Syscoin - A Scrypt-based, Merge-minable Coin with Certificate Issuance, Distributed Marketplace, Document Exchange, and Data Storage Services
Syscoin is a scrypt-based, merge-minable, cryptofinance services-focused altcoin which implements several services vital to the implementation of a decentralized cryptoeconomy and is merge-minable with any Scrypt coin - or minable standalone.
Syscoin provides a variety of useful decentralized, cryptographically-secured services based on bitcoin blockchain technology:
-
Syscoin enables the creation of decentralized markets of many kinds, ranging from fully decentralized marketplaces to centralized markets with more complex value-added features - all operating on a decentralized foundation of trust and authenticity. Syscoin lets you buy and sell anything to anyone in markets which are decentralized, unregulateable, uncensorable, and cryptographically authenticated. Syscoin doesn't just promise trust and uncorruptability in our marketplaces - it provides cryptographic, mathematically verifiable proof of it.
-
Syscoin implements cryptographically-auditable creation, agreement, acknowledgement, and exchange of discrete data. Documents like deeds, wills, trusts, stocks, bonds and contracts can now be created, mutually agreed upon, and transferred without a third-party notary to authenticate the transaction; the Syscoin network itself guarantees cryptographically-verifiable authenticity. In other words, Syscoin provides a foundation for the creation of mathematically provably fair arbitration systems which cannot be corrupted.
-
Syscoin implements cryptographically-verifiable digital certificate issuance, authority, and exchange. With Syscoin, anyone can register as a certificate issuer and issue provably-unique certificates which can be certifiably authenticated by anyone via cryptographic proof, allowing for the creation and free exchange of a vast array of digital assets such as stocks, bonds, ownership certificates, warranties, receipts, tickets, certifications, diplomas, software licenses and many other kind of documents essential to the establishment and functioning of a successful cryptoeconomy.
Syscoin provides all of these features, and more, to everyone by leveraging the rapidly-growing combined Scrypt hashing power of all Scrypt-based cryptocurrency. Syscoin does this by allowing itself to be merge-mined with any cryptocurrency which uses Scrypt-based proof-of-work - as well as allowing itself to be mined standalone if desired. By being universally merge-mineable with all Scrypt coins, Syscoin is able to leverage the incoming Scrypt ASIC boom - as well as present computing and storage infrastructure - to fully cryptographically secure and guarantee availability of available services into the future, all while simultaneously distributing coins to anyone mining any other Scrypt coin. This ensures that both democratic coin distribution and strong cryptographic security are achieved shortly after Syscoin's genesis.
Since Syscoin is, at its heart, a cryptoservice-oriented coin with a large-to-load, large-to-store blockchain, heavy emphasis is placed on paying out services fees to miners - since they enable the existence of syscoin and its services. Thus, Unlike namecoin, which destroys all coins consumed permanently when its services are user, Syscoin directly recycles transaction fees by regenerating them as subsidies and redistributing them to network miners.
The regeneration of service fees is, other than base mining rewards, the key incentive for miners to continue to mine Syscoin and thus enable and guarantee its services into the future. However, retail miner incentive itself is mitigated as a network failure risk with Syscoin's merge-mineable capabilities and the general tendency of cryptocurrency mining to concentrate towards pooled mining systems. This reduces barriers to broadscale adoption by concentrating setup labor and infrastructure costs onto mining pool operators, who are better equipped to respond to, and ultimately profit from, a decision to support the infrastructural requirements of mining Syscoin.
Coin specs:
1 minute block time. 2 billion cap. 128 SysCoin and regenerated network services fees (block reward decays on fixed schedule until rewards fixate at 32 Syscoin until 2bil coin, after which rewards are purely network and service fees). Please see https://bitcointalk.org/index.php?topic=587080.0 for the rewards schedule table in a nice to read table format.
Syscoin uses KGW to retarget difficulty every block. Unlike most KGW implementations however, Syscoin uses extremely small min and max values as algorithmic inputs, which effectively allow for Syscoin's difficulty to retarget much more rapidly and accurately than other altcoins whic use KGW. Consideration was given to a range of other difficulty adjustment algorithms, but none have proven themselves to be sufficiently improved from Syscoin's KGW implementation to warrant replacement.
Syscoin service fee regeneration is accomplished by tracking all service fees charged by the Syscoin network via two moving average windows - a 12-hour window and 1-hour window. Every block, the average of these two averages is calculated as the amount to be regenerated and is then added to the coin reward for that block. Thus while the regeneration of Syscoin service fees does not exactly equal the amount of Syscoin destroyed when utilizing Syscoin services, the average of the two moving average windows enables 'good enough' tracking of service fees to enable effective and fair redistribution of coins consumed in service transactions.
Service fee structure algorithms for all Syscoin services are still being finalized. Fee structure implementation requirements include dynamic repricing based on demand, coin availability, and data size required to implement each service and will be announced shortly.