Syscoin Lux – A future ready platform for NFTs and ultra-fast Payments

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by guest columnist Adam Matthews

Syscoin Lux, the latest version of the Syscoin blockchain, has been released in conjunction with Blockchain Foundry and the Syscoin Foundation. The platform is merge-mined with Bitcoin to offer a stable network, with unrivalled security, for enterprise and retail users.

Syscoin Lux is fast, highly scalable and brings with it a whole host of new features. The platform can support both fungible and non-fungible tokens (NFTs), low-fee payment transactions and business rulesets for regulatory compliance.

An intuitive, scalable platform

Syscoin is a decentralized, open-source blockchain protocol which has well and truly placed itself in the running for being the most future-proof decentralized platform in the world for NFTs, ultra-fast payments and non-custodial compliance.

“We have developed a lot of world-first innovations since we first started with Syscoin. However, through our learnings with enterprise clients, we have streamlined those developments into an abstract solution that can generally solve a lot of problems and use blockchain effectively without running into scale issues,” Dan Wasyluk, CEO of Blockchain Foundry Inc., and co-founder of Syscoin said.

For scalability, there was a focus on off-chain transactionality, while the base layer carries out generalized token settlements. ‘ZDAG’ was created to provide an on-chain scaling mechanism. In this way, the solution has the potential to scale without encountering adoption bottlenecks. 

Syscoin Lux brings many innovative features, including:

Next level NFTs

  • The platform is intuitive in that it can support both fungible and non-fungible tokens through the same asset, based on a one token model. This includes fractionalized (F-NFT) and non-fractionalized NFTs, with the ability to produce multiple NFTs from a single token spec at a low cost.
  • An NFT is created by simply defining an NFT ID during the minting process that will live alongside a given UTXO. Irrespective of where and how that UTXO is transferred throughout its lifecycle.
  • The issuing of an NFT on Syscoin ensures speed, ultra-low cost and security.

UTXO-based SPTs

  • Syscoin Platform Tokens (SPTs) use a UTXO-based consensus system. This has the potential to pave the way for faster adoption.
  • Alignment with bitcoin core logic, means Syscoin Lux is well placed to take advantage of its future innovations.
  • UTXO means it is easier to develop and deploy payment channels that scale on top of the Syscoin base layer protocol, while supporting off-chain services.
  • UTXO is a popular model which means it’s much easier for exchanges and wallets to integrate tokens that are issued on the Syscoin network.
  • Migrating from the account model to the UTXO model, means that the logic, security and efficiencies of the UTXO model have been leveraged for the SPT framework.

“Since we migrated to the UTXO model away from the account model it actually simplified the design considerably. Making it simple was a design philosophy so that adoption may occur through an easy to audit and integrate solution,” Wasyluk said.

Opt-in Notary and Compliance Rules

  • Syscoin’s optional Notary feature can be leveraged to apply custom logic, via off-chain smart contracts, or external data sources to your token’s digital signing process.
  • By applying custom logic, you can ensure transactions are compliant with regulation or business rules before on-chain settlement.
  • The Notary feature can be applied to both SPTs, for making it easier to integrate with existing financial markets or NFTs, for things like loyalty redemption services or in-game transfers.
  • The custom logic functionality provides the building blocks for building global payment solutions that comply with the regulation of differing jurisdictions.
  • Rule sets can be easily updated to maintain alignment with future regulation.
  • The Notary can enforce wallet-to-wallet rules as set by regulations, while at the same time, maintaining a non-custodial status.

    “Custody services are not only responsible for the users’ money but also require stringent licensing which vastly varies by jurisdiction, making it very hard to penetrate payments globally.

    The Notary applies the same benefits by allowing transactions to be safe-gaurded for AML reasons but potentially not being classified as a custody solution,” Wasyluk said.

To find out more, visit the newly updated website: https://syscoin.org/