Frequently Asked Questions

Discussion in 'Incubator' started by Nicklas, Dec 29, 2015.

  1. 2017/12/15 - Decred v1.1.2 released! → Release Notes  → Downloads
  1. Nicklas

    Nicklas New Member

    Dec 28, 2015
    16
    13
    Male
    Student
    Denmark
    #1 Nicklas, Dec 29, 2015
    Last edited: Jan 12, 2016
    This thread is work in process. Feel free to add or modify the FAQ.

    Table of contents:

    1. Pre-Launch Notes
    1.1. What is the airdrop?
    1.2. How do I participate in the airdrop?
    1.3. When do Decred launch?
    1.4. Myths about Decred

    2. General
    2.1. What is Decred?
    2.2. Who created Decred?

    2.3. How are Decred given back to the community?
    2.4. How does one acquire Decred? (Incomplete)
    2.5. What are the advantages over i.e. Bitcoin or Litecoin? (Incomplete)
    2.6. Is DecredCoins anonymous? (Incomplete)
    2.7. Can I lose my DecredCoins?

    2.8. Which features does Decred present?

    3. Mining
    3.1. What is mining? (incomplete)
    3.2. How are DecredCoins created? (incomplete)
    3.3. How do I start mining?
    3.4. is Decred premined?
    3.5 What is the starting block reward?


    1. Pre-Launch Notes

    1.1. What is the airdrop?

    • In an effort to create balance in the network distribution of Decred, a cryptocurrency airdrop was created for anyone who wants to participate in the development of the project.
    • The airdrop distribution represents 4% of the total Decred supply and will be equally and unconditionally distributed to valid participants.
    • Participation is open to anyone with progress in mind, however, the developers must be able to identify the Internet identity of participants to avoid abuse of the airdrop initiative.
    1.2. How do I participate in the airdrop?
    If you have contributed to the advancement of technology in its many forms, plan to, or are keen to participate in Decred, you can submit your request at https://decred.org/)

    If you do not have an online presence and want to participate, get in contact with the developers via the IRC IRC: #decred on irc.freenode.net or send _ingsoc a message with your e-mail and proposed contributions to the project.
    1.3. When do Decred launch?
    Decred will launch on January 16th 2016. Check decred.org for countdown.
    1.4. Myths about Decred
    Bitcoin's Core developers is behind Decred
    False. Softpedia published an article by the title of "Amid Bitcoin Centralization Worries, Core Developers Start New Currency Called Decred". It looks like confusion started here about the word "core". The original title put on the press release was "Bitcoin Developers To Start New Digital Currency". Media houses seem to rewrite these. See the entire post in the Decred Thread on bitcointalk.

    2. General
    2.1. What is Decred?
    Decred is an open, progressive, and self-funding cryptocurrency with a system of community-based governance integrated into its blockchain. At its core is a hybridized proof-of-work proof-of-stake (PoW/PoS) consensus system that aims to strike a balance between PoW miners and PoS voters to create a more robust notion of consensus. The project is a result of the theoretical proposals brought by proof-of-activity (PoA) and MC2 in 2013. Decred development started in April, 2014 with a single developer and expanded to include developers from btcsuite shortly thereafter.
    2.2. Who created Decred?
    The development of Decred was funded by the company Company 0 (zero) LLC. The staff includes several developers behind btcsuite - a suite of alternative full node bitcoin software written in Go. For more information see https://www.companyzero.com
    2.3. How are Decred given back to the community?
    Decred includes a mechanism for self-funding development to ensure the project is and remains sustainable. A major sticking point for many open-source projects is that they require funding to survive, meaning they typically need to ask for donations and are limited by the funding they receive. To ensure that Decred remains free from the problems related to lack of funding, Decred's consensus rules include a 10% development subsidy in each block that is paid to a development organization on an ongoing basis.

    The current development organization is Decred Holdings Group, LLC (DHG), a Nevis-based organization. The development organization will be open to anyone who makes contributions to develop Decred, will remain transparent and issue regular financial statements biannually, and will publicly account for how funds are spent. This entity is built to be adaptable and open to community feedback and guidance, and may therefore change in the future if circumstances require adaptation for it to continue serving its goal to make and keep Decred development sustainable as the project and network scale upward.

    The 10% goes to a development entity that will administer the funds so that "proof-of-development" parties can get paid for their contributions to the codebase and Decred's development. This will be administered as contracts and open to anyone and based on merit. Ideally, it would be great to have this administered as a decentralized autonomous organization (DAO), but the technology isn't quite there yet. So logistically it's administered by an organisation called Decred Holdings Group (DHG), currently based in Nevis, that will release financial statements publicly for anyone to examine. This is an entirely logistical requirement, so one can easily verify the funds going in and out of DHG, and this will be accounted for transparently. Once it can be moved to a DAO, that will be embraced. As for form, payment will be in decred. Here's a quote from wiki.decred.org:

    "The development organization will be open to anyone who makes contributions to develop Decred, will remain transparent and issue regular financial statements biannually, and will publicly account for how funds are spent. This entity is built to be adaptable and open to community feedback and guidance, and may therefore change in the future if circumstances require adaptation for it to continue serving its goal to make and keep Decred development sustainable as the project and network scale upward."
    2.4. How does one acquire Decred? (Incomplete)
    2.5. What are the advantages over i.e. Bitcoin or Litecoin? (Incomplete)
    2.6. Is DecredCoins anonymous? (Incomplete)
    2.7. Can I lose my DecredCoins?
    Unfortunately, since unique private keys are associated with individual Decred wallets, so if the keys are lost, there is ultimately no way to retrieve that key without a passcode or other retrieval system.
    2.8. Which features does Decred present?
    Decred features can be found here or in the Bitcointalk announcement thread

    3. Mining
    3.1. What is mining? (incomplete)
    3.2. How are DecredCoins created? (incomplete)
    3.3. How do I start mining?
    There will be a simple GPU miner built for AMD/nVidia cards. The project will start working with everyone interested in mining to help them set it all up in the week of Jan 4th - which is, as it stands, the projected date to turn testnet on.
    3.4. is Decred premined?
    The premine consists of 8% of the total supply of 21 million coins, meaning the premine consists of 1.68 million coins. Rather than allocating the entire premine to the bring-up costs, we decided to split the premine equally between compensation for bring-up and an "airdrop", where we freely give an equal amount of coins to a number of airdrop participants. This means Company 0 and its developers will have put roughly USD 415,000 into the bring-up since April, 2014 and receive 4% of the total supply, 840,000 coins (at USD 0.49 per coin). The remaining 4% will be spread evenly across a list of airdrop participants as part of an effort to build the Decred network and decentralize its distribution.

    Coins held by Company 0 will be used to fund its ongoing work on open-source projects, such as Decred and btcsuite.
    3.5 What is the starting block reward?
    31.13408239 per block
     
    Clay, Max Holandia, Pharaoh and 4 others like this.
  2. Costin

    Costin Member
    Advocate (Twitter)

    Dec 28, 2015
    243
    84
    Male
    JavaScript
    Liverpool
    This would make a nice subforum rather than a thread :)
     
    Michael likes this.
  3. Gorei

    Gorei New Member

    Dec 28, 2015
    15
    14
    Male
    Good idea with FAQ.
     
    Max Holandia, Michael and S1lentB0SS like this.
  4. tacotime

    tacotime Hero Member

    Dec 7, 2015
    410
    1,133
    This is an excellent idea that I've been trying to get to since we started. I think it's one of those things you have to organise as the project develops in an organic way - much like the forum. What I'm going to do is go through the Bitcointalk announcement thread and collect meaningful questions from there to start putting this together. We can then put it into the "Getting Started" category here on the forum so anyone can access it with ease.
     
    Max Holandia, S1lentB0SS and Michael like this.
  5. Costin

    Costin Member
    Advocate (Twitter)

    Dec 28, 2015
    243
    84
    Male
    JavaScript
    Liverpool
    Let me know if you need any help.
     
    Michael likes this.
  6. Nicklas

    Nicklas New Member

    Dec 28, 2015
    16
    13
    Male
    Student
    Denmark
    That was just my thinking. I'll make a better thread design when we're on the other side of New Year. I was reading the entire bitcointalk thread, that there was a lot of question in regard to the protocol, mining, blocks etc etc and I felt a FAQ is nice to have. I already made a small list on what to expand the FAQ with.
     
    Michael likes this.
  7. shoshin

    shoshin Member

    Dec 28, 2015
    86
    94
    Male
    I believe the launch is January 17, 2016. 18 days 1 hour from today according to the homepage...
     
    S1lentB0SS likes this.
  8. Nicklas

    Nicklas New Member

    Dec 28, 2015
    16
    13
    Male
    Student
    Denmark
    You're totally right. I edited the part, so it should now be correct. Thanks for the help.
     
  9. Pharaoh

    Pharaoh New Member

    Dec 30, 2015
    12
    5
    Male
    A slight typo, Tabel should be Table :)
     
  10. tacotime

    tacotime Hero Member

    Dec 7, 2015
    410
    1,133
    This is great. I'll start taking questions from here and working on responses. The process thus far has been very organic. We presented "seed" information and developed responses based on questions as they came in. So working that information into a formal structure will go a long way. We can then get this up in page form that's nicely presented for newcomers or those interested in learning more.
     
    sinister likes this.
  11. Jonathan P.

    Jonathan P. New Member

    _ingsoc, when posed with the question "Why Decred? Why something new? Why not just stick with bitcoin when I know it works and it has been around for a while now?" by somebody, what is a somewhat direct response that gets right to the point? I wish to plant some seeds into the minds of other bitcoin users I know.
     
  12. tacotime

    tacotime Hero Member

    Dec 7, 2015
    410
    1,133
    The answer to this question is complex, and we'll need to get much better at answering it. Something that may resonate with people familiar enough with Bitcoin is the notion of sustainable development. This is something that doesn't exist in Bitcoin, not in the true sense we propose here, and as a result funding has to come from external parties that bring with them influence that may not line up with the interests of those that actually use Bitcoin.

    Sustainable development in Decred means that power is given back to users through a development subsidy. In a multi-stakeholder development system like what Decred is building, there is funding available to anyone or any group of developers that want to work on improving Decred. If the users of Decred are unhappy with the direction of development, they have the power of a vote through proof-of-stake to communicate discontent directly, which acts as a check on funded developers. This is another fundamental difference between Decred and Bitcoin. By using and mining Decred, users directly fund and vote on issues through the blockchain - two fundamental areas required for progressive development that Bitcoin lacks. In this system, there isn't the disconnect between developers and users as there is in Bitcoin today.

    The other point is the codebase. Decred comes from btcsuite, which is an entirely different codebase written in Go (golang). It's modular and very well documented - it was built for long-term maintainability and ease of use. It's easier for developers to pick it up and get involved than it is getting stuck into a codebase like Bitcoin Core. It also has extremely high test coverage. Decred is an opportunity to use that codebase to full effect - which ties back into the points made on development. Not the easiest argument to make to laypeople, but people who understand the importance of a multi-stakeholder development ecosystem will see the potential of a project that champions it.

    A direct, somewhat complex, response would be: Decred is a self-funded multi-stakeholder development ecosystem with a governance system on its blockchain. If you want, you can think about it likes this. Why research new drugs if the ones we have work 60% of the time but kill you 40% of the time? Technology is the same. Bitcoin is a great system, but if we don't continue looking for ways to make it better, we'll never discover anything new. You can build mutually beneficial symbiotic relationships with things - not everything is a threat to something before it. There's a reason the current Decred developers work on Bitcoin too - and will continue doing that.
     
    DonnyM and Pharaoh like this.
  13. Jonathan P.

    Jonathan P. New Member

    Thank you very much for the response ingsoc! Do you mind if I post it to my Decred blog? I think a lot of people are interested in building on what bitcoin has already done. Progression is the tune we march to.
     
  14. Lee Sharp

    Lee Sharp Sr. Member

    Dec 28, 2015
    308
    217
    Male
    Independent Consultant
    Houston, Texas
    So, correct me if this is wrong, but in the short version...

    Decred has a way to "pay" developers for work accepted by the community, while Bitcoin developers need to beg for development money from people who may not have the interests of the community at heart.
     
  15. Costin

    Costin Member
    Advocate (Twitter)

    Dec 28, 2015
    243
    84
    Male
    JavaScript
    Liverpool
    They can even chose if the payment is in Decred coins or real cash.
     
  16. tacotime

    tacotime Hero Member

    Dec 7, 2015
    410
    1,133
    Hey Lee, payment will be in decred from the dev org. The dev org will also release financial statements publicly to account for its position in the system. The primary purpose of the entity is logistical in moving funds through the blockchain to developers in contract form. Anyone can step up to that too, as it will be based on merit.
     
  17. tacotime

    tacotime Hero Member

    Dec 7, 2015
    410
    1,133
    Sure, I hope it's clear!
     
  18. Jonathan P.

    Jonathan P. New Member

    Thank you very much! The more information out there the better. I thought it was well written and clear. :)
     
  19. anvoice

    anvoice Member

    Dec 22, 2015
    229
    78
    Male
    "Decred is governed by its community, rather than external interest, through self-funding via the blockchain, and developed from a robust code-base that improves on the bitcoin concept. Its very premise is to promote decentralization, as evidenced by the progressive airdrop initiative meant to empower the community."
     
  20. Costin

    Costin Member
    Advocate (Twitter)

    Dec 28, 2015
    243
    84
    Male
    JavaScript
    Liverpool

Share This Page