Proof-of-Work works.

It is the most robust and battle tested machine consensus protocol in the cryptocurrency market, nearing 11yrs of uninterrupted operation for Bitcoin and 4.5yrs for Decred. It is also one of the least understood components of network design.

This article aims to provide an fundamental overview and analysis of the Decred mining market to date, covering the following parts:

Part 1 — Proof-of-Work Mining Overview

Part 2— History of Decred mining

Part 3— Miner Supply Distribution Analysis

Part 4— Performance and Profitability of Decred miners

Part 5— On-chain metrics related to the mining market

Understanding the incentives, mechanics…


Realised Cap Primer

The Realised Cap is a metric originally developed for Bitcoin by the coinmetrics team in response to perceived shortcomings in the traditional Market Cap for valuing the network. The Market Cap, being the total coin supply multiplied by current spot price, has a tendency to over-estimate the liquid network value as it assigns equal economic weight to all UTXOs.

In reality, UTXOs have a different relative activity within a crypto-asset network. Long dormant coins, such as those in deep cold storage, or with the private keys lost, should have their economic value reasonably discounted. …


Ethereum is currently deep in the negotiation process with respect to implementing the ProgPoW mining algorithm change. This has undoubtedly become a contentious issue with the community rising against the core developers, whom they feel ‘ninja-approved’ the ProgPoW EIP in a recent conference call. Given this EIP was assumed to have gone cold, this has sparked heated discussion and has been a valuable test of the Ethereum governance structure.

The author’s read on the situation, is that the ProgPoW debate has largely converged onto discussing the Ethereum power structure, more-so than the technical merits of ProgPoW. In many ways, this…


by Checkmate

17-Feb-2020

Decred is one of the most promising cryptocurrency projects and a sound competitor next to Bitcoin in the free market for scarce digital money. At a minimum, strong market competition forces innovation and hardening of the strongest protocols whilst also providing a rational hedge for risk during the nascent development of digital money.

The following article is the final part of a three-part study into Decred from a data-driven and first principles perspective. The series aims to critically compare the performance of both Decred and Bitcoin across the following value metrics:

  1. Monetary policy and Scarcity.
  2. Cost of…


by Checkmate

1-Dec-2019

Decred is one of the most promising cryptocurrency projects and a sound competitor next to Bitcoin in the free market for scarce digital money. At a minimum, strong market competition forces innovation and hardening of the strongest protocols whilst also providing a rational hedge for risk during the nascent development of digital money.

As Bitcoin continues to assert it’s market dominance, it is the correct benchmark against which competitors must be compared to develop a sound thesis supported by performance data. The following article is the second of a three-part study into Decred from a data-driven and…


by Checkmate

14-Oct-2019

Disclaimer: Nothing contained in this article shall be considered as investment or trading advice.

Decred is one of the most promising cryptocurrency projects and a sound competitor next to Bitcoin in the free market for digital and scarce monetary assets. At a minimum, strong market competition forces innovation and hardening of the strongest protocols whilst also providing a rational hedge for risk during the nascent development of digital money.

As Bitcoin continues to assert it’s market dominance, it is the correct benchmark against which competitors must be compared. The following article is the first of a three…


By Checkmate

Disclaimer: Nothing contained in this article shall be considered as investment or trading advice.

Bitcoin has a constantly developing suite of on-chain analysis metrics to aid traders and investors in making informed market decisions. This paper presents the Realised Value to Transaction Ratio (the RVT Ratio). This study is a slower but higher conviction counterpart to the Network Value to Transaction Ratio (the NVT Ratio) that was originally developed by Willy Woo and iterated into the NVT Signal by Dmitry Kalichkin.

The NVT and RVT ratios are akin to a Price to Earnings Ratio (PE Ratio) for Bitcoin…


Running a full node is one of the strongest actions of support you can do for a peer-to-peer distributed protocol. Every single node that runs on the network adds strength and resilience to the consensus mechanism and is the embodiment of strength in numbers.

At a personal level, running your own node is an excellent way to get hands on with the Decred protocol, Linux and the Raspberry Pi.

This is an inexpensive learning project with a large impact and a great learning curve.

Purpose of this Guide

This guide is will show you how to setup a Raspberry Pi Decred full node on…


By Checkmate

Disclaimer: Nothing contained in this article shall be considered as investment or trading advice.

Note — This paper now has a follow up study which formalises the findings. Nevertheless, it provides valuable background and the link to the second paper is at the end.

The market for fixed supply crypto assets is viciously competitive as all altcoins exist in the shadow of Bitcoin’s commanding reputation, liquidity and market dominance. Bitcoin’s first mover advantage and hardcore monetary policy undoubtedly makes it the front-runner in a new age of digitally native scarce assets.

The question that continues to attract investor…

Checkmate

Bitcoiner, Decred bull, BTC and DCR On-chain analyst — Education and Knowledge Sharing — ReadySetCrypto Analyst and Guide. Readysetcrypto.com

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