Nxt project purpose and description
WHAT IS NXT?
NXT is a new generation cryptocurrency that was created to expand the possible chances of the blockchain. It was created to increase the possible use cases of the blockchain. It was created as an open source cryptocurrency and it is built on the blockchain technology to create a more accommodating ecosystem for different purposes as against other cryptocurrencies which had basically one functionality.
The purpose for its creation was to give people the opportunity to make use of the blockchain beyond what it was known for. Rather than use the programming language or source code used by Bitcoin and of which other altcoins had adopted, NXT took a different route entirely as it was written entirely with the JAVA language i.e. both its source code and blockchain were written in JAVA.
NXT is a decentralized platform that provides its users with various services which can only be enjoyed through the use of the NXT token. The token is the key to the platform as, without it, you cannot do anything on the platform.
Furthermore, NXT is the first decentralized platform to operate using the proof of stake. The proof of work has been invoked until the NXT came into existence thus solving the problem of efficiency and scalability. In the POW, the speed of transaction is quite limited and once there is an increase in the volume of transaction, there is an automatic demand in the increase of the power used. Through the introduction of the NXT proof of stake, there is the elimination of such issue.
It is very easy to use as it gives the users the freedom to create whatever it is they want to create. It can be used as a form of currency, marketplace and the development of applications
WHAT IS THE PROBLEM THAT NXT SOLVES?
The main problem that NXT aims to solve is the restriction placed on the ability of the blockchain. Before the launch of the NXT platform, cryptocurrencies like the bitcoin and other altcoins where created for a sole reason. They did not cater for the possible use cases of the blockchain but restricted its usage.
NXT was created to solve the problems that Bitcoin was suffering from. The first problem of the bitcoin technology is the size of the blockchain. The blockchain of the bitcoin technology is limited in size as there has been a geometric increase in its size. If this continues, there would be no space enough to cater for a future transaction.
The transaction speed of Bitcoin is also limited as it can only handle just 0.8 transactions every second. This would not be good in times to come considering the wide adoption of the coin. If VISA can process ten thousand transactions per second, Bitcoin should be able to perform better. More so, the confirmation time for the Bitcoin network is too long. Confirmation denotes that a transaction has been completed and cannot be altered again. The longer the confirmation time, the higher the risk of alteration
Furthermore, the energy and power used for the sake of mining in the Bitcoin Proof of work are very high. Mining is the process of creating new coins through the confirmation of transactions. These involve a lot of computing power which cost a lot of money totaling about 3.5 million USD everyday.
HOW DOES NXT SOLVE THE PROBLEM?
NXT aims to solve these problems through various means. Through the use of the blockchain, the NXT has been able to expand the possibilities of the technology and has given its users more to enjoy. In solving the problem of the blockchain size, they created the size of their block to be at 32kb. They also aim to maintain the size of the blockchain through the removal of needless or redundant information on the blockchain, hence giving room for more space.
In a bid to increase the amount of transactions that can be performed in a day, NXT was created to handle about 367,200 transactions every day which ten times is more than Bitcoin which can handle just 70,000 transactions per day. The NXT has it its plan to implement a feature called transparent forging aimed at providing instantaneous processing of transactions in so doing, increasing the limit of transaction per day.
In the NXT platform, the time for the generation of blocks is said to be about 80 seconds which makes the time for the processing of a transaction at the same value. This implies that after ten different confirmations, we can attribute it as safe and permanent in 14 minutes. The transparent forging feature is also would also bring about less timing.
With the high cost of power and energy associated with the proof of work, NXT has employed the proof of stake. The ecosystem of the NXT platform demands a meager fee of about $60,000 every year about 2200 times lesser than the cost of maintaining the Bitcoin platform.
WHAT MAKES NXT BETTER THAN ITS COMPETITORS?
One major edge the NXT has over the other cryptocurrency is the fact that the platform gives room for more added features which include assets creation and exchange, implementation of Java, messaging, payment method, flexible type of transaction, digital store, and many more. Unlike other cryptos which have a single purpose of creation, NXT has inbuilt features that serve as options for users to choose from. NXT is also simple and easy to use, unlike other platforms. Here, you do not need to build an application on the platform like in Ethereum rather, the features are ready made on the platform.
Also, the platform is the first to implement the proof of stake. Rather than spending fortunes on the mining of coins, the NXT provides a more economic and efficient. Unlike Bitcoin which solves about 10 blocks every hour, NXT solves more than 60 per hour. This is so because the transaction speed is faster than in another cryptocurrency.
More so, rather than having to keep the bitcoin network secured through the use of mathematical calculations, NXT does not need mathematical calculations to keep its network safe but rather depends on average computers for security.
The NXT platform also allows young entrepreneurs who want to develop their cryptocurrency without so much difficulty. The cloud service is also advantageous as it gives users the room to share and receive files easily.
HOW CAN NXT BE CATEGORIZED?
The NXT platform can be categorized into the following:
- Smart Contracts: The functions and comparative advantages of NXT over other blockchains hinges on this. The smart contract is such a feature that allows the oversight and monitoring of every single transaction that is initiated on the NXT platform. Shares, payments and transfer of assets or properties are closely monitored all thanks to the smart contract feature available on NXT. These contracts have been designed to operate as instructed as long as the conditions specified by the programmers have been met.
For example, the smart contract feature could send a specific amount of NXT cryptocurrency from User A to User B. This would happen when this feature is enabled and the criteria for the transaction are met. This smart contract feature operates of its own accord without any third-party influence as long as it has been given a set directive to self-operate. It is advantageous in the sense that it handles certain intricate actions.
- Build DAPPs: NXT affords its users the opportunity to build and develop applications as they deem fit on its own platform. Such applications could be specifically customized to meet certain needs of the developer.
- Platform: NXT serves as a template for the building of other applications or platforms. This also is responsible for how NXT can be used as an improvement to other blockchain platforms.
- Exchange: NXT is a cryptocurrency that is used in establishing business transactions and also in the transfer of assets and valuables. It could be used as a means of exchange of values between two individuals transacting. Also, the NXT cryptocurrency could be transferred and converted to the equivalent of another cryptocurrency such as Bitcoin.
- Token issuance: NXT can be categorized as token issuance serving as a form of agreed basis for buying and selling goods and services. A total amount of one billion tokens exist, which were created upon the first block development in NXT blockchain.
WHAT IS NXT’S VISION ON SECURITY?
NXT specialized security system ensures that the safeguarding of the network is conducted by peers that participate on the NXT network. The incentives and rewards available through the process of NXT Proof of stake model is not tantamount to centralization as the Proof of work model does. It has been verified and confirmed that the NXT network remains governed by the separate units. Blocks are constantly being added to the network of operation.
NXT operates a system in which case every coin in an account could be assumed to be a very little fragment of a rig that ensures mining. As the number of tokens held in any NXT account increases, the more the chance of initiating a block. Upon the generation of a block, the total amount involved in the transaction is rewarded to the participants. NXT redistributes the available tokens to the generators of the block rather than create another number of tokens. The chains of blocks that are generated can, therefore, be linked back to the initial block.
The algorithms employed in ensuring NXT blockchain security is very efficient as the time it takes between the generations of blocks is 60 seconds. Due to how NXT envisions its security system, its process of asset security is well organized and follows these procedures:
- A total difficulty value is set and preserved in each of the blocks, and each next block obtains its value from the value of difficulty that the preceding block carries.
- To prevent users from manipulating the chances of their block generation, the tokens are kept steady and stationary in a particular account for 1,440 blocks before those blocks will be able to take part in the generation of other blocks.
- Peers allow the restructuring of blockchains of quantity, not more than 720 blocks. This is to wade off attackers from initiating a new chain of blocks from the starting block.
EXAMPLES OF NXT’S USE CASES/APPLICATIONS
The NXT platform has a variety of use cases due to the reason for its creation. Some of them include:
The voting feature provided by the NXT platform is quite an innovation. It allows for a decentralized voting opportunity for government, organizations to employ. Through the use of the NXT smart contract, there is no possibility for a hack. One example of its usage in Russia where the National Settlement Depository makes use of the NXT for voting. It allows for a fair and free election, not giving room for fraud.
- Exchange of goods and services
The NXT platform creates a marketplace where users can interact with themselves through the exchange of goods and services. The medium of exchange would be the coin in question. This marketplace is decentralized and as such, there is the absence of middlemen but a peer to peer interaction between the buyer and seller.
The NXT platform allows the users to interact with one another using the NXT blockchain seamlessly. Messages can be sent in an encrypted or unencrypted form. People who want to keep their conversations private or immutable can make use of the platform for security reasons.
- Data Storage System
The NXT platform provides its users with a data storage system that is decentralized. Unlike other forms of data storage, the NXT data cloud does not give allow the interference of third-party system. The data stored on the platform is secured and cannot be tampered with by third parties. Organizations, firms etc. can employ the use of the NXT platform to store highly classified data or information. The data stored on the NXT platform cannot be destroyed because of the time-stamp feature.