Overview
Signum (rebranded from Burstcoin in 2021) is one of the oldest blockchain projects, originally launched in August 2014 by an anonymous developer known as "Burstcoin." The project holds several historical firsts: it was the first blockchain to implement Turing-complete smart contracts (called "Automated Transactions"), the first to use Proof-of-Capacity (hard drive mining), and among the first to run an on-chain decentralized exchange.
In 2021, the community rebranded to Signum and upgraded the consensus to Proof-of-Commitment (PoC+), which combines hard drive capacity with a staking component. This hybrid model further reduces energy consumption while adding economic security. Despite these technical achievements, Signum has failed to gain meaningful adoption, and the ecosystem remains extremely small with a dedicated but niche community.
Technology
Architecture
- PoC+ Consensus: Hybrid of Proof-of-Capacity (hard drive plotting) and Proof-of-Stake commitment
- Smart Contracts: Automated Transactions (AT) — the first on-chain smart contracts, predating Ethereum
- Signum Smart Tokens: Built-in token issuance at the protocol level
- On-chain DEX: Native decentralized exchange built into the protocol
Performance
| Metric | Value |
|---|---|
| Block Time | ~4 minutes |
| TPS | ~80 (theoretical) |
| Energy Usage | Fraction of PoW chains |
| Transaction Cost | ~0.01 SIGNA |
Limitations
The 4-minute block time is slow by modern standards. Smart contract capabilities are limited compared to EVM-based systems. The AT framework is not developer-friendly and lacks the tooling ecosystem of Solidity/EVM. These technical constraints severely limit the types of applications that can be built on Signum.
Security
Consensus Security
PoC+ mining requires miners to pre-compute and store cryptographic nonces on hard drives ("plotting"), then reference them during block production. The commitment component adds staked SIGNA as a multiplier. This makes 51% attacks expensive — an attacker would need to acquire massive storage capacity and stake. The economic security is reasonable for the network's size.
Track Record
Signum has operated since 2014 with no known protocol-level exploits. The simplicity of the protocol contributes to its security. However, the small mining community means that mining pool concentration can be a concern, with a few large pools controlling significant hash capacity at times.
Decentralization
Mining Distribution
| Metric | Value |
|---|---|
| Active Miners | ~500-1,000 |
| Mining Pools | 5-10 active |
| Barrier to Entry | Low (any hard drive) |
| Governance | Community-driven, no foundation |
PoC+ mining has an extremely low barrier to entry — any computer with spare hard drive space can mine. This is genuinely more accessible than GPU or ASIC mining. However, the small number of active miners means that a few large mining operations can influence the network disproportionately. Governance is informal and community-driven with no formal foundation or DAO.
Ecosystem
Applications
The ecosystem is extremely limited:
- SignumSwap: Basic DEX with minimal liquidity
- Native AT smart contracts: Used primarily for simple automated transactions
- On-chain messaging: Built-in encrypted messaging capability
- NFT support: Basic token standards exist but minimal market activity
Developer Activity
Open-source development continues through a small but dedicated team of community volunteers. The Signum Node software is maintained on GitHub with regular updates. However, developer activity is a fraction of even mid-tier blockchains, and there is no ecosystem fund or grant program to attract new builders.
Adoption Reality
Despite technical innovations, Signum has negligible real-world adoption. TVL is near zero. Trading volume on exchanges is minimal. The community is passionate but measured in hundreds, not thousands. The project survives on volunteer effort and ideological commitment to green blockchain technology.
Tokenomics
Token Overview
- Total Supply: 2.16 billion SIGNA (originally mined via PoC)
- Current Supply: ~2.15 billion (near-fully mined)
- Block Rewards: Minimal and decreasing
- Utility: Gas fees, staking commitment, on-chain DEX trading
Economics
With nearly all tokens mined, SIGNA is effectively non-inflationary. Transaction fees are extremely low. The token has very low liquidity on exchanges, with most volume on small or decentralized exchanges. Market capitalization is typically in the low single-digit millions, reflecting the project's marginal status.
Risk Factors
- Negligible ecosystem: Near-zero TVL, minimal dApp activity, no meaningful DeFi
- Extremely low liquidity: Token is difficult to buy/sell in any meaningful quantity
- No institutional backing: Community-run project with no venture funding or foundation
- Outdated smart contracts: AT framework is far less capable than EVM or WASM-based systems
- Competition: Chia and Filecoin offer PoC/PoST alternatives with far larger ecosystems
- Marginal adoption: Despite 10+ years of existence, the network has failed to attract users
Conclusion
Signum is a historically significant blockchain that pioneered several innovations — PoC mining, on-chain smart contracts, and built-in DEX functionality — years before they became industry trends. The PoC+ consensus is genuinely energy-efficient and accessible. The community's commitment to green, decentralized blockchain principles is admirable.
However, historical firsts do not guarantee relevance. Signum has been surpassed technologically by virtually every modern blockchain, its ecosystem is nearly nonexistent, and there is no clear path to meaningful adoption. It serves as a case study in how technical innovation alone is insufficient without ecosystem development, marketing, and capital. For most users and investors, Signum is a curiosity rather than a viable platform.