Syscoin: Providing Stablecoins w/Scalability & Interoperability

Syscoin: Providing Stablecoins w/Scalability & Interoperability

By drlove | Sysnetsite | 26 May 2020


The rise of Stablecoins (TETHER, DAI, PAX and others) have substantially increased the number of transactions on the Ethereum network. This has helped  lift the price of Ethereum and increase gas fees (cost of making tx on Ethereum), as this creates an increasing demand for Ethereum tokens. Ethereum's low TPS issue is purported to be alleviated with the upcoming Ethereum 2.0, but it is still far away on the horizon. In particular, gas fees are making the network unsuitable for millions of micro-transactions that are needed in the future. The costs for gas fees for transactions are now already about  USD 0.40. Some have even argued that by the time Ethereum 2.0 materializes, other solutions may have already solved the puzzle!
https://cryptoslate.com/will-interoperability-render-ethereum-2-0-redundant/

Recently, Vitalik has suggested that Stablecoins may want to explore Interoperability Solutions with other blockchains and has suggested a Bridge Contract to facilitate such transactions. This is explained in the same article where Syscoin Core developer Jag Sidhu discusses the challenges and solutions: https://cointelegraph.com/news/stablecoins-can-transfer-value-across-blockchains-says-vitalik-buterin

One of the solutions that uses a Bridge Contract for interoperability is the Sysethereum Bridge that was released on the Syscoin mainnet a few months ago. It is the only trustless bridge solution - devoid of intermediaries or custodians that inherently come with their own set of risks, or atomic swaps that depend on market liquidity. Instead, it relies on a two-way mint-burn mechanism which is explained in detail at https://bridge.syscoin.org .

Syscoin, which is merge-mined with Bitcoin and the Z-DAG (fast transaction layer which has been third-party verified by Whiteblock capable of processing 60k TPS) offers exactly the scenario outlined by Vitalik. A transaction on the Syscoin Platform costs about USD $0.0000015456. This makes the SysEthereum bridge a serious contender for Stablecoins wishing to minimize transaction costs and maximize speed and throughput to facilitate the ever-increasing demand for fast micro-transactions. Buying coffee and waiting for it to get cold before the transaction is processed and paying $0.40 tx fees is simply not a solution. Using Z-DAG, in contrast, transactions are confirmed in about 10 seconds as can be viewed on this cool youtube clip!

A recently published instructional video,  "Introduction to Syscoin Platform: Interoperability & Scalability" authored by Syscoin Foundation member Bradley further explains and elaborates on how Syscoin is solving the current challenges! 

During a recent AMA Syscoin Core developer Dan Wasyluk was quizzed about the likelihood of a stablecoin using the SysEthereum bridge.
He replied with a definite "no comment" - and I will also just leave it at that! 

Transactions of stablecoins now exceed $ 30B daily, so it is easy to see that the features of Syscoin Platform are getting attention! Not surprisingly, the market has recognized the potential of Syscoin  - have a look at the chart!

And finally, if you are looking for links to media, exhanges, masternode hosting providers, downloads, social media accounts and more,
don't forget to visit https://syscoin.network - the comprenhensive link collection for the Syscoin Platform!

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Visit the official Syscoin Website at https://syscoin.org
or join the Discord channel to chat at https://discord.gg/RkK2AXD 
Support Wiki and Discussions are at https://support.syscoin.org

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