Decred’s consensus algorithm is a hybrid proof of work, proof of stake system that’s different from Bitcoin’s, in that Bitcoin is only proof of work.
In proof of work, the machines that run the network and verify transactions are the ones that ultimately have all the governance power. That alienates the actual users because if you hold bitcoin but don’t have a machine plugged into the network, then you don’t have that much of a say.
A hybrid proof of work-proof of stake system is a system of checks and balances between the users and the machines, in that the machines in Decred are producing blocks much in the same way that Bitcoin’s machines are producing blocks, but each block has to be vetted and validated by the proof-of-stake layer and the proof-of-stake layer, which is driven by the asset holders, the holders of the Decred coin.
2018-06-12 | Full Review