Skycoin is a unique blockchain design that aims to build peer-to-peer decentralized internet services where users trade their network services for cryptocurrency. In 2013, the Skycoin project was launched by Brandon “Synth” Smietana. Moving forward in 2019, Skywire mesh network was released at NYC blockchain center.
Skycoin is distinct from Bitcoin as it can not be mined through proof of work. Skycoin introduced 100 million SKY tokens at the time of its launch. However, developers can’t access SKY tokens because most of them are blocked. As per CoinMarketCap, Skycoin was listed as the 506th highest cryptocurrency by market capitalization on April 26, 2021.
Significance of Skycoin (SKY)
Brandon “Synth” Smietana claims that he was an initial developer in the Bitcoin Community. During those projects, he noticed the imperfections of Bitcoin’s proof-of-work system like energy inefficacy and probability of interrelated miners capturing the decentralized system and planned to produce a new consensus algorithm that would be exceptionally decentralized and impenetrable to malevolent activities.
Obelisk is the Skycoin’s consensus protocol based on a “web-of-trust algorithm” where every node subscribes to determine the number of different network nodes and subscribers node network density decides its impact on the network.
The purpose of this structure is to apportion influence over the network and this influence score of every node is the basis of major consensus decisions. Therefore, every node in the network contains its sole blockchain that functions as a “public broadcasting channel.”
According to the White paper released by Skycoin, the public data left by every node’s individual blockchain lets the network respond to defections by providing connections with less reliable and harmful nodes. Also, if the community experiences that network power is highly concentrated or not concentrated appropriately, the community can adjust power balance by changing their trust relationship inclusively.
Related Skycoin Projects
Skycoin functions like an ecosystem of hardware and software products to facilitate its blockchain system. Similar featured projects were found on Ethereum and other blockchains.
Skycoin Hours or Coin Hours are a second-tier currency connected to Skycoin for incentivizing nodes on the Skycoin network. Keeping one Skycoin in its wallet for an hour enables holders to one Coin Hour. One can use Coin Hours to trade bandwidth and different services on the Skycoin platform.
Skycoin contains its own program for decentralized applications that provides assistance in running initial Coin Offerings (ICOs) or other business applications. As per the company, the fiber architecture can be set out as “an infinitely scalable network of blockchains laid side by side, like strands,” where each strand can control the speed of 300 transactions every second.
Skycoin states that Fiber is “lightning fast,” consumes less energy and implies no transaction fees as each company contains its own blockchain. Skycoin white paper claims “they do not face the congestion issues seen on platforms such as Ethereum’s ERC-20.”
In 2018, Skycoin introduced its own feline-themed collectibles game after Crypto Kitties’ success. Even though it’s quite similar to the Ethereum game, Skycoin affirms that KittyCash that operates on Skycoin Fiber has the benefits of reduced transaction fees and better speed.
Skywire framework proposes a speedy, cost-effective and incentivized mesh network that offers elevated QoS than the current Internet. A developers’ version of Skywire launched on mainnet in March of 2019, and a public mainnet launched a year later.
Skywire can be determined as a decentralized network that authorizes users to exchange data without risking their anonymity. Skywire nodes direct the traffic route that offers computation, storage space and bandwidth in return for Skycoin and Coin Hours.
Skyminers are diversified processor rigs that perform like network nodes on the Skywire meshnet, letting operators supply network services in trade for cryptocurrency. Skycoin offers official Skyminers for about $2,000. However, a DIY version can be created for $600. Skycoin plans to launch a wireless antenna that will enable Skyminers to operate as local ISPs in their neighborhoods.
Additionally, this company presents a crypto hardware wallet that is much inexpensive compared to other popular wallets, but it can only hold Skycoin unless the user gives it a firmware upgrade.
The Bottom Line
Skycoin is a project that focuses on developing software and hardware for modern, decentralized Internet, produced over the Obelisk consensus algorithm. Although, many of these commitments are hard to believe attracting widespread criticism.