Decred Technical Analysis – Sustained Upward Momentum
The hash rate of Decred (DCR) has significantly increased this year, continuing a strong upward trend. This price increase began with the release of the DCR Roadmap 2017 on January 9th, which has positively influenced market sentiment.
Decred employs a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) model, referred to as Proof of Activity (PoA). This model aims to satisfy both proponents and critics of PoW and PoS, promoting a distributed consensus while mitigating centralization risks associated with mining.
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"The goal is to further reduce the centralization of power over the protocol itself."
Currently, approximately 42% of DCR is staked in PoS systems, allowing stakeholders to vote on governance issues such as block size and consensus algorithms. This hybrid system is designed to ensure that no small group can dominate transaction flow or make changes to Decred without community consent.
As of now, Decred has a maximum supply of 21,000,000 coins, similar to Bitcoin, with 29.5% already mined. Miners currently generate about 25 new coins per block every five minutes, with rewards adjusted every 6,144 blocks, or roughly every 21 days.
| Block Reward Distribution | Percentage |
|---|---|
| PoW | 60% |
| PoS | 30% |
| Developers | 10% |
The current distribution of block rewards is 14.3 DCR for PoW, 1.43 DCR per ticket for stakeholders, and 2.39 DCR for developer funding. This funding allows developers to earn income by improving the protocol based on community proposals, although it also poses potential regulatory risks.
Recently, the Decred team announced support for atomic swaps, which allow for direct cross-chain exchanges of cryptocurrencies without intermediaries. This feature is expected to enhance the utility of Decred in the broader cryptocurrency ecosystem.
In terms of trading, Decred is primarily traded against Bitcoin on platforms like Bittrex and Poloniex, with a 24-hour trading volume of 985 BTC (approximately $3.9 million). The technical analysis indicates a potential test of price levels around $0.012 to $0.014, which could lead to a new upward trend.
Overall, Decred's hybrid model addresses concerns from both PoW and PoS advocates, fostering an active and engaged community. The technical indicators suggest a promising outlook for DCR, with the possibility of revisiting previous all-time high zones.
Source: Brave New Coin
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