Okay, Slow down for a moment..
Let's get to understand what's PoW and PoS, and then we will see how Decred uses it.
But before that, lets talk about the hashing algorithm that Decred uses, Blake-256. As per the highly educated experts and everyone who knows that they are talking about, this type of algorithm is less vulnerable to the security issues facing the Merkle-Damgård construction-based hashing algorithms (such as SHA-256, the hashing algorithm of Bitcoin). So, when all the professors are saying something.. we can accept it.
Now, PoW and PoS!! As many of you know, a lot of cryptocurrencies use either pure PoW or pure PoS (check out the video below for a clear explanation of the two).
The challenges with using pure PoW are that, over time, miners have an outsized influence over the blocks that get mined, which can be used to gain consensus and to censor transactions. The main challenge with pure PoS is that early holders of the currency end up owning everything by merit of passive income on their coins.
Decred will create a hybrid of the two systems. This way, a balance between miners and currency holders (voters) can be achieved, which will create system of community-based governance.
The decisions around Decred will be made by both insiders and outsiders. The community will include bottom-up decision making through the Decred Assembly. Community members who make non-financial contributions to the project will thus have a voice as well.
The last important reason why Decred may become big is related to its development. Decred is built in Go, a future-oriented programming language developed by Google. Decred welcomes and empowers participants who want to build new and improve on existing features. Development is open and self-funded, to ensure long-term development sustainability.
Furthermore, the core-development team has expert knowledge and experience with cryptocurrencies, since it has been involved in the development of bitcoin and btcsuite, and trust me I have been talking to many of them on a regular basis... And they know their shit.
Let's get to understand what's PoW and PoS, and then we will see how Decred uses it.
But before that, lets talk about the hashing algorithm that Decred uses, Blake-256. As per the highly educated experts and everyone who knows that they are talking about, this type of algorithm is less vulnerable to the security issues facing the Merkle-Damgård construction-based hashing algorithms (such as SHA-256, the hashing algorithm of Bitcoin). So, when all the professors are saying something.. we can accept it.
Now, PoW and PoS!! As many of you know, a lot of cryptocurrencies use either pure PoW or pure PoS (check out the video below for a clear explanation of the two).
The challenges with using pure PoW are that, over time, miners have an outsized influence over the blocks that get mined, which can be used to gain consensus and to censor transactions. The main challenge with pure PoS is that early holders of the currency end up owning everything by merit of passive income on their coins.
Decred will create a hybrid of the two systems. This way, a balance between miners and currency holders (voters) can be achieved, which will create system of community-based governance.
The decisions around Decred will be made by both insiders and outsiders. The community will include bottom-up decision making through the Decred Assembly. Community members who make non-financial contributions to the project will thus have a voice as well.
The last important reason why Decred may become big is related to its development. Decred is built in Go, a future-oriented programming language developed by Google. Decred welcomes and empowers participants who want to build new and improve on existing features. Development is open and self-funded, to ensure long-term development sustainability.
Furthermore, the core-development team has expert knowledge and experience with cryptocurrencies, since it has been involved in the development of bitcoin and btcsuite, and trust me I have been talking to many of them on a regular basis... And they know their shit.
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