Altcoins: Decred (DCR) – A Deeper Look Into The Decred Platform
Summary:
- What is the Decred Platform and how does it work?
- Advantages of the Decred exchange.
- Decred’s past, present and future price positions.
The Decred Platform
The Decred token and protocol were created to facilitate community interaction, open governance and sustainable funding policies. According to the platform’s official whitepaper, Decred was created in a way that the community has to approve all transactions and changes made regarding the protocol. Therefore, ensuring there is no way that big Decred holders can manipulate the protocol’s operations.
The Decred platform is built on a hybrid with both the Proof-Of-Work (PoW) and Proof-of-Stake (PoS) that aligns incentives and layers security. The mixture of both these systems makes the system more expensive to attack than if Proof-of-Work and Proof-of-Stake were operating on their own.
Decred is innovative due to the way it bets on blockchain technology’s decentralised nature to prevent monopoly over voting status in the project itself. One of Decreds main goals is to ensure that all DCR holders have the same amount of decision making power and that large institutions are unable to swing votes in their own favour.
Decred is, however, similar to Bitcoin due to the fact that it is a decentralised, peer-to-peer blockchain with medium of exchange, store of value and unit of account features necessary to be money. However, DCR does beat Bitcoin in some of the following ways, DCR has on-chain governance, self-funding developer fund, and of course its hybrid Pos/PoW consensus algorithm,
Decred introduced the ticket-holder voting to ensure that investors who have enough DCR will be able to participate in votes regarding the company/tokens operations and future. In addition, Decred created Politeia, Politeia is a dedicated voting platform that allows users to participate in votes, start discussions and submit proposals.
Users are able to buy DCR on many large platforms, the largest being Binance, the others are Huobi, YoBit, BitAsset and more.
The Decred platform was launched in February of 2016, there is a maximum supply of 21 million DCR and more than 14 million of them are in circulation. The current Decred market capitalisation is just short of $321 million.
Advantages of the Decred Platform:
- Decred’s hybrid consensus algorithm which consists of both the Proof-Of-Work (PoW) and Proof-of-Stake (PoS) that aligns incentives and layers security. The mixture of both these systems makes the system more expensive to attack than if Proof-of-Work and Proof-of-Stake were operating on their own.
- The Decred platform is also adaptable due to its built-in governance system that empowers its community with formal rights to make both project-level decisions and consensus changes. These systems make the Decred platform more adaptable and therefore allowing the platform to evolve as the stakeholders wish it to, resist forks and incorporate new technologies in the long run.
- The Decred platform also has the advantage of sustainability thanks to its continuously funded treasury with 10% of each block reward, it also employs a flexible contractor model that allows their contractors to receive compensation for their work. Thus, making Decred a self-funded and sustainable Decentralised Autonomous Organisation.
Past, present and future prices of Decred (DCR)
After the launch of the Decred network, the price of DCR rose almost immediately, the first spike in price that occurred towards the start of 2018 and saw the price go above $97, and was followed by a sharp decline. After its first peak in 2018 the price fell and then spiked again in the same year. The second peak was followed by a gradual decline, and took more than 2 years to take off again, in May of 2021 DCR reached its highest price yet, reaching above the $200 level. Since its price peak in 2021, the price of DCR has been gradually declining, showing some signs of trying to recover during the later part of 2021.
Over the past few months, the markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, yearn.finance falls under this category.
According to some analysts the future price of Decred (DCR) could reach up to $85 by 2024 and could see a price of more than $105 by 2026. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
DCR Price Chart
Sources: finance.yahoo.com, coinmarketcap.com, decred.org, cryptonewsz.com, cryptoeq.io
