Syscoin (SYS), a cryptocurrency that features the world’s first wallet with an integrated decentralized marketplace, completed a hard fork of its blockchain on May 1, launching Syscoin 3.0, which expands its peer-to-peer electronic cash system to business applications.

According to the accompanying whitepaper, Syscoin 3.0 will feature a number of new elements, including the implementation of an asset infrastructure for broader applications, a zero-confirmation double-spend protected instant settlement scheme (Z-DAG) for faster transactions and a new system of masternodes for a better consensus model.

Asset Infrastructure

Real-world asset tokenization and token launching platforms are rapidly becoming a popular theme in 2018. Staying ahead of the trend, Syscoin has launched Syscoin Assets to provide a layer of tokenization on top of the Syscoin network, making it possible to launch tokens on the Syscoin chain. Syscoin Assets can be used by third parties to build projects and decentralized applications with a wide range of use cases such as crowdfunding, backing physical assets, loyalty points, and more.

Syscoin Assets and Tokens include the following parameters:

  • Fungible / Non-Fungible assets
  • Interest-bearing / Non-interest-bearing assets
  • Witnesses for asset notarization
  • Non-fungible token metadata support

Syscoin looks to leverage its network’s KYC/AML compliant identity service to enable compliant security token creation. While utility tokens, which make up the majority of tokens, provide access to a project’s services, they do not promise to bring profits. In contrast, security tokens are designed to be tradable assets and are issued to investors in the pursuit of future profits, similar to traditional equities.

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As we’ve previously highlighted, security tokens are gaining a fair amount of attention from some of the smarter money in crypto. Anthony Pompliano, a well-known venture capitalist and tokenization-advocate, made the decision earlier this year to forego his firm’s traditional investment model to build a $500 million dollar crypto fund with Morgan Creek to invest exclusively in security tokens.

The first example of a project building on the Syscoin chain is well-known payment processor, CoinPayments. Investors holding Syscoin in their Syscoin alias address on June 1 will receive an airdrop of CoinPayments new coin, CPS Coin. CoinPayments already has over 724,000 vendors across 182 different countries using their current merchant services.

Z-DAG (Zero-Confirmation Directed Acyclic Graph)

In order to keep up with the impending network load due to the expansive applications of its platform, Syscoin has introduced Z-DAG, an instant settlement protocol enabled by masternodes, to act as the first consensus layer, enabling high-speed transactions for Syscoin services. As highlighted in a recent blog post, Z-DAG will be applied to various elements, including sending and receiving tokens, making purchases, creating certificates, and more.


Building on the original single-tier proof-of-work SHA-256 network, Syscoin is introducing a two-tier system leverages masternodes for off-chain transactions, creating a proof-of-work (PoW) and proof-of-stake (PoS) hybrid consensus model. The Syscoin masternode protocol is similar to the Dash cryptocurrency’s implementation, with a few alterations.

Syscoin has established a 50-50 split of transaction fees to miners and masternodes and introduced a seniority model to provide larger incentives to masternode hosts based on up-time behavior. Currently, there are ~900 masternodes online that payout nearly 15,000 SYS per year, but this number is subject to change. It requires 100,000 SYS (~$45,000) to run a masternode on the network.

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Blockmarket (Syscoin)

More On Syscoin

Syscoin (SYS) is a cryptocurrency which features the world’s first decentralized marketplace directly integrated into the wallet platform. The decentralized market allows for near-instant payment-upon-purchase, near zero fees and zero downtime, while offering users the ability to pay for products in either Syscoin, Bitcoin or ZCash for privacy. The backbone of Syscoin is an alias identity system that enables a number of services, including encrypted messaging, digital certificates transfers, and secure escrow. Ultimately, Syscoin plans to seamlessly integrate real-world cryptocurrency usage and storage into a single platform. (more)

More: Syscoin 3.0: A Peer-to-Peer Electronic Cash System Built For Business Applications
In-Depth: Syscoin: Cryptocurrency with Wallet-Integrated Decentralized Marketplace