Most cryptocurrencies are designed for one purpose and one purpose only, moving around their own token. There are exceptions but none are quite like Nxt. It is a blockchain platform that has been running successfully since 2013 making it one of the original altcoins. Nxt is a tried and tested proof of stake blockchain aiming to become a completely decentralised economic system. Nxt can be used to assign a value to any digital asset and trade it. For a guide to buy, see our NXT buy guide.
Like other cryptocurrencies released around that time, Nxt was created by an anonymous developer BCNext who made his first public appearance on Bitcointalk forum in posts made between September 28, 2013 and November 8, 2013.
In time we would learn that another anonymous crypto genius, Come From Beyond, who coded the original version of IOTA is also BCNext, and his real name is Sergey Ivancheglo. Nxt was the first implementation of full proof of stake, a contribution which was seriously overlooked at the time.
Unlike other cryptocurrencies that are just trying to build a platform to exchange a single digital asset – their token – Nxt is trying to become a complete economic system. They are aiming to do this with a token system that lets users assign value to any asset and then trading it on the Nxt platform. Built from scratch in open-source Java.
On this platform it will be possible to trade tokens linked to any asset. Gold and silver, Loyalty cards, membership cards, balances for public services. The idea is that anything can be given value and traded on the platform.
The genesis block was published on 24 November 2013. The first block set the entire Nxt ledger at a billion token deficit. 1,000,000,000 coins were distributed to 73 stakeholders in proportion to their level of contribution. The Nxt ant-tokens represent the same deviation from 0 in the opposite direction.
As far as token distributions go, this one put a very small number of people in control of all the coins. There is a real risk that one of these 73 whales could dump this coin or manipulate the price, but Nxt has had more or less organic growth.
No additional coins can be created. The Nxt platform’s reward system redistributes transaction fees spent on the Nxt platform to the stakers. Creating the blocks through a process called “Forging”, Nxt incentivises stakers for their participation. The minimum fee for any Nxt transaction is 1Nxt.
Tokens can also be burnt by sending them to the genesis account. The cryptocurrency equivalent of burning money.
To stake on the Nxt blockchain you need to commit 1000 Nxt, and you will have to wait 1400 blocks from your initial deposit to be able to stake NXT. All of these staking criteria has been in place since the ICO. Which was actually one of the first ICOs, and it was very poorly funded. Only $6000 were raised. But just look at all they have accomplished with 6000 dollars and compare it how little other popular cryptocurrencies have done with millions.
The Nxt Foundation and Jelurida
Jelurida BV took over Nxt from BCNext. It is still an open source project and the main contributor to the source code is an anonymous Star Trek fan, going by the name Jean-Luc Picard, but Jelurida sells a private version of the blockchain to companies interested in using them.
The Nxt Foundation was created in 2014 by members of the Nxt community. In 2015, they registered themselves as a non profit organisation in the Netherlands. Their aim was to link businesses with the Nxt blockchains and generally increase the circulation of the coin.
They ran a promotion called the Tennessee Project raising about 70 000 EUR to bring the tech orientated coin’s marketing up to scratch. Nxt needed a hype machine. It is a phenomenal technology. The first working and test POS blockchain, but it’s lagging behind from an investors point of view because of ineffective promotion.
The role of the Nxt foundation has since evolved into supporting the community through the creation and moderation of community channels, such as the NxtChat Slack Team, Nxt subreddit and Nxtforum.org,
Promotion and development aren’t exclusive terms. Nxt is open source. If it becomes more popular, it will attract better developers, but it is already a POS blockchain. Nxt isn’t congested, and it has an entire ecosystem of decentralised features.
Nxt’s Ecosystem of Decentralised Features
Nxt is a flexible blockchain platform that lets users, stakers and developers do all kinds of things. Account leasing lets you lease your forging power to other users. With this functionality it is possible to create forging pools. Meaning that you don’t always have to run a node to see staking rewards. Or a clever Alias system that lets developers rename anything as anything else, so they can quickly reference it or organise digital assets.
Decentralised Asset Exchange
The decentralised asset exchange lets people assign values to Nxt tokens and exchange them on an inbuilt peer to peer network. It doesn’t matter what these assets are. Nxt isn’t doing anything that existing technology can’t, but the idea is that people aren’t reliant on centralised 3rd parties.
The asset exchange has a similar look and feel to Poloniex or Bittrex with buy and sell order books. If this interface was user friendly, this would be a great platform for exchanging gift cards, movie tickets, private equities, public equities, bonds or derivatives.
You have to download the Nxt client if you want to use it, but there is an open marketplace hidden away on the Nxt network. Users can exchange digital products like games, ebooks, domain names and software for Nxt coins. The client is 140Mb and you need to install it on your computer. Compared to just ordering something online there are extra steps for the user, and when I went on there only 1180 items listed on the marketplace.
Admittedly this platform has a long way to go before people will use it, but as far as I am aware, Nxt is the only cryptocurrency that has an inbuilt market place which is entirely decentralised and built into a client. Orders are sent as encrypted messages, that you can decrypt in the client, and they contain instructions for downloading your digital purpose. It is no deep web, but some of the listings on this exchange aren’t technically legal.