NXT Technology

nxt.org
Description

Launched: 2013

NXT is a radically enhanced cryptocurrency built from scratch, to deliver a unique and decentralized financial platform. Not only does it open up new possibilities – from digital cash to transfer of shares – but it addresses all of the most serious deficiencies in existing cryptocurrencies.

Features
Digital Money
Reliable
Secure
Technology

Nxt was the first exclusively Proof-of-Stake (PoS) cryptocurrency. The advantages this brings over traditional Proof-of-Work models are significant. Moreover, Nxt’s innovative Transparent Forging system eliminates not only the chance of a 51 percent attack, but anything up to a 90 percent attack. It’s an efficient, fast and elegant way to secure the network.

What is Proof-of-Stake?

In a Proof-of-Stake model, transactions can be added to the blockchain or ‘forged’ by any member of the network. The node chosen to forge a block is random, but the odds of forging a block are proportional to their stake in the network (the number of coins they hold).

What is Transparent Forging?

PoS is theoretically vulnerable to attacks, because anyone with a large enough stake can rewrite the blockchain for their own benefit. Transparent forging is an ingenious answer to this problem.

Although the node which forges a block is random in the long term, in the immediate future it is highly predictable. This means the network knows where the next block should be forged. If a node does not forge the block it is expected to (perhaps because it is working to build a fraudulent chain instead), it is excluded from the network for a period of time. The likelihood of that node being chosen is instead redistributed across the remaining members of the network.

What are the benefits of PoS and Transparent Forging?

Proof-of-Stake and Transparent Forging form a powerful combination with substantial benefits over other methods of verifying transactions:

  • The system is highly efficient and far less wasteful of resources.
  • There is less incentive for centralised mining, as there is with PoW.
  • Forging can be carried out by anyone, and on the most low-powered computers (such as Android devices or a Raspberry Pi).
  • The currency is more stable, as there is no inflation. Coins are earned through transaction fees alone.
  • Transactions can be both fast and secure.