Skycoin (SKY) is a unique cryptocurrency built from scratch to replace Bitcoin's flaws. It uses Obelisk consensus, no mining, and Coin Hours for feeless transactions. Its real goal? A decentralized internet called Fiber. Learn how it works - and why it's still obscure.
Obelisk Consensus: How It Works and Why It Matters in Blockchain
When you think of how blockchains confirm transactions, you probably imagine miners solving puzzles or stakers locking up coins. But there’s another way—Obelisk consensus, a non-blockchain consensus mechanism that uses directed acyclic graphs (DAGs) and trust networks instead of blocks and mining. Also known as Obelisk algorithm, it’s the backbone of networks like IOTA and Nano, where speed and zero fees matter more than traditional mining. Unlike Proof of Work or Proof of Stake, Obelisk doesn’t rely on energy-intensive computation or large token holdings. Instead, it lets each node validate transactions by checking the history of other trusted nodes. Think of it like a neighborhood watch where everyone vouches for their neighbors’ behavior—no central authority needed.
Obelisk consensus works because of three key ideas: DAG blockchain, a data structure that chains transactions in a graph instead of a linear block chain, trust networks, a system where nodes build reputation by validating others’ transactions, and consensus mechanisms, rules that determine when a transaction is considered final. Each new transaction references two previous ones, creating a web of approvals. The more nodes that approve a transaction, the more secure it becomes. No blocks. No miners. No waiting. Transactions settle in seconds, even on low-power devices.
This approach solves real problems: high fees, slow speeds, and environmental waste. But it’s not perfect. Because there’s no mining reward, projects using Obelisk need other ways to incentivize participation—like token rewards for validating or building apps. That’s why you’ll see Obelisk in use for microtransactions, IoT devices, and decentralized apps where speed and cost matter more than massive security through brute force. It’s not for every blockchain, but for the right use case, it’s one of the cleanest solutions out there.
What you’ll find in the posts below are real examples of how Obelisk consensus shows up in practice—whether it’s in tokens built on DAG structures, projects trying to replace traditional blockchains, or scams pretending to use it. You’ll see what works, what doesn’t, and how to tell the difference between real innovation and hype.
