Introducing The Synthchain
What are you building? is a question we get a fair bit. It’s a fair enough question. After all, a bunch of smart contracts that try and communicate with one another at some level certainly seems to appear on the surface like the beginning of an artificially-intelligent economy.
A Synthchain is a Synthetic Blockchain. What that means is that unlike a regular Blockchain, which is soft-wired with nodes and mining applications, a Synthchain already runs off all that in the form of smart contracts. A Synthchain is not a utility-build insomuch as it is a value-build. This is not to suggest that a Synthchain has no utility – in fact arguably, it has greater utility than a Blockchain – but that rather, a Synthchain’s purpose is not the creation of new digital assets as opposed to the reorganization of existing digital assets for the purpose of value-enhancement.
To reorganize digital assets, a Synthchain employs smart contract tokens which are really just proxies for their units of purchase, which remain ensconced in the smart contract and later re-exchange for the proxies. Our Synthchain, which is the first ever one of them, contains five assets: FUTR, FUTX, MNY, COE and ZUR, all of which you can find pretty summarily written about in our White Paper.
The object of our Synthchain is therefore to create value out of utility, just as the object of a Blockchain is to create utility from value (in the form of electricity cost primarily). To do this, a Synthchchain works very much like a Blockchain, redistributing and reorganizing the value within it, just as a Blockchain redistributes and reorganizes the utility within it.
Our Synthchain is built on the Ethereum Virtual Machine, although it can easily be extended out to other networks which can feed back in, either via the form of genuine cross-chain technologies (we have a couple ideas how to quickly build one of those and so do a number of other, somewhat lazier developers who I know) or via a synthetic cross-chain which uses an API feed to recreate the unit of currency in virtual form via a smart contract.
Extending the Sythchain to other networks is what we are going to spend most of our time devoted to. But we won’t be too bothered with the networks already in the Blockchain space – those are quick and easy fixes.
Rather, we will be developing customised solutions for more customised Blockchains belonging to corporations and this is where we get to the bit that lies over the belly of our Synthchain in a sort of sunrise pattern.
While there is huge interest in Blockchains from big business, there is actually very little demand for them currently still. This is for the reason that while many companies would love to have their own Blockchain, ultimately there is really very little point in investing in one. Primarily, if not singularly, that is because a Blockchain cannot store value.
As much as you may think that your digital currency holds value, it doesn’t – it transacts value across a spectrum technology space and done often enough, that value appears to be fluent (which is why you hear of illiquid cryptocurrencies so often referred to as “worthless” tokens).
A Synthchain is very different: it stores that transacted value in all its faculties in the smart contract of its proxy cryptocurrency units. What is more, applied the way we have applied the technology, it inflates over time the amount of value being stored per proxy crypto it issued. This makes it extremely customisable for big business, and suddenly justifies all that pent-up demand for Blockchains.
Thus, synthetic blockchains are the first artificially-intelligent expression of customised big business currency to ever come to market. That’s a pretty big market, when you think about it.