SysCoin project purpose and description
What is Syscoin (SYS)
Syscoin is a globally distributed ledger, peer2peer blockchain, and a digital cryptocurrency. The project was established in 2014 through a fork of the Bitcoin core code. The most interesting thing about SYS was that developers allowed merge mining with the release of Syscoin 2.1. This implies that miners can mine the two coins at the same time.
The concept of merge mining is preferred in some coins to help a newer token ride on the popularity of a more established one.
The Syscoin system was created by a team of computing and financial experts that included Quang Nguyeng, Sebastian Schepis, Jagdeep Sidhu, Brad Hammerstron, Chris Marsh, Dan Wasyluk, and Sebastian Dimichele. The team was concerned about the high level of decentralization, especially in the financial sector. They were also motivated by the progress in the blockchain technology, especially Bitcoin and wanted to provide a lever for taking it to the next level.
To make the blockchain technology more realistic and applicable in the community, the Syscoin released the native token referred to as SYS and also created a marketplace where those with coins could walk and buy various items and services. This approach has made Syscoin become highly popular in the market.
What problems does Syscoin solve?
The main issue that Syscoin came to address is centralization of payment. If you want to send value abroad or make payment, you will need to go through a centralized entity such as a bank. In most of the cases, these third parties are profit-based. This implies that they increase the transaction fee to raise profits. Take a closer look at the following situations;
- If you want to send funds across the globe, the commonest method is using a bank. However, the banks have to conduct multiple background checks and reveal your information to multiple parties such as cashiers, bank management, and the jurisdictions’ financial management.
- Using a bank account to send value also takes longer because of the lengthy bureaucratic procedures. Before sending funds from the US to South Korea or other jurisdictions using a bank transfer, it could take a couple of days.
- The cost of sending funds across the globe is very high. Banks, as profit-based organizations charge a fee to cover their expenses, meet tax obligations, and make hefty profits.
- For people who prefer making payments with credit cards, it is a very expensive method. Most of the cards come with serious restrictions and hefty penalties when you do something wrong such as overspending or delaying payments.
How Syscoin solves the problem
The focus of the Syscoin project is trying to remove the middle-men and empowering users to operate on a peer2peer basis. Some middle-men to think about here include Amazon, eBay, and other online stores. Instead, you are empowered to work directly with recipient and manufacturer to make payment direct, fast, and highly reliable. Here is how Syscoin targets to achieve this.
1. A fully decentralized platform
To advance the ideology of a decentralized system, the Syscoin platform is designed in layers. These layers allow different stakeholders to get involved and make a contribution. At the bottom is the blockchain layer.
This is the most important section because all the other layers and are added on top of it. Then, additional layers including Z-Dag, Business, Logic, and application are added in that order. The layers have helped to make development and addition of new features easy and faster.
2. Decentralized marketplace
When Syscoin was created, Bitcoin was the main cryptocurrency on the market. But it was very difficult to make people adopt cryptocurrencies in larger numbers to sustain a marketplace on a cryptocurrency only.
Therefore, Syscoin created the decentralized marketplace to help users access and buy items and services directly. Now, the idea of the decentralized marketplace has grown and the Syscoin decentralized marketplace even allows users with other coins to make direct purchases.
3. Advanced encryption
Like other cryptocurrencies, Syscoin operations are hinged on advanced encryption. When users join the network, their details are encrypted to ensure that no third party can easily access them. The platform also allows people in its network to use aliases to enhance their anonymity.
4. The smart contracts
Smart contracts are considered the ultimate way to take blockchain network to the next level. Because they are automated and self-executing, they are inviolable and highly secure. As far as the users on the network meet the pre-set rules, the smart contract will immediately execute. It is important to note that the smart contracts used at Syscoin are hardened to ensure that they are not easily breakable.
5. The decentralized governance of the Syscoin
To advance the concept of a decentralized system, the Syscoin network relies on Proof of Stake (PoS) consensus algorithm. The network uses a set of Masternodes and standard nodes to make governance easy and seamless. When a user on the network floats a proposal, it is taken and reviewed by the masternodes before getting implemented.
All the nodes that have some stake in the network have a right to vote when issues requiring a major decision are coming up. Remember that you can also work as a miner to help confirm the transaction and get rewarded as a node.
Why Syscoin is better than its competitors
When the Syscoin development team forked the Bitcoin core code, their target was very clear; to decentralize everything.
The focus and progressive development have helped Syscoin to grow and become better year after year. Here are some of the things that make Syscoin better than competitors.
- The Syscoin platform employs proof of work (PoW) and proof of stake (PoS) which implies that users are able to enjoy the benefits of both consensus algorithms. The adoption of the PoS is considered a great improvement on the Bitcoin system because those who hold some stake are considered trusted nodes that cannot conspire to harm the network.
- While other cryptocurrencies are no doubt working harder to ensure that their native tokens are accepted for direct payments, Syscoin has already created a market where users can go for direct purchases of various items and services.
- One of the key risks associated with new cryptocurrencies entering the market today is instability. Many people hold the view that most of them are risky because some of their features are still being implemented. However, Syscoin has been in operation since 2014. With most of its features having been in use for several years, it is considered a highly stable and reliable platform.
- Syscoin is better than Bitcoin and most conventional trading platforms because it employs smart contracts. The smart contract used at Syscoin is indeed better compared to what Ethereum’s because it is hardened. At Ethereum, the smart contract is turing-complete which implies that they can still be attacked by bugs.
- The cost of sending value on the Syscoin platform is relatively low compared to other top cryptocurrencies. This is contributed to two key things; the current low price of the native token (SYC) and its completely decentralized operations. Today, sending value on the Syscoin network is cheaper than most networks including Bitcoin Cash and Ethereum.
- The Network has put a lot of effort into promoting anonymity. In addition to advanced encryption, Syscoin allows users to pick alias names for extra anonymity. Though this might not be as tight as the use of ring signatures, users are assured of high levels of anonymity. Like Bitcoin, you need to appreciate that it is still possible to pull out the details on the network using highly advanced computing technology.
What is the Syscoin vision for security?
The main Syscoin vision for security is providing fully decentralized transactions that are completely secure. Syscoin was created high on the heels of major blockchain attacks such Mt. Gox and the Silk Road Scandal.
Therefore, the development team adopted multiple tactics that have helped the network to remain very secure and free from attacks. Here are some of these strategies.
- Use of hardened smart contracts to make it extra difficult for attackers to break.
- The Syscoin system that combines proof of work (PoW) and proof of stake (PoW) system has been crucial in facilitating even distribution of tokens and reducing the risk of 51% attack.
- The network is led by a tech and highly aggressive team. This has been the primary driver for regular updates that help to fix bugs and introduce new features.
- The system utilizes advanced encryption that helps to keep user information as private as possible. It even allows users to take alias names to prevent easy discovery by third parties. Even the miners who help to confirm transactions can only check the balances on the public addresses but cannot pull out personal information.
How can Syscoin be categorized?
Syscoin can be categorized as a truly decentralized platform that has created structures to help lever the blockchain technology to the next level. Even as early as 2014, the development team had already crafted a clear roadmap for progressive growth.
However, it is their focus on implementing hardened smart contracts that have made Syscoin to be considered a better option than even Ethereum. Here are some of the things making Syscoin get the revered categorization.
- Good performance in the markets.
- A highly committed development team.
- Progressive updates and the introduction of more impressive features.
- Better security of the core code, user assets, and their information.
Use cases of Syscoin
Syscoin, as an improvement of the Bitcoin blockchain, has progressively grown the use cases. While Bitcoin was primarily created to help with sending funds in a decentralized manner, the Syscoin system extends the utilities so that both corporate and individuals can easily join and realize greater value. Here are the main applications of Syscoin.
- Sending value on a peer2peer basis: This is one of the main use cases of Syscoin. Once you have some native coins, sending them is direct and instant. Because there is no third-party such as bank or credit services that are required to effect the payment, the cost of sending such funds will also be small. The only thing that is required is for the two parties (sender and receiver) to be on the Syscoin network and have the right wallets.
- Purchasing products and services online: Like Bitcoin, Syscoin has been working on getting accepted as a method of direct payment for goods and services. To enhance this application, Syscoin created its own marketplace that allowed users to operate on a peer2peer basis. Even those stores that accept other tokens are only a step away. For example, if a store only accepts Ethereum, you only need to exchange SYS using an exchange such as Changelly and Flypme.
- Syscoin is a reliable platform for saving and sending value: If you have some funds and want to invest or save, one of the top coin options to consider is Syscoin. As native tokens, you can buy the equivalent of the funds you want to save and leave the money for some time. As a decentralized platform, Syscoin is free from third-party seizures and your funds can grow over time. However, you need to be cognizant that this is simply a prediction and the value of the tokens can move in either direction.
- Trading the native tokens in the markets: To optimize returns from Syscoin, one of the preferred methods is trading the native tokens in the markets. The online cryptocurrency markets operate like the standard forex markets though users deal with digital assets as opposed to fiat currencies. You could opt to pair SYS with top cryptocurrencies such as Ripple or newer options like Loopring. Remember that most of the exchanges that facilitate trading such as Changelly and Poloniex require users to register for trading accounts.
- Paying transaction fee at Syscoin and trading platforms: If you want to send value on the Syscoin network, you will be charged a fee. Besides, trading in the exchanges will also attract a fee. This fee can be cleared using SYC. Note that the cost of transactions in most trading platforms varies depending on their respective policies.