have a total power of 60% and the users who stake cryptocurrencies will be able to obtain 40% of influence and be rewarded for it. A clear example of the democratic and balanced power that Decred offers, was at the time of voting to implement or not the Lightning Network technology and almost all users voted in favor, both POW and POS miners, allowing through this technology to increase the scalability of the project , and minimizing the workloads on its main blockchain.

In many places it is known as the “people's cryptocurrency”, due to its very democratic governance system in which all users participate in the development and future of the project, thus showing the great level of decentralization they offer.

Pros & cons

  • Its unique consensus system allows both users, miners and holders, to obtain balanced benefits within the system.
  • It is only necessary to acquire DCR tokens within the platform to obtain benefits through POS and no powerful equipment is necessary to achieve this.
  • With the adoption of the Lightning network, the scalability of the project increased, and all users, both POW and POS miners, voted in favor of implementing this novel technology.
  • All transactions with decred, remain in a public registry where both the amount and the address can be verified, but they have also implemented the coin shuffle protocol where the transactions are more private since they cannot be traced.
  • Offers the possibility of making atomic exchanges thanks to the HTLC smart contract
  • none