SysCoin: A Bitcoin-Powered Ecosystem for Rollups and Data Availability
SysCoin is a blockchain protocol that aims to combine the security of Bitcoin with the functionality of Ethereum into a single, scalable platform. It supports the creation of decentralized applications and custom tokens, leveraging a dual-chain architecture that includes the Ethereum-compatible NEVM and a Bitcoin-based Syscoin UTXO blockchain. SysCoin also provides data availability and finality services for rollups, which are layer 2 solutions that enable fast and low-cost transactions on top of Bitcoin.
Coin introduction and features
SysCoin was launched in 2014 by Sebastian Schepis, who later co-founded the Syscoin Foundation, a non-profit organization that leads the development and governance of the project. SysCoin has a native utility token called SYS, which is used to pay for network fees, access smart contracts, and participate in the decentralized governance system. SYS is also merge-mined with Bitcoin, meaning that miners can simultaneously mine both BTC and SYS at no extra cost, increasing the security and decentralization of the network.
Some of the main features of SysCoin are:
- PoDA: Proof of Data Availability is a layer 1 data availability protocol for rollups, which ensures that the data needed to verify transactions is always accessible and censorship-resistant. PoDA is based on UTXO and is hash-based, making it efficient, general-purpose, and easy to integrate.
- Rollux: Rollux is an OPStack (Optimism-based) layer 2 rollup that is anchored to Bitcoin through Syscoin’s PoDA protocol. Rollux provides 2-second block time, extremely low fees, and supports application layers on top. Rollux is compatible with the Ethereum Virtual Machine (EVM) and allows users to interact with smart contracts and tokens using MetaMask or other EVM-compatible wallets.
- NEVM: Network-Enhanced Virtual Machine is the layer 1 EVM of Syscoin, which is also merge-mined with Bitcoin and inherits finality from Syscoin’s UTXO chain. NEVM is designed to support rollups and other scaling solutions, and also offers ordinals support, which enables cross-chain and cross-architecture interoperability.
- Sentry Nodes and Finality: Sentry Nodes are incentivized full nodes that provide finality and security for the network through multi-quorum chainlocks. Sentry Nodes require a collateral of 100,000 SYS and receive rewards based on their seniority and service quality. Finality is achieved within 10 minutes on average, which is faster than Bitcoin’s 60 minutes.
- Z-DAG: Z-DAG is a UTXO-based instant settlement protocol that enables high throughput of UTXO transfers with probabilistic security. Z-DAG is based on Satoshi’s “snack machine” concept and utilizes Bitcoin’s mempool design as a DAG by providing double-spend awareness across a mesh topology. Z-DAG can handle up to 60,000 transactions per second (TPS) on layer 1, and up to 140,000 TPS on layer 2.
- Notary rulesets: Notary rulesets allow Syscoin Platform Token (SPT) creators to apply their own rulesets on transfers of their SPT and then accept or deny the transfers by signing or not signing the transactions. These off-chain rulesets enable SPT asset managers to maintain compliance even when regulations or business rules change.
Market analysis and trends
According to CoinMarketCap, SysCoin has a market capitalization of $144.7 million as of March 9, 2024, ranking it at #358 among all cryptocurrencies. The current price of SYS is $0.1855, which is down 4.24% in the last 24 hours. The 24-hour trading volume of SYS is $4.8 million, and the circulating supply is 780.3 million out of a maximum supply of 888 million. The all-time high of SYS was $0.9418 on January 14, 2018, and the all-time low was $0.0008 on March 13, 2015.
The trend of SysCoin is strongly bullish in the long term, as it has been consistently growing since its inception. SysCoin has also outperformed the rest of the market trend since it started trading, showing its resilience and potential. However, SysCoin is also highly volatile and subject to market fluctuations, especially in the short term. SysCoin’s price is influenced by various factors, such as the adoption and innovation of its technology, the competition and collaboration with other projects, the regulatory and legal environment, the supply and demand dynamics, and the overall sentiment and behavior of the crypto community.
Some of the recent events and developments that have affected SysCoin’s price are:
- The launch of Syscoin 4.4 on March 23, 2023, which introduced PoDA, the industry’s first layer 1 data availability solution, onto mainnet. This was a major milestone for Syscoin, as it enabled rollups and other scaling solutions to tap into Bitcoin’s security and scalability in a safe and efficient way.
- The launch of Rollux, Syscoin’s OPStack layer 2 rollup, on June 28, 2023, which provided users with fast and low-cost transactions and smart contracts on top of Bitcoin. Rollux also supported application layers on top, such as PegasysDEX, a decentralized exchange, and Luxy.io, an NFT marketplace.
- The partnership with Cartesi, a Linux-based platform for scalable decentralized applications, on February 8, 2023, which aimed to create application-specific rollups with a Linux runtime, transcending EVM limitations, and utilizing validity (zk) proofs and Syscoin’s data availability. This collaboration opened up new possibilities for developers and users to create and use more complex and powerful decentralized applications on Bitcoin.
- The release of Pali V2, a multi-chain wallet that supports Syscoin, Bitcoin, Ethereum, and ERC-20 tokens, on February 22, 2023, which provided users with a seamless and secure way to manage and interact with their assets across different chains and platforms. Pali V2 also integrated with MetaMask, allowing users to connect to dApps such as PegasysDEX and Luxy.io using Pali Wallet or another EVM-compatible wallet.
Project updates
The Syscoin project is led by the Syscoin Foundation, a non-profit organization that oversees the development and governance of the protocol. The development is spearheaded by SYS Labs, an enterprise that leads the creation of flagship apps and systems built on Syscoin, such as Rollux, SuperDapp, Pegasys DAO, and Luxy. Syscoin is also supported by a vibrant and active community of developers, contributors, and users, who participate in various channels and platforms, such as Discord, Telegram, Twitter, Reddit, YouTube, and GitHub.
Some of the latest updates and announcements for the Syscoin project are:
- The launch of Syscoin 4.4.1 on April 6, 2023, which fixed some minor bugs and improved the performance and stability of the network. This was a mandatory upgrade for all nodes, wallets, and services using Syscoin.
- The announcement of Syscoin’s roadmap for 2023-2024, which outlined the main goals and milestones for the project, such as zkDA, ZK-Rollups, Validium, Optimistic Rollups, and a DAO for governance-free treasury management. The roadmap also highlighted the vision and values of Syscoin, such as modularity, security, scalability, decentralization, flexibility, economy, and reliability.
- The release of Syscoin Weekly Update XXVIII on March 15, 2023, which summarized the latest news and developments for the project, such as the launch of Syscoin 4.4, the profile of Alex Guerra, the business developer, the guidance for Pali V2 compatibility, and the video update on blockchain gaming on Rollux.
- The publication of Behind the Blockchain: Marki D on March 8, 2023, which featured Marki D, Syscoin’s global community leader, who shared his story, insights, and contributions to the project. Marki D has been instrumental in shaping the Spanish-speaking community and the quality assurance standards for Syscoin, as well as providing strategic and technical expertise.
Analysis and recommendations for investments
Based on our investment analysis of Syscoin, we can conclude that Syscoin is a promising and innovative project that offers a unique and valuable solution for the blockchain industry. Syscoin leverages the best of both Bitcoin and Ethereum, providing a secure, scalable, and flexible platform for rollups and data availability. Syscoin also fosters innovation and collaboration in the fields of decentralized finance and NFT marketplaces, creating new opportunities and use cases for developers and users. Syscoin has a strong and dedicated team, a supportive and engaged community, and a clear and ambitious roadmap for the future.
Therefore, we recommend Syscoin to investors who are looking for a long-term and diversified portfolio that includes a Bitcoin-powered ecosystem that supports rollups and data availability. Syscoin has the potential to grow significantly in value and adoption, as it provides a practical and efficient solution for the scalability and functionality challenges of Bitcoin and other blockchains. Syscoin also has a competitive edge over other projects, as it offers a modular and versatile design that can adapt to different needs and preferences. Syscoin is not without risks, however, as it faces volatility, competition, and regulation uncertainties, as well as technical and operational challenges. Investors should do their own research and due diligence before investing in Syscoin or any other cryptocurrency.