Skycoin is a consensus algorithm built on its own blockchain to improve upon Bitcoin and solve some of its shortcomings. The main issue Skycoin aims to solve is the centralization of the blockchain, where a few mining pools control the entire blockchain’s transactions. Skycoin will solve this through implementing an opinion dynamics protocol (called Sznajd2) and trust relationships between nodes, the network, and the users. Using Skycoin’s CoinJoin protocol, transactions are mixed in order to increase privacy and anonymity. Developers are also able to build applications on Skycoin and form an ecosystem, with messaging, social media, and VPN applications being some of the first to be implemented.
Skycoin (SKY) is the cryptocurrency of the Skycoin platform that can be sent peer-to-peer among users and used to power its various protocols, algorithms, and features.