What is Symbol? All You Need to Know About XYM

The modern business landscape demands technologies that ensure security, efficiency, and scalability. Blockchain technology emerges as a game-changer, offering decentralized solutions poised to transform company operations. It improves data security and simplifies transactions, standing at the forefront of business innovation. The focus here is on practical ways to harness this technology across various sectors, from finance to logistics, highlighting its transformative impact. The exploration concludes with an overview of Symbol (XYM), a blockchain platform exemplifying these applications in the enterprise realm.

What is Symbol (XYM)?

Symbol (XYM) has its roots in NEM (New Economy Movement), a blockchain project that began in 2015, aiming to foster a more secure and scalable blockchain ecosystem. NEM’s unique consensus mechanism and flexible architecture set the stage for the development of Symbol. As NEM evolved, the team recognized the need for a more robust enterprise-grade solution, leading to the conceptualization of Symbol.

In March 2018, the NEM Foundation announced plans for Symbol, then known as Catapult, intending to build a more business-oriented blockchain platform. Symbol was designed to offer enhanced features like aggregated transactions, multi-level multisig accounts, and native support for both public and private blockchains. These capabilities were tailored for complex enterprise use cases, including asset management and data integrity.

After extensive development and testing phases, Symbol’s launch was initially scheduled for late 2020 but faced delays. Finally, Symbol (XYM) was officially launched on March 15, 2021, marking a significant milestone for the NEM ecosystem. It represented a leap forward in blockchain technology, aiming to bridge the gap between businesses and the burgeoning world of blockchain.

How Does Symbol Work? Proof-of-Stake-plus and Mosaic Assets

Symbol’s Proof-of-Stake Plus (PoS+) is a unique consensus algorithm that enhances the traditional Proof-of-Stake (PoS) model. Unlike basic PoS, where block creation is predominantly based on a node owner’s stake, PoS+ in Symbol incorporates additional factors to promote a healthier ecosystem and more active participation.

In PoS+, 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. This acknowledges that larger stakeholders have a vested interest in the network’s success.

Transactions account for the total fees paid, encouraging active network participation. Nodes measure how often an account benefits from node fees, incentivizing the operation of nodes.

Every 720 blocks, approximately every 6 hours, the network calculates an importance score for each high-value account. This score is derived from partial scores based on stake, transaction activity, and node participation, with an activity factor of 5% in Symbol’s network. The importance score dictates the likelihood of an account being chosen for harvesting.

Symbol’s PoS+ uniquely combines stake size with network engagement, ensuring a balanced and active blockchain environment. This approach underlines Symbol’s commitment to a secure, efficient, and user-friendly platform, suitable for both public and private blockchain applications.

Mosaic Assets

Mosaics in Symbol represent a versatile approach to assets on the blockchain. Unlike traditional tokens, which are often uniform and unchangeable, mosaics in Symbol can embody a diverse array of assets. These could range from tokens to specialized assets like reward points, stock shares, signatures, status flags, votes, or even alternative currencies.

Source: docs.symbol

The specialization of a mosaic is determined by its properties, set during its creation. Each mosaic is uniquely identified by a 64-bit unsigned integer. For instance, Symbol’s native currency, XYM, is identified by the mosaic ID 0x6BED913FA20223F8. Mosaics can be made more user-friendly by using a Namespace to alias the mosaic ID to a readable string, like ‘symbol.xym’ for XYM.

Mosaics have several key properties:

• Divisibility: This property determines how finely a mosaic can be divided. For instance, a divisibility of 3 means the smallest unit is 0.001 of a mosaic. The divisibility range is from 0 to 6.

• Initial Supply: This indicates the mosaic’s initial circulation amount. This can be altered later if the Supply mutable flag is set.

• Duration: This specifies how long the mosaic is rented for, with a maximum of 10 years on Symbol’s public network. Duration cannot be extended post-creation.

• Supply Mutable: If true, the mosaic supply can be altered later. However, the creator cannot remove mosaics from other accounts, even with this property enabled.

• Transferable: This determines if the mosaic can be transferred freely between accounts or only to/from the creator.

• Restrictable: If set, the creator can impose custom restrictions, a feature particularly useful for Security Token Offerings (STO) that require compliance with security laws.

• Revokable: Allows the mosaic creator to reclaim the asset if necessary.

Mosaic restrictions are a notable feature, allowing creators to control who can transact with the asset, vital for regulated tokens. These restrictions are editable, ensuring flexibility for changing requirements.

Source: docs.symbol

Symbol’s approach to mosaics reflects its commitment to flexibility and customization, offering a robust platform for a wide range of applications beyond conventional blockchain assets.

Symbol Use Cases

Symbol’s blockchain technology stands out for its adaptability and efficacy in various sectors, offering innovative solutions tailored to specific industry needs. Some of the key applications include:

• Asset Tokenization: Symbol facilitates the digital transformation of physical assets like real estate, artwork, and commodities into digital tokens. This process simplifies transactions, enhances liquidity, and opens new investment opportunities by making these assets more accessible and easier to divide among multiple owners.

• Financial Services: In the financial domain, Symbol streamlines operations, enabling secure and efficient transactions. Its capabilities include facilitating cross-border payments, simplifying the clearing and settlement processes, and enhancing the security of financial exchanges.

• Data and Records Management: Symbol is particularly effective in managing sensitive data, providing a secure and immutable platform for record-keeping. This is crucial in healthcare for patient records, in legal documents authenticity, and in academia for maintaining educational credentials.

• Decentralized Identity: The platform offers robust identity verification solutions, reducing the risk of fraud and increasing user control over personal data. This is particularly relevant in enhancing online security and privacy.

Symbol’s diverse applications across these fields highlight its potential to transform traditional systems, bringing enhanced security, transparency, and efficiency. By adopting Symbol’s blockchain solutions, industries can optimize their operations and explore new innovative pathways for development and growth.

What is the XYM Coin?

XYM coin is Symbol’s native cryptocurrency for transactions and rewards. Its maximum supply is capped at 8,999,999,999 units, of which 5,836,724,397 (64.85%) are already in circulation (November 2023).

Symbol’s 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 of 8,999,999,999 XYM underpins the network’s stability and value.

Symbol uses a Proof of Stake+ (PoS+) system for block creation, where the probability of creating a block and earning rewards, termed ‘harvesting,’ increases with the size of a node operator’s XYM stake. This system also considers recent network activity and delegated stakes from other users, promoting usage and low-fee competition.

Node operators are pivotal in maintaining Symbol’s decentralization, earning rewards from transaction fees, inflationary rewards, and a share of delegated harvesting rewards. They can also benefit from a Node Bonus Program, offering additional incentives for maintaining minimum balances.

In Symbol’s blockchain, harvesting refers to the process of creating new blocks, rewarding harvesters with transaction fees and inflation tokens. 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.

Source: docs.symbol

Moreover, Symbol’s inflation mirrors Bitcoin’s, with a gradual reward reduction every quarter, ensuring a steady decline. The Symbol Core Team retains about 22% of the XYM supply for future development and partnerships, but they do not participate in harvesting, leaving more rewards for other participants.

Symbol Main Features

Symbol’s ecosystem is distinguished by several key features that make it a robust and versatile blockchain platform:

• Hybrid Blockchain Architecture: Symbol offers a unique hybrid model that supports both private and public blockchains. This feature allows businesses to maintain privacy for sensitive data while still leveraging the transparency and security of a public blockchain. It’s particularly beneficial for enterprises that require confidentiality alongside the advantages of blockchain technology.
• Advanced Customizability and Flexibility: The platform provides high customizability through its plugin-based architecture. This enables users to tailor the blockchain to their specific needs without affecting the existing network. Whether it is for creating new business models or adapting to existing ones, Symbol’s flexibility makes it ideal for a wide range of applications.
• Enhanced Security Features: Symbol incorporates state-of-the-art cryptographic algorithms and offers features like multi-level multisig accounts. These security measures are crucial for protecting against fraud and ensuring the integrity of transactions, making it a trustworthy platform for various financial and non-financial applications.

These features 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.

Is Symbol a Good Investment?

Symbol’s emergence has revitalized the once-flagging NEM project, positioning it with renewed relevance in the blockchain space. Its ambitious vision, particularly its focus on becoming a major player in the asset tokenization sector, highlights its potential. Despite this promising direction, Symbol faces a challenging journey ahead. The platform is navigating a competitive landscape where other similar projects have already established a more advanced foothold.

While Symbol’s innovative approach and unique features present it as an intriguing prospect, its journey to prominence in the bustling blockchain market will require overcoming the head start of its more established counterparts.

How to Own XYM?

To own XYM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy XYM.

News on Symbol

According to the official Symbol blog on 26 September 2023, Symbol blockchain introduced notable advancements. The update features on-chain contracts, enabling secure, verifiable agreements via NFT-Drive, where contract data is stored and reassembled on-chain. Additionally, “DataSigil,” a new MacOS application, was launched for setting up Symbol-based databases with enhanced security features.

The blog also discusses innovative analytics methods, like integrating MongoDB with BigQuery and Looker for advanced data visualization. Furthermore, it highlights the community’s ability to run Symbol nodes on Android phones, increasing network accessibility and engagement. Lastly, a community poll reflects mixed sentiments about Symbol’s organizational direction.

Useful References

For the latest updates about Symbol, you can visit:

• The official website
• Twitter
• Discord
• Blog
• GitHub

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