Syscoin is a full-stack modular PoW blockchain solution that merges mining with Bitcoin. The project is based on the Syscoin native (UTXO) blockchain network, providing data availability and finality. At the same time, it also works with the Ethereum Virtual Machine (EVM) called NEVM (Network Enhanced Virtual Machine), thus providing equivalent functions to Ethereum and inheriting the security enhancements of this chain, and through Rollup provides scalability. #syscoin
Syscoin improves the security of Rollup through technical means such as Bitcoin merged mining settlement, multi-BLS signature finality, and data availability proof. As an enhancement to the Satoshi consensus, Syscoin adds resistance to selfish mining and maintains the chain’s resilience by solving the problem of non-final scenarios. Unlike Ethereum’s Casper consensus, Syscoin pursues pure Satoshi consensus in these cases rather than forks.
Multisig and data availability are unique innovations of Syscoin
Syscoin的愿景是建立一个真正可扩展的Web3基础设施和去中心化应用程序，以满足全球人口的需求。它利用了第一个具备EVM兼容性的模块化区块链，将其锚定在比特币网络上，并通过Rollup进行扩展。
Since Bitcoin’s inception, its goal has been to become an alternative to decentralized finance, and Syscoin shares the same goal. Syscoin drives the shift to a more equitable financial reality by combining the security of Bitcoin with the power of Ethereum on a coordinated, modular platform to create new opportunities for decentralized data-driven development. Syscoin not only builds on the security of Bitcoin, but also adheres to the principles that make it the most secure and decentralized network in the world.
Scalability is the core value of blockchain, and Syscoin is leading the next step in the development of blockchain technology. By using optimistic, zero-knowledge rollups, cross-chain zero-knowledge rollups, and other Layer 2 technologies, Syscoin elevates the security of Bitcoin and the Turing-complete programmability of Ethereum into a truly scalable solution.
yscoin’s team consists of members of SYS Labs and the Syscoin Foundation, who have diverse expertise in blockchain technology, cryptography, software development and business strategy.
The Syscoin Foundation is a non-profit organization established in 2018 to support, guide and cultivate the open source decentralized Syscoin blockchain project. SYS Labs is a for-profit entity independent of the Syscoin Foundation, focused on building products on the Syscoin ecosystem and driving adoption and utility to new heights.
Jagdeep Sidhu is the CEO and CTO of the Syscoin Foundation. He has extensive experience in blockchain technology and basic business practices, and is good at handling technologies related to scalability and system interoperability. Before joining Syscoin, Jagdeep Sidhu held the position of software engineer.
Michiel is the Vice President of the Syscoin Foundation and is mainly responsible for Syscoin’s marketing activities.
Willy is the treasurer of the Syscoin Foundation. He is an experienced software engineer and is also actively serving as the head of the Chinese region of Syscoin.
Chris is a board member of the Syscoin Foundation, responsible for market relations, and is also a JavaScript developer.
Bradley is a board member of the Syscoin Foundation and is a blockchain solutions consultant with nearly 25 years of software development and information systems experience, primarily involving relational database management, SQL development, and data analysis in a variety of environments and industries. teacher role.
SYS Labs and the Syscoin Foundation behind Syscoin currently cover Metaverse, NFT and gamefi platforms, as well as regulatory-compliant Rollups, all of which offer advanced user experiences and are secured by Bitcoin. SYS Labs is similar to a combination of Ava Labs, StarkWare, and Matter Labs, with a focus on getting people around the world to join Syscoin to benefit from its features.
There is less public financing information about Syscoin. In the early days of the project's launch in 2014, they raised 1,500 BTC through a pre-sale.
In 2022, cryptocurrency exchange MEXC launched a $20 million Syscoin Ecological Fund aimed at supporting the development of the Syscoin ecosystem.
NEVM (Network Enhanced Virtual Machine) powers smart contracts on Syscoin.
The Ethereum Virtual Machine (EVM) provides an abstraction layer between smart contract code and the Ethereum network machines that execute that code. However, due to design limitations, the scalability of EVM is affected. This means that as demand grows, the network may not always be able to provide services at reasonable transaction costs and execution times.
Syscoin’s NEVM is designed to provide scalable smart contracts and interoperability while maintaining low cost and high performance, enabling strong decentralized settlement through Bitcoin’s own proof-of-work security model and merged mining. Blockchain users and market participants are increasingly recognizing the importance of proven security, especially when various experimental security models are at risk. Additionally, once Ethereum moves to proof-of-stake, other proof-of-stake computing platforms will become redundant, while Syscoin’s security will continue to remain important. #
With NEVM, Syscoin combines the strongest elements of Bitcoin (security model, hash rate potential of merged mining, UTXO efficiency, and compatibility with future UTXO advancements) with Ethereum (broad general computing power) into a unified Decentralized coordinated financial computing platform. Syscoin will also improve in these two areas. For example, in terms of UTXO, chain lock will solve Bitcoin's long-standing "selfish mining" vulnerability and strengthen the network to resist reorganization attacks after the chain lock is established, which usually takes one minute to confirm.
NEVM will enable zero-knowledge proofs, providing scalability and trustless interoperability for Turing-complete smart contracts.
Syscoin’s first layer data availability solution is called PoDA. To ensure that critical DeFi applications can properly provide services, data availability needs to exist in the secure realm of L1 so that Rollup can be implemented by ensuring that users can exit to L1. Syscoin’s PoDA differs from Ethereum’s danksharding in terms of storage, display, pruning, and fee calculation. PoDA’s features make it a valuable alternative to Ethereum’s ongoing Proto-Danksharding data availability solution. #sys
PoDA advantages include:
Cheaper transaction fees
No data sharding required
Achieve higher data throughput with efficient Keccak data blobs
Combining Bitcoin’s PoW and Syscoin’s finality guarantees
More adaptable to network outage/censorship based situations
A simpler data fee market based on Syscoin’s UTXO fee market
Satoshi Nakamoto’s hypothesis: Only one honest node is needed to ensure data security
Rollux is an L2 solution based on Rollup technology for extending NEVM smart contracts. Rollux aims to provide EVM users with almost instant, low-cost ability to transfer, execute and deploy smart contracts. Rollux leverages Syscoin’s L1 for best-in-class secure decentralized settlement and Syscoin’s PoDA for L1 data availability. Compared to other L1 data availability solutions, Rollux provides higher efficiency, lower cost and greater throughput.
Z-DAG is an instant settlement protocol in Syscoin’s native UTXO chain with probabilistic security. It is designed specifically to enable the transfer of UTXO assets, not for running on Syscoin's NEVM chain.
Syscoin’s Z-DAG is a blockchain throughput scalability solution that adds virtually no complexity. It solves common problems faced by the entire industry by leveraging proven principles from the Bitcoin code and employing appropriate network tools and conveniences. Z-DAG is based on Satoshi Nakamoto’s “snack machine” concept and aims to enable the peer-to-peer exchange of electronic cash and tokenized assets. It leverages an independently operating full-node network and a fast relay topology to achieve a high degree of probabilistic security through rapid propagation across time-ordered memory pools.
Z-DAG provides probabilistic security, ensuring that transactions cannot be double spent and will be accepted and settled on-chain. At the same time, Z-DAG also improves the efficiency of the fee market and provides secure high-throughput services when the block is full. This is an L1 solution as the mempool sits within the blockchain security realm and all valid transactions for Z-DAG are settled on-chain using a Bitcoin Core consensus compliant manner.
Currently, there are many projects in the Syscoin ecosystem, covering various project types such as DeFi, NFT, GameFi, and infrastructure.
Although there are many projects in the Syscoin ecosystem, their development is relatively slow, and there is only one truly on-chain project, PegaSys. The total value locked (TVL) on the entire chain is just over $400,000. Currently, there are few well-known applications on Syscoin. In order to maintain a competitive advantage, more high-quality native on-chain projects need to be developed in the future.
community aspect
There are 226,674 followers on Twitter, and fan interaction is average.
There are 106,673 people on Discord and 6,074 people on Telegram. The activity rate remains at about 2%.
Overall, the project’s community activity is low.
economic model
Token distribution
SYS is the native token of the Syscoin platform. Its token economic model is based on Ethereum’s EIP-1559 proposal and has no maximum supply cap. The supply of SYS is determined by deflationary burning of protocol issuance and transaction fees. As of this writing, Syscoin has a circulating supply of 747,394,570 SYS and a market capitalization of approximately $63 million.
After the recent Syscoin 4.0 upgrade, the block reward time became every 2.5 minutes, with an average of 86.8 SYS generated per block. Specifically, masternodes are rewarded 58.62 SYS per block; miners are rewarded 19.52 SYS per block; and governance is rewarded 8.675 SYS per block. For masternodes with 1 year of experience, these rewards will increase to 79.15 SYS; for masternodes with 2.5 years of experience, these rewards will increase to 117.25 SYS. These rewards gradually decrease at a rate of 5% per year.
According to data from Chainz, as of September 19, 2023, the total number of SYS currency holding addresses is 89,206. The top 100 addresses held accounted for 48.06%, and the top 10 held addresses accounted for 38.27%. Overall, SYS's currency holding addresses are relatively dispersed, showing a relatively high degree of decentralization.
economic model
As a utility token in the Syscoin ecosystem, SYS has multiple functions and uses:
Miner rewards: as a way to incentivize members of the validating network.
Transaction fees: SYS holders can use tokens to pay transaction fees, smart contract deployment fees, etc.
Custom token issuance: SYS can also be used to create Syscoin Platform Tokens (SPT), providing users using the Syscoin Token Platform with the ability to create custom asset tokens.
Platform governance: SYS tokens are used for governance in the network, and token holders can participate in decision-making through voting and contribute to the development of Syscoin.
Syscoin’s token economic model is affected by platform iterations. Initially, the project was a blockchain protocol created to scale Bitcoin and enable a decentralized market. After many upgrades, Syscoin has introduced new features and functionality. The recent Syscoin 4.0 introduced UTXO asset platform implementation, including instant, pseudo-interactive, zero-confirmation, double-spend-proof cryptocurrency transactions (Z-DAG) and EVM. These features are secured through federated mining with Bitcoin’s consensus mechanism, PoW.
Advantage
The first is scalability. The Rollup service on Syscoin is highly scalable and can handle larger-scale transactions using Validium and modular extensions. It not only considers high-throughput transactions per second, but also considers transaction costs, making transactions on Syscoin cheap even at high throughput.
The second is decentralization. There are approximately 2,500 active masternodes on the Syscoin network, and this number is likely to increase as the blockchain network develops. This means that Syscoin is not only scalable, but also decentralized.
Finally, there's security. Due to joint mining with Bitcoin, Syscoin currently has about 25% of its computing power used to mine Bitcoin, which has brought considerable security to Syscoin. The Syscoin team is currently seeking more Bitcoin miners to join, aiming to become one of the most secure settlement layers. In addition, Syscoin also uses multi-signature to achieve finality, eliminating risks such as 51% attacks, selfish mining, and remote MEV attacks, and enhancing security.
risk
First of all, the second layer of Bitcoin and side chain projects are gradually rising. In addition to Syscoin, there are many mature markets that already exist, making Syscoin face a greater challenge in hoping that users will download applications to access the market.
In addition, there is still some gap in the scale of the current Bitcoin ecosystem compared to Ethereum. First, compared to Ethereum, the Bitcoin ecosystem lacks well-known projects. Secondly, the user scale of the Bitcoin ecosystem is not as large as that of Ethereum. In addition, the Bitcoin Layer 2 ecosystem is still in the construction stage and needs market verification.
