# Syscoin (SYS)

**Rank:** #847
**Type:** Coin
**Source:** [View on Coinpaprika](https://coinpaprika.com/ko/coin/sys-syscoin/)

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## About

### What is Syscoin?

Syscoin (SYS) is a blockchain platform designed to combine the strengths of Bitcoin's security and Ethereum's programmability. Launched in 2014, Syscoin aims to provide a decentralized platform that supports a wide range of applications, including payments, smart contracts, and decentralized finance (DeFi). The platform operates on its own blockchain, utilizing a hybrid consensus mechanism that integrates Bitcoin's proof-of-work for security and an additional layer for scalability and smart contract functionality.

The native token, SYS, plays a crucial role in the Syscoin ecosystem. It is used for transaction fees, staking, and participating in governance decisions. Syscoin is notable for its focus on interoperability, allowing developers to create applications that can interact across different blockchains. This interoperability, combined with its dual-layer architecture, positions Syscoin as a versatile and secure option for developers looking to build decentralized applications.

### When and how did Syscoin start?

Syscoin originated in August 2014 when its founder, Sebastian Schepis, released the project's whitepaper. The mainnet for Syscoin launched shortly thereafter in September 2014, marking its initial public availability. Early development focused on creating a blockchain platform that combined the best of Bitcoin's security and Ethereum's programmability. The initial distribution of Syscoin's tokens occurred via a public crowdsale in July 2014, which helped fund the project's development and establish its foundation in the blockchain ecosystem. These early steps laid the groundwork for Syscoin's subsequent growth and ongoing development.

### What’s coming up for Syscoin?

According to official updates, Syscoin is preparing for several key developments. One of the major upcoming milestones is the launch of the Rollux Layer 2 scaling solution, which is expected to enhance scalability and performance. This upgrade is targeted for release in the coming months and aims to provide faster transaction speeds and reduced costs. Additionally, Syscoin is working on integrating zk-Rollups, which will further improve transaction efficiency and privacy.

Another significant initiative is the development of the Syscoin NEVM (Network-Enhanced Virtual Machine), which will enable smart contract functionality compatible with Ethereum. This is expected to broaden the ecosystem and attract more developers to build decentralized applications on Syscoin.

Syscoin is also focusing on expanding its ecosystem through strategic partnerships and integrations, which are set to roll out progressively. These initiatives are designed to enhance the platform’s utility and adoption, with progress being closely tracked through their official channels.

### What makes Syscoin stand out?

Syscoin stands out through its unique combination of blockchain technologies, combining the security of Bitcoin's proof-of-work with Ethereum's smart contract capabilities. This dual-layer architecture enables high throughput and low latency, making it suitable for a wide range of decentralized applications. Syscoin's interoperability is enhanced by its support for rollups, which allows for scalable and efficient transactions. The platform also features a robust governance model and an active ecosystem, including partnerships with various projects that enhance its functionality and reach. These elements collectively contribute to Syscoin’s distinct position in the blockchain landscape, offering a versatile and secure platform for developers and businesses alike.

### What can you do with Syscoin?

Syscoin is a versatile platform that provides multiple utilities for its token, SYS. Users can utilize SYS for transactions and paying fees within the Syscoin network, facilitating efficient value transfer and application usage. Holders of SYS have the ability to participate in network security through staking, which involves locking up their tokens to support the network's operations and potentially earn rewards. Additionally, SYS token holders can engage in governance, where they have the opportunity to vote on proposals that influence the future development and policies of the Syscoin ecosystem.

For developers, Syscoin offers a robust framework to build decentralized applications (dApps) and integrations, leveraging the platform's unique features such as Z-DAG technology for fast transactions and interoperability with Ethereum through the NEVM (Network-Enhanced Virtual Machine). The Syscoin ecosystem supports a range of tools and applications, including wallets, bridges, and marketplaces, which enhance the utility of SYS and facilitate its use in various decentralized finance (DeFi) and non-fungible token (NFT) applications.

### Is Syscoin still active or relevant?

Syscoin remains active, with its most recent update being the release of Syscoin 4.4 in March 2023, which focused on enhancing the platform's scalability and interoperability. The development team continues to work on integrating Ethereum Virtual Machine (EVM) capabilities, aiming to bridge the gap between Bitcoin's security and Ethereum's programmability. Syscoin is actively traded on several exchanges, indicating sustained market presence. The project also engages with its community through frequent governance proposals and discussions, ensuring that it evolves according to user needs and industry trends. These factors underline Syscoin's ongoing relevance in the blockchain sector, particularly in areas concerning decentralized finance and smart contract applications.

### Who is Syscoin designed for?

Syscoin is designed for developers and enterprises, enabling them to build scalable decentralized applications and enterprise solutions. It provides a dual-layer blockchain architecture that combines the best of Bitcoin's security with Ethereum's smart contract capabilities. Developers benefit from tools and resources such as SDKs and APIs, which facilitate the creation and deployment of decentralized applications. Enterprises can leverage Syscoin for secure, fast, and cost-effective transactions and services.

Secondary participants, including validators and liquidity providers, engage with the Syscoin network through roles like staking and governance, contributing to the network's security and decentralization. This diverse ecosystem supports a wide range of use cases, from decentralized finance to supply chain management, aligning with the goals of both developers and businesses seeking robust blockchain solutions.

### How is Syscoin secured?

Syscoin employs a hybrid consensus mechanism combining Proof of Work (PoW) and Proof of Stake (PoS) to secure its network. Initially, miners use PoW, specifically the SHA-256 algorithm, to validate transactions and add new blocks to the blockchain, leveraging the same robust security model as Bitcoin. This process ensures high levels of security and resistance to attacks.

In addition to PoW, Syscoin incorporates PoS through a system of masternodes. These masternodes require a collateral stake of Syscoin to participate, which helps secure the network and validate transactions. The PoS aspect introduces a layer of economic security, as masternode operators are incentivized through rewards for maintaining the network’s integrity.

Syscoin uses cryptographic techniques such as Elliptic Curve Digital Signature Algorithm (ECDSA) to ensure data integrity and authentication. The network also implements governance processes to manage protocol upgrades and potential disputes. Regular audits and a bug bounty program further enhance Syscoin’s security by identifying and addressing vulnerabilities. This combination of mechanisms and safeguards contributes to the overall resilience and trustworthiness of the Syscoin network.

### Has Syscoin faced any controversy or risks?

Syscoin has encountered several risks and controversies, primarily related to technical and security factors. In December 2017, Syscoin experienced a security incident when a vulnerability in its blockchain was exploited, leading to an unauthorized creation of additional coins. The Syscoin team quickly addressed the issue through a hard fork to prevent further exploitation and restore network integrity. Additionally, the project has been involved in a few disputes within its community regarding governance and development directions, which were mitigated through open discussions and community votes.

Ongoing risks for Syscoin include technical challenges related to its blockchain interoperability features and potential regulatory scrutiny, given the evolving landscape of cryptocurrency regulations. The Syscoin team actively works to mitigate these risks through regular security audits, transparency in development, and engagement with the community to ensure robust governance practices.

