Refining Business on the Blockchain: Syscoin Review
By Rafał - 2019-03-29
Syscoin is a blockchain-based protocol which aims to provide simple, user-friendly, secure, cost-efficient and open source platform for creation and development of decentralized applications with endless possibilities and use cases.
* Originally Syscoin max supply was 2bln, changed to 888mln in ver 2.0
** Premine applies to Sys1 supply
Established in 2014, Syscoin is a multi-purpose decentralized platform created using blockchain technology with an additional layer of masternode network to provide special features and additional use cases. Syscoin makes use of SHA256 algorithm which is deterministic, fast to compute, resistant to pre-image and second-preimage attacks, and is collision resistant.
Syscoin aims to provide tools required to remove the necessity of middleman/third party and give complete control to the businesses. Syscoin 3.0 platform is an upgrade to the previous version Syscoin 2.0; including details/upgrades to existing features and new implementations such as masternode layer, InstantSend feature, assets and tokens infrastructure, increased scalability etc. The new platform offers number of unique features some of which are:
Z-DAG (Zero-Confirmation Directed Acyclic Graph)
All Syscoin services make use of an instant settlement protocol called Z-DAG. This protocol organizes transactions based on dependencies and protects the network against double spend attacks by using a hybrid Proof of Work/Proof of Stake model. Z-DAG protocol enables faster transactions without any confirmation delays and provides high scalability to the Syscoin network. Detailed information on Z-DAG and how it works can be read in Syscoin Z-DAG whitepaper here https://syscoin.org/assets/whitepapersummary.pdf.
Blockmarket 3.0 (The Decentralized Marketplace)
The Syscoin Decentralized Marketplace will allow users to securely buy and sell anything to anyone and anywhere without any middleman, fees or interference. Blockmarket presently supports and accepts only 3 assets within the marketplace, namely BTC, Syscoin and ZCash. Blockmarket is in a way similar to Amazon but without any middleman or third party fees.
Encrypted Instant Messaging System
The system is designed to provide a secure, user-friendly, privacy-enabled and unbreakable messaging platform. Messages are encrypted using blockchain authentication and an asymmetrical ECEIS public/private key scheme, secured by the Syscoin Identity system. A small fee is charged for each message. DDOS attacks and spamming can be avoided by limiting the message size and rate. An optional feature called ephemeral messaging ensures the security even if end-points or keys are compromised.
Community Driven Governance
Masternode network enables community driven governance which ensures that there is decentralized and unbiased system to make decisions, manage the platform and fund the development. This type of governance which does not rely on any central authority ensures the longevity, promotion and growth of project.
Tokens & Assets Infrastructure
The new Syscoin platform 3.0 includes addition of Syscoin assets which provide a layer of tokenization on the top of blockchain network. This infrastructure will bring number of use cases to the network such as loyalty points, service backed currency and coins representing physical assets. Transfer of funds or ownership of tokens will be done using Z-DAG protocol for real time settlement.
Syscoin technology allows mixing of transactions which occur at the same time on the masternode layer. This ensures that the transactions cannot be traced back to its source and destination, thus protecting the identity and privacy of the user while maintaining the transaction confirmation speed and user-friendliness by making use of Instant payments.
The Syscoin Open-API (Application Programming Interface) has specially been designed for software developers. The Syscoin 3.0 API is available in more than 60 different programming languages and offers building, testing and deploying of applications. Developers can buy/sell services, store data and even add escrow services.
Syscoin team is divided into various sections such as core development team, community & marketing team, Syscoin foundation, community developer society and community helpers which include people holding experience and expertise in the respective fields. Sebastian Schepis is the founder and core developer of Syscoin holding 25 years of experience in the software development and consulting. Syscoin core development team and Syscoin foundation which form the main component of the team have no hidden identities which shows the legitimacy of the project. A short introduction/description is available on each team member for people who wish to take a look at the member’s background. Considering all the aspects, it can be concluded that Syscoin has a diversified team of professional holding expertise in various field with years of experience and knowledge.
Premine and ICO
Syscoin announced its ICO on April 16, 2014 and the presale began on July 19, 2014. The ICO price was set at 0.00000518 BTC/SYS with the total token supply limited at 2,000,000,00 SYS. Syscoin was launched with pre-mine amount of 360,000,000 SYS which accounted to 18% of the total token supply.
The ICO was a huge success and raised around 1500 BTC of which 250 BTC was used for “buy support” and around half of the amount (750 BTC) was stolen by Ryan Kennedy aka "Alex Green" (Former CEO of Moolah/MooPay exchange) who is currently facing imprisonment and prosecution for restoration of funds. Syscoin development team had to work exceptionally hard to overcome the difficulties and complications that occurred due to loss of initial funds which were supposed to facilitate the development of the platform. Even after such a setback at early stage, Syscoin is presently one of the most established projects in the whole crypto space with real world applications, legitimate background and a hardworking team behind it.
Syscoin has one of the most professionalized and detailed roadmaps in the whole crypto space. The roadmap was recently updated on 4th March 2019 and has a description of each milestone it plans to achieve in the coming time with a percentage progress bar and list of contributors displayed beneath them to keep the community updated on the ongoing development. The roadmap also displays the milestones and products that have already been completed and also the ones that have been completed but require licensing, marketing or some other necessary step. All that is missing in Syscoin roadmap is the approximate time period till which the team plans on achieving a particular target/milestone. Everything else is up to mark, competent and compliant with the project.
Syscoin Masternodes were implemented with the launch of Syscoin platform version 3.0. It offer special features to the platform such as community governance, InstantSend, PrivateSend, high scalability and other additional use cases.
Setting up Syscoin Masternode requires staking of 100,000 SYS as collateral amount. The masternode operators are rewarded for their network uptime with 75% amount of each block. Syscoin also offers Seniority benefits of 3% every 4 month climbing to a maximum bonus of 27% in addition to the base reward received by masternode operators if collateral for the active masternode is held on the same wallet address.
Current, standard (without bonus ROI) masternode reward is about 26 SYS.
Detailed guide on how to setup Syscoin Masternode and the hosting requirements can be found here: