NXT is an open-source Cryptocurrency blockchain and payment network founded in 2013. When Bitcoin blockchain was started in 2008, most of its key players took it as a learning platform and later started forming their own platforms. One such platform that has become a major competitor of Bitcoin is NXT. This is a complete review of NXT blockchain.
- 1 What exactly is NXT? Why was it established?
- 2 How does NXT operate?
- 3 The main features of NXT
- 4 Key benefits of using NXT
- 5 Disadvantages of using NXT
- 6 Nxt Price
- 7 Where to Buy and Sell Nxt in Australia?
- 8 Conclusion
What exactly is NXT? Why was it established?
NXT is one of the latest blockchains that was founded to address the flaws and improve on functionalities depicted by previous cryptocurrencies like Bitcoin. It was founded in 2013 and is regarded as the most flexible financial platform that makes it easy to attach more applications.
The founding member who is only referred as BCNext, who previously worked for Bitcoin, decided to form a new platform. However, unlike other platforms that specifically rides on Bitcoin Core, the founder decided to write an entirely new system. BCNext commitment and focus on using the community gave the new platform a more aggressive outlook. He specifically asked the Java developer community not to consider NXT coin as the crucial part, but to create other currencies on it.
How does NXT operate?
In the world of cryptocurrencies where earlier platforms such as Bitcoins utilize the hashing technology as the main coding technology, the time taken to give confirmations between blocks is a great issue. NXT addresses this by bringing more to the table. This has made it get regarded as the second generation Cryptocurrency.
NXT uses transparent forging technology that allows NXT to edge closer to Mastercard/ visa rates of transactions. Indeed, there is no other Cryptocurrency that has reached the level of NXT in bridging this gap. This has been made possible by enhancing extra transparency in the protocol that allows clients to establish the nodes that generate the next blockchain.
To enhance the blockchain efficiency of Transparent Forging, NXT adopts special security features that block forked chains from getting run over by high stake blocks/nodes. Therefore, NXT can prevent one or just a few individuals owning the majority of NXT branching out.
NXT uses Proof-of-Stake system that helps to improve the overall security of the system. The main reason for adopting PoS mechanism as opposed to PoW (Proof of Work), is that it helps to prevent more vulnerability. With PoS, an attacker would require hitting over 50% of all the nodes in the NXT block chain which is practically impossible.
To start trading on the platform, you must start by acquiring the NXT wallet and then buy some Bitcoin. For example, you could opt to use currency exchanges such as Poloniex to acquire Bitcoin. Then, the Bitcoin can be transferred to Poloniex to buy NXT.
The main features of NXT
The decentralized exchange
Once you sign up for an NXT account, the platform utilizes a peer-to-peer exchange model that allows all users to trade in a decentralized manner. NXT eliminates trust point that has become a very serious issue in previous blockchains, and reduces trading fees with other networks.
This is one of the most curious services that work hand-in-hand with the NXT centralized system. Unlike other coins, the colored coins can be used in the NXT platform to represent physical entities such as property, commodities, and even bonds.
Clients based on Java
This has been seen as contempt by Naysayers. However, it comes with numerous benefits like allowing the development team to design and regularly push updates through the system. This means that no developer is prevented from writing clients in any language.
Unlike other Cryptocurrencies, NXT does not have an unchanging coin supply or even block rewards. Rather, the platform transaction fees are passed on. As far as your account is unblocked, it is sure of earning some coins.
This feature allows one part of the text to get substituted for a different piece in the platform. This means that the keywords applied in the entire blockchain can represent other things and not simply the face-value. Some of the changes used in this interchange include websites, account numbers, names, and physical addresses that make it impossible to follow of even identify users.
The latest client 1.5 of NXT uses a phased transaction model to guarantee extra security. Users in different nodes have to supply multiple signatures that work with the decentralized system to provide an additional layer of security.
Key benefits of using NXT
- NXT utilizes colored coins that can be used to represent physical properties including properties and bonds. This means that it can be easily be linked to conventional transactions.
- NXT guarantees users of extra stability and enhanced independence. Following the financial recession of 2008, NXT has demonstrated that it is possible to apply a currency that is free from interference from local authorities and governments. You can now invest and trade without worrying that cash will lose value.
- Tete-a tete deals that remove all the middle handles. Unlike with common trading where you must use brokers and attorneys to enter into and close deals, NXT allows users to take full control of their trading in the platform. The transactions are particularly closed fast so that your returns are evident within shorter timelines.
- NXT utilizes the decentralized system and phased transactions that guarantee extra security for users and forgers.
Disadvantages of using NXT
- Though NXT has made numerous strides in enhancing the security of all the users, it is still vulnerable to attacks.
- Like other previous blockchains such as Bitcoin, key flaws such as irreversibility of transactions still come with serious negative implications.
- The network has been criticized in the recent as a pathway that can be used by cybercriminals to defraud clients.
Where to Buy and Sell Nxt in Australia?
Crypto Currency for Fun recommends buying Nxt at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Nxt and they offer Instant Delivery or your coins right into your account.
This is one of the latest cryptocurrencies in the world today that have a lot of potential for the fast emerging blockchain technology. With very big anonymous business players plugging their operations into the platform, it is considered to pose stiff competition to others such as Bitcoin.