What coin is Symbol (XYM)?

Symbol (XYM) employs a multi-layer architecture for greater flexibility and scalability, separating its blockchain into blockchain, peer-to-peer, and application layers.

Dec 13, 2024 at 11:14 pm

What is Symbol (XYM)?

Symbol (XYM) is a blockchain platform focused on enterprise adoption. It was founded in 2015 by NEM Foundation, a non-profit organization based in Singapore. Symbol is a fork of the NEM blockchain, offering several enhancements in efficiency, security, and scalability.

Key Features of Symbol

• Proof of Stake (PoS) Consensus: Symbol uses the Proof of Stake (PoS) consensus mechanism to secure its blockchain. This means that nodes with larger stakes in the network have a higher chance of validating transactions and earning block rewards.
• Smart Contract Functionality: Symbol supports smart contract functionality through its Symbol Virtual Machine (SVM). SVM enables developers to create and deploy decentralized applications (dApps) on the Symbol blockchain.
• Multi-Layer Architecture: Symbol employs a multi-layer architecture, which separates the blockchain into three layers: blockchain, peer-to-peer, and application layers. This allows for greater flexibility and scalability in network operations.
• Cross-Chain Interoperability: Symbol supports cross-chain interoperability through its Zama protocol. Zama enables Symbol to connect with other blockchains, facilitate asset transfers, and enable inter-blockchain communication.
• Mosaic System: Symbol uses a unique "Mosaic" system to represent various assets (e.g., tokens, data) on its blockchain. These mosaics can be created, managed, and transferred by users.

Use Cases of Symbol

Symbol is designed for various enterprise use cases, including:

• Supply Chain Management: Tracking the movement and provenance of goods throughout supply chains.
• Asset Management: Securing and managing ownership records for physical and digital assets.
• Identity Management: Providing secure and verifiable digital identities for individuals and organizations.
• Data Sharing: Facilitating secure and auditable data sharing among authorized entities.
• Financial Services: Enabling efficient and transparent financial transactions and settlement.

How Symbol Works

Symbol follows a three-layer architecture, which includes:

• Blockchain Layer: Handles consensus, block production, and network security.
• Peer-to-Peer Layer: Responsible for communication and data exchange between nodes.
• Application Layer: Provides interfaces and tools for application developers.

Nodes in the network are known as "Harvesters," and they validate transactions and earn rewards based on their stakes. The PoS consensus mechanism incentivizes nodes to behave honestly and maintain network security.

Tokenomics

• Token Symbol: XYM
• Total Supply: 8,999,999,999 XYM
• Initial Distribution: 60% to token holders, 40% to NEM Foundation

Conclusion

Symbol (XYM) is an innovative blockchain platform tailored for enterprise adoption. It offers enhancements in efficiency, security, and scalability over its predecessor, NEM. Symbol's PoS consensus, smart contract functionality, and multi-layer architecture make it a suitable platform for various use cases, including supply chain management, asset management, and financial services.