What is NXT Coin? | A Beginner's Guide

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NXT Coin Price

NXT Cryptocurrency Overview

NXT is a blockchain platform built on the foundations of previous Cryptocurrency platforms like Bitcoin. NXT has many features including decentralized asset exchange, marketplace, voting systems and NXT itself being a currency system.

It is easy to use, open-source, permissionless and gives users freedom.

Creation of the platform is completely open and free without the ability to deny or restrict what developers and users can do.

History Of NXT Coin

On September 28th, 2013 on Bitcointalk.org, a member, named BCNext created a forum and announced the launch of a Cryptocurrency named NXT.

The forum called for it to be a second version Cryptocurrency and they asked for small BTC donations.

Then they would determine how to divide and partition stake.

On the 18th of November 2013, the crowdfunding ended. NXT’s genesis block was then first mined on 24 November 2013.

It revealed that 1,000,000,000 NXT tokens had been distributed to 73 stakeholders in proportion to their level of contribution.

The full source code wasn’t released until 1 March 2014 under the MIT License.

NXT has been in development and slowly releasing their product and network over the past few years.

The NXT Foundation

While NXT was proposed by an anonymous member named BCNext, they also have the NXT foundation.

This is the main communication and face of NXT coin.
And it consists of two main board members.

Dave Pearce - Twitter

Travin Keith - Linkedin

The NXT foundation both works with NXT and Ardor the two companies that they have found.

They are a nonprofit organization founded in the Netherlands, promoting the use of NXT blockchain and Ardor Blockchain both founded by Jelurdia.

They both support and specialize as a point-of-contact for these businesses and organizations.

What is The Purpose of NXT Coin?

NXT was created to build on to what Bitcoin has achieved.

They call themselves Internet 3.0 or Cryptocurrency 2.0 based on the current paradigm.

What NXT is aiming to achieve is an open-source, decentralized blockchain ecosystem. There can’t be restrictions or denials for APIs and applications built and serviced on this open-source, decentralized blockchain.

It includes many core-level features such as decentralized asset exchange, marketplace, voting system, apps inherit the nxt blockchain itself, and NXT token being a currency itself.

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What Are The Main Features of NXT Cryptocurrency

Account Features

To both have customer identification and public verification/endorsement the account can have tags.

These tags contain small amounts of data that can be set to other accounts right on the blockchain.

Each tag can contain either unique (property) or non-unique (value) based information.

The tagged account can delete them at its choosing, and they can be referenced on the public blockchain.

Asset Creation

There are tokens on top of the NXT blockchain that can be created to represent anything.

NXT becomes the transaction fee, and each transaction is recorded on the blockchain.

Just like sending something to one NXT account, dividends can be sent to all asset holders with the same transaction fee of sending it to one account.

This allows for airdrops, mass distribution, and much more.

Asset Exchanges

While you can create assets on NXT, you can also exchange them for their asset exchange.

This NXT AE allows users to exchange assets in a decentralized manner.

Every action on the exchange costs 1 NXT to use (stop loss, post or canceling limit orders, etc...)

Aliases

Similar to a username on messaging platforms and such, you can have an alias on the NXT platform.

These work in that users can register combinations of letters and numbers, such as names and phone numbers that point to the NXT account.

Other users can send an alias, to make transfers easy.

Currency Creation

As we already discussed in the feature of asset creation above, currency creation allows for the payments of assets.

These tokens can be created as a currency for the common monetary purposes.

You can set features like SHA 256 mining, SCRYPT, or multiple mining algorithms. Similar to assets, the transaction fee comes in the form of 1 NXT.

Data Cloud For Storage

Users can upload small files like images and plain text files, into the blockchain itself.

The sizes range around 1000 bytes of data permanently or 42 Kilobytes of data for a short amount of time.

This allows people to build file-sharing services, applications, and more.

These can be accessed by anyone on the public blockchain.

For private data, it is recommended to encrypt the file before uploading it.

The NXT Marketplace

With the marketplace, NXT users can purchase and list different products or services.

These are stored right on the blockchain itself.

There is no 3rd party restricting what can or can’t be listed on the network.

While you can list anything, the prices will appear only in the amount of NXT required to purchase it.

Messaging

Messages can be sent between accounts on the NXT blockchain.

This can be a part of a transaction or a stand-alone message, which moves from one alias or public key to another.

Messages can then be encrypted and unlocked with a private key of either accounts or any 3rd party with the shared key.

Phased Transactions

Users can set conditional transactions and properties.

This allows people to delay transactions, set parameters, to make the transaction execute at a certain block height after approval from a whitelisted account, or even after a hash is announced to the network.

Shuffling Feature

This feature allows for more anonymity for NXT users.

You can hold NXT, assets, or currencies from different voluntary accounts to be mixed and then have them appear on new accounts.

These new accounts are accessible with the passphrases created by each shuffling participant.

A Voting System

Holders of the currency or NXT-asset currency can vote in a cryptographically proven and externally verifiable way.

There are over 100 options that users can create polls with.

With the amount of NXT that a user has, people setting the polls can create a weight system, this also works for the number of assets the user has.

Or you can restrict voting weight to 1 vote per account.

These are used for personal polls, future development decisions, and shareholder voting.

Cons of NXT Cryptocurrency

Distribution of Per-Mined Coins

Since there was no ICO or initial coin launching phase, only 73 people had total sums of all existing NXT tokens at its launch.

User-generated Passwords

Private keys are generated from a users password vs. a private key being stored in the wallets file.

What We At GCA Think of NXT

NXT coin is an interesting idea.

The branding of a Bitcoin 2.0 isn’t something that we think it should be, but the design and creation of an ecosystem is admirable.

We will be watching this coin shortly to see how technological developments and the community work together.

If done properly the voting system and many of its features (like an uncensorable marketplace) may lead to mass adoption and use.

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February 23rd 2018, 14:45