Sky Coin: A Smart Investment Decision?

Skycoin (SKY) is a blockchain project that supports a decentralized, peer-to-peer internet service. It was launched in 2013 and runs on a proprietary consensus algorithm called Obelisk, which is based on a web of trust algorithm. Skycoin's platform has been billed as 'completely secure, infinitely scalable, and ISP independent' and focuses on security, usability, and ease of use. However, Skycoin has also been accused of being an elaborate fraud, and its business practices have been questioned. As of June 2024, the live Skycoin price is $0.030412 USD, and its current market rank is #4555. So, is Skycoin a good investment? Well, according to our forecast system, Skycoin is a bad long-term (1-year) investment.

Skycoin's market performance

Skycoin (SKY) is a blockchain project that supports the goal of a decentralised, peer-to-peer internet service. It was launched in 2013 and the Skywire mesh network was launched in 2019.

Skycoin's price has fluctuated over time, and it has been predicted that the price may drop further. Wallet Investor predicts that the Skycoin price may drop from 0.06099 USD to 0.0144 USD, a change of -76.360%. This prediction is based on the assumption that Skycoin is a high-risk investment option.

Skycoin's consensus algorithm, Obelisk

Skycoin is a blockchain ecosystem that aims to provide a "new internet" that is global, decentralised, and not controlled by any single entity. It is built on the Obelisk consensus algorithm, which is designed to address the limitations of the commonly used Proof of Work (PoW) and Proof of Stake (PoS) algorithms.

The Obelisk consensus algorithm is a distributed consensus algorithm that operates based on the concept of a "web of trust". It distributes influence over the network according to the density of a node's network of subscribers, with each node having a list of other nodes that it subscribes to. The nodes with the highest density of subscribers have the most influence on the network. This system of trust allows the community to self-regulate the network by cutting off suspicious nodes for malicious behaviour, maintaining the strength and integrity of the network.

In the Obelisk consensus process, there are two types of nodes: block-generating nodes and consensus nodes. Block-generating nodes collect new transactions, authenticate them, package the verified transactions in a new block, and broadcast the block to the network. Consensus nodes collect the blocks generated by block-generating nodes and put them in a separate container, identifying the block made by the largest number of block generators. This block is called the local winner and is added to the blockchain when reported by the majority of consensus nodes.

The use of the Obelisk consensus algorithm in Skycoin results in a digital currency system with significantly reduced transaction times, no mining requirement, and enhanced security. It eliminates the need for mining, improves transaction speed, and enhances security compared to PoW and PoS algorithms.

By addressing the limitations of existing consensus algorithms, Skycoin's Obelisk consensus algorithm offers a more efficient, secure, and decentralised alternative for blockchain networks.

Skycoin's hardware, Skyminer

Skycoin is a decentralized blockchain-based cryptocurrency that improves upon the code of Bitcoin and Ethereum. It addresses many of the problems that became apparent in Bitcoin and Ethereum after their initial release.

The Skyminer is a hardware device that runs the Skycoin ecosystem. It functions as a MESH network computing unit and a personal cloud computer. The Skyminer currently processes encrypted bandwidth on the Skywire network, with each computing board acting as a VPN node. The Skywire network is a new, high-speed, encrypted internet based on software-defined networking. It implements many speed and privacy features that are not used on the current internet protocol.

The Skywire "miner" is meticulously designed and configured to provide a backbone for the new internet. Its custom-built hardware exceeds technical specifications to deliver maximum power and performance. Skywire functions as a “miner” for Skycoins. It acts as a specialized VPN, using the following hardware configuration:

2 GB of RAM per board

4 CPU cores per board

16 GB of storage per board

64-bit Linux (Debian)

100 Mbps Ethernet, 8+1 port switch

Each board features an ARM processor, 2 GB of RAM, and anywhere from 16 to 256 GB of flash storage. The hardware is segmented so that if one service is compromised, the other services on the same machine are not affected. The setup can be further customized to consist of 4, 8, 16, or 32 boards.

The Skyminer is key to the true decentralization of internet and cryptocurrency transmission because decentralization occurs at the hardware level. This is an essential point that has been overlooked in the decade since Bitcoin’s creation.

Skycoin's cryptocurrency, SKY

Skycoin (SKY) is a blockchain project that supports the goal of a decentralised, peer-to-peer internet service. It was launched in 2013 by Brandon "Synth" Smietana, who claims to have been an early developer in the Bitcoin community.

Skycoin is a cryptocurrency that focuses on security, usability, and simplicity. Its objective is to build a decentralised internet and peer-to-peer network where users can buy and sell internet access and services. This is achieved through the Skywire mesh network, which was launched in 2019. Skywire is an incentivised mesh network that is faster, more affordable, more accessible, and offers higher QoS than the current internet.

Skycoin's platform has been billed as 'completely secure, infinitely scalable, and ISP independent'. It is written in Golang and runs on the Obelisk consensus algorithm, which seeks to solve the problems of proof-of-work and proof-of-stake systems. Obelisk is predicated on the notion of 'web of trust dynamics', which makes consensus decisions depending on the influence score of each node.

Skycoin has been accused of being an elaborate fraud, and its creator, Smietana, has been involved in scandals. There are also concerns about conflicts of interest, as well as criticisms that Skycoin was pre-mined and that all tokens are under the control of Skycoin developers.

As of 1 June 2024, the Skycoin price is $0.06099 USD, and its market rank is #6578. Wallet Investor predicts that Skycoin is a bad long-term (1-year) investment and that the price may drop to $0.0144 USD.

Skycoin's future outlook

However, there are several concerns about Skycoin's future prospects. Firstly, it has been accused of being a fraud, with criticisms that it was pre-mined and that all tokens are effectively controlled by Skycoin developers. This raises questions about its vulnerability to manipulation. Secondly, the project's leaders have been embroiled in scandals and attracted criticism for questionable business practices. These issues have led to a damaged reputation, including the deletion of its Wikipedia page and delisting from Binance.

Despite these concerns, some believe in Skycoin's potential as an investment. It is argued that altcoins like Skycoin offer high volatility, providing opportunities for profit through trading. Additionally, the privacy and anonymity provided by Skycoin transactions are seen as advantageous by some.

In terms of price predictions, Wallet Investor forecasts a negative trend, suggesting SKY is a bad long-term investment option. They predict the price of Skycoin may drop to as low as $0.0144 USD, devaluing current investments. However, as of June 2024, the live Skycoin price is $0.030412 USD, and it is ranked #4555 by market cap.

Overall, while Skycoin's decentralized internet ambitions are appealing, the project faces significant controversies and skepticism. Its future success will depend on addressing these concerns and regaining trust, but it is a risky investment option at present.

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