ShionCoin merges traditional bitcoin/litecoin principles with the ability to embed "extended information" into the block-chain.

The extra information is principly included as supplements to individual transactions. ShionCoin utilizes the "nVersion" of a transaction as a bitvector which determines specific strutures of information to append to the transaction. In addition, specializied output scripts are used to prove the integrity of the "extended transaction" information. Otherwise, the core format of both the block and transaction are identical to bitcoin/litecoin.

By embracing traditional principles, while still allowing for extended functionality, a balance is sought between introducing stable new technology while still allowing it to evolve. This concept is, of course, even more important for a decentralized network.

A good example is the base maximum block size and the "param" extended transaction. The maximum is 4 megs with ShionCoin under the belief that the initial 1 meg was insufficient. As a larger, or potentially even smaller, maximum block size is preferred in the future, the "param" extended transaction allows transactions generated to optionally include a vote on how parameters, like the maximum block size, should be set. This allows for a gradual change based on consensus while still supplying a larger than typical initial size.

A lot is put into the emphasis of being able to scale a tradition PoW blockchain. Beyond the max block size mentioned above, the difficulty time-span is based on 60 seconds (similar to litecoin) and transactions fees are low. Support for additional PoW algorthms has been developed which will further reduce the commit block-time of each block. The node uses a set of mapped files to store most all database information in order to provide the speed neccessary to access large amounts of information.

The actual function peformed by each type of extended transaction is fairly varied. The alias extended transaction allows for a pubkey (coin) address to be referenced by a public name. Many are centered are storing different auxilliary forms of data. This ranges from simple name=value context to more complicated chains of certificates and licenses. The more specialized transactions include the "SEXE" programming language and the "colored" alt-chains.

In order to deal with some of the "woes" of being based on a traditional PoW blockchain, multiple layers of additional integrity is woven in. The ShionCoin requires, in certain circumstances, that a "validation matrix" extended transaction be written containing a checksum of past blocks. In addition, a "BOLO" offchain notary system, which allows anyone to participate (as opposed to centralized nodes), has been developed in order to create dynamic checkpoints based on transaction data written to the litecoin blockchain.

The "SEXE" programming language is part of the libshare library, and is based on LUA. The intent is to provide compiled classes which may then be referenced by method calls. This allows for traditional smart contract tokens by allowing for stored persistent (and publically synchronized) scripts to be called, and other custom apps which are published to the block-chain.

The "Colored Alt Chain" extended transaction contains a structure which is similar to a block and set of transactions. It is essentially an "alt-chain" block stored inside a ShionCoin transaction. Each alt-chain is associated with a 128-bit color which identifies it's hierarchial chain. Colors are independant of each other (i.e. has its own genesis block and sub-sequent chain), and are assigned their own custom parameters upon genesis creation. These parameters range from minimum difficulty to reward rate.

Colored alt-chain blocks are meant, although not required, to be accessible to a cpu-miner. In addition, setting the transaction version higher than "1" will allow for a custom-sized payload to be appended to the transaction. This is intended to help accomodate specialized information particular to the color of the chain.

ShionCoin is similar, but different, to several popular coins.

Primarily based on litecoin's own standards, the project seeks to be compatible with new BIP implementations while still allowing custom behaviour. Similar to litecoin, the currency employs a fast block-commit time with reduced transaction fees. New implementations such as segwit and bech32 are considered improvements that should be embraced by the general community.

Similar to syscoin or namecoin, the ShionCoin extended transactions allow for specialized payloads to be attached to transactions. Unlike sys/nmc, the project attempts to find useful specific purposes for this data that can inter-weave with other transactions or affect the coin service itself.

Like etherium, the project seeks to provide useful real-life solutions through the form of custom specialized applications accessible in a public environment. Unlike eth, this projects attempts to concentrate on scaling and compatibility with traditional virtual currency protocols.

And like digicoin, the project attempts to provide flexible software that removes restrictions on accessibility.