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Decred Super-ThreadPeople everywhere are talking about #Decred, so what's all the buzz about? 21M coins, Staking, Decred DEX, Lightning Network, Privacy..
This informational thread will guide you through the key aspects of Decred that differentiate it from the pack
1/Decred is Sound Money. What is Sound Money?
Sound money is money that can't be manipulated. It allows us to store, measure and exchange value.
Gold = the current de facto global store of value
Paper money or "fiat" currency (USD, EUR,..) is the de facto medium of exchange.
Sound money is money that can't be manipulated. It allows us to store, measure and exchange value.
Gold = the current de facto global store of value
Paper money or "fiat" currency (USD, EUR,..) is the de facto medium of exchange.
2/The Digital Age Requires a More Advanced Form of Money
What if there were a way to take the sound money qualities of gold, add the internet and mathematics, be decentralized from central manipulation, and provide storage / exchange / measurement of value?
What if there were a way to take the sound money qualities of gold, add the internet and mathematics, be decentralized from central manipulation, and provide storage / exchange / measurement of value?
3/Enter Bitcoin $BTC
Satoshi Nakamoto (through Bitcoin) discovered a way to maintain a distributed ledger for recording transactions without relying on any specific (centralized) authority to enforce the rules.
Satoshi Nakamoto (through Bitcoin) discovered a way to maintain a distributed ledger for recording transactions without relying on any specific (centralized) authority to enforce the rules.
4/Bitcoin Is Not Perfect
Issue with Bitcoin: Governance (Inability to come to agreement on consensus rules)
Result of the Issue: Chain Forks (Bitcoin Cash, Bitcoin Gold, SV, etc.)
With every Bitcoin chain fork, Bitcoin network value is split into multiple networks.
Issue with Bitcoin: Governance (Inability to come to agreement on consensus rules)
Result of the Issue: Chain Forks (Bitcoin Cash, Bitcoin Gold, SV, etc.)
With every Bitcoin chain fork, Bitcoin network value is split into multiple networks.
5/Enter Decred $DCR
Decred is a cryptocurrency like #BITCOIN
, but it focuses more strongly on:
Community input
Open & inclusive Governance
Sustainable funding for development
It is money designed to be predictable and scarce. Coinholders have a say.
Decred=Money Evolved
Decred is a cryptocurrency like #BITCOIN
, but it focuses more strongly on:Community inputOpen & inclusive GovernanceSustainable funding for developmentIt is money designed to be predictable and scarce. Coinholders have a say.
Decred=Money Evolved
6/DCR Community
@decredproject is led by its community of Stakeholders/Contractors following six principles:
- Free/open-source software
- Free speech and consideration
- Multi-stakeholder inclusivity
- Incremental privacy/security
- Fixed finite supply
- Universal fungibility
@decredproject is led by its community of Stakeholders/Contractors following six principles:
- Free/open-source software
- Free speech and consideration
- Multi-stakeholder inclusivity
- Incremental privacy/security
- Fixed finite supply
- Universal fungibility
7/Hybrid Consensus (1/5)
Decred's hybrid Proof of Work (PoW)/Proof of Stake (PoS) consensus system was designed from the ground up to solve Bitcoin's biggest challenges: funding, miner concentration, and informal governance.
Decred's hybrid Proof of Work (PoW)/Proof of Stake (PoS) consensus system was designed from the ground up to solve Bitcoin's biggest challenges: funding, miner concentration, and informal governance.
8/Hybrid Consensus (2/5)
Each new block on the Decred chain goes through a multi-factor security verification process, similar to a two-factor authentication, before being considered fully valid.
Each new block on the Decred chain goes through a multi-factor security verification process, similar to a two-factor authentication, before being considered fully valid.
9/Hybrid Consensus (3/5)
DCR transactions are first aggregated by PoW miners into new blocks. Blocks are then required to be signed/approved by PoS voters who hold tickets (locked DCR), for which 5 tickets (out of ~41,000) are chosen (similar to a lottery) each block to vote.
DCR transactions are first aggregated by PoW miners into new blocks. Blocks are then required to be signed/approved by PoS voters who hold tickets (locked DCR), for which 5 tickets (out of ~41,000) are chosen (similar to a lottery) each block to vote.
10/Hybrid Consensus (4/5)
Instead of issuing 100% of the block reward through the PoW system (Bitcoin model), newly minted DCR are shared between miners, stakeholders, and the Decred Treasury:
- 60% to compensate miners
- 30% for DCR Stakers
- 10% is deposited in the Treasury
Instead of issuing 100% of the block reward through the PoW system (Bitcoin model), newly minted DCR are shared between miners, stakeholders, and the Decred Treasury:
- 60% to compensate miners
- 30% for DCR Stakers
- 10% is deposited in the Treasury
11/Hybrid Consensus (5/5)
Decred's hybrid system makes it more expensive to attack. Attackers need to amass big amounts of hashing power and also purchase and stake DCR. Research indicates it is up to 40x times more expensive to attack than #BITCOIN given the same hashrate.
Decred's hybrid system makes it more expensive to attack. Attackers need to amass big amounts of hashing power and also purchase and stake DCR. Research indicates it is up to 40x times more expensive to attack than #BITCOIN
given the same hashrate.
12/Staking & Governance (1/6)
In Bitcoin, miners hold the power and decisions are made off-chain. Decred intends to balance the decision making power between miners, holders and developers.
In Bitcoin, miners hold the power and decisions are made off-chain. Decred intends to balance the decision making power between miners, holders and developers.
13/Staking & Governance (2/6)
Decred’s governance is based on the principle of ticket-holder voting. Anybody who holds enough DCR may use their coins to purchase tickets.
Decred’s governance is based on the principle of ticket-holder voting. Anybody who holds enough DCR may use their coins to purchase tickets.
14/Staking & Governance (3/6)
Tickets are locked up DCR that give their owner voting rights in all of Decred's governance systems, while helping secure the network and earning rewards.
Tickets are locked up DCR that give their owner voting rights in all of Decred's governance systems, while helping secure the network and earning rewards.
15/Staking & Governance (4/6)
The on-chain voting mechanism allows Stakeholders to change the Proof-of-Stake difficulty algorithm, upgrade the network to support Lightning Network, and secure mobile wallets by implementing better forms of Simple Payment Verification (SPV).
The on-chain voting mechanism allows Stakeholders to change the Proof-of-Stake difficulty algorithm, upgrade the network to support Lightning Network, and secure mobile wallets by implementing better forms of Simple Payment Verification (SPV).
16/Staking & Governance (5/6)
Decred self-funds its development with 10% of the block reward going into a project Treasury for which is fully controlled by the Stakeholders.
Decred Treasury currently holds ±639,000 DCR or $10,170,00 USD
Decred self-funds its development with 10% of the block reward going into a project Treasury for which is fully controlled by the Stakeholders.
Decred Treasury currently holds ±639,000 DCR or $10,170,00 USD
17/Staking & Governance (6/6)
Stakeholders decide which projects are funded through a proposal governance platform called Politeia. Stakeholders vote from their Decrediton wallets (1 ticket = 1 vote).
Stakeholders decide which projects are funded through a proposal governance platform called Politeia. Stakeholders vote from their Decrediton wallets (1 ticket = 1 vote).
18/What's Next? #Privacy (1/2)
Digital money can't be used if buying a cup of coffee reveals your net worth. Privacy is a priority at Decred and as the UX improves, the increased participation will create a much bigger and robust anonymity set, allowing DCR holders privacy.
Digital money can't be used if buying a cup of coffee reveals your net worth. Privacy is a priority at Decred and as the UX improves, the increased participation will create a much bigger and robust anonymity set, allowing DCR holders privacy.
19/What's Next? #Privacy (2/2)
Decred's first privacy feature is a mixing service (Coinshuffle++). It is expected to arrive to Decrediton, the GUI desktop wallet, in the next release: a highly anticipated Version 1.6.
Decred's first privacy feature is a mixing service (Coinshuffle++). It is expected to arrive to Decrediton, the GUI desktop wallet, in the next release: a highly anticipated Version 1.6.
20/What's Next? #LighningNetwork (1/3)
Decred has its own implementation of the Lightning Network working on mainnet. This is a second layer that sits on top of the main chain and helps save precious block space by creating payment channels/only publishing closing states.
Decred has its own implementation of the Lightning Network working on mainnet. This is a second layer that sits on top of the main chain and helps save precious block space by creating payment channels/only publishing closing states.
