NXT Blockchain — What You Should Know

Digital Asset Platforms Series (5 part series — Part 1)

Currently, there are many Blockchain platforms out there; with many projects having released amazing applications. As you already know, Blockchain technology is the pivot of crypto transactions and it goes a long way in assuring you safe and secure transactions.Document source

Perhaps you might have heard about “Nxt”. If you’re not familiar with this Blockchain platform, this article is for you. In this post, we shall endeavor to cover everything you might want to know about Nxt. So, first things first.Document source

What’s Nxt?

Nxt is simply an open source and advanced Blockchain platform “Blockchain 2.0” that will enhance the functionality of first payment networks such as the Bitcoin Blockchain. The primary goal of this platform is to disrupt Fintech, crowdfunding as well as governance through their digital asset called NXT.

Nxt was initially launched in November 2013 by an anonymous developer only known as BCNext. The release of Nxt marked the first currency that rolled out with 100% reliance of PoS basis for consensus. If you are wondering how it operates, read on.Document source

How does the Nxt Platform work?

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Instead of PoW (proof-of-work), Nxt relies (PoS) Proof-of-Stake algorithm to reach consensus. But what is the difference?

Cryptocurrencies such as Bitcoin which use PoW, require mining. To mine, expensive computer hardware is required and utilized to solve very complex mathematical problems to earn the rewards. It’s considered very expensive.

On the other hand, under PoS creators of new blocks are selected deterministically- based on their wealth. This is far much more cost-effective. The other implication here is that since Nxt does not require mining, there is a static supply of money.Document source

In addition, the network is less susceptible to hacks. To hack a PoS network, hackers would need to invest massive amounts of the currency, and this is likely to devalue their holdings.

The Nxt ecosystem is fueled by NXT as its virtual currency. NXT tokens can be used for the following:

• To cover transaction fees when transferring NXT between users.

• Creating assets representing bonds or ownership of projects.

• Deploy decentralized polls within a Blockchain.

• As a digital currency for exchange during ordinary purchases
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But how do you buy NXT tokens? The platform has an exchange that you can use. First, you will need to purchase Bitcoin or Ethereum, and you can use fiat currency to buy this from any popular crypto marketplace. Then proceed to use the Nxt Asset Exchange to exchange your crypto coins to NXT tokens.Document source

The Features of NXT

Nxt derives value from hosting a variety of services based on its features. These features are beyond the Nxt as a Cryptocurrency. The features of Nxt include:

Asset Exchange

The real world use case for the asset exchange is supporting peer-to-peer trading of crypto assets, and shares. For instance, established crypto-based projects such as SIA and NEM initially started out as a NXT asset and this enabled them to crowdfund to develop their own networks.
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Monetary System

Yes, you can also create your own asset, add it to the asset exchange and start trading. Nxt Monetary System facilitates users to build as well as to launch own digital currencies and trade with other currencies compatible with Nxt.

Data Cloud

Instead of storing your data on Dropbox and Google Drive, you can use Nxt Data Cloud to keep your data. This system allows data storage that is simple and secure, subject to publication and verification by the Blockchain. Documents users may want to store here include certifications, licenses, wills, and contracts. However, this storage comes at a price. You can check the current transaction costs here.
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Messaging System

Nxt allows messaging in plain and encrypted formats. A good example of where Nxt messages can come in handy is medical records. A physician can send test results to his patient through an encoded message, and the patient can also share this encrypted message with a third party for a second opinion. A shared key is used to decrypt this specific message.
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Voting Systems

Holders of Nxt tokens or base assets are allowed to partake in customized voting. It is encrypted and verifiable whose results can guide future decisions. This voting model can also be used to execute phase transactions.

Account Control

This feature enables users to control accounts via multi-signatures, consequently making decentralized autonomous organization (DAO) easy to operate. It promises more user freedom as the power of governance and decision making rests with the Nxt account holders.
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Authentication System

This system allows users to verify ownership of currency and other resources for NXT accounts to parties outside the Nxt platform.

Plugins

Plugins enable developers to port applications from other software. Here Nxt platform provides a ready basement to build on customized user applications that can beat imaginative benchmarks.
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Alias System

The Alias system allows keyword-text strings to representatively mean a common thing for parties privy to the particular arrangement. For example, a discount promotional code, which may be used to attract online buyers and drive up revenue in the long-run.

Account Ledger

The Nxt account ledger keeps a log of all transactions, time stamped. These enable tracking of balances at any instances as well as an audit trail.

Account Properties

This feature enables tagging of accounts with metadata and such can be useful in further analysis. Accessing account properties gives users data that can be analyzed to get comprehensive information for informed decision-making.
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The Future of Nxt

Nxt will continue to be a valuable platform into the future. Jelurida (the mother company) continues to add value to the platform to drive its success into the foreseeable future.

It will also be worth noting that Jelurida has launched an additional platform called Ardor , which is actually regarded as an “evolution” of the Nxt platform. While these platforms are more or less similar, you can learn the major differences here. Ardor uses child chains to fix Blockchain challenges such as versatility and scalability.Document source

Conclusion

Nxt platform is an innovative project that extensively explores the potential of Blockchain technology. It was designed as a Blockchain 2.0 — which is a newer and upgraded version of the Bitcoin-style Blockchain.

Through the use of a PoS consensus algorithm, the platform is poised to disrupt Fintech, crowdfunding as well as governance. Crypto enthusiasts should keep an eye on this platform to see more value it will offer in 2018.Document source

Resourceful links: Community | Platform | Jelurida

Note: This document with all the information in it is shared here to boost our knowledge of cryptocurrency , the original document can be found here

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