Nxt: Powering Open-Source Financial Services Apps
Nxt (NXT) is an altcoin launched in 2013 to power a blockchain platform of the same name. This platform hosts decentralized applications that provide business and financial services such as asset exchange and data cloud storage.
Nxt developers saw the potential of blockchain not just for storing transactions but also for creating applications. Through Nxt, users can create their own apps and make safe transactions without the need of third-party businesses. Read on to learn more about what the cryptocurrency and the platform offer.
What You Can Do on the Nxt Platform
The Nxt platform is an ecosystem of decentralized features intended for business and financial services. Whether you use the platform for personal, business, or crowdfunding purposes, you will be making transactions on a fast and functional platform. Here are some of the activities you can do on the Nxt client:
The platform has an Asset Exchange feature that allows secure and fast decentralized trading. This removes the need to transfer assets using third-party agencies. Since assets can represent anything from bonds to movie tickets, there are many potential investments you can make using this feature.
Create and Exchange Nxt-Supported Currencies
The Nxt Monetary System lets you create a unique digital currency. This feature is helpful if you want to start a crowdfunding campaign. Once you have created a token, you can immediately start trading it on the platform or on any crypto exchange that supports Nxt.
Buy and Sell Digital Items
You can use the platform to buy and sell digital goods such as music, e-books, and software. This feature lets you transact with your buyer or seller directly, eliminating the need for a middleman. After making a purchase, you will instantly receive a link to download the item.
The Nxt platform allows you to send messages to and from another user. By default, the client encrypts all messages to make sure they are read only by the sender and receiver. This message can be unlocked only with the private key of your account and the account of the other user.
Store Data on Blockchain
Nxt has a decentralized data storage system that keeps a record of all transactions. In the cloud, you can upload your files such as permits, records, and documents. If you want to keep the file private, you may want to encrypt it as it can be accessed by anyone on the blockchain.
The Alias System is one of Nxt’s most powerful features. Through this feature, you can generate a single word or phrase to represent a more complex string of letters or numbers. This allows you to easily remember telephone numbers, email addresses, and more.
If you are a Nxt user, all these features will give you the freedom to control your transactions and your data without relying on third-party agencies. You, as a crypto holder, will also enjoy secure and nearly instant transactions on the network using the altcoin. You just have to download the Nxt software, install it in your computer, and start using any of the features.
What Makes Nxt Different from Other Cryptos
Nxt may be one of the many cryptocurrencies in the open market, but it has features that make it stand out from other crypto coins. The following are what makes Nxt unique from other digital currencies:
Created from Its Own Code
Many digital currencies use a code modified from the original Bitcoin source code. This causes an increase of transactions on the Bitcoin blockchain. But this also means the block size needs to increase in order to accommodate more transactions. Otherwise, transactions will be delayed and miners will charge higher transaction fees to users.
In order to address Bitcoin’s scalability problem, Nxt developers programmed the Nxt altcoin and its blockchain from scratch using Java. Because the altcoin has its own source code, the blockchain will be able to easily incorporate more applications. Compared with Bitcoin which can process seven transactions per second (TPS), Nxt can handle 100 TPS. Not only does the network adapt to additional features, but it also provides faster transaction speeds to its users.
Utilizes proof-of-Stake Mechanism
In order to verify transactions on the blockchain, Bitcoin and other cryptocurrencies use proof of work (PoW). This system has miners competing against other miners to solve cryptographic puzzles and to earn coins. This process, however, requires a miner to purchase expensive equipment, thus incurring huge maintenance and energy expenses.
On the other hand, Nxt relies on proof-of-stake (PoS) mechanism to validate transactions. The miner, called a forger, can verify transactions according to how many coins he holds. A forger needs only a desktop computer or a mobile device in order to forge and earn coins. Compared with PoW, PoS is more energy-efficient for users who want to help secure the crypto network and earn coins as a reward.
Has Static Money Supply
Unlike other cryptocurrencies that need to generate new tokens, Nxt does not need to mine new coins. The developers already created 1 billion coins and distributed these tokens to shareholders upon launch. All of the 1 billion NXT is recycled between users. The platform charges its users with a fee for every transaction, which is used to reward forgers for validating block transactions.
Overall, Nxt is the ideal coin for users who are looking for a safe, transparent, and decentralized way to share data and payments. By using the cryptocurrency and the platform, users have the freedom to conduct business and create their own applications without the need of a third party.