What is Syscoin (SYS)? A Beginner’s Guide
Is this decentralized marketplace the next Amazon? Let’s take a look at Syscoin, blockchain’s answer to e-commerce platforms.
What is Syscoin (SYS)?
Syscoin is “a global network, a distributed ledger, a decentralized database, and a blockchain. It is also a cryptocurrency, an altcoin, a digital currency, and a tradable token.”
Originally launched in late 2014 and created through a Bitcoin fork, the current version brings us to Syscoin 2.1 and has an algorithm that allows it to be merge-mined with Bitcoin. Merge mining is simply the ability for miners to simultaneously mine two different cryptocurrencies based on the same algorithm.
The project attempts to remove the middleman and put money directly back into merchants/consumers hands, eliminating hefty fees currently charged by big corporations like Amazon and eBay. To facilitate near-zero fee transactions, you can use its native cryptocurrency, Syscoin (SYS), to pay for goods on the marketplace. However, you can also pay using alternate cryptocurrencies such as Bitcoin or Zcash.
The Blockmarket, built on Syscoin blockchain technology and currently fully functional, is a global commerce platform that gives you the ability to purchase or sell anything from furniture to computers for little to no fees. Additionally, businesses can create entire virtual stores on the Blockmarket and you can resell someone else’s products for a commission.
The Blockmarket Desktop Wallet was released in September 2017, and as of now, you must download it to have access to the Blockmarket marketplace. Blockmarket Web launches this quarter, and will then give you access to its decentralized commerce platform via the web.
Key Features of Syscoin
- Decentralized Marketplace with unlimited inventory items
- Near-zero cost transactions
- Aliases: Send coins to case-insensitive names without needing to plug in lengthy wallet addresses (e.g. “TheFlowerShop”).
- Ability to resell other people’s products in your store or allow your products to be resold by others for commission
- Encrypted messaging with email-like inbox/outbox to communicate with people on the Syscoin network
- Escrow service: holds a buyer’s tokens in escrow “until the terms of the sale are met and the buyer releases payment to the seller”.
- Digital certificates: Issue, authorize, authenticate and exchange digital assets that contain private information like gift cards codes or registration keys.
- No downtime: Unlike markets such as OpenBazzar in which users need to leave their computers open to keep listings up, the Blockmarket guarantees 100% uptime.
- Integrated exchange: user-friendly exchange of 32 cryptocurrencies with in-wallet exchanges Changelly and Flypme.
Key Technical Features
According to its whitepaper, Syscoin is “a permissionless blockchain-based cryptocurrency with a set of smart contracts…built on the Bitcoin scripting system using OP1 to OP16 standard script op-codes”.
- Hardened smart contracts (which contrast with Ethereums Turing-complete smart contracts) retain backward compatibility with the Bitcoin protocol.
- Miner incentives: “Block subsidies through rewards and transaction fees”, with an inflation metric for block rewards.
- Proof-of-work SHA-256 merge-mineable. When added, this capability grew the Syscoin network 100 fold in less than 12 hours.
- Master nodes will go live Q1 of 2018 and will facilitate 300,000 TPS and allow for 0 confirmations
- Tested and functional Lightening network on Syscoin core mainnet in next updated release, giving way for micropayments
- Pruning: splitting Syscoin service transactions “into two outputs, with the first output not subject to pruning, and the second one being pruned after expiry”
- Cryptographically secure signatures for alias owners, ensuring security on the network
Syscoin Team and Partnerships
Syscoin is led by a team of developers and was created by its current core developer, Sebastian Schepis. According to Proof of Developer, a website that verifies, evaluates, and ranks developer teams, Syscoin received 5 stars in 2014.
Blockchain Foundry maintains Syscoin as its flagship product, with a mission to “disrupt markets by leveraging the potential of blockchain technology”. In March of 2017, Blockchain Foundry partnered with the Microsoft Azure ecosystem and is one of the founding members of the Digital Identity Foundation (DIF). Other founding members of the DIF include the likes of corporate giants such as Microsoft, Accenture, ConsenSys, and more.
SYS Coin Supply and Mining
Syscoin has a max supply of 888,000,000 SYS and has a current circulating supply of 531,095,020 SYS. You can mine it, but the team recommends not mining from a CPU as the hash is too high. However, if you are interested in mining the coin, follow the instructions located on the official sites FAQ page.
SYS Trading History
Like many of the other early blockchain projects, Syscoin didn’t see substantial growth until recently. At the time of writing, Syscoin was hovering around $0.70, more than a three-fold increase in the last three months.
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With the upcoming release of the decentralized web marketplace and as Syscoin products grow their user base, the use of SYS should rise which may lead to an increase in price. As with all cryptocurrencies, though, other factors, such as FUD and the overall trend of the market could hinder this growth.
Where Can You Buy SYS?
Syscoin is available on popular exchanges like Poloniex and Bittrex. New users can purchase BTC or ETH coins on Bitstamp or Coinbase and then deposit it to their respective wallets on Poloniex or Bittrex. Once deposited, you can trade these coins for Syscoin.
Where Can You Store SYS?
You can download wallets for Mac or Windows from the Syscoin website or use your phone to download the Coinomi mobile wallet. Leaving cryptocurrencies on exchanges is not recommended due to the risk of hacks, but you have the option to leave your coins on the exchanges if they wish.
Syscoin’s blockchain delivers faster speeds along with lower transaction fees than its predecessor, Bitcoin. It can support 750 tps, and with the upcoming masternode release, it will support more than 300,000 tps. For now, it’s one of the cheapest cryptocurrencies regarding transaction fees (behind zero-fee transaction cryptocurrencies NEO and NANO), even cheaper than Ripple.
As stated in their Medium Blog, “our 2018 development plans include adding decentralized databases and file storage, increasing transaction speed to POS/Visa/Mastercard capabilities, adding true Turing-complete smart contract capabilities for unlimited business logic, sidechains, application layers, and our identity layer.” While the team rarely posts on social media, they seem to always deliver what they say they will.
That being said, the Syscoin project is backed by a strong team and they’re continually improving their protocol. As well, its been in the industry since 2014, relatively long for blockchain companies and has a fully functional product. With the release of the web-based version, this may be another step towards crypto mass adoption.
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ABOUT THE AUTHOR
ABOUT THE AUTHOR
Erin is a Brooklyn based cryptocurrency enthusiast & writer. Nomad at heart, you can often find her at the airport heading to her next adventure.