For many experts, cryptocurrencies like Decred could be seen as the future of money for two reasons. The first is the fact that these currencies are virtual, their entire existence is in the digital world. The second is its mechanism in charge of giving them value and capitalizing them.
Among all the cryptocurrency options on the market, we can find different types which can come from companies, exchange houses, independent developers, etc. Here we will tell you everything you need to know about Decred, a unique platform which is also supported as a cryptocurrency.
▶ What exactly is Decred? ✨
We could define Decred, in a technical way, as a decentralized platform which is structured on Blockchain. This platform, with its respective DCR cryptocurrency, is focused on the user, so their opinions and participation are essential for its development.
This platform It is moved by an "internal gas" which is known as the Decred DCR Token. This is used for vote buying and to reward miners and developers in the community. Each block distributes 60% to miners, 30% to coin stores, and 10% to developers.
Decisions in Decred are democratic, so to speak, as they are put to a vote among users. That is why the concept of vote buying becomes so important, since in this way users' decisions and the future of the network can be influenced.
One of the most striking characteristics, and in which we will delve into another point, is the technology behind this cryptocurrency. And is that Decred combines two algorithms, that's right, both the PoS algorithm or proof of stake, and the PoW algorithm known as proof of work.
▶ Differences between Decred and other cryptocurrencies✨
- Solutions: The reason why he was born Decred was like an answer to all the problems and obstacles that Bitcoin had to overcome after its launch. It could be said that it was an attempt to overcome these problems by acting better with innovation and change.
- Community: Another feature worth taking into account is that Decred is community-centric. Through the voting mechanism, corporate decisions are eliminated and users are empowered. This in order to allow them to choose the course of this virtual currency.
- Security measures: With the aim of reducing the risks of a currency operating on the internet, as well as acting as a solution to the problems that Bitcoin has, Decred has implemented new security measures. We can see this in its Blake-256 algorithm.
- Hybrid algorithm system: While there are virtual currencies that also use a voting or consensus system, the way Decred does it is different. This because of we found a system of hybrid algorithms, both PoW and PoS, which makes the process different from its competitors.
▶ Technology behind✨
The technology behind Decred is very eye-catching. First of all, we find the hybrid algorithm which turns out to be very attractive to many experts. And it is that you could see both algorithms working in other currencies, but never together, mixing elements of both.
Allowing this virtual currency to operate with two algorithms makes decision-making easier for users. This allows the same people to decide the direction of Decred. What's more, helps to give stability and security to this currency.
Another characteristic of this hybrid code is that it allows modifying the open source code of the network using the consensus of the community as support. In this way, it is avoided to generate a Fork, which makes the changes of the codes in the cryptocurrencies more complex.
Furthermore, We can find that part of the operation of this cryptocurrency is found as a basis in the famous Blockchain. This blockchain has the characteristic of being inspired by the chain used by Bitcoin, although here we find improvements to the code and its operation.
Despite being a cryptocurrency that operates with a hybrid algorithm system, it is possible to mine Decred. For this, it is necessary to have an adequate computer equipment, as well as requires the use of special software known as Claymore-Dual-Miner.
This software allows both Ethereum and Decred to be mined together, which makes its use more efficient.. The process is relatively straightforward and according to experts, the average amount mined is around one block every 5 minutes, making it an efficient mining process.
▶ Where do you store my coins? ✨
You must know that to be able to manage your currencies and check your balance it is necessary to have a Wallet, a kind of electronic purse. A great advantage is that the Decred developer himself has created his own Wallet which solves compatibility problems.
If you want to make the most of your virtual currencies then You must start by opening a Wallet to be able to store your coins. This is easier than you think, in addition to the fact that cryptocurrency wallets give you many functions such as exchanging currencies or carrying out all kinds of transactions.
▶ How can I have my own Decred? ✨
There are two options to be able to have your own Decred cryptocurrencies. The first is to mine the blockchain in order to receive a coin as compensation when creating Decred blocks. This is one of the most frequently used options due to the limitations of the next option.
And, although you can buy some virtual coins from Decred, this is a bit complicated, since not all exchange houses offer them. Also, you should know that Decred cannot be exchanged for fiduciary money, which limits the ability to find in these exchange houses.