What is meant by Skycoin (SKY)?
“”Back to the future”” is the motto of Skycoin. Bitcoin is moving away from the origins of cryptocurrencies. The developers of Skycoin would like to oppose that. Find out how they are doing and if they are successful with their strategy.
Satoshi Nakamoto laid the foundations of Bitcoin in his draft paper for a cryptocurrency. It originally intended to offer a real alternative to conventional money from financial institutions. Over time, Bitcoin has fallen prey to speculators rather being used as a real alternative payment. The desire for state-independent and anonymous funds is undiminished – especially in the face of an imminent cash abolition.
Selected Bitcoin and Ethereum developers, therefore, designed the Skycoin in 2012. It remembers the roots of cryptocurrencies and sees itself as an infrastructure project: The community confirms payment movements within seconds.
The payment transaction itself is absolutely anonymous through various technical measures. This means that the cash flows are executed in parallel and mixed. The identification of individual account transactions is impossible.
State censorship rules out the operator. In addition, unlike Bitcoin, no mining is possible. Skycoin members receive compensation when they provide electricity for the network. Payment is in SKY. Members cannot create new coins themselves. This prevents both false incentives and fraud attempts. The maximum amount of units to be generated is also strictly limited.
Acceptance of the Cryptocurrency
Skycoin is becoming increasingly popular. The increasing use as a means of payment for services and within the community is widely seen as a positive step. Although speculation may well take place, it is not yet as pronounced as with other cryptocurrencies.
Cryptocurrency creators compete in the payment services market with names like PayPal and credit card companies. Like these, Skycoin is a fast, easy and cheap payment method. You can pay bills in record time as the booking process just 10 seconds or less.
In addition to payments, members have access to the Skywire network. This includes a social media platform, a messaging service and VPN applications. The coin is already being used for cryptocurrency payment transactions.
Key Trading Figures
In total, 100 million SKY will be created in the future. Currently, only a quarter of this figure has been released. The rest will be released in a controlled manner to prevent market distortion. 7.2 million units are actively traded (as of 23 January 2018).
Conversely, this means that more than 70% of the stock is held – mainly by the SKY creators. The market capitalization at the time mentioned above is 222.7 million US dollars. This equates to approximately $30, or $0.00281054 per coin.
So far, Skycoin hasn’t had much publicity. Nevertheless, the company has the potential for high-value increases in the future. On the one hand, this lies in the technical background that unites the best of the crypto world:
- The “”Obelisk”” consensus, which is based on the Web of Trust. All network information is stored in each node of this network. Data falsification is, therefore, difficult.
- Decentralized data storage, supercomputers and network access as well as a news service and a social media forum.
- Proprietary mining hardware.
SKY achieves high transparency with maximum security. The transactions are also free. The company has barely taken any marketing measures, instead focusing on the technical details. If investors learn of the numerous benefits, the price is likely to be very positive. This is also due to the lack of user mining and strictly limited units. Prices up to $1,000 per coin are realistic.
Trading in SKY is currently only possible using other cryptocurrencies. A direct exchange of euros in SKY does not work. You can buy SKY on Cryptopia. The exchange of foreign currencies should be simplified if further exchanges enter the trade.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.