Beginner’s Guide: What Is NXT? The Second Generation Blockchain Platform

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So while many of you have started to explore the cryptocurrencies and digital coins, the blockchain technology is growing faster than you can ever imagine. Although Bitcoin, Ethereum, and Ripple have the majority of the market value, there are some cryptocurrencies who are shining up with new technologies, ideas and innovation. And, NXT, the cryptocurrency 2.0 is one of them. But, What Is NXT?

Nxt – Own Your Data, Control Your Name, Files, IP, Asset, Trade, Budget, Freedom, and World

Launched in November 2013, NXT is a payment network and an open source cryptocurrency that was created by the anonymous software developer BCNext.

NXT is an advanced blockchain network that is built to enhance the functionality of rising cryptocurrencies such as Bitcoin, Ethereum, and more. The issues associated with popular cryptocurrencies are- scalability and efficiency.

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Scalability- The Proof Of Work in Bitcoin slows down or limits the speed at which the transaction takes place on a network at any given time.

Efficiency: Efficiency is the process that is required to verify the transactions. Currently, there is a huge amount of power and electricity that keeps the Bitcoin network in a proper functioning manner. So, if the transaction volume will increase, the use of power will also increase at the same time.

NXT is known as the first blockchain to introduce proof of stake protocol to reach consensus for transactions. (There is a static supply of money, and comes with no process of mining, like Bitcoin.) POS has the potential to handle the number of transactions and solves the issue of efficiency.

What Is NXT Platform?

Image Credits: NXT

NXT is entirely different from other 1300 cryptocurrencies and is coded from scratch in JAVA. Along with this, it also comes with the various restrictive components that make it a highly secure network from bugs and hackers.

It aims at completely revolutionizing the governance, crowdfunding, and financial technology industries by not just providing the NXT cryptocurrency, but also giving them the access to the blockchain and technology associated with it.

It gives users the complete freedom to create their own applications.

NXT also has an integrated Asset Exchange feature, marketplace, and a messaging system that can be used by users to create new currencies within the system.

History of NXT 

The idea of launching NXT first came out on bitcointalk.org when it roughly raised 21 Bitcoins for funding.

On 28 September 2013, a Bitcointalk.org member created a forum thread that announced the launch of NXT as a “second generation cryptocurrency,” and asked for small donations for determining the distribution of initial stakes. The fundraising got closed on 18 November 2013, and the block got published on 24 November 2013.

The block revealed that it had distributed 1,000,000,000 coins to the 73 stakeholders in the same ratio as of their initial contribution. The full source code came out in 2014, and since then, many traders and developers have developed an interest in NXT.

Later on, On November’9, 2015, Farla Web media started a project on NXT Asset Exchange.  And, in 2016, NXT launched an entire suite of Smart Transaction templates.

The network of NXT is running successfully for six years, has a strong team, and a foundation.

Features of NXT 

To better understand what is nxt, Let’s review the core features of the blockchain platform.

The 5 main features of NXT include:

  1. Asset Exchange: Just like other cryptocurrencies, NXT Asset Exchange is basic peer to peer software that allows decentralized, fast and functional trading. But it eliminates the need to send the assets to the foreign business and also has the potential to get the wide range of investments done.
  2. Monetary System: It came up in version 1.4.8 and is a system that allows you to make and trade the tokens known as currencies. The Monetary System currencies are used for trading within the system and outside the NXT core as well.
  3. Data Cloud: The NXT Data Cloud is known as the decentralized data storage system. It keeps a record of all the NXT transactions and also stores the user-defined One of the most important features is that the NXT blockchain is a permanent record that allows the legal records such as certificates and contracts to stay fixed in it.
  4. Voting System: The NXT Voting System allow the currency holders to make a vote in a cryptographically prove way. It also allows the creation of simple polls and lets the transactions to work on the approval and rejection by the user.
  5. Account Control: With the account control feature, you can create the account that can only make a transaction with the approval of specified current and assets holder. It also enhances the security of account and makes sure that only the specific people have access to funds.

All the Nxt features are available through the Nxt core client as well as with the Next API.

How Does Nxt Works?

Nxt works on the process known as Forging. It relies on the transaction fee that it gets from the platform to reward the miners.

The minimum fee for any Nxt transaction is 1 Nxt. To start, a user needs to purchase Nxt coin. Once they have purchased the coin, they have to set up a wallet and install it on your computer. Send the coin to the wallet and allow it to run and forge for the network.

The users can also earn tokens by trading for the fiat and cryptocurrencies.

Nxt Products and Tools

Nxt Blockchain Platform

It is an open platform that offers you a wide range of things, which you can do with a blockchain. NXT comes with an impressive array of functions that are already into the software.

As the time went on, the developers of Nxt got up as Jelurida (Netherland based startup). For the users who did not have blockchain as an option, Jelurida offers them the license for the private version of Nxt software. And for the open projects, there is a blockchain creation kit that allows the project owners to launch new blockchain based on the code.

The developers had the IP rights of the technology and took the decision to create a successor of Nxt, known as Ardor.

Ardor Blockchain Platform

what is Ardor NXT

Image Credits: Ardor

It is the successor of Nxt software that addresses all issues of the blockchain. According to Jelurida, it is an ecosystem where the players can interact with each other. Moreover, it is just like Nxt and runs as a public open source software.

 

Ardor will not replace Nxt but it may or may not co-exist with it.

Ignis is the first child chain (a light blockchain that allows self-deployment of your own blockchain) on Ardor that helps to reduce the bloat issues by allowing the data to cut away on a scheduled time.

Other NXT Tools include- Price Converter, Blockchain Explorer, Asset Exchange Overview, Nxt Stats, and Votings Overview.

NXT Tokens

There are two types of Nxt tokens namely the Assets and the Monetary System cryptocurrencies. These tokens represent anything including ideas, stocks, property, bond, commodities, and anything you prefer. Even ideas too!

The users can make use of these tokens to connect the real world from the digital one seamlessly. You can also distribute voting rights through these coins as well.

Will Nxt Be The Next Super Cryptocurrency?

Nxt has seen various possibilities and has also come up with the solutions for solving the challenges that are faced by the blockchain technology. They have created various applications, tools, products, and have also continued to break grounds with Jelurida.

Its last release has also enabled the plug-in system and multi-signature capabilities for the client. And with the development of Ardor and Ignis, we can still keep an eye on the cryptocurrency.

But like every other cryptocurrency, its exact future remains uncertain as ever. However, Co-founder and Managing Director of Jelurida, Lior Yaffe says:

“Rest assured my friends; NXT has a bright future, it has been around for almost four years and will be around for a long time.”

 

*Disclaimer:  The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. Do your own research!


About Author

You can best describe Pawan as a software engineer and a tech geek who happens to be obsessed with cryptocurrencies. When he is not working, his fascination with the blockchain tech keeps him rather busy.

1 Comment

  1. finally, someone wrote the things as they are in reality, NXT is the best and it is very far from revealing its full potential… the problem here is the entity called Jelurida and not the technology…
    thank you dear Pawan 🙂

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