Decred is a multi-platform open-source digital cryptocurrency and blockchain that supports Windows, macOS, and Linux. Wallet applications facilitate the sending, receiving and mining of Decred coins (“DCR”).
Funds transferred from Decred wallets take approximately 5-minutes, with a small fee charged in addition to a transaction fee that is based upon the transfer amount.
Decred is a virtual currency, more commonly referred to as a cryptocurrency that was created with the principal of removing intermediary control as enjoyed by banks, central banks, and governments.
Unlike fiat money, there are no physical Decred coins, just balances of Decred coins that are recorded on Decred’s blockchain which is a decentralized, public ledger. Decred was created in order to compete or replace fiat currencies as an alternative instant payment mechanism.
Decred was launched in February 2016, with a total supply of 21 million coins. 8% of the total supply was pre-mined and distributed between compensation for bring-up costs and an “airdrop”.
Decred was created by the Bitcoin developers that engineered btcsuite under the name Company 0.
The creation of each individual Decred coins comes from mining, which stems from a reward mechanism for the verification of transactions on Decred’s blockchain.
Decred’s blockchain has two methods of validation of transactions:
- Proof-of-work protocol:
- Uses miner computing power in return for Decred coins as reward.
- Each time a new block is created approximately 30 Decred Coins are created
- Rewards are distributed proportionally to the hashrate of the miner and the overall hashrate of the network.
- Proof-of-stake protocol:
- Allows stakeholders to vote for or against proposed changes to the Decred blockchain.
- Allows stakeholders to keep check of non-confirming proof-of-work miners. Stakeholders can vote a block invalid even if it confirms to the consensus rules of the network. (Prevents the mining of empty blocks).
- Long-term holders of Decred lock up their funds for a length of time in order to accrue new coins from block reward.
The proof-of-stake protocol adds an extra layer of decentralization to Decred and allows users to vote on suggested network changes.
Decred blockchain is a key driver behind Decred. A decentralized ledger that is updated instantaneously across all users, with transaction times and fees depending upon the speed which miners are able to verify transactions. The Blockchain technology is unique as it has no centralized control or the ability to manipulate its content.
Some distinct differences and characteristics of Decred include:
- There are no physical Decred coins, only virtual.
- Unlike fiat currencies, where governments and central banks are able to print more money, there is a finite number of Decred coins.