Estimated reading time: 1 minute, 56 seconds
This episode of Blockchain Token – What is it? features Decred.
Decred is a decentralized currency similar to Bitcoin. In fact, it was created by some of the original developers of bitcoin. They thought that Bitcoin miners had too much control and, therefore, disproportionate control over the network. As a result, they went out to build a cryptocurrency that would give users and miners the same amount of influence.
One of the main focuses of Decred is solving the governance issue for their blockchain. Their goal is to have a completely decentralized, self-governing cryptocurrency that is shaped by community input. They have offered up a pretty unique answer to this goal. Instead of mining using just Proof of Work or Proof of Stake, Decred’s mining algorithm is made up of a hybrid of both. This way they can reward stake holders while maintaining a traditional PoW mining. This way Decred maintains consensus between it’s miners and users, hoping to strike a balance where both stakeholders and miners are rewarded.
While Bitcoin does take in proposals that shape its on-chain governance, these are often very difficult to implement. If a developer has a solution to a problem or revolutionary idea, Decred features a modular platform to integrate new features without interrupting the the whole chain. Basically, it allows you to create an idea test area before they are implemented into the whole chain.
The result is that all participants have a say in direction, budget, and future projects.
If we had to sum it up, Decred tweaked Bitcoin’s main principles in order to create more balance and encourage community involvement.
Decred isn’t stopping at its current governance model, however. They are looking to incorporate payment channel based smart contracts and provide support towards cross-chain atomic swaps. They offer a multi-platform wallet that makes storing and mining currency easy, too.
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