Decred is a blockchain based cryptocurrency with a strong focus on governance. To interact with the governance process you use a Decred Wallet. This article looks at compatible wallets for storing, sending /receing and interacting with the voting system used in Decred.
Best Decred (DCR) Wallets
How Does Decred Work?
First we need to understand briefly how Decred works and what makes it unique, then we can focus on how Decred wallets facilitate some of this functionality.
Decred uses a hybrid mix of Proof-of-Work (PoW) and Proof-of-Stake (PoS)
- Proof-of-work Mining – This works in a similar fashion to it does for Bitcoin, by using computing power to validate transactions and generate new DCR coins.
- Proof-of-stake Mining – Decred funds can be used to both validate transactions and vote on the future direction of the network.
Like in the Bitcoin network Proof of Work requires computing power to contribute towards the calculation of the next block. Where things vary compared to Bitcoin is that miners only receive 60% of the block reward.
The other 30% is rewarded to those staking or locking in their DCR. Once DCR is locked in this entitles you to voting tickets. Remember one of the key focuses of Decred is self-governance through voting, it is these tickets that entitle you to vote. Voting includes agreeing yes or no to changes in the project and approving the work of PoW miners.
In case you were wondering the remaining 10% of the block reward goes into a project treasury fund, again it is ticket holders who are able to vote on how these funds are utilised.
The function of Wallets
That’s is a lot to take in but the key take away is that ability of users of the network to have a voice and vote on it’s direction is key to the Decred blockchain, this functionality is given to users through Decred wallets. Decred Wallets allow:
- Storing – of funds
- Transactions – to be sent and received
- Tickets – to be purchased which then allows voting and PoW validation
- Voting – on decisions
- Approving – the work of PoW miners
Not all Decred wallets are equal, so let’s look at each in turn to understand what functionality it allows and it’s strengths and weaknesses.
Decred Web Wallet
The web wallet allows you to quickly get started with Decred. To start using it you simply need to
- head to https://wallet.decred.org
- Agrees to the terms and conditions
- Create wallet – select get started, add wallet, create new wallet
- Set password – preferences, request password for spending funds
- Backup – the wallet only exists in the browser cache and so can easily be lost, you must backup the seed words. To do this select preferences, backup, show wallet seed
The Decred Web Wallet offers a quick way to get started but is not the most secure method and does not allow you to stake mine.
Decred GUI Wallet – Decrediton
For the fully featured experience you will need to use the Decrediton wallet. This wallet is available for Windows, Mac and Linux systems you can find the latest version in the downloads location. The install is a fairly straight forward where you just click next through it, what is worth noting is that the wallet will require a full copy of the blockchain to be downloaded. You can check the latest size of the blockchain before you install the wallet, there is a screenshot of the initial blockchain sync below.
When the sync is complete the screen will look like below.
Creating a new wallet is easy, just click on create new wallet, give it a name and then make a note of the seed phrases. Should anything happen to the computer your wallet is on you will need your seed phrases to recover it. You are forced to enter a number of the seed phrases as part of the setup to ensure that you have taken a note of them.
Once you have the wallet setup you will see a clean looking interface. The overview tab shows your current balance.
The transactions tab is again self-explanatory allowing you to send and receive DCR.
The Tickets tab is where things get interesting, tickets are the method of staking which allow users to vote on a DCR block and decisions. To be able to earn rewards your computer either needs to be continually online or you can join a stakepool which allows you to participate in proof of stake even when you are not online. You can select from the list of official Stakepools
The Governence tab is where you are able to vote on upcoming changes to the network. Community proposals will move through a stage of under discussion and then into under vote when the proposal is finalised.
You can see the results of past votes under vote ended .
The Trezor is one of the best known hardware wallets and offers official support for DCR. Being a hardware wallet this enables tokens to be stored offline offering excellent security for larger amounts of DCR.
If you found this guide useful also check out out our wallet selector tool to find suitable wallets for other cryptocurrencies.