What is the Decred consensus system?

The Decred consensus system is a hybrid proof-of-work (PoW) and proof-of-stake (PoS) system that is designed to provide a secure, decentralized, and self-funding blockchain network.

It combines the best features of both PoW and PoS systems to create a consensus system that is more secure, efficient, and cost effective than either of the two alone. In the Decred consensus system, miners use their computing power to solve cryptographic puzzles in order to add new blocks to the blockchain. This process is known as mining.

Miners are rewarded with newly created Decred coins for their efforts. In addition to miners, Decred also has stakeholders who are responsible for validating transactions on the network. Stakeholders are chosen randomly from a pool of eligible users who have locked up some of their coins as collateral in order to participate in the network’s consensus process.

Stakeholders are rewarded with newly created Decred coins for their efforts. The combination of PoW and PoS creates a more secure network than either one alone because it requires both miners and stakeholders to agree on new blocks before they can be added to the blockchain. This makes it much harder for malicious actors to attack or manipulate the network since they would need control over both types of participants in order to do so.

Additionally, this hybrid system also allows for faster transaction times since blocks can be added more quickly when both miners and stakeholders agree on them simultaneously. Finally, this hybrid system also helps ensure that the network remains self-funded since miners and stakeholders are rewarded with newly created coins for their efforts.