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Which one is the best cryptocurrency next to Bitcoin? A Research about Decred

Feb 5, 2019 AltcoinsResearch 0

Which one is the best cryptocurrency next to Bitcoin?

Here is a summary of Decred reseach – Look at Decred (DCR) [Decred – Autonomous Digital Currency]

1.  Like Bitcoin, there will only be 21 million Decred. Blocks are produced every 5 minutes via proof of work. Block reward reductions are smoother than in bitcoin, reducing slightly every 6,144 blocks (around 21 days) rather than halvening every 4 years.

2.  Decred is fork-resistant thanks to it’s hybrid Proof of Work/Proof of Stake architecture.

3.  Conformal Systems (later Company 0) developed the open-source btcsuite/btcd (most popular alternative for a bitcoin full-node implementation).

4.  Decred’s hybrid Proof of Work / Proof of Stake system is based on Memcoin2 (MC2). MC2 was created by tacotime who later went on to become one of the founding contributors to Monero and a core dev.

5.  Decred went live in February 2016.

6.  4% went to the Decred Founding Team (0.84 million DCR). 0.84 million was allocated to the founders to pay back development costs and continue working on the project.

7.  4% was given away in an airdrop (0.84 million DCR). Each of the 2972 participants received 282.63795424 DCR (worth over $4,550 at today’s market price).

8. The remaining 92% is distributed as the PoW/PoS block reward subsidy (19.32 million DCR)

9.  Instead of 100% of the block reward inflation going to miners, it is split:
– PoW miners reward (60%).
– PoS ticket holders reward (30%).
– The Decred Project Treasury (10%).

10. Growth: Decred hashrate has already doubled so far in 2019. The hash rate is currently 239 Ph/s

11. Community: The subreddit has close to 10,000 subscribers.

12. Transactions: Decred ±3,000 transactions per day – same as Monero or Zcash.

13. Staking: Currently 47% of the total available supply is locked up, which means these coins are guaranteed not to be hitting the markets as sell orders in the immediate near term.

14. Voting:

  • Token holders control the future of the project.
  • They vote on decisions by voting using Politeia.
  • Decred’s own voting system.” there are actually 2 types of voting that occur: On-chain votes for consensus-related matters, and Off-chain votes on Politeia for other decision-making.

15. Self-funding: 10% of block rewards go to Decred’s treasury fund. Token holders control how the Treasury fund is spent. The treasury currently holds 603,114 DCR ($9.8 million at today’s market price).

16. Exchanges: Binance, Huobi, Poloniex, Kucoin, OKex, Bisq and others. 24 hour volume on exchanges is generally over a $1B USD (1 billion dollars).Decred (DCR) price, charts, market cap, and other metrics | CoinMarketCap

17. VC Placeholder Capital are huge supporters. Last month they took part in a fireside chat in New York to explain the benefits of investing in DCR to an audience that included other VCs and investors.
Read more at Placeholder VC blog – Decred Investment Thesis

18. VC BlueYard Capital is a Berlin-based VC investment firm (recently raised a new $100M fund). They said:
“We began building a meaningful DCR position in early May 2017 and have completed an initial build just a few days ago. We are doing this with a view to be long term active supporters of Decred and to actively participate in the network’s governance.”
More at BlueYard Capital – Decred Investment Research

19. Future of Decred:

– SPV Wallet Support for privacy – This is pretty much done (available for testing on the new android Decred app).
– Privacy features
– Lightning Network
– Full Decentralized Control of Funds via the Decred Decentralized Autonomous Entity (DAE)
– Decentralized Exchange

Links:
Decred (DCR) Review
BlueYard Capital – Decred Investment Research
Placeholder VC blog – Decred Investment Thesis

There is a lot to learn about Decred but I consider these points most important when you are searching for the “next Bitcoin”:

  • Same supply as Bitcoin – only 21M coins will exist which will eventually drive the price growth
  • Fork-resistance
    No more loss of value like after hard-forks for Bitcoin Gold, Bitcoin Cash, Bitcoin Diamond, Bitcoin SV, Bitcoin ABC (more coming in the future)
  • Stellar team
    The team developed the most popular alternative to official Bitcoin core full-node.

Other aspects:

Decred hash-rate has steady growth

 

  • 2018: Multi-fold growth of hash-rate
  • 2019: Hash-rate already doubled as of February 2019

This is important due to the fact that Proof of Work nodes are important not only to run the network but also to secure the network. After a network pass certain hash-rate, its economically not feasible to take control over the network.


Bitcoin is becoming unprofitable for miners

In recent years we saw an explosion of investments into hardware by miners. Not only it’s now expensive to buy and ASIC mining hardware for Bitcoin, but also the high costs of electricity make it unfeasible for average miner to be profitable by mining Bitcoin.


Famous VC investors are investing and promoting Decred

As mentioned in points above BlueYard Capital invested a “meaningful” amount from their fund into Decred (they bought DCR coins). This is what they wrote on their official blog:

After taking our time to engage with Jake Yocom-PiattJonathan Zeppettiniand the wider community we began building a meaningful DCR position in early May and have completed an initial build just a few days ago. We are doing this with a view to be long term active supporters of Decred and to actively participate in the network’s governance. To get us started we are happy to announce we will be hosting a meet-up with some of the core Decred team and contributors in Berlin on July 18th. We will announce more details soon, but we hope to see you there.

I suggest to read the full blog at Decred – BlueYard Capital – Medium


There is much more to learn which is outside of scope of this answer. You can start here Decred – Autonomous Digital Currency

By Pavel Svitek, Web3 & blockchain developer. – https://www.quora.com/Which-one-is-the-best-cryptocurrency-next-to-bitcoin/answer/Pavel-Svitek

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Decred Canada

Decred is an autonomous digital currency that is governed directly by it's voting Stakeholders. Stakeholders vote to decide whether changes to the consensus rules are adopted. Decred’s development is funded by a portion of the block reward, and stakeholders decide how these funds should be spent! Infos: docs.decred.org - proposals.decred.org

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