Some cryptocurrencies exist to facilitate data sharing. Others are created to execute smart contracts in a blockchain ecosystem. But perhaps one of the most widely known uses for a cryptocurrency is a Store of Value (SoV). Cryptocurrencies that function as a SoV, sometimes referred to as “digital gold,” are sought after by people from all walks of life. Their reasoning is simple: people buy a SoV with the hope that their wealth will grow. One of the most famous cryptocurrencies to act as a SoV is Bitcoin.
However, there’s a new kid on the block, one that thinks it can do everything that Bitcoin does – but better. From the way that the cryptocurrency was designed, to the way that mining and verification is done, this new cryptocurrency was built to be similar to Bitcoin where it’s helpful to be similar, and different from Bitcoin where it’s advantageous to be different.
This week, we’re thrilled to add Decred (DCR) to our expanding cryptocurrency Marketplace. We took notice of the unique design of Decred as it tries to fill a very familiar use-case for cryptocurrency, and we think our users will find this new addition intriguing, too. Keep reading to learn more about this creative cryptocurrency project and to find out why some people are calling Decred the new SoV in crypto.
What is Decred?
Decred is an inherently decentralized cryptocurrency designed to be both similar to, and different from, Bitcoin while acting as a Store of Value (SoV). The goal of DCR has always been to advance the field of cryptocurrency forward with an innovative design that promotes autonomy and flexibility.
How is Decred similar to Bitcoin?
Right off the bat, one of the first things you’ll notice about DCR is that it has a maximum supply of 21 million tokens, the same as Bitcoin. This means that Decred token economics are deflationary; the design is such that although demand for the supply can increase, the total supply can never increase beyond this set point – hypothetically, this should result in an increased demand for that limited supply. Additionally, some of core contributors to the Decred code were once core contributors for Bitcoin, showing that this cryptocurrency has the brainpower behind it to be well designed.
How is Decred different than Bitcoin?
To understand how Decred differs from Bitcoin, it’s helpful to first understand Proof of Work (PoW) and Proof of Stake (PoS) consensus algorithms. To keep this simple: PoW consensus awards crypto to systems who help compute transactions on the blockchain, with systems that do more work having a greater chance of receiving crypto as a reward; this leads to large, centralized mining operations to pool computing power and increase the chance of receiving crypto. PoS consensus awards crypto to systems that physically hold more crypto; this often leads to the concentration of these types of cryptocurrencies in relatively few wallets.
Bitcoin is a pure PoW cryptocurrency – other cryptocurrencies may be pure PoW or pure PoS. Decred stands out by being a unique hybrid PoW/PoS model to have the best of both worlds. This gives DCR more checks and balances, more decentralization, and encourages more autonomy – resisting some of the attacks and weaknesses that pure PoW or pure PoS designs are most vulnerable to.
Decred was built to be one of the safest, most secure cryptocurrencies available. The very design of DCR is one that is resistant to attacks, centralized manipulation, and inflationary economics. Additionally, Decred was built to resist censorship and acts a community-driven cryptocurrency – perfectly reflecting cryptocurrency’s core principles of decentralization and autonomy.
Who uses Decred?
People of all walks of life, from all areas of the globe, use and hold Decred. The most common reason to hold Decred is to treat it as a SoV, or an investment. Similar to holding Bitcoin, people hold SoV because they deem it to be a reasonable place to put money while hoping to make a profit. Some people hold only Decred and nothing else, while others hold Decred alongside other SoV cryptocurrencies.
We’re excited to add Decred to our Marketplace, where our users can buy and sell a growing list of cryptocurrencies. New to Metal Pay? Download us from the Apple App Store or the Google Play Store. Have a question? Reach out to our Support Team on Twitter.
Still have questions about what Decred is or what it can do? Be on the lookout for more content about DCR in the Discover section of the Metal Pay app, as well as on our primary social media accounts: Twitter | Instagram | Facebook.
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