What is Decred (DCR)
Decred is one of the earliest cryptocurrencies to become a fork of Bitcoin utilizing a modified version of its code as a foundation. Developers first proposed the project under pseudonyms tacotime and _ingsoc with the release of the Memcoin2 whitepaper in 2013, then transferred to Company 0, and finally launched in 2016. Decred was designed to be an improved version of Bitcoin, using two consensus mechanisms and decentralized governance.
As Decred was created with Bitcoin’s code, it offers similar features but with some modifications. The most significant difference is the platform’s hybrid-consensus mechanism which uses both Proof-of-Work and Proof-of-Stake components. This allows PoW miners to verify transactions and gives a chance to PoS stakers to propose and vote on network upgrades. Through the off-chain voting system called Politeia, stakeholders can vote on project funding, various changes and more. The platform’s native token DCR is widely used throughout the network, mainly rewarding the consensus participants, staking, and funding the project developments.
In 2019, Decred integrated the Lightning Network, which then facilitated the launch of the Decred Decentralized Exchange in 2020. The Decred DEX allows its users to trade digital assets such as DCR and BTC without the involvement of a third party.
