What is Syscoin?

An Introduction to Syscoin - Download the Syscoin 3.0 WhitePaper

Syscoin 3.0 Specs
  • Max Coins: 888 million
  • Deflation: 5 percent per year until Max Coins
  • Consensus: PoW/PoS Hybrid. PoW is SHA256 Merge-mined with Bitcoin
  • Block time: 60 seconds target
  • Rewards: 38.5 Syscoins deflated 5 percent per year of which 10 percent is allocated to governance proposals (3.85 Syscoins). 75 percent of the result goes to masternode and 25 percent to miner.
  • Difficulty algorithm: Dark Gravity Wave
  • Masternode collateral requirement: 100,000 Syscoins
  • Masternode seniority: 3 percent every 4 months until 27 percent over 3 years
  • Governance proposals payout schedule: Every Month
  • Governance funding per round: 168,630 Syscoins per month

Download the Syscoin 3.0 WhitePaper

Intro

Syscoin is a revolutionary cryptocurrency that offers near zero cost financial transactions like Bitcoin and provides businesses the infrastructure to trade goods, assets, digital certificates and data securely. Syscoin isn’t just about money and trading, it has the ability to attract all business types thanks to its native set of features geared towards the financial sector. From eBay traders and High Street shops to selling that one last item that you couldn’t even give away at your garage sale, Syscoin’s decentralized network benefits everyone!

Originally launched in late 2014 and created through a Bitcoin fork, the current version brings us to Syscoin 3.0. Syscoin 3.0 is a mix between Syscoin, Bitcoin and Dash 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.

Unlike other cryptocurrencies, Syscoin’s intrinsic value is derived from the decentralized services it provides directly on the blockchain. The blockchain powers all Syscoin services. It is a decentralized system of record hosted by a series of “nodes” on the Syscoin network. Syscoin trades under the symbol SYS in virtual currency exchanges.

Today and Tomorrow

So where are we today? On May 1st, 2018, Syscoin 3.0 was launched bringing with it, Masternodes, Assets, Z-Dag, Instant Sends, supporting up to 300k TPS, and more. You can read all about the latest updates, tech and everything involved in their newest Whitepaper.

With the launch of Syscoin 3.0, it has now allowed users to create Assets. These assets are much the some as ERC-20 tokens, although are instantly transferrable, via the help of Z-DAG's zero-confirmation transfers and Masternodes. Masternodes can operate at 100 TPS(transactions per second), and with the projection of 3000 Masternodes being setup on the Syscoin Network, this equates to 300k TPS possibility.

The most highly anticipated product from the Syscoin team, that everyone is dieing to see, is Blockmarket Web. There is currently no set date yet for the release of web, and has had it's fair share of pushbacks - what great TECH doesn't? Once Syscoin 3.0 and Masternodes have been running, and the network is stable, we would hope to receive some news in regards! We know it's just around the corner.

Syscoin's parent company, Blockchain Foundry, has been listed on the Canadian Securities Exchange, which is a Cryptocurrency first. It opened at $0.50, and can be traded via CSE. You can find their full listing details here.

Features

DECENTRALIZED MARKETPLACES

Syscoin supports a wide variety of marketplaces, ranging from the fully decentralized marketplaces to centralized business markets. Sell anything directly on the Syscoin blockchain or build a site for your business that will use Syscoin’s infrastructure to conclude its transactions. The marketplace platform provides a decentralized and high redundant channel for selling goods and services. Features include Price pegging to currencies such as USD, EUR, GBP, CAD, CNY and BTC , Bitcoin as a payment option, Arbitrated Escrow, Encrypted Messaging, Images and unlimited inventory items.

DISTRIBUTED CERTIFICATE MANAGEMENT

Using the cryptography of the blockchain; Issue, authorize, and exchange digital certificates of any kind. With Syscoin anyone can issue provably-unique certificates with text or ascii content to one or multiple parties on the Syscoin blockchain. These certificates can be authenticated by anyone via Syscoin’s cryptographic proof of work.

This allows for the creation and free exchange of a any kind of digital asset such as ownership certificates, warranties, receipts, tickets, certifications, diplomas, software licenses and more.

NAME ALIASES

Wallet addresses for cryptocurrencies generally consist of a unique string of between 27-34 alphanumeric characters. An example Syscoin address would be “SnxMDyhfAeb7tNRTwZYbfhMJYweEiDgPK6”. Such an address isn’t easy to memorize. Although they can be added to an address book within the wallet, Syscoin takes that one step further allowing you to create a unique Alias for your wallet address, such as a name, title, or characters specific to a username. These can be used to send SYS from home, to mobile wallet, to work, to friends, to common suppliers or to repeat customers easily, without requiring memorization, writing it down, copy&pasting or emailing yourself the address! For example, you could purchase the alias, “Fred” for less than 1 cent USD with SYS and use that alias instead of a long alphanumeric address (although “Fred” has probably been purchased by the time you read this). Syscoin aliases can be created directly in the wallet and can be anything you want (including spaces!) that hasn’t already been purchased.

MERGE MINEABLE

In order to provide the most reliable and scaleable network of any cryptocurrency, Syscoin leverages the power of merge-mining with Bitcoin and other SHA-256 coins. This means that the Syscoin network piggybacks on the most robust and secure network the world has ever seen. Upon enabling this capability, our network grew 100 fold in less than 12 hours and it continues to support an incredibly stable hashrate (an indicator of network health).

ASSETS AND TOKEN ISSUANCE

This will allow anyone to create a custom asset token which can then be sent directly to anyone else on the network, and we envisage a variety of use cases including ICO token issuance, supply chain management, reward points, and loyalty programs.

Asset tokens created on the Syscoin network can be minted with a custom data payload assigned to them, effectively coloring the tokens issued in that minting and allowing for use cases which require asset classes that have tokens which are explicitly linked to unique lots of that asset. For example, a gold depository could create a token which represents partial ownership in gold bars, and then issue lots of that token which represent ownership of a gold bar with a specific serial number.

MASTERNODES

Much like proof of stake, Syscoin Masternodes rely on staking a certain amount of Syscoin to operate a Masternode. To establish a Syscoin Masternode, you need 100,000 Syscoin.Syscoin applies masternode functionality to it's decentralised Block Market. With Syscoin, users can access the blockchain equivalent of peer-run commerce sites like eBay. Masternodes will be responsible for facilitating anonymous and instant payments not only on the Blockmarket, but with the use of Assets aswell.

Masternodes can operate at 100 TPS(transactions per second), and with the projection of 3000 Masternodes being setup on the Syscoin Network, this equates to a 300,000 TPS possibility.

Syscoin Masternodes also implement the following services: - Instandsend: Masternodes accommodate nearly instantaneous transactions - PrivateSend: Masternodes allow for users to make and receive anonymous payments - Decentralised Governance: Masternodes adjudicate and vote on technological and financial developments for the blockchain - Z-DAG: The ability to send transactions instantaneously, with Zero Confirmations.

Syscoin Masternodes protect the blockchain from network attacks, in the same vein as traditional proof of stake algorithms. It’s often expensive to accumulate enough of a currency to create a masternode. This expense helps keep the network decentralised, as it would take an ungodly amount of money to purchase enough currency to have a monopoly on its nodes.

MASTERNODE SENIORITY

It’s been noted that Syscoin price fluctuations may in turn cause fluctuations in the number of masternodes running on the network. To mitigate this and incentivise nodes to provide services consistently for long periods of time, we have introduced a seniority mechanism that increases ROI for long-term nodes. Every 4 month period in the lifespan of a single masternode will result in a 3% increase in the ROI for that masternode. A maximum ROI bonus of 27% is possible if the masternode is operational for 3 or more years.

1 month in the Syscoin Blockchain = 43,800 blocks. 4 months is 175,200. So whatever your block height was at time of transcation, add 175,200 to it and that's when the 1st round of Seniority kicks in.

So for example;

  • You sent your 100,000 Syscoin at Block 1,500.
  • 175,200 + 1500 = 176,700.
  • 176,700 = Your first increase in Seniority.
  • 176,700 + 175,200 = 351,900.
  • 351,900 = Your second increase in Seniority.
  • So on and so forth.

Please note that Seniority is based purely on the Transaction Block Height. Stopping your Syscoin Masternode, restarting your server, closing QT, upgrading Masternodes, Initialising your Masternode, changing your IP address, and anything you can possibly think of does not effect your Seniority. The ONLY thing that will effect your Seniority is if you MOVE YOUR 100,000 Syscoin, which creates a new transaction, giving you a new Block Height.

SYSCOIN IDENTITIES

Syscoin Identities are built on Syscoin’s Alias service. These identities are stored offchain, the reference and the integrity proof are their small on-chain anchor. Additionally, we keep pointers to common data fields on-chain, that allow for fast lookups. Blockmarket Desktop includes mechanisms for alerting users if data-tampering is detected, so that they know the data can be trusted.

By storing identity data off-chain with a blockchain-anchor, Syscoin can increase the amount of data users are able to store within their Syscoin Identity without bloating the blockchain. By storing these entities off-chain Syscoin are also able to evolve the specification for Syscoin Identities without having to fork the network, another costly piece of overhead, if they were to store the actual data on chain. This is an important aspect of the implementation as they do plan on evolving Syscoin Identities in parallel with specifications created by the Decentralized Identity Foundation, of which Blockchain Foundry is a founding member. As DIF releases new specifications for decentralized identity that can be used by regulators for things like KYC and AML Syscoin will continue to adapt Syscoin Identities to meet those specifications.

Z-DAG

The Z-DAG functionality is across all Syscoin services. Syscoin services are Alias Identities, Certificates, Escrow, Offers and Assets. All services are controlled via an Alias. The ownership is proven upon spend based on the ownership of a private key that matches the address set inside of the alias. Thus if you want to transact services you may easily do so by transferring to/from aliases. Assets are the cool feature we are talking about when protecting against double spends because a double-spend in our case is spending an asset from your identity to another identity falsely by creating multiple transactions through multiple nodes within seconds of each other.

So what happens is the miner creates a graph of the transactions by looking at the sender/receiver list of asset transfers, and does a circuit detection on that graph to create a DAG. The client's then verify that a DAG has been created by running a topological sort algorithm on top of that DAG, and reject any blocks that are not DAGs (there are circuits from the graph created amongst the transactions included in the block that represent asset transfers).

So now that we got a proper order of asset transfers given to us, we can then process them in a deterministic order. Since we know the most dependent transfer will end up last and the one with no dependency goes first, we can then code up an algorithm that will process the asset transfer in real-time soon as mempool inclusion happens and if any conflicts arise (the block includes a transaction that is different than what is processed during mempool inclusion) then a rollback to previous state happens and replay of the PoW transaction. Thus the PoW still happens and overrides any discrepancy by deciding which state the asset should be in.

So that essentially helps to solve the case where a person decides to send money twice to 2 different people. The DAG code also ensures that only one sender exists at a time per alias so one of the txs will get through, the service layer code then takes over and figures out if there is a conflict and if it needs to deal with conflict by rolling back and replaying what the block transaction is saying it should be.

The UI layer will be given notifications that a conflict would arise in real-time, thus the point of sale would generally only need to wait 3-5 seconds (statistically the amount of time needed to ensure that network takes to notice that 2 double spend txs are conflicting with each other). Since we have a masternode layer that acts as a high-throughput relay network because they are running on dedicated hardware and connected to 25+ peers, it should only take 4 to 5 hops from end-to-end which is quite fast.

Z-DAG explained via Jag in reddit.

zdag map

"A Community initiative to help out fellow Sycoiners" - bigpoppa

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