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- 1 Symbol is a blockchain platform that features a new consensus algorithm called proof-of-stake-plus (PoS+).
- 2 The blockchain was forked by a pseudonymous team of cryptocurrency experts in November 2021.
Symbol is the spiritual success of NEM. It aims to solve the problem of EVM-based platforms. It provides a strong base for future improvements and enhancements. They aim to build a high-performance blockchain.
The blockchain supports both probabilistic and deterministic block finalization. In probabilistic block finalization, the chances that any block is rolled back falls because more and more blocks are added to it. Although the probability becomes smaller, it is always non-zero. Whereas in deterministic block finalization, checkpoints are set to confirm that no block is rolled back. This is a more assured way.
Features of Symbol
Some of the main features of Symbol blockchain:
Proof-of-Stake Plus (PoS+): It is the modified version of proof-of-stake mechanisms that seek to reward users of the chain. PoS+ assigns accounts an importance score in the network depending on transaction activity and current stake.
Architecture: Symbol architecture is extensible. In Ethereum, the new functionality in the virtual machine is rigorously tested to avoid unexpected behavior, Symbol permits users to contribute new functionality through self-contained plugins. This way, Symbol quickly supports the new transaction types without affecting the security of existing features.
Mosaics: These are purpose-built tokens that are customizable at creation with features such as account restriction. Mosaics can be names, addresses, websites, NFTs, secure token offerings, etc.
Aggregate transactions: These types of transactions permit multiple transactions to be bundled together. This provides users with the power to create secure smart contracts in an easy-to-use manner.
Harvesting: Harvesting is the process of creating new blocks. The account owning the nodes that harvest a block is called a harvester and is rewarded for the work of creating. The chances of harvesting increases in PoS+ with the account’s importance.
Delegated Harvesting: Accounts not holding the node can also delegate their importance to another node. This increases the node’s chances to be the next harvester. The rewards are then distributed between the harvester and the delegator. Hence, this is a beneficial agreement for both of them.
Advantages of Symbol XYM
• Block headers can be synced without transaction data while allowing verification of chain integrity.
• Transaction Merkle trees allow cryptographic proofs of transaction containment (or not) within blocks.
• The transparency of indirectly triggered state changes are enhanced by recipients.
• State proofs allow trustless verification of specific states within the blockchain.
The three main configurations of the network are
- Peer: These are the base of the network that creates new blocks.
- API: These nodes for easy querying store data in the MongoDB database.
- Dual: As the name suggests, these nodes perform the function of both Peer and API nodes.
A strong network must have strong Peer nodes and API to support the incoming queries and requests of customers.
Symbol XYM
Symbol XYM is the native cryptocurrency of the Symbol public blockchain. It is a product of the NEM group and is based on the Symbol blockchain. The NEM group said that they are looking for no competition with other blockchains but are encouraging interoperability and collaboration with them. The currency is used for transactions.
The Symbol blockchain involves the node operators, investors, harvesters, users, and the XYM tokens. It seems that this blockchain has similarities with other decentralized blockchains but some specific differences make it easier to earn rewards.
Recent data shows that the market cap of the currency is $191,874,884. It has a circulating supply of 5,843,688,433 XYM. The fully diluted market cap is $295,204,944.
The initial supply of XYM tokens at the time of release was 7,842,928,625 XYM and the maximum supply was 8,999,999,999 XYM. The inflation rate was pegged to Bitcoin inflation. Over time, another 1,157,971,374 XYM was created for inflationary reward. The XYM regards was released to each block creator based on the PoS+ system. Node operators earn rewards by keeping the Symbol protocol robust and decentralized.
How Does XYM Work?
XYM is the utility token of the Symbol network. It is earned by harvesters while producing the blocks and it is also paid as fees for making transactions on the blockchains.
XYM also powers aggregate transactions and mosaic creation. The owner account of the nodes is also rewarded with XYM tokens. To have enough importance to harvest, the account must hold at least 10,000XYM.
Node owners with insufficient amounts can benefit through delegated harvesting and then can get a chance to earn the split harvesting rewards with an account providing the needed balance.
Meta: Symbol is a blockchain platform that features a new consensus algorithm called proof-of-stake-plus (PoS+). It aims to solve the problem of EVM-based platforms.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
