Skycoin offers a blockchain which is much more advanced as compared to some of the other cryptocurrencies. Some of the features of the blockchain of Skycoin include:
- Skycoin offers faster transactions settlement time.
- Skycoin is entirely decentralized.
- Skycoin is entirely anonymous.
- Sky ledger is completely decentralized.
What is Skycoin (SKY)?
Skycoin is designed a successor to Bitcoin. Skycoin is focused on core features, security, usability and simplifying Bitcoin instead of adding features as a marketing gimmick.
Skycoin (SKY): History
Skycoin’s core features are speed, privacy, security, and ecosystem.The Sky Privacy Protocol solves the problems inherent in PoW- and PoS-based coins to bring you a decentralized and democratic consensus network. The company has a market capitalization of US$26,787,499. Michael Terpin (Coinovate, CoinAgenda, BitAngels) and Richard Kastelein (Blockchain News, CryptoAssets Design Group) are advisors to the project and assisting with marketing. Synth is the architect and project figurehead.
How does the Skycoin(SKY) work?
Skycoin is coded from its basic structure in the Go programming language initially developed by Google. Bitcoin has lost much of its decentralized structure due to pool mining. Skycoin wants to counteract this with its very own consensus algorithm, called Obelisk. Furthermore, there is no mining at Skycoin. For Satoshi, mining turned out to be one of the primary failures and non-cryptographic threats to the development and survival of Bitcoin. Skycoin allows users to continue earning coins in return for the network’s power supply.
How to buy the Skycoin(SKY)?
You can’t buy it directly for fiat on any exchange. You can choose the most popular cryptocurrency exchange for your region and but BTC there, then trade it for SKY on exchanges. Coinbase is one of them who helps you to purchase the SKY. You can also trade in Cryptopia or C2CX. If you have any other popular coin like Bitcoin with you, you will need to transfer your Bitcoin to Cryptopia or C2CX to purchase Skycoin.
Skycoin is more than a cryptocurrency. It’s the fuel that drives Skywire, the new distributed internet. Users receive Skycoins for distributing services across Skywire and supporting peer-to-peer networking.Skycoin opens the future of digital currency to all investors, not just a select few. It’s simple, secure, and usable. Better still, Skycoin solves the structural problems that plague so many other cryptocurrencies. With Skycoin, we’re taking the next step in digital currency evolution.
Distributed storage but this is just one piece of the network i.e. it is much bigger than Sia, Sorjx or other storage initiatives.
Software defined networking (not mesh net). New type of networking and completely new protocol and networking namespace independent of the existing internet.
Supports source routing, while the existing internet does hot potato routing, so never achieves optimal latencies
Can support multi-homing which IPV6 doesn’t and which will be critical for when we have gigabit or terabit networking and multi-redundant bandwidth paths
It has a store an forward mode and will operate in Africa or even under conditions where latencies are in the minutes or hours and packet loss is excessive. Where existing protocols cannot operate reliability. It is much more robust than IPv4/IPv6 or TCP/IP
Improved privacy If a packet takes a route that is 10 hops, each hop only knows the previous node and the next node in the route. It is not IPv4 where each packet gives the source and destination. The privacy level is something that does not exist on the current internet
IP addresses are replaced by public key and no one can read traffic to a destination without knowing the private key of the publi key that identifies the destination. The system does not need 3rd parties or certificate authorities
The person making the connection chooses the type for example lowest latency path for video games or the highest throughput paths for video downloads. Or for security (they have intelligence agency people from several countries who have been advising on what they want out of the sky network!!) you can choose paths through specific nodes or facilities or countries to minimise the number of points that the traffic could be intercepted at
Principle Monetization: freemium
“we want to have some kind of freemium thing. If you are not paying coins, the nodes will allocate 20% of bandwidth to the free tier”
Although they provide decentralised storage called CXO, it is the bandwidth rather than the storage that is monetised beyond freemium use so that “everything that should be free is free”. On top of that there will be applications. The first is a steemit type social media application to launch in Q3 2017 (not according to the reddit but to sky coin’s website)
The coin (Skycoin)
Fixed number of 100m coins released gradually by smart contract after the initial ICOs
Faster than bitcoin (can handle 300 transactions per second) with less reliance on minters and with applications to drive adoption of the coin
Consensus method sounds like it is proof of resources coin where its value is backed by provision of a useful service (initially private and secure networking, but later other applications). No block awards, no new coins, so no inflation. Algorithm based on Ben-Or’s randomisation procedure for achieving consensus in a distributed system with some improvements for detecting adversarial or malicious odes who are trying to prevent the consensus process. the network consensus uses a sort of web of trust where if the poet creating blocks are doing a bad job or attacking the network then the community can get rid of them. At the same time, the people who control the network do not have an y real power to attack the network except by slowing down transactions so even if they become malicious the only issue is how to get rid of them and select new people
For a coin to have value people need to use it. A number of applications are in development but the first to be launched will be Q3 2017 and which is a mesh network (private VPN). You run your internet traffic through a VPN that tunnels over Skywire.
Those coins not in supply are locked (set up in contracts a bit like Ripple has now done?) to make sure that no more than 5% per year are released until all are in circulation. Skywire (the network) is also designed to pull coins out of circulation for reuse through a sort of tithe the on the network activity.
Coin holders get a coin hour dividend (sounds like Antshares/antcoins? soon to be Neo/neo coins). If you don’t have enough coin hours you sell skycoin for coin hours at the market rate to purchase bandwidth. but if you have a lot of icons then you have enough coin hours for donwlaoding movies or VPN or whatever you are doing and it is essentially free
Analyzing a SkyCoin: Is it Scam or Not?!
Let’s see different viewpoints about the coin. BTCManager Calls It: The Beginning of a Scam: Skycoin
With minimal consumer protections and ICOs coming from across the world, investors need to proceed cautiously. This report will analyze Skycoin (SKY) to demonstrate how easy it is to stumble onto a scam coin.
Skycoin is only a quick google search away. The website and its homepage seem professional and somewhat standard at first glance. The legitimate cryptocurrencies all have very professional homepages that allow users to learn about the specific crypto, along with reading the white paper, see the team, and connect via social media.
The homepage explains that SKY is offering a downloadable wallet, a white paper, a blog (with recent updates), and a community section. At first glance, nothing illicit is made immediately apparent.
An immediate word to the wise: Do NOT download their wallet as the coin is almost guaranteed to be a scam, their wallet may have suspicious or malicious code.
Upon further reading, the real red flags are raised in the ICO’s white paper. This formal document does a fantastic job of mimicking an official research paper. It is filled with graphs and technical jargon that would turn off almost any reader.
Cryptocurrencies can be expected to have a Telegram account, Reddit activity, a Facebook profile, Discord channel, Medium articles, and Twitter presence to interact with their community. As Skycoin offers the majority of these mediums to transmit information, further analysis of the social media platforms is required.
Skycoin has multiple related posts on Reddit, and one of their top posts has 380 points with 95 percent of people having upvoted it. At first glance, once again it seems legitimate enough. “A newly decentralized internet is being built…” is the title of the article and it does not take more than reading the first few comments to identify more red flags.
Redditors love to absolutely shred and troll almost any post, especially a new coin. Questions such as, “Why does this coin need the blockchain?!” “Did you guys hit hard cap, why are you not advertising more?” should smatter the comment lists. Even the best posts still host both positive and negative comments.
However, Skycoin’s post has no negative comments, at all. They read like advertisements: “Take that Comcast,” “Takes less than 50 watts’ power too! Be hip, be green, mine SKY,” or “I’ve wanted this for two decades. So I get to run the internet AND get paid.”
Of course, positive comments for a great new product are to be expected. However, 100 percent positivity is never the case on Reddit. You could say “The Sky is Blue” and have someone arguing about how the Northern Lights creates multiple colors and downvote you. Thus, the absolute absence of any trolling on a site like Reddit should be a point of contention.
What is the Business Plan?
If the cryptocurrency’s social media is fraudulent and the white paper seems to have many issues, it can be said that there is an issue with the underlying cryptocurrency. However, assuming these had both seemed legitimate, an investor would still need to analyze the business plan.
Interrogation revolving around how founders of Skycoin make money is critical. We can determine the answer to this in two ways. First, owning a large percentage of SKY and as the price increases slowly sell their holdings. This method is the most preferred as it simply hinges on the manipulation of social media and the like.
Cryptocurrencies are fairly easy to manipulate especially if the coin is only on a few exchanges. Holders could open multiple accounts that do not require Know Your Customer (KYC) verification and would buy and sell between the accounts, creating an illusion of increased volume and price.
This attraction method is an easy way for founders to trap individuals by giving the appearance their coin has massive volume and a considerable price climb. Investors need to be aware that more often than not, founders are merely selling from their left hand to their right hand.
The second way SKY intends to make money is through selling mining hardware to support their blockchain. A Skycoin miner can be sent to you for the low price of $10,000 in Bitcoin. They, in turn, will provide you $9,400 of SKY and a $600 mining machine.
If the miner had been one of the top miners on the market, one could expect to spend $5,000 plus for it. However, after a quick analysis of the hardware, SKY is selling Orange Pi’s that can be purchased for $25 online.
The chips and boards used in the machine are some of the lowest quality on the market, yet SKY is demanding $10,000 for their miner. Receiving $9,400 in monopoly money and a miner that is worth far less than $600, is the final nail in the coffin.
Skycoin provides the initial appearance of what may have been a successful project. However, further analysis yields that there are more red flags with which an investor should feel comfortable. The white paper has aspects written by authors that have no relation to the team and wording that makes little sense.
Their social media is filled with bogus responses to their published articles. The final straw is that their miner is almost useless and is priced at 2,000 percent what it should be. With red flags in the white paper, social media presence, and mining platform it becomes clear SKY may very likely be a scam.
Skycoin is a great example of why it is important to stay vigilant and always do your due diligence!
Now it is your desicion, we have submitted positive and negative sides of this coin.