Nxt: Warning and Invitation to Centralized Exchanges

The rapidly developing Nxt cryptocurrency ecosystem has successfully implemented the world’s first automated multi-signature cryptocurrency gateway. These words should galvanize current operators of cryptocurrency exchanges into action. The days of profitable operation of centralized cryptocurrency exchanges are numbered now with the successful implementation of the Nxt automated multi-signature cryptocurrency gateway on the Nxt Asset Exchange (AE) system. It is a trivial matter for the programmers and operators of the NXT Community Asset Exchange Gateways to add support for all alt clones that are currently traded on existing centralized exchanges.

 

The automated multi-signature cryptocurrency gateway code will be made 100% Open Source in approximately 3 months, which will allow existing centralized exchanges sufficient time to make an orderly business transition from centralized exchange models to a decentralized Nxt gateway operator model. Investors will not tolerate high transaction fees and lack of internal controls at centralized exchanges when there is a superior alternative available. The exchanges that do not adapt to this new model will fail as they will no longer be able to compete against a more secure and inexpensive method to trade.

 

The pricing advantage of the Nxt Gateway is an order of magnitude cheaper than the competition at the exchanges. Traditional centralized exchanges levy trading fees in the neighborhood of 0.3% average. The Nxt Gateway can deliver fees near 0.03%.

 

The security advantage of the Nxt Gateway features three independently operated geographically separated gateways that must agree on every byte of the raw transactions in order to validate the transaction and submit the withdrawal to the network. This security system is orders of magnitude safer than the security at centralized exchanges and banks that seem to lose customer funds daily.

 

The Nxt Gateway model is so secure that the gateway operators plan to insure customer transactions through the gateway for 10,000 NXT per transaction with a 100,000 NXT total gateway insurance. The centralized exchanges are invited to explore the transition path required to migrate their businesses to the Nxt Asset Exchange Gateway Business Model. More detailed information from developers regarding this transition path will become available in the next several months. Please sign up for the newsletter at http://www.nxtcoins.nl/50-2/ to keep updated with the current development status of the Nxt Asset Exchange and Gateways.

 

Feel free to publish this text at your site.
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

Author: Brian Snyder     Proofreader: Salsacz

About Brian Snyder (15 Articles)
Brian is an entrepreneur and a long term diversified investor, always holding assets with low to zero counter-party risk. He holds a B.A. in Business Administration with a Major in Management from Washington State University. Brian has 15 years of experience in information technology, always exploring the leading edges of technology. His current areas of focus are decentralized peer to peer networks, applications and currencies built on top of the Nxt green network.

Leave a comment