SYSX bridge

feature
learn

#1

SYSX Bridge

‘’ Syscoin and Syscoin Assets will have a 1:1 mapping and footprint through an ERC-20 equivalent contract running on the Ethereum network. It is a two-way peg (2WP) and has been a focal point for the entire industry since Satoshi spoke about SPV in the Bitcoin whitepaper.

This breakthrough by Blockchain Foundry will be the first of its kind, moving from a non-turing complete (Bitcoin based coin) to Ethereum without any middleman or counterparties or even custodians holding funds. The breakthrough provides the business world a new choice — to now allow for efficient micro-transactions to happen, while still leveraging the regulated smart contract governance models developed on Ethereum.

In addition to the security of being backed by the Proof-Of-Work network of Bitcoin, Syscoin 4.0 provides benefits to both ecosystems —

Providing Syscoin users with the enhanced functionality, but also gives Ethereum users the speed and scale benefits of Syscoin.

The new bridge technology is unique in that it allows for Syscoin tokens to exist across other blockchains, which in sum represent the total circulating supply of Syscoin.

While this bridge technology can be used to leverage any blockchain’s turing-complete capabilities, the first direct bridge will be built to the Ethereum chain for smart contract execution.

By providing a bridge to Ethereum, the Syscoin ecosystem can also benefit from all the tooling present in the ETH ecosystem. Platforms such as Metamask, ERC-20 DEXs, MyEtherWallet, Ledger and others can all be used with Syscoin 4.0 via the SYSX ERC-20 token.

From ETH there are existing bridges to Tron/EOS, should users wish to navigate to other chains. It is important to recognise that although these bridges allow Syscoin to leverage the power of other blockchains, it builds no hard dependencies between SYS and these chains.

Syscoin can continue to operate without the bridge and furthermore, additional independent bridges could also be built to other chains.

As an example — rather than moving to Tron through ETH, a bridge could be built directly to Tron (ie: SYS -> TRON rather than SYS -> ETH -> TRON).

Assets can also use this bridge.

As an example — you can use the SYS based asset on the main Syscoin chain for point-of-sale use cases, which are backed by the security of Proof-Of-Work, then subsequently use the bridge to move from SYS to SYSX (an ERC-20 token on Ethereum). The SYSX can then be used to interact with smart contracts on the Ethereum chain, such as a marketplace smart contract that requires SYSX for execution and pays fees back to users as dividends.

Users can then choose to keep their tokens on Ethereum for additional smart contract interactions, or, bridge them back to SYS for the security of the Proof-Of-Work chain. The added stability of PoW will also give store of value attributes to Ethereum users looking to park their money on a network as secure as Bitcoin.

This brings value to Ethereum users just as it does to Syscoin users needing to leverage turing complete applications in their business models.’’

Syscoin Ecosystem

EVM (Smart Layer)
Nodes talk to the EVM which enables interoperability for assets and SYS, with ETH allowing for sophisticated smart contract execution.

Assets (Layer 2)
Syscoin Assets are secured by PoW, but pre-arranged by Z-DAG. Masternodes (also full nodes) speed up Z-DAG relay (min 10 second settlement)

Syscoin (Layer 1)
Base currency issued, transacted and secured by Bitcoin mining resources. Syscoin is needed as gas throughout the whole ecosystem.

Source: https://medium.com/@syscoin/syscoin-4-0-the-evolution-d1b6cd650848