Syscoin (SYS): Best Features of Bitcoin and Ethereum Under One Roof
It would need a network as secure as Bitcoin, with the smart contract capabilities of Ethereum. On top of that, it should be scalable and capable of incorporating new technologies such as DeFi, NFTs, and Metaverse.
The Syscoin ecosystem is exactly that. It boasts an independent blockchain that has integrated the best out of both worlds. Its development team believes in the transforming nature of blockchain technology and unity. According to them, success and mainstream adoption can only be achieved by joining forces and working together.
In this Syscoin review, we will discuss the cutting-edge technology that the protocol provides and how it works.
What Is Syscoin?
Syscoin (SYS) is an open-source and decentralized network created in 2014. Its blockchain makes it possible to build Web 3.0 applications in a safe and inexpensive environment. The Syscoin value lies in the protocol’s multiple use cases.
It can be used for:
- Decentralized marketplaces and online shops.
- Microtransactions.
- The issuance of new tokens.
- Inventory management.
Syscoin’s codebase has a 90% similarity to that of Bitcoin. Because of this, the network can introduce the same technologies initially meant for the BTC blockchain. Among these improvements are the Lightning Network and Taproot. Both upgrades are compatible with SYS.
Syscoin’s network speed is one of the main reasons for the coin’s popularity. Tests have shown that the protocol’s throughput is over 61.000 transactions per second. These numbers are expected to increase exponentially with future upgrades. The network can achieve this speed but still remain highly secure and decentralized.
Unlike many other cryptocurrencies that came out in the early days of blockchain technology, there was no Syscoin ICO or crowdfunding for this digital asset. Additionally, the coin has an unlimited maximum supply and a block time of 2.5 minutes. To get the most recent Syscoin news and updates, you can visit the news section of the official website or take a look at the project’s Twitter profile.
The Syscoin (SYS) Team
Syscoin was created by the same group of people who founded Blockchain Foundry. They are experienced programmers and website and app developers. To this day, the project is led by the same founding team and is supported by the Syscoin Foundation.
This governing body makes decisions regarding the project's future directions, establishes partnerships, and is responsible for the protocol’s growth and user adoption. The Foundation’s President and Lead Developer is Jag Sidhu. Michiel is the Vice President and Project Manager, while Willy Ko works as the company’s Treasurer and Developer. The two other key figures are Chris, the Marketing & Relations Director, and Bradley, Syscoin Foundation’s Social Media Director.
The Syscoin Ecosystem
Syscoin uses a Proof-of-Work consensus algorithm, just like Bitcoin. But that’s not the only similarity of SYS to the world’s most popular crypto. Syscoin is merged-mined with Bitcoin. This innovative feature allows crypto miners to mine multiple blockchains simultaneously. Around 20% of the global hashpower that mines Bitcoin is also used to secure the Syscoin blockchain. This merged-mining system creates no additional electricity costs. Still, the miners can potentially earn block rewards from two different blockchains utilizing the same computational power. Further information about this technology can be found in the Syscoin white paper.
So, what is Syscoin, and what can it be used for? Its network comprises two blockchains. First, there is the underlying Syscoin blockchain. It coexists and runs together with a second-layer modified Ethereum Virtual machine called Network-Enhanced Virtual Machine or NEVM.
The developers of this digital asset believed that one blockchain and a base layer are not enough to gain security, decentralization, and speed. Instead, modular chains and multiple layers are required.
The Syscoin value lies in 3 separate operational layers:
Execution Layer
The base chains of both Syscoin and Ethereum can’t scale to absorb an entire economy. That’s why the execution takes place on its own separate layer. It’s the location where the daily transactions are executed, such as token swaps, smart contract interactions, or buying and selling of NFTs via a Syscoin marketplace.
Settlement Layer
The settlement layer is responsible for the security of the entire ecosystem. This is guaranteed thanks to the merged-mining capabilities with Bitcoin. Transactions that were recorded on the blockchain will be immutably stored on this layer.
Data Availability Layer
All the data required for smart contracts will be stored in the Data Availability Layer. Since Q1 2022, these records are available on-chain, but in Q3 2022, a new upgrade is supposed to migrate the data off-chain.
Security, Decentralization, And Cheap Transaction Fees
With Syscoin’s unique multi-layered approach, the team has created the perfect development platform that solves the ever-lasting blockchain scalability problems. Despite the high speeds, transaction and gas fees remain low compared to other smart-contract chains such as Ethereum.
Syscoin has over 2400 masternodes that secure its blockchain and make it decentralized. Thanks to the hashpower that originates from Bitcoin miners, the ecosystem is a guarantee of security. It also provides a system capable of eliminating 51% attacks.
The Technology Behind Syscoin
Syscoin has several essential elements that make up its network. Let’s take a look at what those are.
Masternodes
Around 2500 masternodes are active in the system. They are responsible for two things: keeping the network decentralized and secure. Masternodes are full nodes that earn block rewards by being online at all times or as much as possible. So to host such a node on Syscoin (SYS), you would have to deposit 100.000 coins as collateral to become part of the group.
The blockchain’s security is improved with ChainLocks. This technology ensures that Syscoin isn’t vulnerable to 51% attacks. Most POW blockchains are based on the longest chain rule. Unfortunately, if malicious individuals acquire enough hashpower, they can mine the longest chain and perform reorganizations and double-spends.
ChainLocks prevent this by creating Long Living Masternode Quorums (LLMQs). An LLMQ is a group made up of hundreds of masternodes who share information amongst each other about which block is supposed to be next. Once they come to an agreement, they inform a second LLMQ. This is repeated a total of four times. If 3 out of 4 Masternode Quorums agree on which block is next, the chosen block gets mined, and this decision is considered final no matter the length of the chain.
The 2nd essential feature of SYS full-nodes is the Z-DAG protocol, a scalability solution for the Syscoin blockchain. Z-DAG technology ensures preventive measures against double-spends and guarantees transaction finality within 10 seconds. It also provides cheap fees for end-users because a standard Z-DAG-enabled transfer costs around 0.00006 SYS ($0.00003). This feature is incorporated in Syscoin’s platform tokens and benefits merchants that accept microtransactions.
Syscoin Platform Tokens
SPTs are tokens that can be created on the base layer of the Syscoin ecosystem. They consist of inputs and outputs (UTXOs), just like Bitcoin. That also means that all new technologies adopted on the BTC blockchain can also be introduced to Syscoin. Furthermore, the native platform tokens also support NFTs, which take up minimum space in the blocks.
The Network-Enhanced Virtual Machine
Smart contract operations wouldn’t be possible without a Virtual machine. The Ethereum developers created the world’s first one and called it The Ethereum Virtual Machine (EVM). But the EVM is struggling in the practical sense because it can’t scale properly. If we observe the state of the Ethereum network, we will realize that the more popular ETH becomes, the more difficult it is to maintain low gas fees.
Syscoin’s solution is the upgraded Network-Enhanced Virtual Machine or NEVM. NEVM is scalable, cost-efficient, decentralized, and secure, thanks to being merged-mined with Bitcoin. In addition, it’s a Turing-complete system that improves the weaknesses of Ethereum by implementing zero-knowledge proofs. The result is a scalable smart contracts layer for dApps with manageable gas fees.
The Syscoin Bridge
The Syscoin Bridge allows users to migrate tokens between the UTXO-based Syscoin blockchain and the NEVM blockchain that supports ERC-20 tokens. So, if you are a crypto developer who works with Ethereum, you can use the bridge to take advantage of the strengths of both networks. This process works by burning assets on one chain and minting the same number of coins on the secondary one.
The Syscoin Bridge is not a custodial service. The users always remain in total control of their tokens by using a trustless solution. SYS needs to be burned as gas to pay the transaction fees to take advantage of this feature. In contrast to many other blockchains, the Syscoin protocol is cost-efficient. It allows the execution of thousands of transactions with just 1 SYS coin used for fees.
One might ask, why would I use an SPT token if I can work with ERC-20 tokens? With SPTs, you can benefit from the Z-DAG technology enabling fast confirmations and scalability with low fees. These assets rely on Bitcoin’s POW consensus algorithm, which is synonymous with high-security standards.
How To Buy Syscoin: Exchanges and Wallets
Let’s now explain where to buy Syscoin and how to store it safely. Like other popular altcoins, this digital coin can be purchased on several crypto exchanges and be transferred to various web, software, and hardware wallets. Luckily, the current Syscoin price of around $0.50 (in mid-April 2022) offers plenty of room for improvement and value increase.
Exchanges
To find out where to trade SYS coin, check out the following paragraph.
For fast and non-custodial crypto swaps, you can use ChangeNOW as the most recommended cryptocurrency exchange. This reliable service allows you to purchase your Syscoins with fiat or swap them with other cryptocurrencies.
Alternatively, you can buy Syscoin on several other platforms such as Binance, Gate.io, or Bittrex.
Wallets
SYS is a supported coin in many popular apps. But what is the best Syscoin wallet? The NOW Wallet allows you to store hundreds of coins and tokens just like SYS, privately and securely. In addition, it can be used to perform non-custodial swaps and crypto purchases with fiat. NOW Wallet is available for iPhone and Android phones.
If you own a Trezor One or Model T hardware wallet, you can safely store SYS on those devices. Syscoin’s official QT Wallet can be downloaded on Windows, MacOS, and Linux. There are also Chrome-based wallets like Pali or MetaMask, and mobile wallets such as Klever, AGX Pay, and Coinomi.
Conclusion
To sum up this Syscoin review, let’s mention why this asset is worth your while. What we have here is a Proof-of-Work type of coin that is merged-mined with Bitcoin. As a result, BTC miners can assign their hashpower to SYS with no extra charge. This guarantees top security parameters and protection against blockchain reorganizations and double-spend attacks.
Syscoin is not only secure, but it’s also ultra-fast, scalable, and cheap to transact with. It’s been tested and confirmed to have a throughput of over 61k transactions per second. With the Q3 2022 Validium upgrade, these numbers are set to increase to 4 million TPS. So if you ever wished for a Bitcoin type of coin that also supports DeFi, the Metaverse, and NFTs, you can have all that with Syscoin.
