We’ve all seen the rise of Bitcoin and we know that Ethereum is powering thousands of businesses around the world, so why the need for SkyLedger?
Put simply, we’re already witnessing the limitations of both platforms. Bitcoin has become too popular too quickly to be an effective currency for transactions. Settlement speeds are far slower today than they were just a couple of years ago and the cost of mining new coins has become so high, that it has been taken over by a small number of mining communities.
Ethereum has similar scaling problems. Every ERC-20 coin issued (and there are thousands) hangs off of the Ethereum blockchain, clogging the network and slowing down transactions.
Smart contracts are a great innovation but as long as Ethereum fails to deal with its scaling issues, then there will come a time when it doesn’t look like such a great platform for distributed applications.
Faster & fairer
SkyLedger has been created to deal with these issues. As an open source project, it’s available for anyone to analyse or add to, and the size of the developer community, which has grown to more than 100 people, shows just how valuable it is.
So how does SkyLedger deal with the problems suffered by those that come before it?
Quite simply, there are a number of key developments that make SkyLedger a far better platform than, for example, Ethereum.
Rather than rely on Proof of Work or Proof of Stake to achieve network consensus, both of which have strong centralising tendencies, SkyLedger uses a consensus algorithm called ‘Obelisk’.
By creating a ‘web of trust’ in which individual nodes (that are assigned a level of influence according to the number of other nodes they’re connected to) confirm transactions, using their own blockchains to record the confirmation, SkyLedger is able to avoid the centralising tendencies, politics and opacity of decision making that is characteristic of both Bitcoin and Ethereum.
Obelisk removes the need for mining and in so doing takes away the ability to gather network power that mining creates. Instead of mining, nodes that confirm transactions on the network are rewarded with SkyCoins, a currency that can be used to buy and sell services within the SkyLedger ecosystem or can be easily exchanged for other coins or fiat currencies. The fact that SkyCoins are the reward, plays a key role in developing an entirely new economy that’s beyond the reach of those governments and corporations that dominate today’s mainstream economies.
blockchain based in the real world
Many people in the community point to the fact that the SkyLedger ecosystem is being built to hold real assets as one of the great reasons to get involved.
SkyLedger is a lot more than just a blockchain platform, via SkyCoin, it is developing a new Internet (Skywire) that will hand control back to individuals and away from the mega-corporations that have quickly come to dominate the Worldwide Web.
People have already taken delivery of the first Skyminers, energy efficient hardware that transmits information to the Skywire mesh network in exchange for Skycoins. This is the first stage of the network’s development and it proves that behind SkyLedger, there’s a lot more than just cryptography!
Energy efficiency is also key to the success of SkyLedger. As mining is actually a simple reward system for enabling the network rather than being based in the cracking of ever-tougher cryptographic puzzles, the network uses far less energy than its first and second generation cousins. As cryptocurrencies continue to gain in popularity, so their environmental impact will become ever more important. We want crypto to succeed but not at the expense of the world!!
Faster transaction speeds, fairer decision-making, an innovation platform, an asset-backed, energy efficient network, these are all just a few reasons to get involved with SkyLedger.