The Nxt cryptocurrency ecosystem (Symbol NXT) has revolutionized the concept of the blockchain. Born out of the necessity to perfect the flaws in the Bitcoin protocol, Nxt brings a number of new features to the market. The features currently implemented in the Nxt core code include Nxt Arbitrary Messages, Nxt Asset Exchange, Nxt Transparent Forging, and efficient operation of the Nxt blockchain. Nxt is the first 100% Proof of Stake Cryptocurrency which stands in contrast to Bitcoin and all other alt coin clones which use Proof of Work to provide security to the blockchain.
The incentive to secure the Bitcoin network are provided in the form of the Bitcoin (BTC) which is mined, a term that describes the process of a Bitcoin client solving cryptographic puzzles. The coin distribution curve of any Proof of Work coin is highly skewed to the favor the initial miners of the blockchain. Is not known if Satoshi Nakamoto considered the possibility that securing an ever growing blockchain would prove to be an uneconomical enterprise. Today, mining Proof of Work coins requires expensive specialized Application Specific Integrated Controllers (ASICS) that consume vast amounts of energy with the sole purpose of securing the blockchain. The Nxt cryptocurrency ecosystem solves the problems of wasteful energy consumption and bloated blockchains with the use of a Proof of Stake system.
The incentive to secure the Nxt network is provided in the form of the NXT which is forged, a term that describes the recycling of NXT in the form of transaction fees. This process of recycling NXT occurs in contrast to the minting of new BTC; there are a fixed number of NXT (1 Billion) and a rising number of BTC (nearly 13 million of 21 million total). Traditional Bitcoin mining enthusiasts compete for the largest share of computing power to calculate their portion of newly minted Bitcoins (Gigahash contracts currently selling at 0.08 BTC) while NXT forgers compete for transaction fees. Once all the BTC has been minted, the Bitcoin network will also be forced to provide incentive to secure the network with only transaction fees.
As the BTC transaction fees rise, users of BTC will flee to more efficient blockchains. The process is already beginning, with new users and investors moving their funds and business plans to operate on the secure and efficient Nxt blockchain. Criticism of the Proof of Stake System that Nxt uses to secure its blockchain is that it is unfair to small holders of NXT. The assumption made is that small NXT holders will not have incentive to help secure the Nxt blockchain through forging. Forging is defined as the process of having a running NXT client connected to the network with the Nxt Passphrase entered, which unlocks the account and automatically begins the forging process.
Today, downloading and syncing the Bitcoin blockchain requires a 16 Gigabyte download compared to the NXT blockchain download of only 110 Megabytes. NXT has over 26,000 current accounts and is growing rapidly. The Bitcoin network is dying with its $35.22 average transaction fee secured with 29,210,821.47 GH/s as of March 5, 2014 (https://blockchain.info/stats). NXT is currently developing a host of new features to complement the efficient operation of the Nxt blockchain. One of these features seeks to provide incentive to even the small account holder of NXT. This feature is called nodecoin 2.0 and is being actively developed by jl777, Nxt developer. Nodecoin will be the first cryptocurrency to be built atop the Nxt blockchain and will reward Nxt clients that keep their clients running based on the total time defined as coindays. Every Nxt client securing the Nxt network will be able to earn nodecoins proportional to the number of coindays that their account is assisting in actively securing the Nxt network.
NXT is also concurrently developing NXTcash, which will finally allow for true anonymous Peer to Peer transmission of cryptocurrency. This anonymous transaction capability is integrating the Zerocoin protocol developed at Johns Hopkins University, and is also being developed by jl777. The freedom to communicate and transact anonymously without government interference will bring economic freedom to billions globally. Nxt is working hard towards the realization of this freedom.
The Nxt cryptocurrency ecosystem is currently testing the Nxt Asset Exchange (AE), which has successfully deposited and withdrawn a Bitcoin clone called Doge into and out of the AE with an accuracy to milliDoge. The Nxt cryptocurrency ecosystem (Symbol NXT) is not just a coin, but presents the leanest available blockchain to build future applications on. Nxt is currently in the process of implementing an automated multi-signature cryptocurrency gateway that is poised to make traditional centralized exchanges obsolete. Cryptocurrency investors will have a safer, cheaper option to trade cryptocurrencies by utilizing the Nxt Asset Exchange.
The Nxt cryptocurrency ecosystem has two more core features under development. These features are the Voting System feature and the Account Control Feature. These two core Nxt features will enable Nxt to offer a turnkey cryptocurrency ecosystem that includes granular control of governance, auditing, and internal control from within the Nxt core itself. One example of the use of the Nxt Voting System implementation is the use case of conducting national elections. The Nxt Account Control feature will allow people, organizations, and/or governments to define and exercise control of the approval, review, and expenditures from accounts by implementing Tested Internal Control Procedures.
Nxt seeks to give control back to the people of their digital communications and transactions. Nxt leads by example; community funding is secured through a fully recorded and transparent process which is reviewed and approved by elected committees. Nxt is actively seeking developers to build the decentralized applications secured atop the most efficient blockchain available. Nxt is decentralized and self-optimizing, requiring consensus and leading innovation at the edge of the network. All are welcome.
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To learn more: http://nxtcrypto.org / http://mynxt.org
To start with Nxt: Online wallet: https://wallet.mynxt.info Clients: http://www.nxtclient.org/
To trade NXT: http://cryptsy.com / http://bter.com / http://vircurex.com / http://poloniex.com / http://dgex.com
NXT thread on Bitcointalk: http://bitcointalk.org/index.php?topic=345619.0
NXT Source Code: http://bitbucket.org/JeanLucPicard/nxt-public/src
NXT Whitepaper: http://wiki.nxtcrypto.org/wiki/Whitepaper:Nxt
Contact us at: email@example.com Author: Brian Snyder