Tennessee Project: Working on the NXT Frontier

Since the launch of the NXT platform the main focus has been on the tech: NXT Currency, Asset Exchange, Monetary System, Marketplace, Arbitrary Messaging, Alias System, … So many features and possibilities.

Whilst the tech undoubtedly gives NXT a big potential advantage over competing platforms, it seems every time a new technological innovation is added to the NXT platform it actually results in a price drop. Why? Presumably because the platform, in all its ever-increasing functionality, is not intuitively easy to use, nor easy to explain. Let’s face it, it’s not for the average joe… At least not yet.

This is where the Tennessee Project wants to step in and make a change. With all the focus on technological advancements, the marketing has been neglected resulting in a declining adoption rate and a gradual price drop.

The project’s goal is to push NXT marketing and promotion to a professional level over the next 12 months while at the same time making it easier to use for the average joe.

Not a small task to take on, but a great team has been assembled including, at its heart, Bas Wisselink (Damelon) and Dave Pearce (EvilDave), who will each receive a part-time salary on a self-employed basis, allowing them to work freely on Tennessee, in addition to their other tasks within the Nxt community. They will work closely together with NXT core developers Jean-Luc and Lyaffe. Several components of Tennessee will also require paid outside contractors. The Tennessee Project will be run under the banner of the Nxt Foundation.

A professional project of this size needs serious funding. The project is looking to raise 10 million NXT in order to function for 12 months. The Monetary System will be used to raise the funds. EvilDave has issued the TNSSE currency with account NXT-P439-YVBD-VUEQ-A3S2T

We have already started an informal fundraising project among NXT businesses and stakeholders to raise the minimum of 10 million NXT, and we are happy to say we have already received firm pledges for up to 5.5 million from Nxt investors and stake-holders.

The funding will end on Monday October 26. If the target 10 million NXT is reached, all funds will be transferred to the Tennessee account. If it is not reached, all funds will be returned to the original accounts. This could mean a big boost for NXT from which the whole community would benefit, so every donation matters, no matter how small. 4.5 million NXT is still needed to meet the 10 million NXT target. This covers the salaries of both Damelon and EvilDave for a year and the budget to actually do the tasks.

As explained on the Nxt forum, the Tennessee Project has three overall aims:

  1. A major increase in and professionalisation of NXT marketing.
  2. To improve the Nxt user experience, in terms of ease of use, support and documentation.
  3. The acquisition of leads to incorporate NXT into real world applications/businesses and to attract investors to the platform.

In order to achieve the above aims, the Tennessee project will have the following short term goals, to be realised by Q1 2016:

● Completely overhaul www.nxt.org, and streamline the web presence/SEO for all community owned sites.

● Create a continuous and coherent marketing/PR campaign, putting the focus on what NXT has achieved so far, and on highlighting real world use cases for NXT.

● As part of the above 2 points: create a complete portfolio of use cases, media packs and other publicity material, to be used in all NXT marketing.

● Set up a co-ordinated team for social networking/forums.

● Create a coherent strategy to interest potential Nxt-based projects and investors who may be interested in utilising or investing in NXT/SuperNet.

● Expand and improve on relationships with our media contacts, including establishing exploratory relationships with professional PR agencies.

● Create leads, and follow them up. This is a task we have been doing for months now, but it desperately needs to be professionalised and that takes time.

Long term goals, to be realised by Q2/3 2016:

● Assist/finance the development and deployment of simplified NRS software: i.e. Lite clients and webwallets.

● Create a comprehensive user guide for the entire NXT system, from account creation all the way to customised MS issues.

● Set up an incubator system for both potential and currently running Nxt-based projects. This will have the aim of helping out projects with both direct technical/marketing assistance, and to bring these projects into contact with investors. The incubator will take a small percentage portion of any projects that it helps, and redistribute this income to the NXT community.

● Integrate a professional PR agency into NXT promotion, and finance a campaign from them.

Further goals will be added to Tennessee as the project progresses, but this outline is a solid basis on which to build further marketing and PR.

More information on the project can be found on the Nxt forum.

You can make a donation using the official NRS Client, local, lite, or webversion:

  • Click on Monetary System + Currencies section.
  • Find TNSSE / Tennessee (search “TNSSE”).
  • Click on “Reserve” in the “Actions” column.

tnsse

  • Enter the amount of NXT you want to donate.

  • The NXT amount will be deducted from your account and held until the activation block, which is block 554,000, approximately Monday 26 October 2015, 22:00.

In my opinion, this is the missing component in the NXT platform: a strong dedicated team focused on marketing, promotion and pushing adoption.

As to where the project name came from? Who knows… maybe they came up with the name over a glass of aged Jack Daniels!

………………………………….

With Nxt Monetary System anyone can run a decentralized crowdfunding campaign.

Learn more about the Monetary System here: 

http://test.nxter.org/nxt-core-monetary-system/ 

NXT to power a full economic ecosystem

nxt-nautuluscoin-greece-cryptocurrency

Today a press release from Nautiluscoin announces the launch of a full economic ecosystem, built on the Nxt blockchain. The launch event of the Drachmae Ecosystem will take place on September 26, 2015.  Furthermore, Brian Kelly Capital (BKCM LLC) will be making a seed investment in a new entity that will deploy this ecosystem globally, first targeting developing micro-economies in Latin America and Africa.

“We are pleased to announce that we have formally joined forces with the Drachmae Project and have developed a full economic ecosystem for the island of Agistri”, Nautiluscoin writes. “This ecosystem includes a fully functional mobile banking system, a B2B ecommerce platform, and a travel-booking site, all fueled by Nautiluscoin. This ecosystem will be rolled out on the Greek island of Agistri on September 26, 2015.

We are providing the tools for the municipality and businesses of Agistri to investigate ways of generating new revenue via our blockchain-based ecosystem. Businesses will be able to save money via the B2B platform by connecting directly with suppliers, while at the same time offering discounts to travellers via the travel platform. Powered by Nautiluscoin, the ecosystem will offer efficiency and simplicity, providing tourists with a simple one-stop shop for all aspects of booking a holiday.

We are focused on the end users of the currency – the businesses, citizens and visitors – this is our community. This proof of concept will illustrate how digital currencies and blockchain technology can benefit a community. To that end, the communtity in Agistri will be actively involved in the project and will share ownership and revenue from the Drachmae Project.

The mission of the Nautiluscoin project is to use digital currency and blockchain technology to bring money into an economy. While digital currencies have been successful at providing a means to remove capital from an economy, few have successfully shown that adoption and use can drive economic growth – the Nautiluscoin project is about to change this.[sharing tagline=”” tagline_color=”” title=”” link=”http://test.nxter.org/?p=11118″ description=”” pinterest_image=”http://test.nxter.org/wp-content/uploads/2015/09/nxt-nautuluscoin-greece-cryptocurrency.png” icons_boxed=”” icons_boxed_radius=”4px” box_colors=”” icon_colors=”” tooltip_placement=”” backgroundcolor=”” class=”” id=””][/sharing]

 

Coin Swap

The Drachmae Ecosystem has been built using the NXT Platform and Nautiluscoin will soon be swapped onto the NXT monetary system. We have chosen NXT because of its superior technical capabilities, security and community support. The business orientation of the NXT community will be the foundation on which we build our ecosystem.

The NXT Foundation will be assisting with the coin swap that will commence on September 18, 2015. We will post the coin swap instructions on Bitcoin Talk on Wednesday, September 16, 2015 and the offical commencement will be announced via Nautilsucoin’s Twitter account.

The NXT Foundation will also be assisting with the structure and the operation of the Nautiluscoin community, which includes the businesses and citizens of Agistri who wish to join the project. This project would not have been possible without the expertise and support of the NXT Foundation. The NXT team and Foundation have been integral to realizing this opportunity to utilise the power of blockchain technology.

The Launch Event

The September 26, 2015 launch of the Drachmae Ecosystem will include a community barbecue where the Nautiluscoin airdrop will formally take place. Each citizen that attends will be given €100worth of Nautiluscoin to spend at the barbecue and local businesses. As well, members of the press will be given €100 worth of Nautiluscoin.

We will also be hosting a Hackathon event for developers to explore our blockchain ecosystem and create apps. We encourage anyone with an interest in blockchain technology to develop apps that can solve real world problems for the community. We will be hosting up to 40 developers to join in this first of its kind Hackathon in Greece. We are also extending an open invitation to companies and government organisations to visit and observe the event.

The launch event will be capped off with a televised fashion show featuring professional models wearing GetNauti gear. We have hired a camera crew to be on island for the launch event to capture this historic moment. This fashion show is a pre-shooting for the Athena Model TV Show that will be hosted on Agistri in 2016.

We are excited to bring this revolutionary technology to Agistri and are grateful for the foresight of the Mayor, local businesses and citizens. This will be the first time an entire economic ecosystem has been experimented and deployed and we are looking forward to this historic event.

Brian Kelly Capital Investment

The ecosystem that will be deployed is both scalable and efficient, making it suitable for multiple use cases. In parallel with the Drachmae launch on Agistri, Brian Kelly Capital (BKCM LLC) will be making a seed investment in a new entity that will deploy this ecosystem globally. The new entity will license and implement new blockchain based economic ecosystems similar to the Drachmae Project. Currently, the entity anticipates targeting developing micro-economies in Latin America and Africa.

Commenting on the investment, Brian Kelly said, “With this technology we can deploy a fully functioning economic ecosystem which includes a banking system, a commerce platform and a currency. We are excited to be a part of this revolution.”

The new entity will be focused on deploying this technology to other countries, municipalities or organizations that need a fully functioning micro-economy.”

Also read: Nxt – the economy platform for everybody

The Viral Exchange joins SuperNET

viral.exchange.large

The Viral Exchange (TVE), project-led by Killakem (founder of Fibre coin and also project leader of Blitz), has just been announced as a SuperNET official partner.

TVE enables users to promote their websites and social media presence whilst earning NXT, Bitcoin and Blitz for their social interactions on all the major social networks.

TVE is the first social exchange platform that allows users to cash out points to digital currencies.

Killakem writes:

The Viral Exchange (TVE) is a next generation social exchange with the goal of monetising social network activity via the blockchain.

TVE is a free social exchange network which helps businesses increase their social network presence and drive users to their websites. The exchange system is very simple: every time a user likes, follows, or views another member’s social media page they receive Viral Points which can then be used to get more followers, likes, views or visitors to their own website or social media pages. The Viral Exchange is the first social exchange platform that allows users to cash out points to digital currencies. Users can earn Bitcoin, NXT and Blitz with their Facebook, Twitter, Google+, YouTube plus many more.

The Viral Exchange is now a SuperNET official partner! TVE will be helping to raise awareness of SuperNET inside and outside of crypto, while also providing free marketing on the platform and exposure through our press releases. TVE will also utilize InstantDEX for automated user withdrawals once its ready and we will be integrating SuperNETs innovative technology with TVE wherever possible.

Version 2 of TVE is currently in beta testing and 100 Blitz is being offered for every new bug found (cosmetic bugs not included).

To find out more, join the Bitalize channel on Slack.

TVE is being redeveloped from scratch, the new platform will utilize an MVC Architecture providing an extensive API. Moreover, the NXT Monetary system will be used as part of our Proof Of Reserve system, this will give users, marketers and asset holders complete visibility of the purchases and withdrawals on The Viral Exchange. Asset holders will not need to rely on the information we give them: all deposits and withdrawals will be publicly available on the blockchain.

[Source: TVE Business Plan]

Working closely with NXtInspect, TVE has recently relaunched its Nxt Asset. ID: 10848741160900045194.

Fiat is failing. Let ‘battle’ commence?

This is the first in a series of articles examining the problems of the fiat monetary system and comparing the various possible solutions, with particular reference to the 2nd generation cryptocurrency: Nxt.

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Cryptocurrency (which is a decentralised form of digital currency)1 has now reached such an advanced stage of technological development that it would be remarkable if there was a national government anywhere in the world that was still not yet paying it serious attention; at the same time, the debt based fiat monetary system, following the ‘global’ financial crisis of 2007/8,2 remains in a critical condition.3

What exactly the world’s financial and monetary systems will look like beyond the short time horizon of the foreseeable future is impossible to know but we can at least be sure that the powerful private vested interests (primarily the commercial banks) who support the fiat monetary system in its present form will seek to preserve it substantially unchanged as far as possible and for as long as possible (a subject which is discussed in more detail in the forthcoming second article in the series: ‘Is fiat a fraud? From false commodity to false economy’).

fiat-printing-nxt-crypto-currency

Has war been declared and, if so, where are the battle lines?

As yet there has been no internationally co-ordinated government level response to the disruptive potential of decentralised ledger technology (i.e. cryptocurrency 1.0 and 2.0),  although work is currently being carried out which will ultimately lead to a response at the European Union level specifically regarding investments.4

In the meantime there has, to date, been a number of responses from individual countries, either specifically in respect of bitcoin or otherwise regarding all forms of digital currency, including for example:

  • declaring the use of bitcoin as a parallel currency to be illegal (Russia).
  • (whilst allowing citizens to buy or sell bitcoins amongst themselves), banning the country’s banks from processing transactions involving bitcoin (China).
  • stating (or at least intimating) that they do not recognise digital currencies as legal tender and therefore do not regulate them (Ireland).
  • treating bitcoin as a commodity and banning its use as a currency (Japan).
  • treating bitcoin as a foreign currency and banning its exchange with the national currency (Iceland).
  • announcing the creation of a national digital currency and banning all others (Ecuador).
  • regulating digital currencies to the extent of requiring ‘digital currency businesses’ to comply with anti-money laundering laws (Isle of Man).5
  • announcing proposals to consult on how best to regulate digital currencies and in the meantime issuing guidance regarding their status/treatment for tax purposes (the US and UK).

So, whilst some governments apparently see digital currencies as constituting an immediate, existential threat to their financial and monetary systems (even their national sovereignty)6 others are for the time being more welcoming, at least as regards the potential for blockchain technology to confer a competitive advantage on their economies.7

Financial and monetary stability is, quite rightly, of paramount importance to governments but, despite the growing body of evidence to the contrary, they still regard that stability as best being achieved by the continuation of a debt based, fiat money creation and allocation system run by profit-maximising private banks, ostensibly subject to central bank control.

Happily, there are signs that this inter-governmental consensus may perhaps finally be starting to break down:

For more than half a century, Iceland has suffered from serious monetary problems including inflation, hyperinflation, devaluations, an asset bubble and ultimately the collapse of its banking sector in 2008.
Other countries have faced similar problems. Since 1970, bank crises have occurred 147 times in 114 countries causing serious reductions in output and increases in debt. Despite its frequent failures, the banking system has remained essentially unchanged and homogenous around the world….[a] necessary step toward monetary reform is to increase awareness of the drawbacks and risks of the present system and why reform is needed.
This report will hopefully serve as a useful source of information for the coming debate on the money creation process in Iceland and how it could be reformed to serve society better in the future.

Extract from the Preface to ‘Monetary Reform – a Better Monetary System for Iceland’ (March 2015)

The solution to the debt based fiat money problem being proposed for Iceland is the Sovereign Money System.8 How this potential solution, which is also being advocated by the Positive Money campaign, compares with Nxt will be discussed in the third article in the series (‘Comparing the potential of sovereign/positive money and Nxt to solve the debt-based fiat money problem’).

Regardless of the success or otherwise of the Positive Money campaign or the Icelandic initiative, the existing fiat monetary system looks set to continue, fundamentally unchanged, in the rest of the world indefinitely, thanks partly to the entrenched network effect that the existing system enjoys, partly to the commercial vested interest of the disproportionately powerful commercial banks9 and partly also to:

  • the collective bureaucratic inertia of the ‘four pillars’ of global economic governance (the International Monetary Fund,10 the World Bank, the World Trade Organization, the Financial Stability Board of the G2011) and of the Bank for International Settlement;
  • large parts of the financial press; and last, but by no means least,
  • mainstream economic theorists.12

To be as effective as possible in getting our message listened to with attention it’s not enough for cryptocurrency advocates only to refer to the fact that the current fiat monetary creation and allocation system leads to socially and economically damaging results and that it remains in a critical condition, we must also demonstrate that we understand why it does so (topics which are examined in more detail in the next article in the series: ‘Is fiat a fraud? From false commodity to false economy’).

Six years after the launch of blockchain technology (in the initial form of Bitcoin), the commercial banks are becoming increasingly aware of the competitive threat which this rapidly developing technology poses to their business.13

They understand that their long-established centralised system of financial networks based, as they are, on restricted access to the APIs14 on which they run is now being challenged by a rapidly developing and expanding decentralised system of financial networks based on open API access which, in effect, makes possible the democratisation of financial power worldwide.

The banks also understand that cryptocurrency technology does not just represent a competitive threat to their dominant position in the provision of financial services in general it also represents (at least in theory) an existential threat to their virtual monopoly position as money creators and allocators which came about purely as an accident of history.

It’s hardly surprising therefore that most of the major banks are now working on blockchain solutions/strategies albeit that, under the mantra of Bitcoin is bad, blockchain is good they seem to be currently focusing their attention on trying to adopt/adapt the capacity of bitcoin’s blockchain technology to store data and execute financial contracts without needing to use the reward mechanism of the bitcoin currency to secure the integrity of the ledger. Their objective appears to be the creation of a private, federated blockchain in which every hashing institution is known and trusted.

Whether that would work and, assuming it did, what effect, if any, it would have on the continuing development, implementation and rate of adoption of genuinely decentralised, trustless, mathematically secure, blockchain technologies, such as Nxt, remains to be seen.

Much more promising than private, federated blockchains (technologically speaking and also in terms of social utility) is the idea of hybrid systems that, in effect, bridge the gap between the banks’ existing infrastructure and blockchain technology. A prime example being 44 Phones’ hybrid cash and cryptocurrency platform15 which has been developed as a mobile banking application using the Nxt blockchain technology to deliver mobile money via SMS, mobile app and the web.

Systems such as these may well prove to be the salvation of the fiat monetary system which otherwise left to its own devices seems set to go that one step further than it did in 2007/8 and irretrievably implode.

In the meantime, many cryptocurrency enthusiasts appear to welcome the prospect of a mainstream financial collapse believing that it would clear the way for cryptocurrency to take its rightful place in the world.

In practice, though, it is much more likely that in the event of such a collapse national governments would take emergency powers 16 and impose a top down solution designed in collaboration with, and therefore favouring, the banking industry rather than adopting a solution from the genuinely free market, unless that solution had already achieved such widespread acceptance that public and commercial pressure to adopt it was irresistible (an unlikely scenario admittedly, but anything is possible).

Are we ready for war?

The short answer is no, we’re not. At least not one against a common enemy. Instead, the cryptocurrency industry appears to be engaged in its own permanent civil war. Have a quick read of some of the discussion threads on bitcointalk.org and it soon becomes obvious that many, perhaps most, people involved in cryptocurrency seem to regard the only enemy as being the developers, owners and promoters of any cryptocurrency they don’t currently own which is doing better than the ones they do.

Although some people do genuinely invest in cryptocurrency for the long term, most seem to be looking to make as much ‘fiat money’ as quickly as possible. Moreover, whilst all of us (long and short term investors alike) say that we welcome competition as a force for catalysing innovation and improvement, which it undoubtedly does, competition also inevitably has the effect of engaging our instincts for survival and dominance, hence the feeling of despair that some may feel when a crypto in which they decided not to invest suddenly increases significantly in value and then the feeling of relief if, as they had been fervently hoping, it subsequently collapses.

What we must always bear in mind however is that the cryptocurrency industry is still in its infancy and until the various (competing) blockchain technologies become established and their real value gets priced by the market, the price and purchasing power of their native currencies will continue to be subject to much greater potential volatility than that of fiat currencies. In the longer term, of course, the reverse may well eventually turn out be the case.

Can war be avoided?

Answer: it depends if you listen to your heart or your head.

Emotionally speaking, war is inevitable and the ‘enemy’ is either other cryptos or fiat money or both (including their respective providers, users, supporters and fellow travellers), depending on what your unmediated instinct for self-preservation tells you.

Strategically speaking, yes, war can be avoided as there shouldn’t, in reality, be any enemy to fight, at least not as far as cryptocurrency is concerned.

To acknowledge someone as an ‘enemy’ is to acknowledge that instead of merely competing with them one wants, if possible, to destroy them in a ‘zero-sum’ fight to the death where the winner takes all and the loser ceases to exist.

However, there seems little possibility of blockchain technology on its own destroying the fiat based monetary system and absolutely no advantage to be gained by claiming that it could.

Moreover, other cryptocurrencies aren’t the enemy either; no one single coin, not even Bitcoin itself, will be able to monopolize what will inevitably become an ever-expanding and diversifying market.

Every cryptocurrency that gains a foothold in the mainstream (in particular, it must be said, when one of those cryptos is part of SuperNET 17) will help to educate the wider population about the benefits of the technology, thereby opening up the market for cryptocurrency usage more generally.

In my opinion, the language of war is not the most appropriate category of discourse to use in the ongoing struggle to establish cryptocurrency. Instead we should be more inclined to use the language of diplomacy in recognition of the fact that whatever ‘best case’ scenarios we might imagine for cryptocurrency, the financial landscape in which cryptocurrencies will be operating in the future will, in the absence of a complete and irretrievable global financial collapse, almost certainly continue to be dominated by the existing debt based fiat monetary system.

It may even be that cryptocurrencies, by strengthening local economies and thereby building greater resilience into national economies and ultimately the global economy, will actually help the existing fiat monetary system to survive and traditional banks to continue in business.

Seen in that light, it would actually be in the banks’ own best interests to be more accommodating in their attitude towards independent cryptocurrencies and, for our part, perhaps we should be thinking of making a virtue out of the fact that cryptocurrency usage in the mainstream economy, if sufficiently widespread, could have the unintended consequence of actually bolstering the fiat monetary system.

The non-crypto, potential solutions to the fiat problem include:

  • a fundamental reform of the debt based fiat system as advocated by, for example, the positive money campaign, which argues that money creation should only be used in the public interest.
  • Abandonment of the debt based fiat system and a return to the gold standard.

In articles 4 to 6 in the series each of the above solutions is examined in turn and the case is made for why the blockchain based, financial platform known as Nxt is the better solution.

——————

Notes:

1. ‘Cryptocurrencies [which are a type of digital currency] typically feature decentralized control (as opposed to a centralized electronic money system, such as PayPal) and a public ledger (such as bitcoin’s block chain) which records transactions.’ http://en.wikipedia.org/wiki/Cryptocurrency

‘Cryptocurrencies are designed to be capable of replacing cash…No central power has arbitrary control over the money supply.’ https://bitcoinmagazine.com/15862/digital-vs-virtual-currencies/

cryptocurrency 1.0: decentralised, P2P, cryptographically secured, digital payment systems.

cryptocurrency 2.0: ‘…is the application of block chain or distributed ledger technology to things other than digital currency. The block chain offers the ability to facilitate decentralized ownership and store, transfer and process information in a decentralized, programmable way. Many consider that innovation to be the true value of this technology.’ http://www.coindesk.com/crypto-2-0-roundup-bitcoins-revolution-moves-beyond-currency/.

2. ‘While the housing and credit bubbles [the immediate causes of the financial crisis] were building, a series of factors caused the financial system to both expand and become increasingly fragile, a process called financialization.’ http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%9308

3. Is the debt based fiat monetary creation and allocation system sufficiently robust to be able to respond adequately to the ‘extraordinary’ demands that are being placed on it?

‘…extraordinary central bank action has become the new normal in the developed world. Faced with the twins threats of deflation and economic stagnation, monetary policymakers are reaching for their interest rate levers and digital money-printing tools in a bid to stave off recessions and debt deflationary dynamics.’ http://www.telegraph.co.uk/finance/economics/11378193/How-central-banks-have-lost-control-of-the-world.html

4. On 22 April 2015, The European Securities and Markets Authority (equivalent to the Securities and Exchange Commission in the US) issued a call for evidence regarding ‘Investment using virtual [sic] currency or distributed ledger technology’.

ESMA states on its website that it:

‘…is interested in how different virtual currencies and the associated blockchain, or distributed ledger, can be used in investments. There are now facilities available to use the blockchain infrastructure as a means of issuing, transacting in and transferring ownership of securities in a way that bypasses the traditional infrastructure for public offer and issuance of securities, trading venues like exchanges and central securities depositaries or other typical means of recording ownership. ESMA would like to find out more about these market developments and in particular to know to what extent the use of the blockchain could enter the financial mainstream, and how it could be used.’

Nxt is the example of the digital currency platform ESMA uses in its ‘call for evidence’ to illustrate how distributed ledger technology works.

The NXT Foundation will be submitting a ‘NXT Community Response To ESMA’s Inquiry  On Investments Using Virtual Currency Or Distributed Ledger Technology’ a week before the July 21, 2015 ESMA deadline. For more information visit the related discussion on the Nxt forum.

5. ‘Digital currency businesses [as defined below] will have to comply with the Isle of Man’s anti-money laundering (AML) laws from 1st April [2015] and will likely fall under the remit of the Financial Services Commission from the Summer.’

‘[Those in] the business of issuing, transmitting, transferring, providing safe custody or storage of, administering, managing, lending, buying, selling, exchanging or otherwise trading or intermediating convertible virtual currencies, including crypto-currencies or similar concepts where the concept is accepted by persons as a means of payment for goods or services, a unit of account, a store of value or a commodity.’ http://www.coindesk.com/isle-of-man-introduces-regulation-for-bitcoin-businesses/

6. A senior Central Bank [of Ireland] official has warned that virtual and digital currencies have the potential to challenge the sovereignty of states.

7. ‘Osborne looks to virtual currencies in bid to make UK world fintech capital’.

Further details regarding the UK government’s attitude towards ‘digital’ currency is contained in two recently published reports: Digital Currencies – response to the call for information
and Banking for the 21st Century – driving competition and choice.

See also:

‘Virtual Currency Schemes – a further analysis’, European Central Bank, February 2015.

‘Cryptotechnologies, a major IT innovation and catalyst for change’. European Banking Authority, 11 May 2015.

8. Sovereign Money System: this, in effect, nationalises money by giving the central bank the exclusive power to create money and parliament the power to allocate how the money is used; the government then spends/invests it into circulation.

9.The network of global corporate control’ Stefania Vitali, James B. Glattfelder, and Stefano Battiston published in the New Scientist Magazine 22 October 2011 (Issue no. 2835) An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

10. But see: IMF report from 2012 by Jaromir Benes and Michael Kumhof. The focus of the study is the so-called Chicago plan of the 1930s which the authors have updated to fit into today’s economy. The basic idea is that banks should be required to have full coverage for money they lend. Under this proposal, banks would no longer be allowed to create new money in the form of credit in connection with their lending activities. Instead, the central bank should be solely responsible for all the creation of all forms of money, not just paper money and coins. The advantages of such a system, according to the authors, are a more balanced economy without the booms and busts of the current system, the elimination of bank runs, and a drastic reduction of both public and private debt. The authors rely on both economic theory and historical examples, and state that inflation, according to their calculations, would be very low.’

http://en.wikipedia.org/wiki/The_Chicago_Plan_Revisited

11. It should be noted however that the chair of the policy development committee of the Financial Stability Board, Adair Turner, wrote in his foreword to Monetary Reform – a Better Monetary System for Iceland’ (March 2015) that the efforts to make the existing financial system more stable: have still failed to address the fundamental issue – the ability of banks to create credit, money and purchasing power, and the instability which inevitably follows. As a result, the reforms agreed to date still leave the world dangerously vulnerable to future financial and economic instability.’

12. ‘Mainstream economists’, those who subscribe to ‘…neoclassical equilibrium theory and assimilated Neokeynesianism, or to put it differently, American textbook standard economics…Mainstream economics for the most part rests on the assumption of neutrality of money…If one believes in neutrality of money, then of course dysfunctions of the money system are not an obvious subject of concern, despite all financial crises. As a consequence, most mainstream economists find it difficult to see why monetary reform might be of relevance.’ Joseph Huber http://www.sovereignmoney.eu/sovereign-money-in-critical-context/

13. The banking industry is now organising conferences to consider questions such as:

What is the future of money?

Do you know what cryptocurrencies mean for your business and for the future of financial services? Are you leveraging [the] blockchain? Are these developments an opportunity or a threat for traditional financial services providers?

SWIFT Business Forum London, 23 April 2015

14. An example of an API (Application Programming Interface) in the mainstream financial system is the VISA network’s merchant API which only the merchant, as a trusted party, is allowed to program. Examples of APIs in cryptocurrency based systems include: the transaction scripting language, the P2P network protocol and the ‘Northbound’ client, all of which are open source and are therefore available for anyone to program.

15. ‘UK’s 44 Phones Building Blockchain-Based International Mobile Network, Mobile Money Service.’

16. For example (in the UK) the Civil Contingencies Act 2004, Part 2 Emergency Powers, S. 22 (2) (h) http://www.legislation.gov.uk/ukpga/2004/36/pdfs/ukpga_20040036_en.pdf

17. SuperNET is an association of the most reliable blockchain technologies. Giving you access to all their innovation from one place.

PICISI crowdfunding project will use Nxt Monetary System

picisi-nxt-ms

PICISI, a pre-launch start-up, is a crowdfunding site designed to accept national currency (USD, EUR, GBP, etc …) and crypto currency (CC). It is being positioned as an influential player in the CC space. Recently it quietly issued its currency (Pi) on NXT’s Monetary System.

The currency affectionately name Pi, short for PICISI, has a currency code NUMUS, which is latin for currency.  Pi was designed with a specific supply, demand, and value in mind.

The total supply is fixed at 500,000 units approximately 5x the anticipated average monthly use volume,

Primary demand for Pi will come as a:

• short-term debt instrument to raise funds for site development and multiple licenses,
• day-to-day means of paying for global services rendered,
• CC option for campaign organizers, and
• CC payment option for PICISI sponsors

Major factors that will determine Pi’s value are the prices PICISI will pay for global services rendered to it by the various Promotion Contractors that complete various assignments and subsequently paid with Pi; and the rate at which PICISI will buy Pi on the open market.  PICISI uses fiat derived from earned fees to purchase Pi at the exchanges where Pi is listed.  If an official exchange sponsor is present PICISI will purchase Pi exclusively at that exchange.

NXT developers have indicated that NXT’s MS currencies are not designed for ‘off the shell’ integration into any exchange platform. However according to jl777, an influential CC developer and high performing NXT Asset manager: ‘for the exchanges that already support NXT assets, they would simply change “transferAsset” API calls to “transferCurrency”. since they use nearly the identical syntax’.

Pi is viewed as an ideal test subject because PICISI is in pre-launch mode and it has a small community of supply-side and demand-side participants: investors, sponsors, admins, and Promotion Contractors.   An undisclosed number of CC exchanges are being approached to test Pi at their respective exchanges.

Will Pi live up to the expectations place on it, will it find a place among NXT’s proven high performing instruments, only time will tell for sure, but my guess is ABSOLUTELY.

NXT has grown from an innovative CC to a financial ecosystem. As a currency NXT performs at the upper levels of all ranking charts, as an asset platform NXT has a stable of high performers burning up the charts; and now with NXT’s new Monetary System more high performance is expected.

Read more about Nxt Monetary System

nxt_monetary_system

The value of crypto coins

Nxt and SuperNET to the rescue!nxt-iphone

There is only one reason that 7 billion people are suckered into the game of Central Banking, and that is FEAR. People FEAR others will take their VALUE away from them and they run to centralized bankers for help.

But, given that 97% of it is based on debt, how can the mainstream fiat monetary system which we’re still obliged to use meaningfully represent people’s VALUE – i.e. their economic self-sufficiency? Surely debt is the opposite of value, unless you’re a bank.

It seems intuitively obvious that money based on something tangible and in short supply, e.g. gold or silver, must be better for society than a minority elite creating money out of nothing. Indeed, until 1971 most national currencies were still based, albeit indirectly, on gold which at least is something that most people believe has intrinsic worth and which, more importantly, acted as some sort of restraint on the amount of money that could be created. But nowadays of course the (privately owned) banks simply create money without any effective restraint at all.

Result: the minority elite game the system and in the process steal more and more of our VALUE. It’s been going on now for a long time but it’s coming to an end. The fiat monetary system is broken beyond repair. The minority elite know it and they’re running scared.

Thanks to information technology and cryptography (and of course to ‘Sataoshi Nakamoto’), we now have a way whereby a minority elite can no longer continue to directly CONTROL nearly 100% of the VALUE. They can neither possess 100% of the physical and tangible NOR can they directly control the ledger.

Over the centuries, money has taken a wide variety of forms, including (to name but a few) gold, silver, iron ingots and cowrie shells and, since 1971, debt-based representative paper (i.e. fiat money) and, more recently, electronic digits in computer memories.

But whatever form it takes, money has no intrinsic value of its own independent of the value ascribed to it by those who use it.

WE ARE THE VALUE

To thrive, people need an honest ledger of account that is not easily co-opted. We need a neutral, unbiased record keeper. Gold is far superior to being an honest ledger than fiat, since gold is much more limited and can be held directly by the one who created the value. You can’t just hit the print button and have infinite gold come spewing out.

The Elite can use fiat to buy up most of the Gold, Silver, Opal, Diamonds, Platinum, etc etc etc, but the elite cannot ever buy up all the real value because real value resides in the people.

People may wonder what currency has the potential to hold its value the best. Another way of asking this is, what ledger is the most honest and the most difficult to control and manipulate?

Gold itself is not modern technology, therefore it does not play well with the Internet. Gold may never be able to integrate disjointed technologies. You have to take gold with you or you have to trust someone to hold it for you. If you pack gold with you it holds you back and if you keep it in a Centralised suppository it disappears.

To a certain extent, the private ownership of gold, at least in theory, is effectively a decentralised financial system, in that it enables transactions to take place between private individuals without the need for any centralised control, unlike fiat which of course is controlled by banks and governments. However, in practice gold only operates as a very basic, costly and limited form of decentralised financial system.

THE REVOLUTION WILL NOT BE LICENSED

Everything needed to replace the elite’s technology has already been built. Everything needed to render their tech obsolete and hence rendering them obsolete has already been built.

Fortunately, we now have available to us the ultimate means to have an honest, decentralised and extremely difficult to manipulate ledger; moreover, one that is becoming more flexible, integrated and powerful by the day. Unfortunately, very few People have so far adopted this technology, mostly because it is still not well integrated.

DeCentralised Technology is one of KEYS to releasing the shackles on humanity, and you can keep LOCKING it back up or support those trying to steal the keys.

A few months ago, while sitting on a plane, I fell into a bit of a meditative state where I picked up on some things I would never have realized only from conscious thought. I am a long time ‘spiritual’ person, of which there is literally almost ZERO support in the CRYPTO world, even though CRYPTO has immense power to aid the freeing of the world. I am also a bit of a CRYPTO fan and I was shown how the CRYPTO world was trapped in a SHOW ME THE MONEY, LINEAR, very male dominated type LEFT brain mentality. So, I thought I might dabble in trying to bridge the two and see what barriers I come up against, almost as an experiment. It’s as one might expect. The spiritual, new thought, more right brain types, don’t get crypto but are generally positive so crypto info is basically ignored with a few ‘interesting’ type comments, but very little interest.

Spiritual freedom is not well understood by the almost dismissive knee jerk reaction of the very male orientated left brain crypto world. I watch patiently waiting for the two to converge.

Also read:
The value of 10 NXTs
SuperNET CORE coins
Nxt [CORE]: Monetary System

Write for NXTER.ORG and get paid in crypto currency

First example of fully decentralized crowdfunding: Nxt Academy

Let’s actively bring Nxt into every university and school all over the world!

Crowdfunding usually needs three actors: the project initiator, supporters and a platform connecting both parties. Crowdfunding websites exist only for 6 years. During 2013 $5.1 billion USD was raised by millions of individuals! However the biggest disincentive to using websites such as Kickstarter is their fees. Kickstarter demands 5% of the money raised as a fee, and payment processing fees are another 5%, which in the era of blockchain technology is a little difficult to justify.

Nxt recently released a new monetary system with a crowdfunding feature, which makes a third party – a platform – fully automatic and decentralized. Since January 2015 it’s finally been possible to organize a crowdfunding campaign via the Nxt client with all costs and fees totalling less than a half USD.

The very first example of a completely decentralized Crowd funding via Nxt Monetary System started at the beginning of February 2014, when a Czech Nxter, Petr K. Salsa, issued a currency: NxtAcademy with ACDMY as a code.

500,000 NXT (= 500 units) need to be raised during February in order to successfully finish the crowd funding campaign. If 500 units aren’t bought before block 370,000 (= 1st March 2015), all pledged NXT will be returned. If at least 500 units are bought, the funds raised will be used for maintaining Nxt Academy (= at least 1000 USD/month). More funds = more projects for students, more lectures all over the world, more external teachers, more printed materials.

How to donate?

  • Click at Monetary System + Currencies section
  • Find ACDMY / NxtAcademy (search “ACDMY”)
  • Click at “Reserve” at the “Actions” column.

nxt-crowdfunding-nrs1

  • Buy any number of “Units” (more = better)

nxt-crowdfunding-nrs2

Details and other info: http://nxtacademy.com/about

crowdfunding-nxt-academy

Nxt is an important part of the open source technology. Nxt Academy recognizes Nxt’s spirit and guarantees all content accessible for anyone, anywhere, for free. It is a long term project which focuses on providing free education for the students and children. Every teacher will be able to download and use teaching materials for their students. Everyone will be able to attend free online courses about Nxt from their home. Young people, as yet completely unaware even of the existence of cryptocurrency,  will be informed about Nxt via school bulletin boards and via lectures and student projects organized at their school.

The world of cryptocurrencies has got a huge enemy – ignorance. Society isn’t yet ready for the wider acceptance of the cryptocurrencies. Nxt will in time revolutionize many industries, but right now it is just a toy for geeks. Nxt Academy is going to prepare society for the Nxt crypto revolution by providing teaching materials and much more. Nxt Academy isn’t a commercial project, its existence, form and size depends on donations from the Nxt community.

Direct marketing to Students – education

Nxt Academy isn’t only a passive website with videos and texts. It actively propagates Nxt at schools, universities and student festivals. Nxt Academy will be targeting all bigger Universities and sending its materials to their students. Students will be working on team projects with their classmates, while Nxters will be mentoring them.

Teachers will be receiving teaching materials, infographics, textbooks and worksheets for children, they could even teach young kids about Nxt. It will be easy to download all sources and printed materials will be sent to the schools or handed out after the speeches / lectures at the schools and universities.

Online Marketing and Cooperation

All content created by the Nxt Academy will be actively distributed to the other similar projects – Khan Academy, Coursera, Coin Academy, College Cryptocurrency Network… It’s about spreading the knowledge, Nxt Academy will try to have its courses at all of those sites and many others.

Nxt Academy will be targeting people whose lives are as yet untouched by the cryptocurrencies at various online platforms. Nxt Academy provides press releases, news, blog posts, Twitter/Facebook/Weibo posts, forum posts, videos at multiple platforms… SEO, online marketing etc.

Nxt Academy will be supporting the crypto research

The database of the research/students papers will be very helpful for all cryptocurrency researchers. This side project will create a library with crypto-related articles saved at multiple platforms. With enough funds, Nxt Academy could provide student scholarships, grants or awards. The dream goal is to have a crypto thesis of the year contest during the Nxt Academy conference.

Online courses and textbooks

Before entering the Universities’ or Student festivals, Nxt Academy needs to prepare the teaching materials.

Online courses – Easy-to-use platform for everyone who will be able to learn about Nxt, its ecosystem, its ideas, its abilities. New fresh videos and edited videos will be followed by chosen articles and infographics.

Textbooks – If we want to get cryptocurrencies and Nxt into the mainstream, we need to prepare educational materials for teachers. Textbooks will be created by a cooperation with university professors and school teachers.

Worksheets – Children as well should have the chance to learn about the cryptocurrencies. We need to prepare the world for this new revolution. Worksheets, educational programs for children will be prepared by a cooperation with the school teachers.

Infographics – Social media campaigns need well-prepared infographics to reach the biggest audience.

Check other activities at https://nxtforum.org/nxt-academy/ or http://nxtacademy.com

Crowdfunding Progress

After two weeks Nxt Academy raised 120,000 NXT. 35 Nxters decided to support the project with their donations. It is also possible to donate directly, you can send NXT to: NXT-W4FQ-JGAE-JHS9-3PMNR (from online wallets, exchanges…).

Salsacz can devote himself full time to the project, hire an ‘in-house’ co-worker (school teacher), external university teachers and pay for outsourcing micro-jobs (translations, voice-overs, corrections) via Nxt-jobs or Fiverr. All costs are very low, because the salaries in Czech Republic (1 full time and 1 part time) are very low compared to western countries. The smallest possible budget is 500,000 NXT for a year. More money = more projects for students, external coworkers, printed materials, more speeches…

Nxt Academy is a project supervised by Petr Salsa, who has spoken about Nxt at 5 conferences and one University. A few other speeches at Economics Universities are being planned for the near future. Salsa attended all of the online courses about cryptocurrencies, such as “Introduction to Digital Currencies” by University of Nicosia, Coin Academy, Coursera, Princeton University and University of Virginia. He wants to devote his experience, skills and time to build similar courses about Nxt.

More about the Nxt Academy team: http://nxtacademy.com/about/#team

With Nxt Monetary System anyone can run a decentralized crowdfunding campaign.
Learn more about the Monetary System here: http://test.nxter.org/nxt-core-monetary-system/

NXT Weekly 26.01.2015

Welcome Nxters: newcomers as well as long-time community members!

News Summary

Nxt has just released another major feature: The Monetary System, which allows users to issue customized coins on top of the Nxt Network. The community has voted on whom to entrust with spending our community funds, lots of 3rd party projects are cooking, the Consensus Research Group has released reports about the Nxt PoS algorithm, and also: You can now donate towards the possible destruction of our blockchain. Sounds massive? It is. This is NXT Newsletter #16.

top_no10

In this week’s issue, the focus is mainly on the inner workings of the Nxt core tech and the Nxt Community.

Topics

  • The MS launch
  • CFC: Voting result
  • New Nxt core devs
  • Kill the blockchain!
  • Consensus Research Group
  • Hail to the old committees
  • Quote of the week
  • Words of Wisdom of the week

The Monetary System launch

The Nxt Monetary System (MS) has launched. Using the various parameters outlined here, anyone can now create customized currencies on top of the Nxt blockchain. New coins can be designed for specific purposes, some of which are touched on in this article.

750+ currency names were registered within the first 24 hours of the launch, making it a good day for forgers, with approximately 370K NXT in fees (40NXT – 25,000 NXT per registration) being paid out.

With the Monetary System, you can create coins without having to set up and bootstrap a network, as it’s already backed and secured for you by the Nxt Network. Bootstrapping is one of the biggest hurdles to overcome when launching a new p2p coin, so this is of particular relevance whether you’re a person, a business or a local community which wants to go digital with an already existing local currency. Loyalty points, game currencies, and controllable/pegged currencies are easy to create, it’s even possible for existing coins to be moved onto the Nxt blockchain. The Nxt wiki has a great in-depth tutorial, and if you need further help, you can visit the Monetary System forum.

Another use case is the ‘crowd funding coin’, which is ‘sold’ in exchange for donations; if a pre-set amount of ‘coins’ have been ‘bought’ at a pre-set time, the funds are released to the issuer. If not, the money is returned to the donators/buyers. This feature turns Nxt into a 100% decentralized crowdfunding platform.

As usual with Nxt, this new core feature doesn’t come with an in depth ‘For Dummies’ manual. Use cases are proposed, but the community is encouraged to test, learn and tweak it, brainstorm and find more use cases. If you want to play around with issuing currencies, you are advised to start by doing so on the Nxt Testnet.

Nxt.org has set up an easy to access testnet node, and a well-funded account will provide you the testNXT you need to get familiar with the Monetary System. Instructions and testnet can be found here.

On mainnet new ‘PoW’ coins like EGOLD, ELEMS and FORKK are being minted with the Nxt Mint Worker Utility and sold in the in-client exchange, whilst in the giveaway threads in Nxtforum useless MS currency coins, created out of thin air for a 40 NXT fee, are being given away for free.

While some early MS coins are meaningless, others have clear purposes. These are a few examples:

ORA

ora_logo

The Ora project started out on bitcointalk.org with an idea of making a “free and fairly distributed” 2.0 PoS coin based on the Qora source code. Ora describes itself as being a “leaderless, decentralized ‘starfish’ community software development project”. The initial method of stake distribution was a giveaway using the Nxt Asset Exchange: 889 people registered for a free stake of 166,666 assets each, between June 24 and July 8.

On Nov. 25 Ora announced that it would be launched as a Monetary System coin.

Kora:

When CFB first suggested this option in June the only real reservation was that ORA would be dependent on the NXT platform for its very existence. Six months on, as NXT celebrates its first birthday we believe the connection with NXT is a major advantage for ORA. The NXT ecosystem is resilient, vibrant, and grows stronger every day, and the development output over the last 12 months has been truly staggering.

We believe the NXT platform offers ORA long term network stability, just as TCP/IP offers stability for higher order protocols like HTTP, FTP, SMTP, and this stability will allow us to focus our resources and attention on the more ‘retail’ level concerns, like user experience, leaving the ‘backstage’ grunt work of network security and stability for NXT. As always, we welcome any feedback our stakeholders might have, and we take this opportunity to invite all people to join us, particularly those with dev skills who are interested in developing the ORA applications that will run on NXT.

ORA’s three letter code is the ISO compatible, ‘XOR’, so ORA is set up for future growth and international recognition.

ZIN

ZIN_Logo

Sepehr:

We have issued ZIN as a POS Crypto in NXT Monetary System and will assign everybody with a SMS Number 100 ZIN soon! It can be the biggest airdrop ever in Cryptocurrency history!

Sepehr is a veteran Nxter from Iran, and also the issuer of another asset, Forgecoin, which has earned him trust in the community by paying dividends to its holders for 7 months.

CryptoZin will make NXT (as well as the MS coins built on it), BTC and other top altcoins simple to use for anyone with a smartphone. We don’t yet know whether ZIN will have its own monetary value or not. But by sending a Nxt backed cryptocurrency as a promotional offer to “anyone in the world with a mobile phone”, Sepehr will be indirectly demonstrating the value of his service. ZIN will prove to a non-tech audience that CryptoZin not only works but also is so easy to use that they can send ZIN/MS coins on to friends or even grandparents. Next step, of course, will be to teach them the value of real cryptocurrencies. CryptoZin plans to integrate SuperNET.

https://nxtforum.org/assets-board/(ann)-(cryptozin)-cryptocurrency-for-anyone-with-a-smartphone!-)/

TSC

jl777 has suggested in SuperNET Slack that he will issue an MS coin with a special use case. Exactly how he will tweak it, is something we’ll have to wait and see, as the announcement only contains limited information about this.

jl777:

I want to make a short life cycle realtime currency for poker chips. We need a way to do 1000 tx per second between the players as the poker players are playing that fast. Any change in players extinguishes the currency, and it goes to something more solid, maybe NXT, maybe some MS coin. I believe I figured out how to achieve realtime tx, backed by locked NXT, freely exchangeable, verifiable. Still some unsolved issues but I feel the locked MS coin is a key part of this.

James has not earned his respect in the crypto world by talking tech without backing his words with actual code. So we might soon see a new MS use case turn up here, as part of a feature in his brainchild, the SuperNET.

LTB or not?

Swiss NXT and Bitcoin investor Marc De Messel has recently offered Adam B. Levine to buy out all Let’s Talk Bitcoin coins for 4 million NXT, provided that Adam would use NXT as his reward currency instead. After having his offer appreciated but turned down for various reasons , Marc changed his offer to this: If the LTB crew and community re-issues their LTBcoin experiment as an MS coin with additional features, Marc will back it with 2 million NXT in addition to its own current net worth.

The discussion about his offer is ongoing and can be followed here.

So what’s next?

The Monetary System can be used in its most raw form within Nxt’s NRS client (like any other core feature), but as usual with Nxt, further developments, including third party ones, are quick to appear or at least be under discussion: a java ‘minter’ has already been launched, NxtMint, there’s talk going on about making easily customized standalone MS-wallets, MyNXT has released an MS-plugin for their online wallet, and MS enhancement proposals are being discussed with the core devs.

To discuss the use of MS currencies in Local Exchange Trading Systems, visit this thread.

Anyone can build on the Nxt platform for free. There’s a list of API calls here, and a list of the public nodes available for all. Inside.org is an initiative designed to help new Nxt programmers, and on the forum, you can get help from the Nxt core developers themselves. Nxt is an easy to use crypto platform, and with the MS core feature launch, Nxt has now taken another big technological step forward ahead of the competition. The current use cases for the NRS client are merely the tip of the iceberg of possibilities, as described in the Nxt [CORE] article series.

CFC: Voting result

The proposal on how to structure a new and pro-active Nxt Community Fund (as mentioned in the last newsletter) was adopted with 94.1% of the votes, meaning that the remaining NXT (approximately 6M in total) from the 3 existing community funding committees will be transferred to this NEW committee, which will be given authority to act and spend on behalf of the Nxt Community.

On December 03, interested Nxters were asked to nominate themselves for one of the 8 unpaid positions in CFC. On January 14, a 2 weeks’ voting round finally began and the result of the vote is the following lineup:

Chair : EvilDave
Secretary: Cassius
Business position : Damelon
Technical member : ChuckOne
Treasurers: DomP and Pouncer

Congratulations to all those elected and not least a great big THANK YOU!

New Nxt core devs

A new developer team has joined our CORE dev team. They will implement:

  • Global Collaboration, which includes:
    • Project Management.
    • Regular and flexible payment models via simplified Smart Contract Transaction.
  • Reputation System.

Their vision is a decentralized business network (https://nxtforum.org/debune/announcing-debune/).

NRS manager ChuckOne writes:

Please welcome the new members of the core dev team by providing donations or help to them. Roberto is going to release assets for crowdfunding in order to try covering their expenditures for both the NRS core additions and their third-party application DeBuNe on top of Nxt.

Welcome, Roberto (Capodieci), Yudi and aryanatameiyana. A full list of Nxt core devs are here.

Kill the blockchain!

A week ago a visitor from Bitcointalk made it to the Nxtforums.

cynicSOB:

Hi! I’m cynicSOB and I’m a cynical SOB
and I’m here to hack your coin
white hat
promise!

Nxt raises funds for its funeral

BCNext once advised: Do not trust strangers on the Internet, especially if their nickname is “BCNext”. It’s not the first time that the Nxt Community has set up bounties and dared hackers to attack the Nxt blockchain and kill it. cynicSOB has been met with open arms and best wishes by the community, as well as pledges of both NXT and BTC bounties from Nxt veterans, and EvilDave (former TechDevFund Committee member, now chair in the new Community Funding Committee) is offering cynicSOB technical support to carry out the attack. Unfortunately, an attack on the Nxt blockchain would cost around 3,7 million dollars, so the attack will be carried out on testnet.

EvilDave:

Could we please beef up the TestNet and get some more nodes up? I’d like to see around 20 nodes, with at least 10 forging accounts. We may need to do some serious TestNXT redistribution, as cynicSOB will also need a substantial amount to set up an attack (10% of the total was suggested) as well as substantial sums for the forging accounts.

Let’s see if the creation of BCNext and the Nxt CORE dev team can be trusted. We’re in the hands of cynicSOB. The ongoing drama can be followed here.

rlh:

Only in Nxt do prominent Nxt users want to see their coin hacked!  We know our devs can innovate past any verified flaw! ;D

Consensus Research Group

December 12, Kushti published a simulation tool for Nxt forging on GitHub, taking a less ‘cynical’ approach to the same declared goal – testing whether the Nxt PoS tech is as secure as we claim it to be or not. With ‘Consensus Research Group’, Kushti has started what he calls “the first independent research group going to bring formal verification to the world of cryptocurrencies.”

Kushti:

Cryptocurrencies suffer from unproven claims, bold statements, low-quality ‘papers’ and naive implementations, though the cost of an error could be very high (USD$ millions).

Consensus Research Group is going to improve overall quality of thinking about cryptocurrencies with:

  • proven open-source reference implementations code made partly at least in Coq programming language/theorem prover (https://en.wikipedia.org/wiki/Coq).
  • executable simulations anyone can play with (to e.g. find best parameters under some assumptions).
  • formal but understandable papers.
  • coins’ developers’ consultations.

The research project began when Kushti started writing a series of personal blog posts about the Nxt forging algorithm. Following up on the ideas contained in the first 2 posts, his friend andruiman published a statistical paper on some of the properties of Nxt forging, thereby causing a heated debate in the Nxt forums. He converted Kushti’s model into Coq, “proving some basic properties as theorems, and introducing multi branched forging (which could be turned into so-called Transparent Forging during implementation and also to open the door to Nothing-at-Stake investigation.”

Paper on attacks related to Multibranch Forging:  https://github.com/ConsensusResearch/articles-papers/blob/master/multistrategy/multistrategy.pdf

1st paper: http://www.scribd.com/doc/248208963/Multibranch-forging
MultiBranch Forging Simulation Tool: https://github.com/ConsensusResearch/MultiBranch
Nxt PoS forging simulation tool: 
https://github.com/ConsensusResearch/ForgingSimulation

Vitalik Buterin (Etherium) has discussed the first paper in this thread on reddit.

On January 14, 2015, Kushti concluded:

Nothing-at-stake attack – not possible at the moment! Will be possible when a lot of forgers will use multiple-branch forging  to increase profits. (…) In such scenario attack is possible only within short-range e.g. with 25 confirmations needed 10% attacker can’t make an attack. And attack is pretty random in nature, it’s impossible to predict whether 2 forks will be within N best forks (from exponentially growing set) for k confirmations. So from our point of view the importance of the attack is pretty overblown.

People are invited to carry out their own experiments using N@S simulation tool.

Kushti first entered the Nxt stage as the lead developer of a Techcrunch Disrupt Hackathon project, Cryptamail, a decentralized email system built on top of Nxt. He joined the Nxt CORE dev team as a tester and subsequently went on to develop several Nxt core features, including the Voting System and 2-Phased Transactions.

Consensus Research Group has issued a crowd funding asset (‘consensus’, asset ID 5841059555983208287) which is sold in lots, the timing of the sales being based on the achievement of certain development milestones. The price of each asset is 1 NXT and should be bought only from the Issuer account. There will be no dividends but there will be opportunities for investors to start research projects by vote. You can view all the results here: https://nxtforum.org/consensus-research/

Hail to the ‘old’ funding committees

To round this off, let’s take a look at some of the projects that the soon to be obsolete Nxt Funding Committees actually funded.

Recurring core developer salaries

The most valuable investment of the community funds: The core of the Nxt platform.

Nxtwiki.org

https://wiki.nxtcrypto.org/

300,000 Nxt to cover 12 months of bounty funds at 25,000 Nxt per month.

NxtWallet / NRS GUI

400,000 NXT. http://nxtra.org/nxt-wallet/ (redirects to nxt.org)

Freenxt.org

10,000 NXT for the faucet. http://freenxt.org

Nxt-Starter.com

One of the first community initiatives to get funded. 200K NXT were sent on April 23 to the NXT crowd funding site initiative, but then things got complicated. On October 27 POPPP announced that the site was finally up.

Nxt-Starter.com is fully functional but still in its first version. Payments are made through a coinpayments.net solution – the plan is to integrate p2p funding with NXT and MS-coins directly, making the payment system fully decentralized. If you want to raise a bounty for the NXT Community, you can do it here for no fee. In addition to running crowdfunding campaigns you can get a page for your Nxt Marketplace store, and list projects that have already got funded.

Nxt-Starter is part of the NXTweb asset, which will also contain a freelancer and a microjob website, based on source code from CoinEvolve. But, as they say, that’s another story.

The Nxt B-day giveaway

10 random NXTER.ORG newsletter subscribers have been picked as the winners of 100 NXTP each, as announced in the last NXT Newsletter. The Nxt Community was asked for random numbers, which we checked against our list of email subscribers to find the lucky winners and then asked them for their Nxt account ID to receive their prize. Congratulations to the winners!

6 x 100 NXTP have been sent out. As for the last 4 winners, if they haven’t claimed their prizes before 27.01.2015, new winners will be picked – so now is the time to check your inbox and spam box.

Quote of the week

Damelon

Work needs to be rewarded

Words of wisdom of the week

ChuckOne:

NXT will be the fuel currency of the Nxt ecosystem. People will pay NXT to forgers (as they do now) in order to get transactions verified. Forgers will sell NXT to people in exchange for currencies. So, there will be a market that determines the price of NXT.

Also read: The Value of 10 NXTs

Create a new currency with Nxt

[PR]

Create a new currency in 2 minutes with the Nxt Monetary System

Nxt’s long-awaited Monetary System – an innovative platform that allows the fast and straightforward creation of completely new cryptocurrencies on top of Nxt – will go live on 10 January 2015. 

The Monetary System (MS) allows users to launch new currencies, securing them with the Nxt blockchain using the second-generation cryptocurrency’s established network, rather than requiring that developers create a coin from scratch and bootstrap it with its own network. The ultimate value of the coin is determined by the market, depending on adoption and demand, and by the parameters set by the issuer. However, coins may also be created by ‘locking’ a certain amount of NXT, thereby giving a floor value to the issued currency. The idea is similar to the sidechains development taking place in Bitcoin – with the difference that the additional functionality is all contained within the Nxt platform, without the need for an external two-way peg.

Real-world application
MS brings a high degree of speed and convenience to a process that can otherwise be lengthy and complex – and inaccessible to most users. MS is tailored to real-world application as well as the cryptocurrency community, and aims to make it as simple as possible for individuals and businesses to launch a new coin. The range of potential use cases includes loyalty points, crowdfunding efforts and fiat- or commodity-backed tokens, as well as new altcoins.

Highly customizable
The Monetary System allows the creation and launch of coins and tokens in as little as two minutes. Coin features are selected from a list to give the currency the required properties, making the process not only extremely fast but remarkably flexible.

The full list of parameters (with potential use cases) includes:

  • Exchangeable: Currencies can be exchanged all within the Nxt platform or on traditional exchanges, each identified by unique name and ticker symbols (e.g. BTC, USD).
  • Controllable: Currencies may optionally only be traded with the issuing account (e.g. backed tokens such as gift vouchers).
  • Reserveable: Currency units are released and distributed if funding requirements are met within the given timescale, if not funds are automatically returned (e.g. crowdfunding).
  • Claimable: Reserveable units can later be exchanged at an agreed rate.
  • Mintable: Currencies can be mined by proof-of-work algorithms (SHA-256, SHA-3, Scrypt and keccak), whilst still being secured by Nxt’s proof-of-stake algorithm.
  • Shuffleable: Coins can be shuffled when this feature is implemented (anonymity).
  • Macro implications
    The Monetary System improves the distribution of wealth across the Nxt ecosystem, each currency unit possessing its own financial value.

MS also allows for the further decentralization of cyptocurrency and the wider economic landscape, achieved by:

  • Importing: First generation cryptocurrencies can transition into an MS currency, allowing them to take advantage of the many powerful features of the Nxt platform and ecosystem – including the Asset Exchange, Marketplace, encrypted messaging and Alias registration, as well as a fast-growing list of third-party applications and services.
  • Exporting: In the future a whole economy based on a MS currency could be transferred out of the Nxt system to another platform should the necessity arise.

For more information and to try for yourself please visit www.nxt.org.

You can republish this article for free. A full size featured image can be downloaded here.

Also read: Nxt [CORE]: Monetary System
Client download: Nxt Monetary System NRS Client 1.4.7

Image by crimi, http://peerexplorer.com. To join the Nxt Community: nxtforum.org.