A 2020 In-Depth Review of Decred (DCR)
Decred (DCR) is an open-source digital currency and blockchain ledger that was launched in 2016. It has several similarities to Bitcoin (BTC), but it also boasts unique features that distinguish it from its cryptocurrency peers. The programming language used to write Decred is GoLand which was released by the BTsuite development team. It’s 1.0.0 version was updated on the 25th of April 2017. In September, the BTsuite team integrated the atomic swap of Litecoin and Decred. The most unique feature of Decred is its hybrid distributed blockchain that supports both the PoW (Proof-of-Work) and PoS (Proof-of-Stake) consensus mechanisms.
What is Decred?
Decred, pronounced ‘di-cred’, is a blockchain-based digital currency that places a great emphasis on decred community, open governance, and sustainable funding for continued development. It was founded in February, 2016 by brothers Alex and Jake Yocom-Piatt and a group of co-founders. The platform’s native currency is known as decred or DCR for short. Decred leverages a hybrid of Proof-of-Stake and Proof-of-Work consensus mechanisms. This hybrid system ensures that no group on the DCR blockchain can dominate transaction flow or make any changes to the system without the approval of the wider community. In addition, this unique combination offers the best of both worlds and adds an extra layer of security that makes it extremely difficult for anyone to attack the system.
As stated earlier, Decred is focused on community-directed governance. Every project-level decision, like consensus rules, for example, falls into the hands of the community stakeholders. Stakeholders have formal rights in setting the course for future developments and deciding how the project’s treasury is used to fund these developments. Essentially, the Decred network evolves in consonance with the will of the stakeholders, which ensures that it avoids some of the risks that have plagued the crypto community since its inception, such as forking. Furthermore, Decred funds its treasury with 10% of each block reward. To put it simply, Decred is “a sustainable and self-funded Decentralized Autonomous Organization.”
How to Mine DCR
For those who would like to get their hands on some free Decred, there are several ways to go about it. However, in this section, we shall stick to just one — mining, or DCR PoW mining. As stated earlier in the article, Decred uses a hybrid consensus mechanism that combines the elements of both PoS and PoW consensus mechanisms. The PoW element of the hybrid system employs computational power to both create and verify the blockchain cryptographically. The PoS element of the hybrid system employs voting through a process known as DCR staking to enable community-driven governance.
Decred mining operates in the same way as that of Bitcoin. Miners commit their computational resources to process the network’s transactions in exchange for a reward. There are two ways that you can mine DCR via PoW: solo mining and pool mining. Solo mining is not recommended, as you generally end up spending more money on equipment and electricity charges than you will earn. However, with the use of DCR ASIC equipment, you can become profitable. If you’d like to try your hand at solo mining, Gominer is the official Decred mining software. The other option is joining a DCR mining pool. In pool mining, you basically combine your resources with other miners. The best Decred pools that support cloud mining for Decred include BeePool, F2Pool, etc. For a fuller list of DCR pool mining options, head on over to the official DCR website.
Where to Buy DCR
There are several ways that you can purchase Decred as stated on the official website. They include:
- Via cryptocurrency exchanges that enable swapping another digital asset for Decred
- Via Direct exchanges that allow Decred to be purchased with fiat currency
- Over the Counter (OTC) trading which allows traders to purchase a large amount of Decred at a fixed price
Exchanges provide an efficient and easy way to buy and trade DCR. However, to know which exchange accommodates your needs, you need to conduct your own due diligence. With that said, here is a step-by-step tutorial of how you can purchase DCR from ChangeNOW.
Step 1: Pick a Digital Asset
ChangeNOW supports over 10,000 digital currencies. If you want to purchase Decred, you simply select DCR from the list of options. If you are using fiat currency, you may want to take advantage of the ChangeNOW DCR to USD calculator to find out how much you need. The decred to USD converter also provides you with both a classic and fixed rate option.
Step 2: Exchange
ChangeNOW doesn’t require any registration or identity verification. Therefore, once you have used your DCR cryptocurrency calculator and decided on how many DCR coins you want to buy, simply hit the exchange button. That’s it!
Step 3: Receive your Decred
ChangeNOW utilizes a RealRates system that is lightning quick and highly secure. Once you hit the exchange button, you can expect transactions to settle in 2-20 minutes. It may take longer for large transactions, but that’s the whole process. Done. No stress. No hassle.
Decred OTC Traders
OTC trading enables users to purchase or sell DCR directly from or to another trader. You and the trader agree on a fixed price for a large amount of Decred and conduct the transaction without going through an exchange. This cuts out the extra fees that middle-men collect. The only downside is that the minimum for OTC trading is $100,000 and higher.
What is the Best DCR Wallet?
There are hundreds of wallets available in the market, with each wallet boasting its own unique set of functionality, tools, and features. The best kind of wallet for each user boils down to what features you prioritize, and whether or not the wallet serves your intended purpose. In addition, if you want to buy Decred, you need a DCR wallet address, which is where your DCR coins will be sent after purchase. With that said, we have gone out of our way and rounded up some of the best wallets to consider. We have also grouped them into 4 categories with a small review of the best wallet(s) in each category. The categories include:
- Web wallets
- Desktop wallets
- Hardware wallets
- Mobile wallets
Decredition is the official desktop wallet for Decred. It’s fully open source and has been in existence since Decred came onto the scene. It has an easy to use interface with top-notch security features. It also offers support for Windows, OSX, and Linux users. Another feature as noted in the Decred 2018 roadmap, is that Decredition will be integrating support for several sub-projects that are near completion. The only downside to this wallet is that you cannot solo-stake any DCR in your wallet. If you intend to stake, you may want to find another option.
Introduced in 2016, Exodus is an excellent desktop wallet that has won the hearts of many crypto-enthusiasts. It has a beautiful and easy-to-use interface and offers support for numerous digital assets. It also provides 24/7 customer support in case of any issues. It’s available for OSX, Linux, and Windows users. The only downside to Exodus is that it’s not as secure as a hardware wallet and lacks 2FA (2-factor authentication). Exodus also does not provide opportunities for staking DCR.
Ledger Nano S/ Ledger Nano X
If you are worried about hackers and other bad actors, then you should consider the Ledger Nano S. It’s one of the best hardware wallets in the world. It is impossible to steal any digital asset from a Ledger Nano S wallet remotely. All data is encrypted and protected by a PIN. You also require both digital and physical inputs to complete transactions. Ledger Nano S has support for over 800 digital assets. The Nano X boasts of some impressive new features such as certified secure chip and bluetooth features. Both are top-notch hardware wallets.
If you happen to be in the market for a mobile wallet, we have you covered. Cobo is a multi-currency wallet that offers support for more than 10 digital assets. It’s privacy-oriented and changes your address every time you transact. Additionally, it offers you HSM-level security where you can get started without the need for any KYC requirements. Lastly, if you are to stake your DCR, Cobo has your back. It pioneers PoS and masternode pooling right in the wallet.
Although relatively new, the Atomic wallet has strong backing from numerous influential companies and individuals in the crypto community. It’s a universal wallet that offers support for over 300 digital assets. It also has integrated crypto exchange services that allow you to buy or sell crypto directly from your wallet. These services also allow you to convert DCR to Ethereum (ETH) or any other crypto easily.
If you are wondering whether Decred is a worthy investment in comparison to Bitcoin, there is no competition. Bitcoin wins when it comes to the Decred vs. Bitcoin debate. However, if you are looking for a decent altcoin to invest in, Decred comes highly recommended. The Decred coin mining calculator can convince even the most seasoned altcoin critics. Decred is an innovative product that’s improving extremely quickly, so it would be a shame to miss out on this investment opportunity.