The growing popularity of cryptocurrencies is one of the most interesting phenomena in the world of finance. The notion of having a decentralised cryptocurrency, which was first put forth by Bitcoin, has paved way for a plethora of projects based on the blockchain. While Bitcoin merely adopted blockchain to give the world its first cryptocurrency, other projects took the functionality of this technology beyond the traditional path of having a decentralised payment system. Among the numerous projects that have done this, one is Syscoin.
What is Syscoin?
Syscoin is a decentralised global network built on blockchain which aims to serve as a completely decentralised marketplace. You can think of it to be quite similar to Amazon or eBay, minus the heavy fees and corporate interference. Syscoin’s decentralised marketplace puts money directly into the hands of customers and sellers by eliminating middlemen and the hefty associated fees that come with it. This has been made possible owing to the network’s native cryptocurrency known as Syscoin (SYS).
Syscoin’s decentralised marketplace, known as Blockmarket, enables any user to buy, sell and even resell other’s items for a commission. The items in the inventory cover a broad range of categories, ranging from apparels to beauty and health products. The products listed on the marketplace can be bought with either Syscoin or other cryptocurrencies like Bitcoin.
Furthermore, the transaction costs are near-zero and the network has no downtime. Syscoin network also boasts of the alias feature, wherein users don’t have to type in complex wallet addresses to send or receive funds. Instead, they can simply enter an address name like ‘TheBookShop’ and perform the transaction.
Users of the Syscoin protocol can also send and receive encrypted messages among themselves. Another promising feature of Syscoin is ‘Arbitrated Escrow.’ As the name suggests, this is an escrow service in which buyers’ funds are securely held in escrow by a mutually agreed upon third party while the products are in transit. If the seller does not ship goods, then the third party can release the funds back to the buyer.
Coming to the Syscoins (SYS), the total cap is at 888 million. At the time of writing this article, a little over 500 million SYS tokens are in supply. These tokens are tradeable and are essential to utilise the services of the Syscoin protocol, which presently are geared towards the marketplace only. However, the project holds a great deal of potential for businesses which are shaped with the help of blockchain.
Where to buy SYS tokens?
SYS tokens are available on several prominent cryptocurrency exchanges like Bittrex, Binance, Poloniex, Upbit, Livecoin, Changelly, Bittylicious, et cetera. Considering the fact that it is an alternative coin, it may be difficult to buy it directly. Instead, you may have to trade it with either Ether or Bitcoin.
Syscoin (SYS) Wallets
In order to make use of the services offered by the Syscoin network, it is important to download the wallet client from the official website. With this Syscoin wallet, you can send/receive SYS tokens, monitor your transaction logs, access marketplace and send encrypted messages. This wallet also enables you to make use of digital certificates that are used to store and transfer small documents and information on the blockchain.
You can also store your SYS tokens in a hardware wallet like Nano Ledger S or Trezor.
Syscoin was developed through a Bitcoin fork and supports merge mining. The consensus mechanism employed is Proof-of-Work based on SHA 256 algorithm. The block time is 1 minute and therefore, it is possible to mine Syscoin tokens. However, in order to mine SYS tokens successfully, it is recommended that you utilise high powered GPUs.
Syscoin (SYS) Price Trends
At the time of writing this article, 1 Syscoin is worth approximately 0.45 USD. Up until the first half of 2017, the price didn’t vary dramatically and stayed stagnant at levels below $0.1. In June, the price rose up to touch $0.2 but took a dive shortly thereafter. However, the coin exhibited its first substantial bull run during the months of December and January, wherein the value of the coin rose dramatically by 600%. At the end of first week of January, the price was trending at around $0.9.
When the cryptocurrency bubble collapsed, the price went down by around $0.5 but only to rise again in March. Once again, the price went down through the months of March and April, but showed signs of recovery in early May.
Risks Associated with Investing in Syscoin
From the price trends mentioned above, it is evident that Syscoin as an investment is highly volatile and therefore, risky. The erratic behaviour of this coin is similar to every other digital currency in cryptocurrency space. It is rather difficult to predict how the price will vary in the future. Furthermore, being a cryptocurrency, it is subject to many regulatory hurdles.
While the idea behind it is definitely unique - a decentralised marketplace - holding on to SYS tokens from an investment perspective is not a feasible idea. Instead, we urge to consider other investments such as mutual funds
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