What is Decred?
Decred is a decentralized autonomous organization (DAO) that emphasizes community involvement, transparent governance, and long-term development financing. Its native token, DCR, uses hybrid proof of work (PoW) and proof of stake (PoS) consensus mechanisms and on-chain governance systems to ensure the community's participation in the flow of transactions and changes made to Decred. The project's development is funded through a decentralized treasury.
Decred's origins can be traced back to April 2013, when a pseudonymous developer known as "tacotime" commented on a Bitcointalk discussion about a new cryptocurrency. Decred was officially launched on December 12, 2015, with the goal of addressing the perceived flaws in Bitcoin, such as ineffective governance by core developers, lack of development financing, and excessive miner control over the network. Decred's DCR token is described as "an open, progressive, and self-funding cryptocurrency with a system of community-based governance integrated into its blockchain."
The Decred mainnet was launched on February 8, 2016, alongside the Decred constitution, a collection of principles and standards that provide users with a clear understanding of the social contract between themselves and the project. At launch, 8% of the total DCR supply was pre-mined and distributed, with 4% going to developers and 4% being airdropped to 2,972 individuals who had joined the project.
Decred claims to be the first blockchain to conduct a direct on-chain, user-activated consensus vote, which took place in June 2017. In October 2018, the Decred Politeia proposal system was introduced, allowing Decred users and stakeholders to propose, debate, agree on, and finance new projects, initiatives, and consensus modifications through an off-chain platform.
Since May 2019, Decred has integrated the Lightning Network into its network, allowing users to send payments using DCR within the Bitcoin network and keep multiple assets in Decredition, the Decred wallet solution. In October 2020, Decred launched its own decentralized exchange (DEX).
The Decred network is a PoW/PoS hybrid with on-chain governance and a decentralized treasury. The Decred protocol is a distributed, time-stamped ledger of unspent transaction outputs (UTXOs) stored in an append-only chain of dynamically-sized data blocks. This blockchain is maintained by a network of mining and economic nodes that verify, spread, and compete to include pending transactions in future blocks. Economic nodes, also known as "full nodes," accept transactions from other network participants, verify them against network consensus rules and double-spend vectors, and then propagate them to other full nodes. Valid transactions are added to the network's mempool and await confirmation by mining nodes through inclusion in the next block.
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