Nowadays, there are rare case of real ingenuity among the cryptocurrencies. This has made Skycoin and allied product SkyWire – two facets of a new startup to spring up in order to transform the world of cryptocurrency in the future with a long-term plan in mind.
Although Bitcoin and the rest of the AltCoins, which constituted the first generation cryptocurrencies, were helpful in the rise of digital cash, yet they could not implement the core concepts of decentralization and give power back to the people. Though the cryptocurrency itself still works very well in accordance to this promise, the actual influence over Bitcoin has become centralized within the network.
For instance, the crypto world has powerful mining cartels who run the free market business and now introduce forks on an ostensibly regular basis. Bitcoin Cash, Bitcoin’s first fork, was largely due to the interests of miners and since then, the cryptocurrency has split into two. Although these changes may not really mean so much as Bitcoin still has the supreme reign, yet it still constitute a hindrance towards further development and updates on the original Bitcoin Blockchain.
Since Blockchain is receiving more updates, two more Bitcoin forks are being proposed in the nearest future. Therefore, the threat of even more dangerous forks is very sure and has the possibility to topple the once-level playing field that was the original vision of the Bitcoin movement.
SkyCoin is created with a new concept that is built round a new algorithm designed from scratch called Obelisk. This new platform will be devoid of mining altogether, this will make it impossible for people with more resources to hold the future currency hostage with their moves.
Bitcoin’s old problems still persist
When Skycoin was launched in 2013, it understood that the Bitcoin network has failed to achieve true decentralization. Skycoin’s creator intended it to be decentralized over thousands of computers. Nevertheless, large mining cartels exerted considerable power and influence over the network.
After Four years, only little change has been made. Mining cartels have only heighten in strength, affirming their agendas with punitive effect, as evidenced by the miner-led Bitcoin Cash fork of August 2017. By November 2017, the Bitcoin network may see as many as two further fork splits as a result of miner interests.
The agenda of Skycoin’s in 2013 was to make effective Bitcoin’s original vision and address the underlying issues of Bitcoin. It’s only now that Skycoin’s mission has only become more relevant.
A third-generation cryptocurrency that solves Bitcoin’s technical weaknesses
Skycoin’s Obelisk is a sustainable alternative for Proof-of-Work (POW) as a major solution for blockchain consensus. Inspired by academic research into adversarial distributed time-stamping, it offers strong mathematical security guarantees even when the majority of nodes are hostile.
There remain many major problems with Bitcoin that Skycoin sees to address with its numerous benefits such as
– 51% attack proof and strengthening against various attacks
– Brainwallet, deterministic wallets as default
– Directed bipartite TX/UTXO transaction graph structure which is more elegant and efficient than Bitcoin’s multi-graph structure
– Dozens of security/crypto related improvements
– Duplicate coinbase outputs
– Elimination of external dependencies that create security concerns in Bitcoin
– Elimination of the need for miners for network consensus through new algorithms, elimination of dependence on the human element in the network operation
– Intrinsic support for gmaxwell’s CoinJoin transaction privacy protocol
– Network security improvements
– New networking protocols to enable the verification of the mathematical prerequisites for consensus network convergence
– Provably upper bounded network, RAM and CPU resource usage for network operation
– Reduction in complexity in implementation
– Separation of coin creation from the consensus network, to eliminate Bitcoin’s tendencies towards mining centralization
– Signature malleability
– Simplified, more powerful data, transaction and wallet APIs
– Soft coded, adjustable blockchain size parameter to enable network transaction rate scaling
These immediate benefits are environmental friendliness and cause minimization of economic profiteering.