Syscoin (SYS)

Network Utility

Syscoin serves as the "gas" or fee coin needed to use the Syscoin network, including all current and future capabilities like global scalable smart contracts. It is required for transactions, token and NFT creation (where SYS is burned), and governance proposals. Collateralizing 100,000 SYS tokens enables running a masternode, which supports network security and offers rewards.

Payments and Transactions

Syscoin enables near-zero-fee payments with very high transaction speeds (up to 60,000 transactions per second). It is well-suited for e-commerce platforms as a fast and low-cost payment method.

Token and Asset Creation

Users can create custom tokens and NFTs on the Syscoin platform with low fees. These tokens can represent various assets, loyalty points, or digital goods. The platform supports tokenization of real-world assets, enabling new ownership and liquidity possibilities.

Decentralized Marketplace

Syscoin powers a decentralized marketplace called Blockmarket, where users can buy and sell goods and services securely and transparently without intermediaries. It supports unlimited inventory and allows product reselling with commissions.

Smart Contracts and Development

Syscoin combines Bitcoin’s security with Ethereum-compatible smart contracts via its Network-Enhanced Virtual Machine (NEVM). It supports scalable rollups and offers a modular dual-chain architecture for developers to build decentralized applications (Dapps) and services.

Security and Scalability

Syscoin uses merged mining with Bitcoin, leveraging Bitcoin’s hash power for strong security. It also provides a scalable data availability layer for rollups and other scaling solutions, enabling high throughput and low fees.

Identity and Business Use Cases

Syscoin supports decentralized identifiers (DIDs), escrow, certificates, and encrypted messaging, enabling applications in identity management, insurance, gaming, and medical fields. Its hardened smart contracts provide enhanced security for enterprise use.

Staking and Rewards

Holding SYS tokens and running masternodes allows users to earn rewards, with masternodes offering around 6% annual returns plus bonuses for longer holding periods.

In summary, Syscoin is a versatile blockchain platform used for fast, low-cost payments, token creation, decentralized marketplaces, secure smart contracts, and enterprise applications, all secured by Bitcoin’s mining power.

Advantages of Syscoin

• Security and Decentralization: Syscoin is merge-mined with Bitcoin, meaning it shares Bitcoin's strong security and decentralized proof-of-work consensus, reducing risks like 51% attacks.
• Scalability and Speed: It offers fast, low-cost transactions and supports high throughput, with plans for up to hundreds of thousands of transactions per second using technologies like zkRollups and Rollux Layer 2 solutions.
• Smart Contract Compatibility: Syscoin includes an Ethereum-compatible smart contract layer called NEVM, allowing easy migration and development of decentralized applications (dApps).
• Dual-Chain Architecture: Combines Bitcoin's UTXO model for simple transactions and an EVM chain for complex smart contracts, providing flexibility.
• Utility and Ecosystem: SYS token is used for gas fees, token and NFT creation, and incentivizes Bitcoin miners, supporting a growing ecosystem including decentralized marketplaces and enterprise solutions.
• Longevity and Development: Established in 2014, Syscoin has a strong development team and a history of steady progress without relying on hype.

Disadvantages of Syscoin

• Market Performance: Syscoin has underperformed the broader crypto market recently and faces competition from many other smart contract platforms.
• Marketing and Awareness: The project has relatively low marketing presence, which may limit adoption and recognition.
• Development Activity: Compared to some competitors, Syscoin has shown lower development activity in recent years, which could impact future growth.
• Event Support: Some users have noted a lack of support during certain events or community activities.
• Complexity: The dual-chain and modular architecture, while powerful, may be complex for new users or developers to fully understand and utilize.

This balance of strong security, scalability, and smart contract features alongside challenges in market visibility and development pace defines Syscoin's current position.

Founders of Syscoin

Syscoin was founded in 2014 by Sebastian Schepis, Jagdeep Sidhu, Dan Wasyluk, Adam Kling, and Sébastien DiMichele. Sebastian Schepis is noted as the original creator, having previously co-founded the company behind the Oracle Project Manager. Jagdeep Sidhu is a co-founder and the Lead Core Developer. Dan Wasyluk is also a co-founder and CEO of Blockchain Foundry. Sébastien DiMichele played a key role as co-founder and in communications and development. Adam Kling is mentioned as a co-founder involved in the early stages.

Leadership and Development

The project is currently led by the Syscoin Foundation, with Jagdeep Sidhu serving as Foundation President and Lead Developer, and Michiel Näring as Vice President. The founders and core developers remain actively involved in the platform's growth and innovation.

Investors in Syscoin

Syscoin has one known institutional investor: Buks Capital. This investor has provided funding to support the development and growth of Syscoin.

Additional Context

• Syscoin is led by the Syscoin Foundation, with key figures including Jagdeep Sidhu (Foundation President and Lead Developer) and Michiel Näring (Vice President).
• The project was founded in 2014 and combines Bitcoin's security with Ethereum's smart contract capabilities.
• Syscoin's ecosystem includes advanced technologies like Rollux, a Layer 2 rollup secured by Bitcoin miners.
• While Buks Capital is the only institutional investor explicitly mentioned, Syscoin's development and ecosystem are supported by a broader community and partnerships.

Halal Status of Syscoin

Syscoin is considered halal because its distribution model is decentralized, primarily through mining rewards, and it generates revenue from transaction fees and network usage. This aligns with Islamic principles as it represents payment for actual services rendered without involving interest (riba) or prohibited activities. The platform operates transparently and supports real-world use cases like smart contracts and decentralized applications, which further supports its permissibility under Shariah law.