Syscoin is a layer-1 and layer-2 blockchain solution that combines Bitcoin’s Proof of Work (PoW) and Ethereum Virtual Machine (EVM) in a single network. It provides high scalability through its own version of EVM and other layer-2 solutions on top of a secure PoW blockchain.
Syscoin is compatible with Ethereum-based smart contracts. Users can move or create highly secure and decentralized Web 3 applications while saving on gas fees on the Syscoin blockchain.
Most smart contract platforms like Ethereum face scalability challenges today. To cater to the high usage demands, sometimes they have to make compromises on the blockchain’s security and decentralization to enhance the transaction throughput.
What is Syscoin?
How does Syscoin work?
Syscoin was founded in 2014 by Sebastian Schepis and built to support innovative blockchain applications in a single network. At its core, Syscoin has a dual-layer architecture made of its main blockchain and an Ethereum Virtual Machine (EVM) layer. The EVM layer is called Network-Enhanced Virtual Machine (NEVM) and provides smart contract functionality.
Layer 1: The Syscoin blockchain
Merged mining with Bitcoin
A masternode network with ChainLocks
Typically, PoW miners with the longest chain get the mining right of the next block, but this selection method is prone to 51% attacks. Malicious miners with enough computational power can easily mine a chain longer and take control of the blockchain. ChainLocks changes the miner selection method by creating hundreds of masternode groups known as Long Living Masternode Quorums (LLMQs). LLMQs decide on the next block through a consensus agreement of the masternodes. They will then provide cryptographic signatures broadcast to all network participants. Once a valid ChainLock message is broadcasted, the transactions contained in the ChainLocked block are considered confirmed. As only a valid signature from the masternodes is needed to finalize a transaction, ChainLocks can improve network reliability, stability, and security.
A UTXO Token Platform powered by Z-DAG
Syscoin also has its own UTXO Token Platform. It’s a highly scalable payment channel powered by the Z-DAG Protocol, which enables users to send and receive tokens with low fees instantly.
Users can create their own Syscoin Platform Tokens (SPTs) on the Token Platform, including NFTs and fractionalized NFTs (F-NFTs). SPTs adopt the UTXO (Unspent Transaction Outputs) storage model, a fundamental element of Bitcoin and many other cryptocurrencies. This means SPTs operate like Bitcoin transactions. They will also benefit from the technologies implemented on the Bitcoin network, such as the Lightning Network and the Taproot upgrades.
In addition, SPTs utilize Z-DAG protocol to facilitate high-speed and high-throughput transfers with low fees. Users can freely define the number of block confirmations needed for each transaction according to their needs. For example, a coffee merchant receiving payment for a cup of latte can choose to wait only a few seconds before considering the payment safe, while a cross-border business might opt for more block confirmation to ensure the trade is valid.
DAOSYS applies the Autonomous Service Engine (ASE) technology to serve as a treasury management system. Anyone can participate in a DAO without having to own governance tokens. DAOs will be able to operate more efficiently like automated market makers (AMMs). For example, they can deploy their own staking pools and issue Treasury Token to users who deposit their assets. Treasury Token holders will receive interest for providing liquidity and allocate their share of the treasury for different functions through DAOSYS.
Layer 2: NEVM
NEVM is a modified version of Ethereum's EVM that runs on the Syscoin blockchain. It is designed to support scalable smart contracts and interoperability at low costs. With NEVM, Syscoin can validate transactions in parallel via zero-knowledge proofs and facilitate up to 210,000 transactions per second (TPS). The use of ZK-Rollups can also completely eliminate withdrawal delays. Typically, the Ethereum mainnet requires a waiting period of 2 weeks on finality guarantee for withdrawals, but Syscoin finality can be completed much faster with the ChainLocks mechanism.
What is SYS?
Syscoin (SYS) is the native token of the Syscoin platform. Its tokenomics are based on Ethereum’s EIP-1559 proposal without a capped maximum supply. Prior to the NEVM mainnet release and the introduction of EIP-1559, SYS had a maximum supply of 888 million tokens.
One of the unique features of SYS is that it has both UTXO and account-based representations of tokens. Depending on the network it’s on, SYS can exist as Syscoin Platform Tokens (SPTs) and ERC tokens. SYS holders can burn their SYS to mint SYSX as SPTs to enjoy the high transaction throughput offered by Z-DAG. They can also use the SYSX to mint an ERC-20 version of SYS via the SYSX Bridge. This ERC-20 SYS will allow users to utilize all the functionalities of NEVM, such as using smart contracts.
SYS is used for paying transaction fees within the Syscoin network, including the minting and transferring of SPTs. Typically, it only takes 1 SYS to fund thousands of SPT transfers. SYS holders with 100,000 SYS can also host masternodes to participate in the governance of the network and provide services for the blockchain to earn extra SYS rewards.
How to buy SYS on Binance?
You can buy Syscoin (SYS) on cryptocurrency exchanges like Binance.
1. Log in to your Binance account and click [Trade] - [Spot].
2. Search “SYS” to see the available trading pairs. We will use SYS/BUSD as an example.
3. Go to the [Spot] box and enter the amount of SYS to buy. In this example, we will use a Market order. Click [Buy SYS] and the purchased SYS will be credited to your Spot Wallet.
Syscoin combines the strengths of Bitcoin and Ethereum to implement its own custom technologies, such as NEVM and DAOSYS. With these innovative tools and a robust dual-layer structure, Syscoin could be a strong alternative for users looking to develop and interact with Web 3 applications and projects.