Nxt™ is the first cryptocurrency where no mining takes place on the network, unlike Proof of Work currencies such as Bitcoin. Instead the network is secured by owners of already existing Nxt™ that obtain portions of transaction fees for forging a block. The bigger the stake, the more potential to forge a block. This allows everyone on the Nxt network to have the same reward potential no matter the amount of Nxt you own.
Nxt: What It's all About
Nxt™ is not an "altcoin" that is based on BitCoin with some alterations. Instead it is a new code built from scratch and designed to deliver many more features than just a coin. While some might call it NxtCoin for now, NXT will become a familiar term as more features are revealed. NXT — It is not just a coin.
With NxtT Transparent Forging, the network can detect which accounts do not participate in the proof-of-stake block verification process and temporarily penalize them.
Nxt Transparent Forging will allow Nxt to approach Visa/Mastercard rates of transactions. This is possible with Nxt because the transparency provided in the protocol will allow each user's client to determine which node will generate the next block. Other nodes can then send their transactions directly to that node. This also allows additional fees to be realized for immediate, priority transactions. An equally important feature of Nxt Transparent Forging is a security mechanism to prevent forked chains from being forged by high-stake nodes. This prevents against even a 90% majority owner of all Nxt branching out and forcing a fork.
The Nxt Alias System translates alphaneumeric text into almost anything: Nxt account addresses, email addresses, URLs, phone numbers, SKU codes, and more. The Nxt Alias Systemhas the ability to function as a Decentralized DNS system, and adds additional possibilities for mapping short names to other entities.
Nxt Arbitrary Messaging was introduced at Block 40,000. This feature allows Nxt users to send messages to each other through the decentralized network. Nxt Arbitrary Messaging can be used to send simple text, but it can also be used to build complex file-sharing services and other decentralized applications.
The Nxt Asset Exchange is a peer-peer exchange built into the software allowing decentralized trading and eliminate trading fees. The Nxt Asset Exchange will allow trading for almost any currency and for almost any commodity.
This feature is based on the "colored coins" concept. Since the blockchain provides a trustworthy record of transactions, it can be leveraged to provide a record of trade of items other than Nxt. To do this, Nxt allows the designation or "coloring" of a particular coin, which builds a bridge from the virtual crypto-currency world to the physical world. The "colored coin" can represent property, stocks/bonds, commodites, or even concepts. As a result, the Nxt Asset Exchange could be used to trade almost anything.
Nxt™ is "forged" with a small program that can be installed on a regular computer. It is "forging" for transaction of currency that already exists and does not require the extensive mining systems of Proof of Work currencies like BitCoin and altcoins. The power efficiency of using an average PC makes Nxt™ more friendly to the environment.