Decred : A new coin from Bitcoin’s Developers

Decred

Every weeks, sometimes every single days, a new digital coin is emerging from the shadows trying to invade. Decred, a coin and a project which is aimed to fix problems that they say exist with project governance, the power of PoW miners and development funding in the bitcoin system.

The intention is not to attack what we currently have in Bitcoin, we want to recognise what has been done well, but instead we want to take that and improve on what we think can be done better. That is the spirit that started the technology and we want to return to that to explore options to problems we cannot explore in the current system, while we continue to support the Bitcoin software. Alternatives are progress and a way forward to improve the greater ecosystem   -Christina Jepson, Decred Developer

 

Technical Features (BitcoinTalk)

The features below are implemented in Decred and will be available in full at launch. For a deeper description, please consult the Decred Technical Brief (DTB001).

  • Novel hybridized proof-of-work/proof-of-stake (PoW/PoS) consensus system – A decentralized lottery is used to select PoS miners to vote on PoW blocks. The PoW and PoS subsidies account for 60% and 30% of each total block subsidy, respectively. This system is based on that of MC2, which is very similar to, but developed independently from, Proof-of-Activity (PoA) by Iddo Bentov, Charles Lee, Alex Mizrahi and Meni Rosenfeld.
  • Cold staking and decentralized stake pooling – The ability to generate new coins without the risk of having your coins online when PoS mining. The PoS mining system has also been engineered with distributed, decentralized stake pooling in mind, so that even those with small amounts of stake can participate in network validation.
  • Internal voting system for the addition of new features and hard or soft fork selection – Both PoW and PoS miners can vote for features and issues through bit flags, providing a sensible mechanism for resolving disputes about the features of the blockchain.
  • Immutable transaction hashes (“transaction IDs”) by separating transaction signatures from the rest of the transaction data – A permanent fix for transaction hash malleability has been implemented that prevents mutability of the transaction hash by separating it from its input signatures. This allows more efficient SPV validation. Fraud proofs have also been added.
  • Elliptic curve cryptography over secp256k1 with optional Curve25519 support – The Bitcoin scripting system has been modified to allow for simple, drop-in addition of new elliptical curve digital signature algorithms.
  • Schnorr signatures with threshold n-of-n support – In addition to supporting Schnorr signatures, groups of signers can now jointly sign transactions off-chain in constant size signatures, ensuring higher privacy and less blockchain bloat.
  • Script enhancements and new OP codes – New OP codes have been added to the existing Bitcoin scripting engine, and extensions for the plug-in use of future scripting engines have been added.
  • PoW mining using BLAKE256 hash algorithm – Inspired by Bernstein’s Chacha stream cipher, SHA3 finalist BLAKE256 offers speed as well as high security.
  • Compatibility with Bitcoin transaction scripting system – Decred’s scripting system has been derived from Bitcoin’s with care in ensuring that all future updates to the Bitcoin transaction script will be easily extensible to Decred. Further, any newly created functionalities will also be devised with backwards compatibility with Bitcoin in mind.
  • Modularized, easy-to-use Golang btcsuite codebase – Thanks the to the codebase inherited from btcsuite, adding new features to the daemon or wallet will be facile. Decred will episodically sync updates from btcsuite, so that it benefits from the latest developments in Bitcoin.
  • Hierarchical deterministic (HD) wallets – Wallets use a seed to deterministically generate addresses, so your wallet can be restored from a single BIP0032 seed.
  • Transaction expiration – Transactions have a new expiration field to prevent inclusion into the blockchain after a certain height.
  • Patches for intrinsic Bitcoin bugs – Extra push for multisignature scripts has been removed, SIGHASH_SINGLE behavior has been corrected.
  • Approximately 21 million coins – Exponential decay in subsidy or the number of coins generated per year.
  • Self-funded development via block subsidy – In order to have an ongoing source of funding for development work, a consensus rule has been added to allocate 10% of each block subsidy to a development organization. This entity is transparent and responsible for funding development work performed by current and new developers so that the project remains sustainable without a funding dependence on outside forces in the future. Decred therefore improves with growth in a sustainable way and is accountable only to its users.

Block Reward

Subsidy is reduced every 6144 blocks in the simplest way possible. The starting reward is based around the premine amounts so as to approach 21 million.

if j % 6144 == 0:
block_subsidy *= 100
block_subsidy /= 101

Coin supply:

Year Coin supply Inflation
1 470426769731536 180.015934364
2 725516828588937 54.2252429646
3 940676990098927 29.6561227847
4 1122157371491044 19.2925290299
5 1275229809050507 13.6409064761
6 1404340975270235 10.1245411065
7 1513241532111717 7.75456664437
8 1605095069693740 6.06998523586
9 1682569994083979 4.82681218409
10 1747913757492611 3.88356880477
11 1803028628435353 3.15318022451
12 1849516235066977 2.578306628
13 1888726978324850 2.12005401815
14 1921799891692961 1.75106904003
15 1949695723833590 1.45154718039
16 1973224843465019 1.20680982903
17 1993070776474089 1.00576135937
18 2009810059460965 0.839873986637
19 2023928395353035 0.702471152715
20 2035836535103161 0.588367640746

Useful Links

Website: https://decred.org
Forum: https://forum.decred.org
Wiki: https://wiki.decred.org
Reddit: https://reddit.com/r/decred
Twitter: https://twitter.com/decredproject
IRC: #decred on irc.freenode.net

An AMD and Nvidia miner will be release with the coin, more information will come in the future

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2 Responses

  1. Acimir says:

    Detailed article! Thank you!

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