The world of cryptocurrencies are always obsessed with decentralization and Decred coin has a very close relationship with it. To get to know more about Decred, we need to first know a thing or two about the oldest player in the crypto-game, Bitcoin. Although Bitcoin proclaimed itself as “decentralized”, the truth is it is not entirely decentralized as some miners still held voting rights. A Chicago based company named as 0 launched Decred in February 2016 to help achieve the goal of Bitcoin to create a true decentralized finance.
Decred, also known as Bitcoin 2.0 is equipped with Bitcoin’s most favourable features and some features that bitcoin has failed to provide. These features include limiting the voting rights of miners as an effort to achieve true decentralized and cross chain atomic swaps which allows the switch between various cryptocurrencies. Decred packed some serious potential in the cryptocurrencies sector due to its long-term financing capability as well as development quality. To know how Decred manages to provide complete autonomy to its stakeholder unlike Bitcoin, we need to dive ourselves into how new bitcoin is generated in the first place. The way New Bitcoins are generated requires tremendous amount of electricity and a specialised hardware known as ASIC miners, where ASIC stands for Application Specific Integrated Circuit. This specialised hardware was designed for the sole purpose of mining and does not have practical applications anywhere else. Due to the fact that Bitcoin is using this extremely resource intensive algorithm known as Proof of Work, it leads to the fact that significant amount of influence and power in Bitcoin was controlled by a concentrated group of miners. To create a balance between miners and end users, what Decred did was to introduce a hybrid consensus mechanism involving both Proof of Work and Proof of Stake which will allow the participation of end users in the network consensus to check on or monitor the miners.
Since there is no official whitepaper of Decred to be found anywhere online, we have provided a link which direct to the Decred Documentation page where information which is typically found on Whitepaper can be found there as well.
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