Syscoin 4.2 Advancements: Network-enforced Compliance Rulesets
We are all very focused and excited about the coming release of Syscoin 4.2. The advancements and benefits it will make possible are numerous for our community, and for enterprises, organizations, and the blockchain industry as a whole. Unpacking all that 4.2 offers will take a few articles!
In this first installment, we are introducing Network-enforced Compliance; a new kind of solution that fills a key gap in today’s blockchain industry. This, and many other features in 4.2, will be made possible in part by transitioning Syscoin’s assets from an account-based model (like Ethereum), to Bitcoin’s UTXO model, which opens the door to greater efficiencies and future capabilities we have in store.
Today the financial world has reached an evolutionary cross-road. Many organizations seem to face a zero-sum decision. They are caught between adopting emerging fintech or playing it safe for better guarantees of compliance given that regulations are subject to change. Considering previous options, many have naturally chosen compliance over the benefits of adopting decentralized public blockchains. Now there is a better way.
Compliance with Syscoin 4.2
The Syscoin Foundation presents the path forward. You will be able to achieve first-class compliance with laws and regulations while benefiting from the scalability, proven security and cost-savings Syscoin provides.
“The industry’s previous attempts involved centralized, permissioned ledgers. Those systems pose risks enterprises avoid. Our solution is different. It enables you to opt-in for pre-compliance with Syscoin Core - the censorship-resistant, legally neutral and permissionless ledger.” - Jag Sidhu, Syscoin Foundation Chairman, Lead Core Developer
Syscoin is about financial inclusion without sacrificing compliance where needed. Our Network-enforced rulesets will work at scale without getting in the way of those who seek true ownership of their value. Our system does not impose compliance rules unless requested by the asset issuer. For assets that are opted-in, mandatory compliance gets enforced globally by the network. That leads to easier integration into existing financial markets.
Take the “holy grail” for crypto assets that need to comply. Transactions of your asset get checked for compliance before going on the blockchain instead of being reviewed after the fact. Our solution also enforces pre-compliance rules by network consensus. This means users can no longer evade pre-compliance rules like they can with the industry’s previous systems that used apps for enforcement.
The financial industry is evolving fast. Institutions across the world are amending regulations on the regular. Syscoin’s Network-enforced Compliance will enable you to update your business rules on-demand, and keep your organization in line with regional and global requirements as needed.
Additional benefits can be realized with our generalized design. For example, projects can define and collect token-specific transaction fees that can then be used to fund operations. It also holds potential for network performance benefits for assets that use it.
Learn More by reading Syscoin Improvement Proposal: Network-enforced Business Rulesets.