Decred – Built To Resolve Forks
Decred is a cryptocurrency released in 2016 that has become extremely popular. It has a market cap of $340 million, the 40th highest crypto market cap, and daily trading volume in excess of $10 million. Therefore, it is crucial to know about and understand Decred if you are a cryptocurrency enthusiast, investor or trader.
One problem that Decred is built to resolve is forks. A fork occurs when a cryptocurrency’s set of protocols is changed and a new blockchain with a new set of rules is created, abandoning the old blockchain. Forks are often accompanied by vigorous controversy and debate that cause splits in the community. With proof-of-work (PoW) cryptocurrencies like Bitcoin, a fork can easily be created if the bulk of mining power decides on changing the protocol; they simply start mining blocks based on the new protocol and leave the original blockchain behind.
A “Hybrid” of PoW & PoS
This can result in lots of confusion and loss of money for those who don’t know about the fork and continue using old wallets. A fork is usually extremely unfair to users of a cryptocurrency since they don’t have any power over the changes in protocol that lead to forks; it’s all up to the miners. Decred aims to solve this problem by using a hybrid of PoW and proof-of-stake (PoS) so both coin miners and users have a say in changes of protocol. And, if a fork were to occur, it would be a mutual decision between miners and users.
There is a direct onchain consensus vote that all stakeholders participate in. If the platform ever does change protocol after a vote, the transition would be seamless, preventing loss of money and confusion often associated with cryptocurrency forks.
Built-In Atomic Swaps
This unique crypto-platform also has built-in atomic swaps, where users can exchange Decred for Bitcoin, Litecoin, Ethereum, etc. without relying on a third party like an exchange or cryptocurrency dealer. This removes risk and saves time when trading cryptocurrency using Decred. Also, this platform integrates lightning network payments, which are off-chain smart contracts that allow for nearly instant payments that compete with fiat currency payment methods like credit cards.
Another unique feature of this platform is Politeia, which is a censorship resistant onchain proposal system that allows users to submit their own ideas for funding from Decred’s block subsidy. This helps strengthen the platform through new innovative ideas and is entirely self-sufficient, requiring no outside funding.
Many Useful & Noteworthy Features
Notably, this is a major cryptocurrency platform that has trading volumes in excess of tens of millions of dollars per day. It implements innovative new technologies, including changing consensus protocol with a built-in community vote without the hardship of forks, trading cryptocurrency via atomic swaps, and developing new technologies for the Decred platform with a self-funding subsidy. Based on these factors, it is likely a good idea to buy some of this crypto for your cryptocurrency portfolio.
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