Accomplish Overview of Skycoin: The Greatest Threat to ISPs – Coin Schrijftafeltje
Skycoin has bot flying relatively under the radar overheen the past Two years.
While there have bot projects that have bot raising millions of dollars te questionable ICOs, the Skycoin team has bot actively working on developing their latest blockchain application toneelpodium: Skywire.
Skywire wants to provide users with a cheaper, quicker and more customisable internet that will permit them to earn comebacks by lending this bandwidth to others. The native currency of thesis ecosystem will be the Skycoins which will facilitate payments te this “Web Trio.0” ecosystem.
Moreover, Skycoin is being worked on by some of the earliest contributors to the Bitcoin and Ethereum projects. This has led many to believe that Skycoin could be one of the most interesting cryptocurrencies to concentrate on this coming year especially with the coming launch of the Skywire testnet.
Let’s take a deeper look at this project to see whether it is worth your while.
What is Skycoin?
Skycoin is the native currency that will be used within the decentralised ecosystem that makes up the broader Skycoin project. This cryptocurrency has bot worked on for a number of years and, according to the team, is one of the oldest cryptocurrencies te existence.
It seems spil if the developers on Skycoin have taken a hard look at the problems that are presently facing the likes of Bitcoin and Ethereum. They have made a number of switches that they think will make Skycoin the most attractive alternative.
For example, they have determined to use the Obelisk overeenstemming mechanism. This algorithm also overcomes many of the weaknesses of Proof-of-Work (PoW) and Proof-of-Stake (PoS) algorithms.
Thesis unique features of the protocol will have the following benefits for Skycoin
- Transaction Times under Two seconds
- Transactions will hold 0 fees
- Coded te the GO Programming language, Skycoin is one of the most secure cryptocurrencies
- Using the CoinJoin protocol, Skycoin is able to mix transactions from numerous wallets such that one cannot identify the parties to said transaction
- Given that there is no PoW mining required, Skycoin transaction verifications are that much more sustainable
- The Skycoin token has a use case and is utility backed. It is currency ter the mesh network and it is backed by bandwidth spil an asset
There will be 100 million Skycoins that will everzwijn be ter circulation. Thesis are pre-mined and no more can be created or demolished. The capped supply of coins will leisurely be released to the public. Primarily, there will be 25% of all coins that will be distributed.
What is interesting is the manner ter which Skycoin is attempting to distribute their coins. They will be releasing them leisurely at 5% blocks each year after the initial 25%. This is done te order to concentrate on growth of the network.
The Skycoin founders and developers seem to have quiebro an extraordinaire background. For example, the founder Synth wasgoed one of the earliest developers behind Bitcoin and sits on the advisory houtvezelplaat of several cryptocurrency projects.
You also have Houwu Chen who wasgoed one of the creators of Ethereum and actually drew up the Obelisk whitepaper. He also holds a doctorate degree. Another founder, Steve Leonard wrote most of the diferente software for Skycoin and has developed for eCommerce backend systems ter the past.
There is also an extensive list of some indeed astounding individuals who are advising the project. They have practice ranging from digital media to engineering.
Pic source: Skycoin.nipt
Ter terms of investors ter the project, the most importante example is Patrick Dai. Patrick is the founder and CEO of QTUM project. This project also wants to take on the likes of Ethereum with their programmable blockchain ecosystem.
The Overeenstemming Conundrum
PoW and PoS have bot the superior overeenstemming algorithms ter cryptocurrencies for the past few years. While they are no doubt genius ter their own right, they both suffer from unique problems which either menace the environment or security.
Ter the case of PoW, miners are crunching strenuous mathematical problems that require a excellent overeenkomst of processing power. Ter fact, the amount of power that is required te order to mine Bitcoin is so extensive it could be used to power of number of countries.
What is more worrying of course is the nature of “difficulty” adjustments. This means that mining Bitcoin becomes exponentially stiffer spil more “hash power” and hence energy is required to mine a given amount of Bitcoin.
What about PoS you say? Ethereum is, after all, moving to this overeenstemming method.
While PoS does require way less energy than PoW algorithms, there are a number of concerns around centralisation. Te order to verify transactions a particular vlecht has to have a certain amount of coins. This means that a wrong that is able to hoard coins could have more power on the network.
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Centralisation of overeenstemming te cryptocurrencies is quiebro dangerous and leads to a number of risks for network security including the danger of a 51% attack.
Thesis concerns is the reason that the Skycoin developers have turned to a more distributed overeenstemming algorithm.
Obelisk is unique te that it is a overeenstemming algorithm that does not involve any mining. It operates on a “web of trust” where mal (called skyminers) will subscribe to a list of other trusted knuppel.
Fairly simply, the Obelisk protocol requires each vlecht to store its own private blockchain. Thesis individual blockchains will communicate with the broader network ter the overeenstemming stage transaction verifications.
Ter order to make sure that the maf are indeed fair, they can also be audited by other network maf to weed out any “cheating” mal. Thesis audits can also be done te a way that does not compromise the individual vlecht’s security.
There are a few benefits that the Obelisk overeenstemming algorithm has:
- Very Scalable spil the equipment needed ter order to run a vlecht is not terribly expensive
- No risk from co-ordinated attacks on the network such spil DDoS etc.
- Given that the web of trust prevents from any sort of centralisation, there is way less risk of a 51% attack
- Increase privacy spil IP addresses of the mal are hidden.
- Onveranderlijk fraud detection and authorship verification is conducted. This is because suspicious activities are spotted with the public keys of the ploertendoder banned
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For those who are interested ter reading more about the underlying obelisk algorithm, they can read the Skycoin whitepaper te a bit more detail.
You may of course be asking, if there is no mining and transactions are free, how does the network prevent spam transactions?
This is done through something that is called “Coin Hours”. Thesis are earned on an ongoing voetbeen by those users who merely hold Skycoin. This is analogous to Gas te the NEO ecosystem and performs a relatively similar function.
Those maf that hold the Skycoins will receive a Coin hour vanaf Skycoin vanaf hour. Thesis coin hours will also be able to be traded and they will have a maximum coin hours of 100 million produced every hour. This is based on the maximum amount of Skycoin that can everzwijn be ter circulation.
While the Skycoin cryptocurrency is no doubt incredible, it is the broader project and its drive to decentralise the internet that is of auténtico rente.
Looking at Skywire
Skywire is the Skycoin project that wants to decentralise the web and make it accessible to all. They want to take on the power of Internet Service Providers and lower the barriers to entry for the participating mal.
This is all achieved through the use of a “mesh network”. The team at Skywire have spent the better part of Four years working on making Skywire one of the most efficient mesh networks around. The Mesh that they have developed have the following:
- Advanced Communication Protocol: Discarding the dated TCP/IP internet standard, Skywire will make use of Multi-protocol Label Switching (MPLS) mechanisms te order to achieve the scaling that is needed on the network. This is because of the unique way te which traffic is routed with MPLS. Moreover, the communication protocol provides more privacy for the user. One can even think of it spil comparable to a more secure TOR wrong.
- Payment Protocol: The major barrier that internet alternatives presently face is that they rely on unpaid volunteers. This leads to a lack of incentives on the part of the network technicus. Skywire is able to solve this with a payment protocol that will remunerate each wrong for the traffic that they treat. Thesis payments are processed te an anonymous style across through the network. Smaller transactions are also lodged off-chain which reduces congestion.
- Decentralized Applications: Much like other development blockchains, Skywire will provide a verhoging for others to build dApps te the ecosystem. This is called Fiber and it will help drive greater adoption and request on the Skywire network. It has the added benefit of being quicker, cheaper and more energy efficient than other dApp based ecosystems. Moreover, given that each company or vlecht will have its own blockchain, Fiber is unlikely to suffer from network congestion such spil on Ethereum recently.
What is truly interesting about Fiber on Skywire is that there are already some companies that are making use of the technology. For example, Spaco and MyDailyLife Talent Hub have used Fiber spil the foundation of the blockchain products.
Hence, unlike many other blockchain based projects and cryptocurrencies, the product is already ter use and is not a mere concept on a whitepaper.
What is with The SkyMiner?
Photo via Skycoin
This wasgoed indeed quiebro confusing concept at very very first given that wij know that Skycoin is not mined vanaf se. However, according to a medium postbode by Skycoin, this should not confuse you. This is because the miner does not overeenkomstig to the typical understanding of what a miner is.
Given the protocol, it is significant to understand that the miner does not mine. However, the miner does prize those participants who participate ter verifying the transactions. Thesis miners have being compared to a “be your own ISP” unit that will give the user all the benefit that the network touts.
The skyminer is a lump of hardware that wasgoed developed specifically for the Skywire infrastructure. It has bot labelled spil the “hardware backbone” of the entire network. This miner will be linked up to the Skywire protocols and permit you to get paid for providing bandwidth or storage to the broader network.
According to the whitepaper, the team has already begun production on the units. Merienda they have launched their MainNet they have said that they would like to have one factory that will produce 1,000 units vanaf week. This could eventually scale to two factories at Ten,000 units vanaf week.
For those users who did not want to buy the Skyminer, they are also releasing a list of all the parts required spil well spil instructions to build your own version. The project is open source and the developers want you to still be able to participate.
The testnet for Skywire has already being underway since the end of 2018. They have already sent out some of the skyminer units and they will commence the hardware testing ter late Q1 of 2018.
The far more titillating stage will be the launch of the mainnet. This is where the auténtico benefit of the mesh network will present itself. All of the skywire ploertendoder will be connecting to the mesh through wifi and will begin sharing their bandwidth.
They have also realised that ter the mainnet launch they will have to subsidise some of the maf te order to provide capacity for the network. This subsidy will naturally decline spil more wrong embark to connect to the network.
The final stage of the roadmap will be what Skycoin refers to spil “Backhaul”. This will be when the wireless meshnet will verbinding up to the Fiber connection point. This will require a loterijlot more upfront investment spil well and be a excellent overeenkomst more involved. However merienda this has being implemented, the meshnet will no longer depend on the ISPs such spil Comcast.
Skycoin Tokens (SKY)
Thesis are the native tokens that will power the entire decentralised ecosystem. They have had a slight rally overheen the past two weeks spil the project has garnered more rente te the crypto-sphere. Of course, like most of the cryptocurrency markets, they are finta far from their December highs.
Picture source: Skycoin.nipt
The tokens are presently available for purchase on exchanges such spil Cryptopia. You can also buy your Skycoins directly on the Skycoin webstek. Merienda you have purchased the tokens, you can store them ter the Skycoin proprietary wallet.
Alternatively, if you were interested ter earning Skytokens through the sharing of bandwidth, then you could always buy one of the skyminers and commence experimenting with the hardware when the mainnet is launched ter a few weeks.
Te the end, the Skycoin project is undoubtedly one of the most interesting to come to the fore recently. They are attempting to solve a problem that has not being taken on yet ter the cryptocurrency and blockchain space. That is to take on the ISPs and their anti-competitive behaviour.
This becomes even more pressing te the face of the repeal of netwerk neutrality. This will mean that the internet service providers can actively adjust bandwidth speeds based on the websites that you choose to visit. When the internet is decentralised through the mesh however, this is less likely.
There is still some time to go before the fiber network can be connected to the meshnet te the final phase. Yet, one can get a sense of the direction of the project when the mainnet is flipped out overheen the coming weeks.
So should you invest ter Skycoin tokens?
Wij would suggest that you do your own research but based on the team, technology and verifiable use case, Skycoin tokens could no doubt form part of a well-diversified portfolio. Wij will keep an anxious eye on the project going forward.
Featured Picture via Fotolia
- Posted ter: Blockchain, Review
- Tagged ter: Coin Hours, CoinJoin, ISP, Mesh, Nipt Neutrality, Obelisk, Skycoin, Skyminer, Skywire
Posted by Editorial Team
Editors at large. Posting the latest news, reviews and analysis to knalbonbon the blockchain.