What is Syscoin?

SYS is the native coin of Syscoin, a decentralised and open-source project founded in 2014. The project’s ecosystem consists of a Layer-1 and Layer-2 blockchain, distributed ledger, global network, and decentralised database. Syscoin combines Bitcoin’s Proof of Work (PoW) and Ethereum Virtual Machine (EVM) in one single network.

A brief history of Syscoin

Syscoin was established by Sebastian Schepis in 2014, and has been guided by Syscoin Foundation since 2019. It is based on a fork of the Bitcoin protocol.

Soon after its launch in 2014, Syscoin raised 1,500 BTC in a crowdsale, 750 of which were stolen by Ryan Kennedy (aka ‘Alex Green’ of Moolah) in its role as escrow agent. At the time, BTC had a market value of around US$400-500.

Over the next two years, the team worked on creating Syscoin 2.0, which was released in May 2016. The 2.0 network launched with a new graphical interface and wallet, replacing the prior command-line interface.

In August 2017, the Syscoin team established Blockchain Foundry as a distinct organisation to assist in the realisation of its goal of developing a marketplace platform. Blockchain Foundry’s first product, Blockmarket, a blockchain-based e-commerce solution, was introduced in September 2017. Following the successful launch of Blockmarket, Blockchain Foundry raised US$3.3 million to fund its operations, which included research and development for additional blockchain concepts outside of Syscoin.

Syscoin announced another network update (3.0) on 30 April 2018, which added the option to generate distinct fungible and non-fungible tokens (NFTs) on top of the blockchain.

How Syscoin works

Syscoin is a PoW blockchain, merged-mined with Bitcoin. This merge means that Bitcoin miners can operate Bitcoin and Syscoin simultaneously without any increase in cost. The Syscoin blockchain (‘Syscoin Core’) runs in tandem with an Ethereum Virtual Machine (EVM) layer called NEVM (Network-Enhanced Virtual Machine), which provides smart contract functionality. SYS holders can seamlessly transfer SYS between both chains via the trustless and permissionless Syscoin Bridge, which uses a two-way peg mechanism.

Aside from its native token, SYS, Syscoin also offers Syscoin Platform Tokens (SPT), which allow anyone to quickly create their own cryptographic token on the Syscoin platform.

Syscoin has many use cases, including metaverse, smart cities, and IoT; it can serve millions of users with affordable smart contracts, simple value transfer, and secure decentralised settlement.

Notable features of Syscoin include:

1. NEVM — the Network-Enhanced Virtual Machine that powers Syscoin’s smart contract layer

2. Z-DAG — stands for Zero Confirmation Directed Acyclic Graph, an instant settlement protocol used to enable fast Syscoin Platform Token (SPT) transfers

3. Masternodes — incentivised full nodes that utilise ChainLock technology to come to a consensus on the next block mined in the blockchain; they are paid to provide services to the network, such as facilitating Z-DAG transactions

4. Notary rulesets — the ability for Syscoin Platform Token (SPT) creators to apply their own sets of rules to transfers of their SPT and then accept or deny the transfers. These off-chain rulesets enable SPT creators to maintain regulatory compliance even when regulations change

What is Syscoin used for?

Syscoin (SYS) 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. Its tokenomics are based on Ethereum’s EIP-1559 proposal without a capped maximum supply. The supply of SYS is managed dynamically and programmatically through protocol emission and deflationary burning of fees paid for NEVM transactions.

SYS can be used as a reward or as gas for transactions within the Syscoin network, and has a total maximum supply of 888,000,000.