Welcome to the Leo Finance Syscoin Coin Guide where we introduce you to the basics surrounding Syscoin (SYS).
In a nutshell, what is Syscoin?
Syscoin Platform (SYS) is presented as a decentralized scalable blockchain for enterprise, a development platform, and an asset platform offering high throughput and scalability, low fees, the security of SHA256 merge mining, ease of token creation, and a unique form of decentralized cross-chain asset interoperability capable of working with many platforms without requiring intermediaries nor counterparties.
[BitcoinWiki. Syscoin. (Accessed January 3, 2022)].
Syscoin strives to provide businesses with a platform whereby they can take advantage of the benefits of current blockchain and distributed ledger technologies. These benefits include lower costs, lower barriers to entry, and higher security and availability.
Syscoin's platform is comprised of original source code while maintaining a fully up to date base of Bitcoin Core. As such, Syscoin may be viewed as complying with Bitcoin's reliable model for network security.
The Evolution of Syscoin
In essence, Syscoin has developed over four iterations.
Syscoin first launched in 2014 as a Litecoin fork which expanded the concepts of Bitcoin so as to include extra services (i.e. smart contracts enabling a decentralized marketplace). However after its completed token sale and mainnet launch, the projects funds were supposedly stolen by the exchange chosen to hold the proceeds of the sale (Moolah Exchange) and Syscoin 1.0 ceased operations.
Syscoin 2.0 was launched in 2016 which included a new wallet and graphic interface. Important developments occurred during Syscoin 2.0 as in August, 2017 a separate entity was created for the purpose of creating a marketplace. This entity, Blockchain Foundry, released its first product, a blockchain e-commerce system known as Blockmarket. The successful launch of Blockmarket lead Blockchain Foundry to raise $3.3 million to fund its operations which included necessary research and development into blockchain innovations outside the realm of Syscoin.
Thereafter came Syscoin 3.0 on April 30, 2018. This upgrade to Syscoin enabled the creation of both unique fungible and non-fungible tokens on top of it's blockchain.
And finally the fourth and present iteration of Syscoin, which included:
Z-DAG - a decentralized DAG for assets which features global sorting of DAG consensus and near-instant transactions, with SHA256 finality also achieved in background and Bridge - cross-chain asset interoperability without requiring atomic swap nor intermediaries, that offers scalability to Ethereum and other platforms, giving ERC20's, etc, the option to utilize Z-DAG for simple value transfers/micro-transactions.
[Messari. Syscoin - Overview & History. (Assessed January 4, 2022)].
Syscoin offers its Users Access to a Unique Bi-Directional Bridge Serving Network Interoperability
Enables bi-directional interoperability between Syscoin and other platforms directly, without requiring atomic swap nor intermediaries. This is achieved via smart contracts on both chains establishing what Syscoin team termed "two-way peg". These contracts provide a mint/burn mechanism between token instances, maintaining correct supply on both platforms. In one use case, ERC20 tokens utilize Syscoin's Z-DAG for secure, low-cost transactions while maintaining existing smart contract functionality on Ethereum Network, while Syscoin Platform Tokens also access Ethereum for its smart contract capabilities. This is presented as a viable scaling solution for Ethereum and other platforms because it provides the option to offload majority traffic (simple value transfers) to the Syscoin Z-DAG network which is designed expressly for micro-transactions, thereby freeing network resources to perform flagship services.
[BitcoinWiki, supra.]
A Final Thought on Syscoin Before Proceeding
The Syscoin ecosystem is indeed interesting. Many practical real use cases are evident in this protocol.
If you have found interest in Syscoin, you are invited to review the balance of the contents of this Coin Guide for much more interesting information. Please remember, before finalizing any investment decision on Syscoin, or for that matter any other investable asset, duly diligent research on the asset is required.
And always remember the most important rule of investing - never invest more than you can afford to lose. Good luck.