Syscoin (SYS) is a blockchain protocol and cryptocurrency that aims to provide fast, secure, and low-cost transactions. Launched in 2014, Syscoin describes itself as a decentralized marketplace, combining the best features of Bitcoin and Ethereum in one platform. In recent years, Syscoin has been gaining increased attention for its unique capabilities and robust ecosystem. Let’s take a deep dive into Syscoin and explore its potential.
At its core, Syscoin is focused on enabling decentralized marketplaces and economies. The goal is to allow buyers and sellers to transact directly with each other, removing intermediaries and reducing fees. On Syscoin, anyone can create a decentralized marketplace for any product or service. Payments are handled directly on the blockchain in a secure and efficient manner.
Syscoin provides a suite of services to facilitate decentralized marketplaces, including digital identities, certificates, aliases, attestations, escrows and arbitrated settlements. For example, buyers and sellers can establish trusted relationships using Syscoin’s digital identity system. This eliminates the need for traditional reputation systems. Overall, Syscoin aims to replicate all the functions of a traditional marketplace or sharing economy platform in a decentralized way.
Merged Mining with Bitcoin
One of Syscoin’s key innovations is merged mining with Bitcoin. Syscoin leverages Bitcoin’s massive hashrate by allowing miners to mine both BTC and SYS simultaneously. This improves Syscoin’s security dramatically by relying on Bitcoin’s proven Proof of Work model.
Merged mining aligns the incentives of BTC miners with SYS miners. Essentially, Syscoin gets the extensive network security of Bitcoin almost for free. This also eliminates competition between Bitcoin miners and Syscoin miners. Syscoin is one of the early pioneers of merged mining and continues to innovate on the concept.
Syscoin implements a novel protocol called Zero Confirmation Directed Acyclic Graph (Z-DAG) to achieve fast transactions without compromising security or decentralization. Z-DAG leverages masternode quorums and graph theory to provide transaction finality in seconds. This enables Syscoin to handle thousands of transactions per second with negligible fees.
Compared to Bitcoin’s 10 minute finality and Ethereum’s probabilistic finality, Z-DAG provides deterministic finality. This makes Syscoin highly attractive for everyday purchases, merchant payments, and decentralized marketplaces. Z-DAG is a key part of Syscoin’s vision to be the most scalable, decentralized, and low-cost blockchain for payments and marketplaces.
Ecosystem and Development
Beyond its technical innovations, Syscoin has built a thriving ecosystem with many real-world uses. The Syscoin platform has been adopted for STOs (security token offerings), compliance tokens, supply chain tracking, asset tokenization and more.
On the development side, Syscoin employs a continuous delivery model with new features added every 3 months. Syscoin 4.0 and 4.1 introduced significant scalability improvements including Z-DAG, Dandelion++, pruning and segwit. The upcoming Syscoin 5.0 aims to further boost scalability and introduce private smart contracts based on a ZK-Rollup model.
The Syscoin ecosystem keeps expanding via partnerships and integrations. Syscoin recently partnered with the OpenLookup protocol to bring decentralized identity capabilities. Many other collaborations are in the pipeline. Overall, Syscoin development is accelerating to support wider adoption and real-world usage.
Syscoin utilizes a hybrid Proof of Work and Masternode model for governance. 10% of each block reward goes to Masternodes, providing an incentive to hold SYS and participate in governance. Masternodes enable features like instant transactions, privacy, and DAOs on Syscoin.
While Proof of Work secures the base layer, Masternodes enable community governance. For example, Syscoin holders can vote on development funding, project direction, and dispute resolution via Masternodes. This balances security with representation, while preventing forks and chain splits in the community.
Recently, Syscoin has also introduced decentralized funding to its governance model. Now, developers can create funding proposals which SYS holders can approve via transparent on-chain voting. This gives the community a direct mechanism to fund projects that contribute to the Syscoin ecosystem.
SYS Token Utility
The SYS token serves as the native currency of the Syscoin blockchain. It has a fixed supply of 888 million tokens. SYS is used to pay fees, enable smart contracts, incentivize miners and masternodes, and facilitate governance. As the Syscoin ecosystem grows, the utility and value of SYS also grows.
Several drivers are expected to increase SYS utility and adoption over time:
- Merchant payments and remittances.
- Decentralized marketplaces.
- Tokenized assets.
- Crowdsourcing and fundraising,
- Loyalty rewards.
- Gaming applications.
With fast, cheap, scalable transactions, SYS is an ideal cryptocurrency for everyday transactions and micropayments.
SYS currently trades around $0.50 with a market capitalization of $300 million. Considering its strong fundamentals, active development, and expanding ecosystem, SYS appears undervalued relative to other smart contract platforms. As a top 100 cryptocurrency project, SYS appeals to both retail and institutional investors.
With the blockchain space growing exponentially, Syscoin is well positioned to capture value given its unique capabilities. If Syscoin is widely adopted for payments, assets, and marketplaces, a billion dollar valuation could be achievable in the next few years. This implies significant upside for early SYS adopters.
In summary, Syscoin is an innovative blockchain protocol combining decentralized marketplaces, fast transactions, merged mining, and advanced governance. After several years of steady development, Syscoin is now ready for prime time. With unparalleled scalability, low costs, and flexible utility, Syscoin has the potential to power the next generation of decentralized economies. As the possibilities keep growing, Syscoin deserves a spot on every crypto investor’s watchlist.