What is NXT?
NXT is known to be a second generation of cryptocurrency. With all the alticoins, coming out that transforms things like hashing mechanism, block times, difficulty, and lots more. NXT aims to invent much more to all and was designed like this from its creation. It is not an alticoin like peercoin, litecoin or other values that their codes are based on Bitcoin source code. Its source code is new and different. It allows for an in-built support for large features like a decentralized peer to peer exchange, system of voting, chat and messages, decentralized DNS, and other functions for immediate transactions. Several Bitcoin based currencies uses one or two of the above feature of the Bitcoin Network that still exists. NXT ensures that all their networks are approved and their model is built for speed and scale. The proof of stake is 100%, and the proof of work mechanism compared with other coins. Instead of using powerful computers for mining new coins, NXT has leverage the balance of existing accounts to forge block, and forgers are rewarded with transaction fees. The algorithm of the proof of stake is efficient enough to operate on Smartphone and other small devices.
Also, this method eliminates a large security risk which is prone to other coins; it’s a past tense to mention the issue of 51% attack and other vulnerable activities of the proof of work. It took weeks to announce in advance unlike other coins that’s just in hours. Based on 21BTC injection by 73 confirmed stakeholders, 1 billion NXT coins were removed from NXT genesis block and are recently being distributed to many accounts holding through giveaways, trades and bounties for the thriving development of the platform. People are trading on 1 on 1 basis and NXT is listed on coinmarketcap.com alongside centralized exchanges like bter.com, dgex.com, Crypsy.com and Poloniex.com. NXT is introducing a slick feature named Transparent Forging; it gives room for every user’s clients to detect the server nodes that will create the next blocks automatically.
Clients are allowed to send their transactions directly to that node, reducing the times incurred in transaction. Instant and high priority transactions may be done with additional charges. Another essential feature of the Transparent Forging is a unique security function of the protocol, which can decrease the forging power of nodes to zero who can create the next block but resist, accounts that are penalized and do not support the network, and spreading the power to nodes that do. Using Transparent Forging, 90% of major owners of NXT will be stopped from branching out and forcing a block chain. Example is when a node has 90% of all NXT, and doesn’t create a block at prescribed time; the system will decrease the power of its forging to zero to protect a bad fork from being forced.
GETTING STARTED WITH NXT
If you’d like to try NXT, here are some tips to help you out! Note that the network of NXT was created at ending of November, 2013. It’s a huge transformation and it possesses a great potential, though it is young, and the software is still made solid as an advanced feature. Constant work in progress is the official client of NXT, following the version 1.0.0 and was updated to a brand new interface community. Some operating systems also possess alternate software which you can use. To get started using NXT, here are the steps you need to follow:
1.) Download and install NXT software (there are options for original or alternate)
2.) Create a NXT account address
3.) Learn how the NXT client software works
4.) Purchase your first NXT coins
5.) Follow up in Forging (optional but it’s recommended)
When calculating the balances of NXT account, you are required to scan the whole block chain. Though it seems inefficient, with the present day network speeds and the speed of CPU and it’s not a computational task. It transfers the work required of the NXT server and gives room for smaller devices to be a next node of NXT.
All the NXT transactions are termed unconfirmed until there are combined in a valid network. Blocks that are newly created are spread to the network by the account that created them; also a transaction that is joined in a block is required to be confirmed once. Subsequent blocks are combined to the block chains that exist; every added block adds one more confirmation to the confirmation number of the transactions. Transactions of NXT are reliable after it is confirmed 10 times. 70 blocks previous blocks can be re organized by the network when problem occurs, and a transaction is termed irreversible after its confirmations reached 721. Permanent transactions would have reached 1440 times of confirmations.