Decred stands for decentralised credit. It aims to be a digital currency that is autonomous. This cryptocurrency, like all others, is free from the influence of third parties in the governance of the blockchain. It utilises only open-source technology. According to their site, they managed to enable the first ever direct-on-chain, user-activated consensus vote. The stakeholders who are part of the community and who help with decision-making for Decred are rewarded.
What is Decred?
DCR is the cryptocurrency used by Decred. Decred is like Bitcoin and focuses on getting inputs from the community, relies on open governance, and sustainable funding. In order to prevent a small group from taking control of the flow of transactions, Decred makes use of a mining system that is a hybrid of the proof-of-work and proof-of-stake mining systems. A block is created in about 5 minutes.
Where to buy Decred?
It is possible to buy DCR using fiat money or through a system of cryptocurrency exchange. That is, a user can buy one type of cryptocurrency, say, Bitcoin or Ether, and then use a cryptocurrency exchange service to convert that into DCR. But the main website of Decred indicates that it would be best to exchange Bitcoin for Decred since it is based on Bitcoin and also because the currency is quite new.
Decred also makes use of a wallet in which a user can store and send/receive DCR. It is recommended that new users make use of a Web Wallet. An advantage of the Web Wallet is that it need not be downloaded like other wallets in order to be used. It is possible for the user to access it online. Windows, Mac, and Linux users can make use of the Decrediton wallet. Sending and receiving DCR is quite easy with every Decred address beginning with D followed by 26–36 characters that can be alphanumeric. It is expected that funds will be cleared in five minutes. In order to maintain the network, a fee is charged for each transaction. The fee is a very small fraction of the amount being sent. It is possible to perform a search of all the blocks in the Decred blockchain.
Mining is done by the process of validating transactions. There are two methods used by Decred. As mentioned before, Decred relies on a hybrid system that makes use of both proof-of-work and proof-of-stake mining systems. In the proof-of-stake method, users have to deposit or lock some amount of DCR and receive a ticket in return. Each ticket counts for a single vote. After the user votes, each ticket returns a reward along with the original ticket price. Every block mined includes 5 votes. It is possible to have up to 20 tickets to be purchased with each new mined block. In the proof-of-work method of mining, a user is required to make use of the computing power available to them in order to mine new blocks in order to continue building the blockchain. For every new block that is mined, 30 DCR is generated. GPU miners can get higher rewards compared to other types of miners. Both solo and pool mining is possible.
Decred Price trends
As of the initial days of May 2018, one DCR was worth about $83.45 (USD). A quick look at the price trends for this coin indicate that the price of the coin steadily increased from about May 2017, and the increase continued till about February 2018 when it peaked. This peak corresponded to investor interest around the globe with regard to cryptocurrencies. At this point, it breached the $120 (USD) mark. Later, as investor interest decreased in sync with global cues, the price dropped. The historical price trend is indicated here:
Risk associated with Decred
In recent times, the price of Decred has not been steady. The price has varied from just over $30 (USD) to just less than $90 (USD), all within the space of a month. This indicates a high level of volatility. This is common to all cryptocurrencies. In addition, the use of such virtual currencies is either being restricted or banned altogether by governments around the world. Because of this, it is possible for an investor to lose money while investing in this. Instead, an investor can consider traditional investment avenues like mutual funds which would offer a better environment compared to cryptocurrencies.