Decred Launches Private Transactions, Integrates Lightning Network & Decentralizes Treasury
Chicago based firm, Decred introduces new features in its upgraded wallet, Decrediton Wallet v.1.6, to “cement its token’s position as money evolved.” The new upgrade wallet features a decentralized on-chain treasury, enhanced privacy features, and lightning network payments.
Decred, a blockchain-based payment system, announced the introduction of its new upgrade wallet, Decrediton v.1.6, in a bid to develop a fully functional financial system on its platform. The new version will include opt-in privacy features to mask transactions, a decentralized treasury controlled by on-chain smart contracts, and integrate LN payment channels to speed up transactions. In a blog post from Decred, Jake Yocom-Piatt, co-founder and project lead at Decred, said,
“Collectively, these technological developments cement Decred’s position in creating a cryptocurrency that is truly decentralized, secure, and sustainable – aligning with the original ideals of the space.”
Back in August 2019, Decred announced its plans to create a ‘middle ground’ for privacy on its token, and finally, it is here! The privacy feature aims to enhance the user’s “financial security and sovereignty” and protect the platform from malicious actors, Piatt further stated.
The new opt-in privacy feature is built by Stakeshuffle, a coin mixer that allows users to anonymize their DCR tokens on-chain for maximum privacy. The platform uses a peer-to-peer platform, CoinShuffle++, which adds a mask by randomizing the peers so no third parties can know which peer sends or receives the transaction.
Decred will also introduce a decentralized on-chain treasury system to control the 10% block rewards disbursed to every block's treasury contract. While the new on-chain treasury update will not replace Politeia, it will further decentralize how treasury funds are managed. The community will continue to vote off-chain how the funds are spent via Politeia and the new update will enable stakeholders to review the contractor payout each month and vote on whether to approve it.
The new on-chain voting protocol is expected to increase decentralization of the privacy-based protocol and boost transparency on the use of treasury funds, a statement from the firm reads. Yocom-Piatt said.,
“The new process will greatly increase the transparency of treasury spending and eliminate the risk of treasury fund theft, which improves security.”
“It will also further empower stakeholders who will be able to veto or approve all treasury spending.”
Finally, Decred will also integrate the Lightning Network, a layer 2 payments network that reduces transactions' cost and speed. The platform will allow near-instant off-chain transactions while reducing the cost to a minimum and doing away with intermediaries. Piatt stated the lightning network channels would have a “significant impact on Decred’s scalability” as the blockchain gains mainstream adoption.