Decred Coin Review
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This is a review of Decred Coin.
Origin & Background
Decentralized exchanges are subject to many security hazards. There are many decentralized exchanges trying to overcome their respective security issues, but it is not an easy fight.
One of the companies with innovative solutions is Decred. Their exchange only uses cryptocurrencies (no fiat currencies). Furthermore, the company offers a service structured by the client and server. In doing so, Decred does not rely so deeply on a parallel blockchain or token. Decred has also created a system where the operators of the server never take ownership of the user’s funds.
The proposed project offers a program where the operators of the exchange do not collect any fees on matching orders. The orders taken on the new DEX exchange can be regulated internally.
Decred will implement a system based on Politeia. Decred has a complete list of properties that they will build the system on. With Decred’s proposal, smaller orders use the Lightning Network. This network operates off-chain with atomic swaps.
Decred is also proposing other new technology infrastructure systems that they hope will assist to develop today’s digital currency ecosystem.
The Motivation behind the New Decentralized Exchange
Anyone who has ever tried to start a new cryptocurrency knows there are numerous hoops to jump through. Operators of centralized exchange markets know that ownership of user-funds is difficult, and compliance with laws can be burdensome.
Moreover, observance and registration to regulatory agencies such as FinCEN can take time. For clients dealing with centralized exchanges, there is also problems with incursion of privacy due to the KYC/AML policies.
Another well known fact is that client funds can be placed on hold or even frozen for any reason. Finally, most of the larger exchanges will only list certain cryptocurrencies that will produce higher profits.
Decred hopes to overcome some or all of the above issues through the way it is built and functions.