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Symbol

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Symbol?

Symbol (XYM) is a blockchain protocol that rewards users over hoarders of wealth through its Proof-of-Stake Plus (PoS+) consensus algorithm. It is designed for enterprise-grade applications, offering features like smart contracts, aggregated transactions, and enhanced security. XYM is the native token used for transaction fees and rewards node owners for maintaining the network.

How is Symbol used?

Symbol (XYM) is the native currency of the Symbol public blockchain. It is used for several key purposes within the network:

  1. Payment Transactions: XYM is used to incentivize a network of public nodes that process and record transactions, providing actual value like currency in a normal operating economy.

  2. Node Incentives: Node owners are rewarded with XYM tokens for maintaining the blockchain and committing hardware resources.

  3. Staking and Rewards: XYM is used to reward stakers and node owners for their participation in the network.

  1. Transaction Fees: XYM is used to pay for transaction fees, which are reverted to node owners, incentivizing the network.

  2. Mosaic Creation and Aggregate Transactions: XYM powers the creation of mosaics, which are customizable tokens, and aggregate transactions, allowing for secure smart contracts.

Overall, XYM plays a critical role in maintaining the Symbol blockchain, incentivizing node owners, and facilitating various transactions and activities within the network.

How do I store Symbol?

To store Symbol (XYM) tokens, you can use a variety of methods:

  1. Ledger Device: Install the Symbol app on your Ledger device. Open My Ledger in Ledger Live, connect and unlock your device, and allow My Ledger to access it.

  2. Vidulum App: Use the Vidulum App, a non-custodial web wallet that supports Symbol (XYM). You can access your XYM through any modern web browser or by downloading the app for Android and iOS devices. This wallet allows you to send, receive, and manage your XYM crypto, and you own your private keys.

  3. Other Wallets: You can also store XYM tokens in other wallets that support the Symbol network. These wallets typically provide a secure and user-friendly interface for managing your XYM tokens.

How to buy Symbol?

To buy Symbol (XYM) tokens, follow these steps:

  1. Choose a Crypto Exchange: Select a reputable cryptocurrency exchange that supports Symbol (XYM) trading. Popular options include KuCoin, CoinEx, Bybit, gate.io, and MEXC. Ensure the exchange accepts customers from your country and offers the necessary trading features for your needs.

  2. Create an Account: Sign up for a free account on the chosen exchange. Verify your email address and identity as required.

  3. Make a Deposit: Add funds to your account using a credit or debit card, wire transfer, or Bitcoin (BTC). The deposit method will determine the available trading pairs.

  1. Place a Buy Order: Decide whether to use a Market Order or Limit Order. Market Orders execute quickly at the best available price, while Limit Orders specify a maximum price to buy at. Choose the order type based on your investment strategy and market conditions.

  2. Store Your Symbol: For security, it is recommended to store your purchased Symbol tokens in a cryptocurrency wallet rather than on the exchange. You can use software wallets (hot wallets) or hardware wallets (cold wallets) for secure storage.

By following these steps, you can successfully buy and manage your Symbol (XYM) tokens.

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History of Symbol

Symbol (XYM) is a blockchain protocol that was officially launched on March 17, 2021, by the original core team behind NEM, known for its proof-of-importance algorithm. Initially, Symbol was intended to be an upgraded version of NEM, but in 2019, the NEM community voted to make it a separate chain. In 2021, another vote led to the decision to merge the two chains, resulting in the concept of Symbol 2.0.

NEM Group, founded in Singapore in 2014, was the precursor to the development of Symbol. The team behind NEM aimed to create a more advanced blockchain solution, which eventually became Symbol. The project was designed to address issues with EVM-based platforms and provide a more secure, high-performance, and layered-architecture blockchain protocol.

During the launch, NEM N1S1 users received one XYM coin for every XEM coin they held, kickstarting the Symbol economy. This 1-to-1 conversion program helped distribute approximately 7.3 billion XYM coins, with an additional 1.7 billion XYM to be created as block rewards over the next hundred years, reaching a fixed total supply of about 9 billion XYM coins.

Symbol is characterized by its novel consensus algorithm called Proof-of-Stake Plus (PoS+), which rewards users of the chain based on their importance score, factoring in transaction activity and current stake. This algorithm incentivizes node owners to maintain the blockchain and rewards them with XYM tokens.

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How Symbol works

Symbol (XYM) is a blockchain platform designed to improve interoperability and collaboration with other blockchains. It uses a proof of stake (PoS) consensus mechanism, which is more energy-efficient compared to traditional proof of work (PoW) systems. Here's a detailed overview of how Symbol works:

Architecture

Symbol employs a four-tiered architecture to provide a streamlined experience for businesses and users. This architecture includes layers specifically designed for handling decentralized application (DApp) processing and smart contract execution. This dual-layered approach enhances scalability by reducing congestion on the primary layer, which serves as a digital ledger.

XYM Token

The XYM token is a critical component of Symbol's strategy. It serves multiple roles, including incentivizing nodes, rewarding stakers, paying fees, and facilitating transactions on the network. XYM provides fast transaction times and can be sent globally in a permissionless manner.

Consensus Mechanism

Symbol uses a unique consensus algorithm called Proof-of-Stake Plus (PoS+). Unlike basic PoS, where block creation is based solely on a node owner's stake, PoS+ incorporates additional factors to promote a healthier ecosystem and more active participation. Three crucial elements determine an account's importance for harvesting blocks: stake, transactions, and nodes. The stake considers the total amount of harvesting mosaic (XYM tokens) held, requiring a minimum of 10,000 mosaics for eligibility.

Block Creation

In Symbol, block creation is referred to as "harvesting." Node operators are pivotal in maintaining the network's decentralization. They earn rewards from transaction fees, inflationary rewards, and a share of delegated harvesting rewards. An account needs at least 10,000 harvesting mosaics and a valid VrfKeyLinkTransaction for eligibility. Harvesting rewards are partially allocated to a network fee sink account and can be shared with a beneficiary account, set by node operators, to incentivize node supporters.

Inflation and Supply

Symbol's maximum supply is capped at 8,999,999,999 units, with 5,836,724,397 (64.85%) already in circulation. The initial supply was 7,842,928,625 XYM, allocated based on users' XEM holdings at a specific snapshot. An additional 1,157,071,374 XYM is earmarked for inflationary rewards over the next 100 years, following a rate similar to Bitcoin's inflation. This fixed maximum supply underpins the network's stability and value.

Features and Applications

Symbol supports various features that make it a robust and versatile blockchain platform. These include:

  • NFT Support: Symbol allows for the issuance, management, and use of non-fungible tokens (NFTs), which can represent anything from digital art to car titles.
  • Smart Contracts: Symbol offers advanced smart contract programmability, enabling businesses to create specialized digital assets to meet their community's needs.
  • Tokenization: Symbol enables firms to tokenize and create digital assets such as stocks, signatures, votes, debt, and more, removing technical barriers from blockchain integration.
  • Enterprise-Grade: Symbol is designed to support complex enterprise use cases, including asset management and data integrity, with features like aggregated transactions and multi-level multisig accounts.

Overall, Symbol (XYM) is a blockchain platform that combines high-performance capabilities with advanced smart contract programmability and a robust consensus mechanism, making it suitable for a wide range of applications, from individual developers to large-scale enterprises.

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Symbol's strengths

Symbol (XYM) has several strengths that make it a robust and versatile blockchain platform. Some of its key advantages include:

  • Ease of Use: Symbol is designed to speed up development and onboarding time. It offers a flexible plug-in approach, allowing users to create custom assets and tokens quickly and easily.
  • Security: Symbol uses a contract plug-in framework, which makes it more resilient to human error and network attacks. This framework also streamlines the security testing process.
  • High-Performance Blockchain: Symbol combines a high-performance blockchain with advanced smart contract programmability, making it suitable for enterprise use cases.
  • NFT Support: Symbol supports the issuance, management, and use of non-fungible tokens (NFTs), which can represent various digital assets.
  • Tokenization: Symbol enables firms to tokenize and create specialized digital assets to meet the needs of their communities, removing technical barriers from blockchain integration.
  • Scalability: Symbol's four-tiered architecture provides more scalability by reducing congestion on the primary layer, which is used as a digital ledger.
  • Incentivization: The XYM token is used to incentivize nodes, providing rewards for stakers and facilitating fast transaction times.
  • Business Solutions: Symbol is focused on providing business solutions, offering features like smart contracts and enhanced security to optimize operations and explore new innovative pathways for development and growth.

These strengths collectively contribute to Symbol's strong positioning in the blockchain space, appealing to a broad spectrum of users from individual developers to large-scale enterprises.

Symbol's risks

Symbol (XYM) carries several risks that investors should be aware of:

  1. High Risk Investment: Symbol is currently considered a high-risk investment, which means that traders focused on risk assessment should exercise caution when investing in XYM.

  2. Technical Barriers to Adoption: While Symbol is designed to streamline integration into existing enterprise systems, technical barriers can still hinder its adoption. The network provides developer tools, including secure APIs, to facilitate integration, but these tools may not be sufficient to overcome all technical challenges.

  3. Liquidity Constraints: Symbol aims to alleviate liquidity restraints by creating new markets and enabling tokenization. However, liquidity issues can still arise due to asset characteristics or regulatory requirements, which may impact the smooth operation of these markets.

  1. Security Risks: As a blockchain platform, Symbol is vulnerable to cyber attacks. The platform provides tools to mitigate these risks, but they are not foolproof. Developers must ensure that their solutions are secure and robust to prevent potential vulnerabilities.

  2. Existential Risks: Symbol, like other blockchain platforms, is not immune to existential risks. These risks, including s-risks, can have a significant impact on the platform's long-term viability and the broader blockchain ecosystem.

  3. Regulatory Uncertainty: Symbol operates in a regulatory environment that is still evolving. Changes in regulations or laws governing blockchain technology and cryptocurrencies can negatively impact the platform's operations and value.

  1. Competition: The blockchain space is highly competitive, and Symbol faces competition from other platforms. If Symbol fails to innovate and adapt to changing market conditions, it may struggle to maintain its market share.

  2. Inflationary Risks: Symbol's inflationary rewards system, similar to Bitcoin's, can lead to inflationary pressures if not managed effectively. This could impact the value of XYM over time.

Investors should carefully consider these risks before investing in Symbol (XYM).

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Did Symbol raise funds?

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Symbol's ecosystem

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Symbol’s team

  • NEM Group: The team behind the New Economy Movement blockchain, which launched Symbol as a proof-of-stake, enterprise-facing blockchain platform.

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