Nxt

Nxt is an open source cryptocurrency and payment network launched in 2013 by anonymous software developer BCNext.[1] It uses proof-of-stake to reach consensus for transactions—as such there is a static money supply and, unlike bitcoin, no mining.[2][3] Nxt was specifically conceived as a flexible platform around which to build applications and financial services.

For other uses, see NXT.
Nxt
Nxt Logo
Denominations
Subunit
 1NXT
 10−8nxtQuant
(smallest unit)
PluralThe language(s) of this currency do(es) not have a morphological plural distinction.
SymbolNXT
NicknameNxtcoin (also incorrectly referred to as Nextcoin)
Demographics
Date of introduction24 November 2013
User(s)Global
Issuance
AdministrationDecentralized
peer-to-peer consensus.
 Websitenxt.org
Valuation
InflationDisinflationary. All coins were distributed after IPO (28 September 2013 - 26 November 2013).

Nxt has been covered extensively in the "Call for Evidence" report by ESMA.

History

NXT was created with a total of one billion coins.[4] On 28 September 2013 Bitcointalk.org member BCNext created a forum thread announcing the proposed launch of Nxt as a second generation cryptocurrency and asking for small bitcoin donations to determine how to distribute the initial stake. On 18 November 2013 fundraising for Nxt was closed.

The initial coin offering collected 21 bitcoins that were worth US$17,000.[5]

On November 9, 2015 Farla Webmedia launched a project on the NXT Asset Exchange. In July 2016 NXT launched Smart Transaction templates. Meant to serve as building blocks for businesses to construct Blockchain solutions for particular problems.

Features

The core infrastructure of Nxt is complex. This adds risks [6] as compared to the more lean bitcoin, but makes it easier for external services to be built on top of the blockchain.

A peer-peer exchange allowing decentralized trading of shares, crypto assets. Since the blockchain is an unalterable public ledger of transactions, the Asset Exchange provides a trading record for items other than Nxt. To do this, Nxt allows the designation or "coloring" of a particular coin, which builds a bridge from the virtual crypto-currency world to the physical world. The "colored coin" can represent property, stocks/bonds, commodities, or even concepts.

Arbitrary Messages enable the sending of encrypted or plain text, which can also function to send and store up to 1000 bytes of data permanently, or 42 kilobytes of data for a limited amount of time. As a result, it can be used to build file-sharing services, decentralized applications, and higher-level Nxt services.

Allowing holders of the currency or Nxt-Assets to vote in a cryptographically proven and externally verifiable way. This can be used for future development decisions, or for shareholder voting. It can also be applied to public elections and community based decision-making.

This makes it possible for external developers to add features or usability enhancements. The plug-ins are not contained in a sandbox.

See also

References
  1. DeMartino, Ian (2016). The Bitcoin Guidebook: How to Obtain, Invest, and Spend the World's First Decentralized Cryptocurrency. New York: Skyhorse Publishing. ISBN 978-1-63450-524-6. Retrieved 2018-11-21.
  2. Prypto (2016). Bitcoin for Dummies. Hoboken, New Jersey: John Wiley & Sons. p. 170. ISBN 978-1-119-07613-1. Retrieved 2018-11-21.
  3. Ciaiana, Pavel; Rajcaniova, Miroslava; Kancs, d'Artis (January 2018). "Virtual relationships: Short- and long-run evidence from BitCoin and altcoin markets". Journal of International Financial Markets, Institutions and Money. Elsevier. 52: 173–195. arXiv:1706.07216. doi:10.1016/j.intfin.2017.11.001. ISSN 1042-4431. S2CID 113405558.
  4. Franco, Pedro (2015). Understanding Bitcoin: Cryptography, Engineering and Economics. Chichester, West Sussex: John Wiley & Sons. pp. 203–204. ISBN 978-1-119-01916-9. Retrieved 2018-11-21.
  5. Lee, David Kuo Chen; Low, Linda (2018). Inclusive FinTech: Blockchain, Cryptocurrency and ICO. New York: World Scientific. p. 90. ISBN 978-981-3272-76-7. Retrieved 2018-11-21.
  6. Renato P. dos Santos, Melanie Swan (2018-05-13). "PoW PoS Hybrid protocols: A Matter of Complexity". arXiv:1805.08674 [cs.CR].
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