Syscoin 3.0

We are very excited to present the new scope of Syscoin 3.0 as well as the block number for the upcoming hard fork. On April 30th, 2018 at block number 683,412 a snapshot will be taken of the Syscoin 2.x blockchain and a few hours later, the next generation Syscoin protocol will be launched.

For current Syscoin users the upgrade will be as simple as downloading and running the new wallet application. Syscoin 3.0 will automatically recognize your existing wallet and seamlessly complete the upgrade — be sure to back up your wallet.dat in preparation for this process. If you are leaving your Syscoin on an exchange your funds should automatically switch to the new network, but please note that some exchanges may take longer than others.

Important: Some Syscoin 2.x features will be reset during the fork. Because of massive feature upgrades, old escrows and messages will not be compatible with the new network. Make sure all transactions are completed and all escrows are cleared before April 30th.

Blockmarket Desktop 3.0 and Syscoin QT 3.0 will be released simultaneously, and all users and exchanges will need to update their clients to one of:

Blockmarket Desktop 3.0 is a complete backend overhaul to the Blockmarket Desktop application to run on the new Syscoin 3.0 core. It adds an Asset creation tab and a host of big fixes and improvements. Anyone wishing to use the in-wallet marketplace, create assets, aliases or for general use should upgrade to this wallet.

Syscoin QT 3.0 is a completely new version of the QT wallet for advanced users who wish to set up masternodes or create/vote on proposals. It retains the user interface that QT users are familiar with including the command line interface.

Going forward we will be releasing additional improvements to Blockmarket Desktop that incorporate the Masternode features currently available exclusively through Syscoin QT, providing users with a one-stop desktop application for accessing all of Syscoin’s features.

What’s New?

Syscoin 3.0 provides all the great features that Syscoin users are accustomed to, creating an unprecedented symbiosis of tried and tested blockchain features. This release is also particularly notable due to the public release of our long-awaited and revolutionary instant service transaction feature dubbed “Z-DAG” (Zero-confirmation Directed Acyclic Graph).

Syscoin Assets and Tokens

Syscoin Assets provide a layer of tokenization on top of the Syscoin network. 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 of physical assets, loyalty points, and more. Coupled with the network’s KYC/AML compliant identity service, the Assets protocol can even provide the framework to create tokens for trading of securities.

So what are tokens on the Syscoin platform? Syscoin Assets are the top level class of assets which can then be divided into tokens. For example, you could create an Asset called “diamonds”, and assign a single token to each real-world diamond. Each SYS3 token supports metadata and can be assigned to a specific diamond, complete with serial number identification. Metadata can also be used for additional data and provenance including previous owners, place of origin, and historical data.

Assets/Tokens parameters include:

Fungible / Non-Fungible assets.

Interest-bearing / Non-interest-bearing assets.

Witnesses for asset notarization.

Non-fungible token metadata support.

Masternodes and Proposals

The Syscoin blockchain will continue to be a merged-mined but with a new two tier network design. The first tier is our proof-of-work SHA-256 network, but will now include Masternodes for off-chain transactions, the second tier.

The Syscoin proposal system is similar to Dash’s governance system that has greatly increased Dash’s marketing capabilities, awareness, and development. It allows anyone to contribute to the project by making a proposal for funding, and once approved the submitted will receive payment to execute their work. Governance in a decentralized project is difficult because by definition there are no central bodies to make and authorize plans for the project. To solve this the Syscoin proposal system is dictated by a distributed and decentralized network of Masternode owners who are able to participate in the democratic process, voting for proposals that will impact the network.

Development and marketing proposals can be created in Syscoin QT 3.0 and submitted for funding. To combat spam proposals there is a fee of 500SYS submission — the proposal fee is destroyed upon submission. Proposals cannot be altered once submitted.

Future development will include a Masternode Proposal Portal similar to DashCentral.

Z-DAG

Z-DAG (Zero-confirmation Directed Acyclic Graph) brings transaction speeds to the Syscoin network that are suitable for real world use cases. Z-DAG is a Syscoin innovation created by our CTO Jagdeep Sidhu that enables instant transactions on all Syscoin services such as sending & receiving tokens, making purchases, creating certificates, and more.

Syscoin 3.0 will include a Z-DAG layer for high-speed transactions (the first consensus layer) and the SHA-256 proof-of-work (second consensus layer) that is merge-mined with Bitcoin.

Regulatory Compliance

The regulatory environment for blockchain companies and cryptocurrencies is a rapidly shifting landscape. Ensuring that we are up to date with regulatory compliance is very important to Blockchain Foundry and was behind our decision to delay our original March 31st release date. This was necessary to remain on exchanges due to the vastly different scope of the Syscoin 3.0 project from Syscoin 2.0, and to generally position Blockchain Foundry to be a long-time player in the space.

With this delay came a silver lining that gave us extra time to polish features and continue work on the core to increase transaction throughput. With these efforts we were able to increase efficiency by adding multithreaded processing of validations and transactions, and we were able to drastically increase the speed of validation with optimized algorithms.