Can you stake Decred?
When surfing the Web and trying to find some interesting blockchain-related communities, look at Decred. DCR cryptocurrency is not only supported in Guarda Wallet but also is fairly interesting research material, believe us. In this article, we would like to highlight the special features of Decred and break down some of the points on why DCR should get more attention in the crypto space.
Of course, Guarda will also answer the most common question – “Can you stake Decred?” on the way.
But first, let’s do the basics.
What is Decred?
Decred is a fork of Bitcoin. Actually, it is the first-ever user-activated hard fork. But, despite the fact of being born on the Bitcoin blockchain, DCR has some major differences from the known crypto giant. According to the official website, DCR crypto is open-source, progressive and equipped with a community-driven system of governance. The last point is exactly where the story starts being very interesting.
Take Bitcoin mining – it is very competitive and expensive, requires lots of energy and special hardware and, finally, the miners are the gods and bosses of the whole blockchain. Proof of Work (the algorithm that many cryptos, including Bitcoin, use) is indeed very intense. So, Decred wants to create a better way of governance and management. This is why the network is using the hybrid of Proof of Stake and PoW.
Yes, this is the answer to your question – Decred staking is possible. The system, however, is a bit more developed than just holding the coins on your balance.
Why is Decred unique?
The governance system of Decred network is definitely the point here, but let’s also mention the fact that DCR is versatile. The DCR crypto has no predetermined use case – there are actually many features that can be added to the list of Decred possibilities.
Ok, now back to the governance. Decred network prides itself as “Bitcoin with robust open source governance” – this is what the website states, to be precise.
Decred introduces so-called “tickets” – crypto assets that are non-transferable and designed to give the DCR holders control over the network, a.k.a. The power to make decisions. This is definitely not how the majority of cryptocurrencies work. When in popular coins the miners have the ultimate power of choosing the course, in Decred the final word actually belongs to the stakeholders.
When making a Decred investment, what you really do is trying to own some part of the ticket pool. Sure, the more DCR coins you own – the more power you have (the more tickets you can purchase). So, having a good investment made in Decred crypto actually grants users a bigger piece of the network pie. There are ultimately around 40.000 tickets in the pool and each of them costs 95+ DCR. Logically, the chances of your ticket selection for a block go up with more tickets purchased.
Why should I think of investing in Decred?
Decred investment might seem very attractive to the ones wanting to GOVERN the network. Sure, having a little bit of decision power has never hurt anybody yet. However, there are other great points of being involved in DCR. For example, the PoS returns of the network are pretty solid, the lightning network is there and even the feature of privacy is soon to be there. If you still question the network, you can read more on an actually amazing developing team of Decred, the uniques hybrid of Proof of Stake and Proof of Work that Decred proudly utilises and extreme security from attacks.
If all of this sounds amazing to you, jump in on the bandwagon with us and look into Decred’s bright future together with Guarda – your loyal Decred wallet.