Skycoin is a ‘hybrid’Bitcoin.It is denoted as SKY. The founders of the coin refer to it as the third generation cryptocurrency. Skycoin was inspired by the inherent weakness of Bitcoin. Skycoin uses network consensus instead of proof of work or proof of stake, a protocol meant to make it truly centralized.Besides the digital cash ability, Skycoin team are working on utilizing the Skycoin blockchain to offer its users A VPN application, a messaging app, and a distributed content system.
The Skycoin idea was pioneered in 2011 and its development began in 2012. Its history could be broken into three main phases; research and experiment period, building of online community period, and real-world integration period.
The research period represents the time between 2011 and early 2017. This is the time which most of the research and development of the Skycoin happened. In 2011, the developers settled for Golang programming language and dropped C and python. Development took place and in 2012 the first draft of Obelisk (network consensus algorithm) was published. On December 22, 2013, Skycoin idea was posted on bitcointalk, the largest Bitcoin forum.
In 2013 most the development was on enhancing the blockchain such as; testing Skycoin blockchain, development of bipartrate UX/ TX a replacement of bitcoin’s UXTO, completing wallet generation algorithm, replacing of transaction fee with “coinhours”.
In 2014 development was still in progress with the introduction of new features to the project such as; Skycoin wallet and Skywire protection against network attacks. In 2015 Skycoin was enhanced further by the introduction of Skycoin explorer and introduction of binary wallets. In 2016Skycoin took a further mile by launching a mobile wallet, Skywire miners were introduced and Skycoin got listed on an exchange.
In 2017 Skycoin had its own downloadable network node that is used to power the network. The same year in Q3, there was launch of apps such as social media apps and VPN on the Skywire network.
Skycoin Obelisk network algorithm is the most unique feature about Skycoin. Obelisk prevents Skycoin from 51% attack. 51% attack is a threat to other cryptos when they can’t sustain hashpower or money influence. Obelisk also eliminates electricity consumption since it doesn’t involve mining.
Skycoin transactions take approximately 4 seconds for confirmation. This is fast compared to coins such as Bitcoin with takes approximately 10 minutes.This fast speed doesn’t have any threat to Skycoin security.
Skycoin replaces the convectional transaction fees (gas) with the use of “coinhours” as an alternative. Skycoin blocks are involved in bidding for them to join the blockchain.
Skycoin offers advanced security. Itssecurity, unlike other cryptocurrencies, is that Skycoin could be used on Skycoin Darknet a system which has high security levels compared to TOR and I2P though with a higher bandwidth throughput. Another security boost for this coin is that it doesn’t require its miners to be honest since the coins donot require mining.Therefore, mining cartels and mining syndicatesare non-existent in Skycoin environment