What is Nxt?
Nxt (NXT) is an open-source, decentralized cryptocurrency framework and platform which allows and facilitates the creation of new currencies called tokens. As one of the first “second generation” coins to ever be developed, it offered a wide variety of improvements on bitcoin, such as a decentralized voting system, DApps and a DAO system. Before Nxt, there was no such thing as a token, DApp or DAO. It was also one of the first coins to implement a Proof of Stake (PoS) security and coin rewarding system.
History of Nxt
Nxt was first proposed by anonymous Bitcointalk user and developer, BCNExt. It was announced on the forum in September 2013 as a 2nd generation cryptocurrency which inherited multiple features of bitcoin while improving heavily on its list of features. It was finally launched in November 2013. There was no ICO but 21 BTC were donated by earlt supporters of the concept. A total 1,000,000,000 coins were created and they were proportionately distributed among the 73 donors. The source code for Nxt was completely revealed in March 2014.
How Nxt Works
More than a currency, Nxt is a platform which facilitates multiple blockchain based endeavors. It provides a ready-made solution for users, professionals and even developers. Normal crypto users can use Nxt just like any other cryptocurrency network for sending and receiving money. Professional users can utilize its blockchain to offer financial instruments, records and models, maintain public & private records, maintain semi-public information, or create digital keys for physical assets. It can also be used to interchange different digital assets.
Developers can also utilize the DApps support to build a completely decentralized application and host it on the network as well. They can also use the existing APIs to add functionalities to their programs. For its services users pay a fee with NXT, the native currency.
Nxt, the first of its kind in platform-based cryptocurrencies, offers the following advantages to its users:
- DApps Support. Nxt not only allows developers to distribute DApps, it actually helps them in creating and hosting the DApps. With the future of computing and Internet of Things relying heavily on DApps, the future remains bright for Nxt.
- Launch Own Token: Similarly, the Nxt platform offers the creation of new coins easily and allows you to share, trade and store the coins as well. There is no need to write everything from scratch or trust centralized third parties for ICOs with its token creation system.
- Data Storage: Nxt allows data to be stored in a decentralized way which can be retrieved on demand. This allows cheap, safe and faithless cloud storage for sensitive data, unlike having to trust commercial cloud storage services.
- Decentralized Voting: This is another concept which Nxt supports which is beneficial for maintaining decentralized governance where everyone has a say. This concept is becoming popular among crypto users and Nxt offers “Out Of the Box” solutions for this.
- Account Control: Organizations where multi-level clearance is needed for fund management can benefit from the multi-signature authorization of Nxt protocol, which also makes it suitable for DAOs to control transactions.
- Faster Block Generation: Block generation time is 81 seconds for Nxt which allows faster transaction confirmation and data transfer on its network, reducing congestion and difficulties associated with the traditional PoW-type mining.