Nov 14, 2018 16:03 UTC
Nov 14, 2018 at 16:10 UTC
Pros & Cons of Decred
Decred is a self proclaimed autonomous digital currency which has strived to solve blockchain governance since 2016. It breaks away from any third party influence and establishes itself as an independent, evolving digital currency.
The first block being mined back in February 2016, the team of highly talented developers have come a long way with the currency. It’s technology has gained steam over the years after it enabled the the world’s first successful direct on-chain user-activated consensus vote. Disrupting stakeholder governance majorly, it is giving a boost to community decision making and decentralized authority.
Following are the pros and cons of the currency:
Pros of Decred
- It offers an innovative hybrid proof-of-work (PoW) proof-of-stake (PoS) consensus voting system based on a modular codebase, that offers unique adaptability.
- They are community driven and enable decentralized decision making, and encourages such behaviour by offering rewards.
- It is largely censorship resistant and allows for the functioning of smart contracts on its public proposal platform. It’s hybrid mining mechanism also makes it 51% resitant to attacks
- It aims at building a democratic community where the users can take decisions regarding the coin on the basis of consensus.
Cons of Decred:
- Althought the project has very few cons, there are some areas of concern. Like Bitcoin, Decred too is capped at 21 millions, and the reward decreases every 6144 blocks.
- It is still fairly young and just starting out. The market adoption is minimal still which could be a drawback. Without a wider userbase, the coin will not succeed. Also, It is tricky to switch from a man-managed fund to a fully decentralised DAO.
- Compared to other coins, the transaction time taken by Decred is higher. It takes around five minutes to complete a transaction.
- The system entails that whoever has more coins, can secure more votes. That could tarnish the democratic aspect and slowly turn the system into an oligarchy.