Decred token experienced a relatively stable July, mostly being trapped in a slow downtrend that was disturbed for a moment during the middle of the month. The monthly highs were reached around the same time; BTC high of 0,01099 BTC came about on July 17th, while the USD high of $77,35 USD happened a day later. Ever since, Decred kept toiling away towards its current price levels. To add to that, latest BTC drop had a pretty strong effect on the coin as it rubber banded pretty strongly after the market leader. Right now, one DCR token can be purchased for $43.05 USD (14.81% drop in the last 24 hours).
Its measly daily trade volume of 272,92 BTC suggest that the market isn’t very stoked about this currency at the moment. Still, it remains the 29th most valuable cryptocurrency in the world thanks to its market cap of $411,773,346 USD.
Decred aims to become a decentralized exchange that wants to be an alternative to both the centralized exchanges and the existing decentralized exchanges. This exchange promises to deliver the following properties:
- Focusing on the exchange of cryptocurrencies, not fiat currencies.
- Serving as a simple client and server, without a corresponding token or a blockchain.
- Server operators will never take custody of client funds.
- It looks to use on-chain transactions for order fulfillment and rule enforcement.
- Server operators will collect no fee for matching orders.
- Adding support for coins will be a straightforward matter of adding the corresponding atomic swap support.
- Orders placed on the exchange will be internally regulated via rules enforced by the clients and the server.
- Malicious clients are managed using a reputation system based on Politeia.
- An upfront fee will have to be paid to create a client account on a server, to discourage malicious behavior.
- Order matching will occur pseudo-randomly within epochs.
- Order sizes on both the buy and sell side of a trading pair will have standardized lot sizes.
- Limit orders and cancels will be broadcast by clients via the server, but market orders are routed from client-to-client.
- Near-instant exchange for smaller orders will be achieved through a related off-chain LN-based network which uses atomic swaps.
- Servers will be able to connect via a mesh network to allow cross-server order matching.
- External services like wallets will be able to access a simple client API on the server that provides a data feed, ability to place orders, and other services.
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All of these suggested features will be an improvement on the currently available infrastructure. They promise to deal with the regulatory, user experience and technological issues that currently plague the space, as well as the danger of high-frequency trading algorithms. You can check out the full list of practical considerations, technological solutions and incentives in this detailed, transparent blog post made by the Decred developers.
So what role does the DCR token play in this? Well, Decred project will also be looking to become “the Bitcoin that Bitcoin wishes it was”. DCR will serve three purposes of an ideal currency: being a store of value, being a medium of exchange and being a unit of accounting. Bitcoin is kinda capable of performing these three functions, but currently possesses inferior technology that isn’t suited to make it commercial grade money. A hybrid POS/POW system used by Decred combined with upcoming privacy solutions looks to eliminate these limitations and launch the DCR token into worldwide adoption.
The projects positive performance and development was recently acknowledged by Coinbase, after this exchange announced its intention to consider adding DCR tokens to its custody service. Right now it’s hard to tell where the project is headed next, but Decred platform will surely be looking to continue making steps in the right direction.