Skycoin is a complete crypto ecosystem with the goal of offering a blockchain network that is truly decentralized and works for all users’ benefit. To achieve this, Skycoin crypto takes a different approach to a consensus mechanism. Namely, it introduces the Obelisk consensus algorithm, which we discuss later in the article. This consensus mechanism removes the need to mine tokens as seen in other consensus mechanisms. Let’s dive into what is Skycoin and how does Skycoin exchange work on Swazpone.
The Skycoin protocol establishes a peer-to-peer (P2P) decentralized internet protocol where participants offer network services in exchange for rewards in crypto. The project appeared in 2013 and it was followed by the Skywire mesh network in 2019.
Skycoin is different from Bitcoin in the sense that it is not minable through proof-of-work. Therefore, the whole of the total 100 million SKY crypto supply was premined when the protocol launched. However, most of the SKY tokens have been locked and are not accessible to developers.
The vision of the founder of Skycoin is to have a totally decentralized and distributed internet. Skywire seeks to establish a scalable, fast, and decentralized internet (WEB 3.0). It is different from the centralized web protocol that we are used to. This new protocol will take care of the serious issues created by the centralized internet.
Skycoin is ultra-fast crypto, boasting transaction speeds of just 2 seconds. SKY crypto places itself on a competitive level with the likes of credit cards and Apple Pay in traditional finance.
Skycoin Coin Hours (SCH) for Skycoin crypto holders. Skycoin holders get a separate currency for each hour a Skycoin spends in their digital wallet.
Skycoin makes sure the security of its platform is foolproof for every transaction that occurs. Using tested and trusted cryptographic standards, the protocol protects its platform from threats like 51% attack, duplication, malleability, and reversal.
Skycoin crypto accommodates the CoinJoin protocol that mixes several transactions from different digital wallets to ensure total anonymity on each transaction in order to provide needed privacy.
The protocol follows the path of sustainability by ensuring it is not dependent on heavy energy usage like the one we see in the Proof of Work consensus mechanism. Skycoin can function perfectly well on a lowly 30W phone processor. By embracing sustainability, the team is trying to secure Skycoin’s future.
The protocol provides incentives to users by creating an avenue for them to use and earn Skycoin through providing storage and bandwidth to the Skywire network. Skywire allows node operators to contribute and utilize network resources at the same time.
A real asset in the form of bandwidth backs the Skycoin crypto. This facilitates the practical usage of the token, while Coin Hours form an automatically-generated parallel inflationary currency.
Skycoin’s technological structure has one vital feature “the Obelisk consensus algorithm”. The Obelisk consensus algorithm also known as the Web-of-Trust algorithm removes mining, which in turn guarantees more speed and better security.
Moreover, Skycoin’s Obelisk serves as a distributed consensus mechanism that subscribes each node onto a list of trusted nodes. This implies that the higher the number of subscribers on a node, the higher the influence and impact on the network it has.
Skycoin technology further worked to develop Skywire, a new and advanced decentralized internet that employs Multi-Protocol Label Switching (MPLS) as its networking protocol. The purpose of the protocol is to provide users with access to a private and encrypted network with the ability to exchange data in a scalable way. Furthermore, the Skywire technology also eliminates the possibility of ISP traffic dumping, developing a more comprehensive and effective network topology using economic incentives.
Next, Skycoin also features CX Fiber Chains; a catalyst for DeFi apps, with the aim of benefitting modern enterprises. CX Fiber Chains is a platform that allows anyone to launch their own token or dApp on their own lightning-fast blockchain. Some of the ways it benefits them include the provision of congestion-free, secure, and privacy-focused blockchain with effective and efficient energy utilization.
Lastly, Skycoin features a blockchain application programming language called CX. CX is a deterministic language used for making smart contracts, decentralized apps, games, and programming FPGA chips. It particularly suits the Internet of Things (IoT) applications. CXO, just one of CX’s libraries, functions to simplify P2P replication of structured data allowing publishers to build a comprehensive and flexible data feed.
2012 was an iconic year for the Skycoin project, which started out as an answer to a number of Bitcoin’s inadequacies like volatility and transaction speed. The aim was to examine and sort out issues like BTC’s consensus algorithm (PoW), duplicating Coinbase outputs such as the miner’s reward for each transaction, immutability, etc.
It is no news that BTC requires heavy energy consumption for its sophisticated computational activities, which come from the PoW consensus mechanism. This leads to miners relocating or concentrating on areas with low electricity rates.
Skycoin has a bright future from the ongoing relentless effort of the development team to come up with the best solutions to issues affecting the Bitcoin network. Skycoin crypto team was working on creating a functionally superior alternative to BTC’s Proof of Work consensus mechanism. Therefore, the continuous effort led to the discovery of the issue of net neutrality. Hence, the flaw at the core of each problem came to light, which is centralization. As a remedy, the Skycoin team worked towards a decentralized mesh-internet as a solution to the problem, and Skywire came to an appearance.
The founders of Skycoin are some of the earliest contributors to the ETH and BTC blockchain. Synth, who is the founder, visualized his goal in 2012 after exiting Bitcoin. On one hand, Synth has both work and educational background in various fields such as symbolic logic, distributed systems, and mathematics. On the other hand, Houwu Chen was one of Ethereum’s founders with a Ph.D. from the University of Tsinghua. Most importantly, he helped conceive of the Obelisk protocol being used by Skycoin crypto now.
You can easily do Skycoin exchange on Swapzone. Thus, you can trade SKY crypto on the Skycoin exchanges that Swapzone will compile for you.
An exchange rate is the rate at which one cryptocurrency can be exchanged for another through a certain crypto exchange provider. Cryptocurrency exchange rates on Swapzone reflect current prices of crypto assets and are updated every 30 seconds for you to keep track of any market changes and fluctuations to profit when buying the dip or going with the best exchange rate and the lowest exchange fees. All cryptocurrency exchange providers have their own rates, which depends on supply and demand, mining rewards, costs and so on. See what else might affect the rate in our article on prices.
There are two types of exchange rates aggregated by Swapzone – fixed rates and floating rates. To receive the exact amount of crypto that is displayed at the beginning of the exchange and shield yourself against the market's volatility, opt for fixed-rate offers. If you're ready to take a risk and receive less or more than the sum displayed, go with floating-rate offers but bear in mind that floating rates may drastically change any second. You can refresh your memory on how to get the best exchange rate here.
Crypto transaction fees may vary depending on the network (Ethereum transaction fees tend to spike during the congestion on the network), your chosen cryptocurrency, an instant exchange provider as well as its transaction processing speed and internal policy. These fees may be relatively low but it’s crucial to know they may be imposed in the first place.
If you want to exchange cryptocurrency with the lowest fees, beware of the offers with a grey-colored “Transaction fees are not included” label displayed under the exchange rate. To avoid having to pay an unexpected amount of fees during the exchange, opt for those that do not have that label. Read our articles to learn more about how to exchange cryptocurrency with the lowest fees and find out which assets have the lowest transaction fees.
Transactions usually take from 5 to 30 minutes to be processed, especially if you choose currencies with speedy networks. However, there are several factors that may affect and slow down the exchange process, i.e. transaction volume, blockchain capacity, network updates, cryptocurrency itself and the capacity or chosen exchange platforms.
The processing may take longer due to the large transaction volume, congestion of the network, blockchain overload and market overload, technical issues or system failures, lack of liquidity or network maintenance.
The transaction may be also stuck if you forget to add a required Extra ID, mistake networks or use the wrong wallet for a chosen crypto asset. If you worry that the exchange processing is taking too long, please, contact us at [email protected] or via our live chat on the landing page.
To exchange, buy, sell or trade cryptocurrency and store your crypto keys safely and securely, you need a crypto wallet. Choosing the best cryptocurrency wallet is a question of preference and need. To learn more, read our guide on how to choose the best cryptocurrency wallet for your needs.
There are several types of wallets for different crypto assets and tasks. Software wallets, or hot storage wallets, are connected to the Internet and come in many forms: Web, Desktop, Mobile or Browser Extensions. If you want to build a large crypto portfolio, you might want to look at multi currency wallets like Exodus, MetaMask, TrustWallet, Atomic or Guarda. If a coin or a token of your choice isn’t available there, you can always opt for a single-currency wallet that is usually designed by the project that launched the asset.
If you take safety and security matters seriously, go for hardware wallets, or cold storage wallets, like Ledger or Trezor, or even paper wallets. We strongly recommend you to do your research before creating a wallet: read the reviews to see what the community thinks, learn about the fees a particular wallet imposes for performing transactions, check out supported currencies and networks and see its security policy.
There are loads of different crypto exchange services, with new platforms emerging every month. Exchange providers differ by supported currencies, liquidity providers, fees, customer support, user interface, level of privacy and anonymity and customer support, which makes it hard for beginners to understand which one to choose. To learn more about what these exchanges offer and how you can assess them, read our guide on how to choose the best exchange platform.
To navigate them through the field full of services, we conduct research and thorough analysis of the market & list both prominent and promising exchange providers, keeping in touch with their teams 24/7. We give you all the necessary data on the offers they provide as well as their brief history, KYC/AML policies, reliability and advantages, while also indicating their downsides so that you don’t have to do that yourself.
Swapzone is an instant non-custodial cryptocurrency exchange aggregator that helps users make an informed choice when exchanging crypto assets. To make this possible, we gather the information on the exchange providers, select the parameters for comparison, aggregate and sort available deals & give an option to make a swap through providers' APIs in the same interface with a common user flow for every exchange. Still have doubts? Here's 9 reasons why you should use Swapzone to exchange crypto.
Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.