* Photo (from left to right): former Idaho Representative Steve Kren, Senator Mike Crapo, US Senate Banking Committee Chairman, Sumcoin creator Ty Jacobsen / The US Senate banking committee conducted hearings covering Blockchain and the digital dollar in July 2020.
Sumcoin (SUM), also called the Sumcoin Index, was made by a group of developers around the world Github name of Sumcoinlabs. GitHub is an open-source code repository. A commodities market enthusiast and programmer named Ty Jacobsen @Sumtoshi had the goal of creating a crypto commodity like Bitcoin, but one that solved a problem nearly all crypto-currencies share. It’s a transformation from concept to current world-wide use since 2016 is quite fascinating.
The main value proposition of the Sumcoin project is its ability to act as a stable store of value and solve numerous unsolved issues in the crypto space. Sumcoin is the first decentralized index-based coin in the crypto sector and has received a lot of support from the open-source community. Unlike a stable coin such as Tether, SUM actually moves in value up and down with the market using algorithms. Since Sumcoin uses proof-of-work (POW) like Bitcoin, the asset is backed by the continuous computational hashing power applied by Miners, avoiding controversial methods other projects have attempted using Centralized Fiat backing or non-decentralized structures.
The unique solutions of Sumcoin
Sumcoin deals with numerous issues in the crypto sector by being an algorithmically rate determined coin. To achieve price stability, the value of the SUM coin is determined through machine learning and AI which algorithmically produces a “SUM” value of the top 100 coin’s market cap value in the crypto industry, of all Blockchain types. As a result, unlike most other coins, supply and demand forces do not affect its price. SUM cannot be manipulated by the market as other crypto commodities have been. This type of longevity levels the playing field for all and is very attractive for all ages.
SUM almost mirrors market indices such as the S&P 500, Nasdaq, or the Dow Jones. The only SUM requires no human intervention to rebalance the assets it tracks. It’s also a great tool to reference how Crypto is doing. Just like the stock market, most quickly reference one or two things to know it’s current health. With SUM, this is now possible for the cryptocurrency sector as-well.
To achieve a stable price, Sumcoin automatically reads and adjusts which 100 coins are the most valuable by market cap and adds the calculation to the Index every minute. Sumcoin differentiates itself from existing coins in three main ways:
- Price stability by use of Indexing the Blockchain market
- Simplifying the crypto ownership process
- High Speed, low-cost transactions
Price Stability
Sumcoin is a mineable commodity like its predecessor Bitcoin & Litecoin. The key difference is how it’s valued, being Index derived, it’s not dependent on the supply and demand forces. This insulates it from price manipulation. The SUM algorithm factors all 100M coins as being found from the day of its genesis block. If SUM itself is in the top 100 most valuable coins, it excludes its own value from the price calculation.
*Mining Sumcoin requires expensive computers and can require an intense amount of power consumption.
Made with Scalability in mind
Since SUM indexes all blockchains, it means the value of the central bank digital currencies will also be tracked. The Euro Zone, Japan, US, and China, which seem to be released soon. The result is that Sumcoin will track hundreds of Trillions of dollars. Today it is priced at $124.68 per SUM while tracking about $270 Billion.
While Bitcoin has been quite successful and has achieved a market cap of even hundreds of billions of dollars, this is expected to change with the release of CBDCs . Most citizens in their respective nations will most likely adopt their national digital currencies instead of using Bitcoin. By algorithmically stabilizing the price of Sumcoin, using an index of 100 coins, the owners will enjoy the most exposure to crypto with the least amount of risk.
Simplifying Crypto Transactions
The crypto market is fraught with pump and dump coins that results in huge losses for crypto investors. In some cases, people have lost their life savings due to these scams. While many people have experienced the potential of the crypto sector, many do not know how to enter this market. In most cases, people settle for what is popular.
Sumcoin solves the high entry barrier problem by algorithmically pegging its price to a SUM of top 100 Blockchains. Some have likened it to the simplicity of a sort-of decentralized ETF or Mutual Fund. No asset is handpicked and market forces determine which coin is added to the list. As a result, those who own SUM can hold the best of the crypto market at any point in time, with a single coin by owning SUM.
If the crypto market grows, the value of SUM grows, if it drops, the value of SUM drops. However, because of the number of coins in the index calculation, the price changes of SUM tend to be less drastic than that of other coins – whose price is determined by the market of supply and demand alone.
High Transaction Speeds
Sumcoin is designed to have block times of 30 seconds by incorporating the Scrypt mining algorithm, activation of Segwit, and other improvements to the BTC/LTC protocol. This is faster than the 10-minute block time that is possible using SHA-256, and still faster than Litecoin. Sumcoin is also more friendly to disk storage size. Sumcoin transactions can be confirmed in as little as one minute, especially when transactions are Segwit to Segwit. This potentially makes Sumcoin a superior store of value and great means of exchange in conducting daily transactions.
Where to Buy Sumcoin From an ATM with cash
Sumcoin is compatible with General Bytes ATMs, where speed is a key factor. The coins are secured by the ‘not your keys not your coins’ approach. SUM was the 4th coin to have both Buy and Sell capability on General Bytes ATM software, even before Bitcoin-Cash (BCH).
Where to Buy Sumcoin Online with Crypto
If you wish to Buy SUM online, you can do so today crypto to crypto at SatoExchange.com. The exchange has correctly implemented the Sumcoin Index rate data. Exchanges that wish to list SUM will need to maintain index calculations according to the projects GitHub to ensure price integrity. Contact the Sumcoinlabs devs on Github with any questions when adding SUM to your cmc approved status exchange.
Peer to Peer trading
Any two persons with a SUM wallet can trade and exchange goods or services with one another. No exchange is ever required. Just input the receiver’s address, enter the amount and press send.
Coinmarketcap
With 2 additional exchanges compatible with CMC, Sumcoin will gain ranking status. By market cap, that would place SUM as the #3 or #4 coin globally.
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Post source: Sumcoin: World’s First Index-Based Crypto Coin
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