“Ardor snapshot” release – Nxt NRS 1.9.2

Nxt Client (NRS) 1.9.2

THIS IS AN OLD RELEASE. FOR THE LATEST NRS VERSION CHECK HERE

Digital signature: "Stichting NXT"

.sh Sha256: bf135f9d7280860b59fb69d4753e436ed23ebbcf95e1e4112cb707c7a64a20b4  nxt-client-1.9.2.sh

Release 1.9.2: https://bitbucket.org/JeanLucPicard/nxt/downloads/nxt-client-1.9.2.zip

1.9.2 .zip sha256: 4fe0520e5b4d0fe244dc9d8ab7943c1a107a7e4227ce4ae9f3236ae1dcc1a8ab  nxt-client-1.9.2.zip

ARDR Snapshots

Snapshotting will start at block 870400 (expected July 14) and end at block 1000000 (Oct 12). Relevant reading: Ardor distribution

To get your ARDR tokens, it is recommended that you keep your NXT balance in your own account.

For balances on exchange accounts, it will be up to each exchange to handle the re-distribution of the ARDR tokens that will get automatically sent to the exchange account at snapshot end.

The 3 major exchanges for NXT; Poloniex, BTC38, and Bittrex will all run internal snapshots of their customers' NXT balances synchronized with the main blockchain. The Ardor tokens will then be distributed to their rightful owners at a ratio of 1 Ardor token for 1 NXT. The exchanges are prepared for new customers outside the Fintech and investment world looking to purchase Nxt tokens for future Ardor tokens with the introduction of fiat currency exchange. Retail customers will now be able to access the Ardor platform and purchase tokens using fiat currency.

NRS 1.9.2 release notes

This is the first stable release in the 1.9 series. Update to this release on mainnet is optional up until block 1000000 (Oct 12), however users are advised to do it earlier, as after July 14th updating will trigger a blockchain rescan.

The main new feature in 1.9 is the distribution of ARDR assets. See the 1.9.0e changelog for details.

Performance optimizations for blockchain rescans and for snapshot balance calculations. Added nxt.dbMaxMemoryRows property to allow setting the H2 MAX_MEMORY_ROWS parameter.

Updated Jetty to version 9.3.10, delete the old lib folder before unpacking on top.

Source: https://nxtforum.org/nrs-releases/nrs-v1-9-2/

Also see: Nxt 2.0: Ardor childchain blockchain platform

The NRS (Nxt Reference Software) Client is the Nxt core developers’ official wallet release.

NRS is a locally hosted client server application. By default it downloads the Nxt blockchain, but from version 1.10.0e you can run it as a light client as well as a full node. To forge and earn forging fees from processing transactions on the network you must run the Nxt Client in full mode, which is possible even on small devices like laptops, or on a Raspberry Pi. There are also bounties for running public nodes.

The Nxt Client is easy to install. Use the 1-click installers for Linux, Mac and Windows or read this INSTALLATION GUIDE to launch the NRS .zip from terminal.

Nxt [ANN]: NRS 1.9 experimental (updated)

Nxt Client (NRS) 1.9.1e

THIS IS AN OLD RELEASE. FOR THE LATEST NRS VERSION CHECK HERE

Digital signature: "Stichting NXT"

.sh Sha256: 4e21c830f43d9d842c7005252b2a75983a4a5a067994c1b49ac1339f8ac5ed2c  nxt-client-1.9.1e.sh

Release 1.9.1e: https://bitbucket.org/JeanLucPicard/nxt/downloads/nxt-client-1.9.1e.zip

1.9.1e .zip sha256: 097f2d10589b43bf5882f1e0d06f83740f09ca6f037ae73252eb6c555819b212  nxt-client-1.9.1e.zip

NRS 1.9.1e release notes

Fixed a client UI bug affecting some form submission.

Source: https://nxtforum.org/nrs-releases/nrs-v1-9-1e/

For further information about 1.9 branch, please read the NRS 1.9.0e release notes.

Relevant reading: Ardor distribution

Also see: Nxt 2.0: Ardor childchain blockchain platform

ARDR Snapshots

Snapshotting will start at block 870400 (expected July 14) and end at block 1000000 (Oct 12). Relevant reading: Ardor distribution

To get your ARDR tokens, it is recommended that you keep your NXT balance in your own account.

For balances on exchange accounts, it will be up to each exchange to handle the re-distribution of the ARDR tokens that will get automatically sent to the exchange account at snapshot end.

Damelon (Bas Wisselink) writes on 20-06-2016, 09:46:54 pm:

"The Nxt Foundation will be in contact with exchanges to help out with this process. Will keep you updated."
Source: https://nxtforum.org/index.php?action=post;quote=219422;topic=11475.0

The 3 major exchanges for NXT; Poloniex, BTC38, and Bittrex will all run internal snapshots of their customers' NXT balances synchronized with the main blockchain. The Ardor tokens will then be distributed to their rightful owners at a ratio of 1 Ardor token for 1 NXT. The exchanges are prepared for new customers outside the Fintech and investment world looking to purchase Nxt tokens for future Ardor tokens with the introduction of fiat currency exchange. Retail customers will now be able to access the Ardor platform and purchase tokens using fiat currency.

 NRS 1.9.0e release notes

This is an experimental release.
It is a required update for all testnet nodes, optional for main net.

This release enables taking multiple snapshots of accounts NXT balances, every 60 blocks, for a period of 90 days, and distributing an ARDR token based on the average of those balances, at the end of the snapshot, to be used for the Ardor consensus chain token distribution in Nxt 2.0.

On testnet, the snapshot will start at block 649400 and end at block 779000 (June 24).

On mainnet, the snapshot will start at block 870400 (expected July 14) and end at block 1000000 (Oct 12).

Since on testnet the starting block is in the past, on upgrade to this release a blockchain rescan will be performed automatically in order to calculate past account balances. Those who delay upgrading their mainnet nodes until after block 870400 will also experience such a rescan. However, the hard fork block is set at the end of the snapshot, so the final deadline for upgrading to 1.9 is at blocks 779000 and 1000000 respectively.

To get your ARDR tokens, it is essential that you keep your NXT balance in your own account. There is no need to run a node or forge. It is the confirmed NXT balance that is used for the snapshot, not the unconfirmed (available) balance, so having some NXT locked in open AE bid orders, shufflings, etc, will not affect your ARDR distribution.

For balances on exchange accounts, it will be up to each exchange to handle the re-distribution of the ARDR tokens that will get automatically sent to the exchange account at snapshot end.

A new getFxtQuantity API has been added, which allows retrieving the already accumulated ARDR quantity for each account during the snapshot, and an estimate for the quantity yet to be obtained. While snapshots are done every 60 blocks, the numbers that this API returns are updated once every 720 blocks only.

Snapshot balances used for the ARDR distribution for a specific account can be recorded in the log by setting the nxt.logFxtBalance property to that account number, and performing a rescan if the snapshot has already started.

Added some additional transaction bytes validation, and phasing parameters validation, to take effect after the hardfork.

Added getAssetDividends API, to retrieve the dividend payment history for an asset. It can be viewed in the client by clicking on the new "View Asset Dividends" link on the asset exchange page. Dividend payments made before a node is updated to 1.9.0e will not show in this history, unless a blockchain rescan is forced manually.

After the hardfork block, asset dividend payment transactions will be limited to not more than one per asset every 60 blocks.

Added a new Messages table in the client UI. Allowed uploading a file as a message attachment, plain or encrypted, and downloading such messages as files.

All create transaction APIs that support prunable message attachments now also optionally accept multipart file uploads as messageFile or messageToEncryptFile parameters, or when using client-side encrypted data the data part can also be uploaded using encryptedMessageFile parameter. As the test API page does not support multiple file upload parameters, upload buttons for those are not currently available there.

Accept sharedKey parameter in downloadPrunableMessage and getPrunableMessage APIs.

Added client UI support for decrypting messages using a shared key, to allow disclosing the shared key for a specific encrypted message to a third party in order to decrypt it without having to reveal the account passphrase.

Forging optimization to reduce block skipping when switching forks.

Minor other bugfixes and UI improvements.

Updated H2 library to version 1.4.192, tika to 1.13, and slf4j to 1.7.21. If
installing manually, make sure to delete the old lib folder first.

Source: https://nxtforum.org/nrs-releases/nrs-v1-9-0e/

The NRS (Nxt Reference Software) Client is the Nxt core developers’ official wallet release.

NRS is a locally hosted client server application. By default it downloads the Nxt blockchain, but from version 1.10.0e you can run it as a light client as well as a full node. To forge and earn forging fees from processing transactions on the network you must run the Nxt Client in full mode, which is possible even on small devices like laptops, or on a Raspberry Pi. There are also bounties for running public nodes.

The Nxt Client is easy to install. Use the 1-click installers for Linux, Mac and Windows or read this INSTALLATION GUIDE to launch the NRS .zip from terminal.

Nxt announces: ‘ARDOR’

Nxt-announces-ardor

ARDOR is brought to you by the core development team from Nxt. After years of building and testing the Nxt platform, the team is going to involve the public even more. As the first Blockchain 2.0 platform, the community has continually improved Nxt and now looks forward to release Ardor for companies, organizations, and of course, users.

ar•dor(ˈɑr dər) 
n.

1. great warmth of feeling; fervor.
2. intense devotion; zeal.
3. burning heat.

Also,esp. Brit., ar′dour.

The Nxt core dev team is letting anyone get into the blockchain space with a new child chain platform, ARDOR, which will incorporate the technologies proven for years by the Nxt 1.0 cryptocurrency and blockchain. Soon, anyone will be able to create their own solutions using the blockchain technology with the Ardor child chains.

Nxt is undergoing a dramatic evolution. Research by the Nxt team has led to Ardor, a platform that uses child chains and incorporates all of Nxt’s latest blockchain innovations while being backed by the core developers of Nxt. Ardor is more than just about money: It’s about making a blockchain platform that is open to everyone, from single users all the way up to FinTech startups and governments, and one where anyone can create their own child chain and interact with the whole blockchain ecosystem. That means anyone, anywhere, will be able to utilize blockchain services with relative ease.

We can’t give away too much until the final features of Ardor are tested repeatedly.

A few of the features coming with the new Ardor release:

Blockchain as a Service

Ardor will open blockchain development to organizations and individuals across the world. The high barriers to getting started with blockchain are about to vanish.

Manageable Blockchain Size

Ardor will solve the problem of scalability by separating transactions and data that do not affect security from those that do, and moving all of those that don’t affect security onto child chains. The Ardor team will create the first child chain to house many Nxt 1.0 tools as well as future features. This small size also comes with short transaction times so processes need only a fraction of time compared to Bitcoin to execute functions.

A Decentralized Asset Exchange

Building off of the Asset Exchange on Nxt, Ardor will enable the ability to trade assets on any child chain for any of the child chain tokens. This allows child chains to interact with each other and opens up numerous opportunities for collaboration as well as allow cross chain asset trading, a long-requested feature within the Nxt ecosystem.

Decentralized Voting and Governance Systems

Ardor will be at the core of decentralized consensus in the future. Secure and anonymous voting will be an available feature on all child chains as it is on the Nxt platform.

Phased Transactions

Users can set multiple conditions before a transaction is executed, such as a minimum number of votes and a set amount of time. Like Nxt, Ardor will use Smart Transactions. With this, users will only need to submit the parameters necessary for the transaction and the ID of the functionality they want to use. The transaction process is also completely decentralized. No centralized server, service, or application, like Ethereum’s Oracle, is needed.

“Rather than providing smart contracts, NXT is focused on implementing the important use cases and functions directly into the core of both Nxt and Ardor. This approach has proven to be scalable and secure and will become more so when Ardor is released” – Riker

These are a few of the things Ardor will give you and the cryptocurrency community. As development continues and testing is finalized, you’ll get a detailed analysis of each of the new tools, as well as the core features built into Ardor. We’ll also reveal, step-by-step, a list of our partners and what they’re doing with our technology.

This is all possible because of new developments within the Nxt community. Decision-making and planning is becoming more professionalized. The community and team structure are adjusting to the new demands while the Nxt and Ardor technology remains entirely open source. Ardor is more than a cryptocurrency – it’s a blockchain platform specifically designed to let anyone build decentralized tools with the latest innovations in blockchain technology.

How to get Ardor

You’ll be able to participate in Ardor right away. As Ardor continues testing and development, Nxt 1.9 will be released. With Nxt 1.9, you’ll get your first chance to own a piece of Ardor. All those who hold an amount of NXT will also get a piece of Ardor. Snapshots will start be taken on an hourly basis, starting on July 14th to October 12th. Then, your total NXT will be averaged, and you’ll receive that amount in Ardor tokens on October 12th, which will be freely tradeable up until the Ardor system launches.

At block 1,000,000 on October 12th, 2016, snapshotting will stop, and you’ll be allowed to trade your Ardor tokens in NXT 1.9 in preparation for the launch of the Ardor blockchain.

After Ardor has launched, Nxt 1.0 will remain active and supported. Nxt 1.0 is the giant on which Ardor is built and it will remain running as a core component of the Nxt eco-system, functioning as a complete blockchain solution in its own right, as well as assisting in the development and refinement of the Ardor blockchain platform.

There’ll be a lot more news in the weeks and months to come. Ardor aims to be a powerful platform for users and businesses alike by building on the technology pioneered by Bitcoin and Nxt. If you would like to be a part of it, acquire NXT now and get your stake in ARDOR!

Source: https://nxtforum.org/core-development-announcements/(ann)-ardor-or-nxt-2-0-a-scalable-child-chain-platform/

The Nxt 2.0 token distribution

Details about the Nxt 2.0 token distribution have been announced.

Those who have been following  Nxt 1.0 know that the launch of Nxt 2.0 (Ardor) will be a big and important step forwards, not just for Nxt but for blockchain technology in general. With the amazing and broad set of truly disruptive, stable features already running on the Nxt 1.0 blockchain, the next leap forward will be the solving of the blockchain bloat problem inherent to all existing blockchains.

This can make Ardor the first globally scalable crypto platform, and in addition to this, Ardor will enable any individual, business and community to launch their own fully secured customised private ledgers. In short, a Nxt 2.0 Main Chain token (ARDR) will ‘forge’ (~ stake/~mine) all the childchain transactions and thereby secure them. The first and default Nxt 2.0 childchain (Ignis) to be launched with the genesis block will be a ledger which integrates all the functionality of Nxt 1.0.

Ardor’s prime innovation is to split the blockchain into a main chain that is used for consensus creation only, and multiple child chains that keep separate ledgers of transactions, each child chain using its own coin/token.

In the announcement Jean-Luc writes that:

The Nxt 1.0 branch will continue to run

Nxt 1.9 is going to be the last major release on the Nxt 1.0 branch.

Nxt 2.0 is not a fork of Nxt 1.0. NXT tokens will continue to exist.
Existing 1.0 users will be able to log in to Nxt 2.0 with their existing passphrases.

The Nxt core development team is committed to providing support for Nxt 1.x for at least one year after the Nxt 2.0 launch. Additional GUI functionality may or may not be added to the NRS Client.

The distribution of Nxt 2.0 tokens

The Core Developers recognise the tremendous contributions of the investors and holders of the original Nxt 1.0, without whom Nxt 2.0 would not be possible, and have decided to grant them exclusive rights to the new 2.0 tokens.

Ardor tokens

ALL Nxt 2.0 Main Chain tokens (ARDR) will be distributed among the holders of Nxt 1.0 tokens.

Nxt 1.9 will be announced shortly with a hard fork for the ARDR distribution without API changes.

The only way to get ARDR is by holding NXT in your account during the snapshot phase (which starts when Nxt 1.9 is released and will run for about 3 months).

Jean-Luc writes:

The Nxt Software will start taking periodic snapshots of all users’ NXT balances, at regular intervals (most likely once an hour), for a period of three months.

The NXT balances in each account will be averaged over this full three month period, and at the end all accounts will be automatically credited with a token representing their ARDR holdings, issued as an Asset on the Nxt asset exchange.

This ARDR Asset will be freely tradeable.

The distribution of the real ARDR coins will be based on the ownership of ARDR Assets taken at the point of time when the 2.0 Genesis block is created.

There will be no burning of Nxt 1.0 needed in order to receive either ARDR or [Ignis]  Tokens.

ARDR tokens will be used for forging (i.e. staking / mining) to maintain and secure the full Ardor network and incentivize people to set up nodes. Users of any Ardor childchain will have to pay bundled transaction-fees to ARDR forgers.

Riker explains:

Holding the ARDR token provides the ability to bundle many child chain transactions into a ChildChainBlock transaction on the main chain (i.e. become a bundler) and forge transactions on the main chain.

Ardor Mainnet is scheduled to launch in Q3 2017.

IGNIS; the Nxt childchain tokens

Introducing: Ignis.

As stated above, Nxt 1.x will continue to run; you will get to keep all your current NXT tokens.

The Nxt 1.x equivalent chain which will launch with the Ardor genesis, is a new Nxt ledger. Its transactional token has been dubbed Ignis. The Ignis token will be the only transactional token on the Ardor network when it launches, and until new child chains can be spawned.

Ignis tokens will be distributed ~ 50/50 to NXT holders/Nxt core development team.

The ~ 50% Ignis which are to be distributed to the core development team will be theirs to use for funding the continued development of the Nxt 2.0 platform.

Jean-Luc writes:

[Ignis] will be created in the Genesis block of Nxt 2.0. At the moment NXT holders will get 50% [Ignis] of their NXT balance. The other 50% will be reserved for the devs, for instance to do an ICO with, or something else. As this is still one year in the future, the exact method of this is still being debated.

This means, that in addition to the Main Chain tokens (ARDR), NXT 1.0 holders will be accredited a number of Ignis (Nxt 2.0 transactional tokens) equal to ~ 50% of the NXT they hold in their account when Ardor launched in Q3 2017.

As a warning to traders, Riker states that: “If you keep your NXT on a centralised exchange you’ll need to check with the exchange how they handle the ARDR/Ignis distribution since it will be distributed to the exchange account. The exchange will get the ARDR / Ignis tokens and will decide what to do with it”.

Our best advice would be for you to keep your NXT in your own Nxt account with your own passphrase.

Nxt Developers – feel safe to code with Nxt

Nxt has had issues with breaking backwards compatibility when preparing for the switch to Nxt 2.0 / Ardor.

Nxt 1.10.x API will NOT be changed, so developers working with the Nxt 1.10.x API can feel safe that their code will keep working on the 1.0 branch and that they can easily port their new or existing Nxt projects to the new Nxt 2.0 ledger, if they want to do so after it has been launched. The Nxt core development team is very willing to offer their help in that regard, in case it should be necessary.

One exception to the backwards compatibility-rule is, as announced on release, the Nxt add-ons feature (available for developers from Nxt 1.8.0e), as this will “undergo significant refactoring in 2.0”.

Use it to test, play with it, but like Jean Luc writes: “Keep any custom add-on code simple, and be prepared to have to change it for 2.0 or discard it”.

You can follow the Nxt development in nxtforum.org/, and if you’re in doubt about anything, ask the core developers.

Announcement: Nxt 1.8 features

The work on Nxt and the Nxt NRS client continues. The Nxt core developers have just sent a list of the new features which will be implemented in the upcoming 1.8 release, expected to be released in April.

  • Desktop Wallet

    Run the client wallet as a desktop application.

Riker writes:

Until now when starting the NXT server, the user had to wait for the server to start, then open a browser and point it to http://localhost:7876 to start the browser wallet.

Starting from this release, starting the NXT server would immediately launch a desktop wallet application based on the same design of the browser wallet.

See: https://bitbucket.org/JeanLucPicard/nxt/issues/338/desktop-wallet

  • Account Monitor

    Server side component which automatically funds specific accounts based on various criteria to make sure the account owners always poses enough NXT to transact.

ScripterRon comments:

You can monitor Nxt, Asset or Currency.

When a monitored account balance becomes less than the threshold amount, a transfer transaction is initiated to transfer Nxt/Asset/Currency from the funding account to the monitored account.

Multiple account monitors can be active.  Monitored accounts are identified by an account property.  The account property must be set by the funding account owner.

  • Wallet home customisation

    Open the wallet on a specific page or modal.

Riker writes:

This feature enables linking into a specific page or modal of the client web wallet from an external web site or link.

For example, connecting to: http://localhost:7876#account=NXT-22222-…&modal=send_money_modal&recipient=NXT-33333

would log in as account NXT-22222 open the standard “Send Money” modal and pre-populate the recipient field with the value NXT-33333

See: https://bitbucket.org/JeanLucPicard/nxt/issues/320/start-the-client-on-a-specific-page-or

  • Add-Ons

    Simple server side plugin framework

Join the Nxt 1.8 conversation on nxtforum:
https://nxtforum.org/general-discussion/upcoming-features-in-1-8-release/

In parallel with the above, Nxt lead-dev, Jean-Luc, has started working on the Nxt 2.0 design.

Read more about the Nxt 2.0 design proposal:
http://test.nxter.org/nxt-2-0-design/
http://test.nxter.org/nxt-2-0-design-proposal-should-investors-and-asset-issuers-be-afraid/

Comments and ideas for the Nxt 2.0 design can be posted in
https://nxtforum.org/core-development-discussion/nxt-2-0-design/

Shareholders Meeting via Blockchain

It seems we are witnessing a revolution in the corporate world caused by blockchain technologies. We’re moving quickly towards a new business ecosystem of virtual corporations, distributed autonomous corporations, smart contracts, new models of funding and so on. This article is about the exciting possibility of having distributed shareholders’ meetings where results are public and counted in a trustless way.

Since late April last year, I’ve been working on the NXT cryptocurrency as a core developer. NXT is a 100% proof-of-stake cryptocurrency aiming “to transform a cryptocurrency into a decentralised financial platform that supports a thriving and fast-growing digital economy” (unlike hybrid Ripple’s approach which isn’t fully decentralized).

Since 12 May, NXT has had the Asset Exchange (NXT AE) as a core feature. Anyone can now issue assets on this totally decentralized and uncontrolled exchange and trade them.

You can monitor your Nxt asset purchases either via your client or via a number of independent web sites: NextBlocks, NXTReporting and SecureAE  (where you can also purchase Nxt and issue assets).

Read the asset descriptions and you’ll quickly gain an appreciation of the wide range of different applications and services that have already been built on top of the Nxt platform and they’re just the beginning; the start of what is set to evolve into an entire financial and economic ecosystem.

The key feature of the NXT AE for businesspeople is that they can fund their business via asset issuance, getting money from anyone (not just angels/VCs, as with KickStarter), and they can do so from day one and for a low fee.

Imagine getting funding directly from a community needing your product. And, wouldn’t it also be awesome to get feedback and community-powered decisions?

With the voting system I have finished recently that will all be possible. The voting system will be introduced in NRS (NXT Reference Software) 1.5. The latest release version is 1.4.16, so voting API & GUI is already accessible. I can share some API details right now as they will likely remain unchanged.

Also see: Nxt Voting Teaser video (GUI and functionality)

Consider the example of an indy developer making a game. First, he got some funds via the asset exchange. Then he made a promising v.1 of the game. Both the concept and its implementation are still raw but the fans are excited! So he wants to ask the community whether he should polish v.1 or instead build v.2 on the basis of a better concept, or… Having decided on the different options, he starts the poll:

    val question = "Further directions in game development. "
    val description = "I got some great reviews. I have 10000 NXTs left. How should I spend them?"

    val finishBlockHeight = Nxt.getBlockchain.getHeight + 1440 // ~= 1 day
    val options = Array("Improve graphics and release it ASAP", "Start to work on v.2 to get funds for it's development", "Better ask experts, e.g. attend GameDev Conference", "Game is abortive. Stop working on it.")

    val optionModel = Poll.OPTION_MODEL_CHOICE
    val votingModel = Poll.VOTING_MODEL_ASSET

    val pb = new PollBuilder(question, desc, options, finishBlockHeight, optionModel, votingModel)
    val assetId: Long =  // assetId here
    pb.assetId(ai)
    pb.optionsNumRange(1, 1) // only 1 option to choose

    issueTxToGodId(new Attachment.MessagingPollCreation(pb), phrase1)

A vote could be sent with following code:

    val poll = Poll.getByName(question).head
    val vote = Array(0.toByte, 1.toByte, 0.toByte, 0.toByte)
    val attachment = new Attachment.MessagingVoteCasting(poll.getId, vote)
    issueTxToGodId(attachment, phrase2) 

1440 blocks after starting the poll we can get and print to console poll results (where 1 asset=1 vote):

    val pr = PollResults.get(poll.getId).get
    pr match {
        case cpr: nxt.PollResults#Choice =
            val m = cpr.getResults.toMap
            println(m)      
    }

So, we are soon going to have fair, cheap, public and distributed shareholders voting! Just imagine how that could change the world of business.

Notes:

1. This blog post (as revised) was first released by Kushti on 2. The minimum fee to issue an asset on the NXT AE is 1000 NXT. The transaction fee is currently 1 NXT.

A few upcoming Nxt features explained

True to form, the NXT Core Developers continue to deliver groundbreaking new features for Nxt.

Because of their uniqueness and many possible use cases, I am especially excited about these ones (expected to be released within the next few months): the Monetary System, Voting System, and 2-phased Transactions.

Monetary System

UPDATE: Nxt Monetary System is released 

The Monetary System is the feature closest to being released and, at the time of writing, it will be brought to the mainnet at block 330000 (roughly Jan. 10th). This is a way for anyone with a few NXT to create a fully fledged digital currency. MS has a unique property: namely its ability to mint currencies. Minting is very similar to mining with the key distinction that it is used solely for the distribution of a currency and the MS currency doesn’t need to rely on its miners for blockchain stability unlike the typical alt-coin.

The minting property has four main advantages:

  1. It helps miners of other cryptocurrencies to feel at home on a PoS system like Nxt.
  2. There is a steady and ongoing distribution and therefore now a way for minters to create value on Nxt’s blockchain, thereby providing another powerful answer to the negative comments often made about Nxt’s initial distribution (to stand alongside this one: the supposedly unfair distribution was, in fact, a deliberate move to create a sustainable system).
  3. A mintable currency doesn’t depend on the minters for the blockchain’s security, a MS currency that no one mints being just as safe as one with a large hashrate. Every MS currency is backed by the stability of the Nxt network.
  4. With mintable currencies, there will be a way, in effect, to transfer electricity costs into the value of a MS currency which can be directly traded for NXT, allowing for NXT to be exchanged without having to deal with exchanges at all.

Also, MS currencies have the advantage of being controllable and, as such can be pegged, for example, to USD, or backed by gold or silver, thereby helping to ensure a degree of stability. This would bring us closer to solving the common cryptocurrency problem of volatility and allow for an MS currency to be used to purchase items without the fear of drastic price drops or rises.

Voting System

UPDATE: Nxt Voting System is on public testnet, ask for testNXT here.

Next we have the Voting System, scheduled to be released in Nxt version 1.5, once the MS has been fully integrated. The voting system allows for polls to be created, voted in, and counted, all from within the Nxt blockchain. You are also able to weigh the voting, either by the amount of NXT owned, or by the amount of a specific Nxt asset owned. The most interesting subset in my opinion is weighing a poll by the amount of an asset owned.

With this, a number of things are possible:

  1. Asset owners can seek a consensus from asset holders about a specific question.
  2. Assets can be created and distributed in order to create decentralized voting committees that are given polls to vote on created by any member in the community.
  3. Polls can be created without fear of a Sybil attack (one person pretending to be many people to vote more than once) because one person with, for example, a holding of 100 jl777hodl has the same voting weight as 100 people who each have a holding of 1 jl777hodl.

Also see: Nxt Voting System Teaser Video

Phasing

UPDATE: Nxt Phasing is on public testnet, ask for testNXT here.

Finally we have the most abstract of the soon-to-be-released features: 2-phased transactions. This doesn’t yet have a definite release date, but will hopefully be launched around the same time as the Voting System, as parts of it rely on VS.

2-phased transactions are Nxt’s implementation of multisig, but extend the definition of multisig to include many more functions and use cases. Basically, a user is able to define a transaction in two phases: the first phase being when the details of the transaction are defined (e.g. the amount of NXT to send and the recipient), and the second being when the transaction is released into the system. 2-phased transactions will also enable the account-holder to make a transaction dependent on the results of a poll. This greatly widens the range of possible use cases of 2-phased transactions:

  1. Asset holders can now vote to veto or accept payments made by the asset issuer or company on whose behalf the asset was issued.
  2. Trust-less escrow is possible by phasing two transactions in parallel.
  3. Joint accounts can be run with ease.

As these features become operational, thereby allowing people to have control over making their own currencies, polls, and phased transactions, the use cases of Nxt as a platform will start to increase exponentially and Nxt will have moved still closer to achieving its goal of being a viable decentralized economic platform.

Nxt is in the process of giving financial power back to the people. With this power in their hands, who knows what will be created next.

Other links:

The Nxt [CORE] article series
Nxt – The Economy Platform – Usecases for everybody

Nxt [CORE]: Monetary System

Nxt’s Monetary System allows users to create new decentralized currencies on top of the secured Nxt blockchain. New coins are highly customisable, with a wide range of parameters that can be set to govern their properties and use.

The Nxt Monetary System (MS) enables the launch of altcoins without going through the trouble of bootstrapping the currency with its own blockchain and network, thereby removing a major impediment to easy, real-world adoption and use of different customized cryptocurrencies.

The ultimate value of a new 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 at which they can be redeemed for NXT if desired.

With Nxt, new coins are highly customisable, with a wide range of parameters that can be set to govern their properties and use. It is possible to launch an MS coin that is distributed by proof-of-work, but secured by Nxt’s PoS algorithm. It is also possible to create fiat- and commodity-backed tokens for particular real-world applications.

These allow for the creation of bespoke and niche currencies for highly specific applications, crowdfunding coins, ‘regular’ altcoins, reward points, coins pegged to fiat currencies or precious metals, while also being a stepping stone to new future Nxt features, such as p2p loans, meaning that Nxt can become the underlying tech for a completely decentralized banking system.

When? Now!

MS can be explored in the Nxt testnet, ask for testNXT here.

The main net NRS release that will implement the MS System has also been released. Monetary System will be activated with block 330000, and nodes not running 1.4.5 or later will be on a fork.

mscoins_testnetTestnet screenshot

Read an NRS installation tutorial here or on nxt.org.
A guide to the NRS Client interface can be found here – or watch the video tutorials.

Potential impact and significance

Monetary System offers greater exposure to NXT as the machinery that powers financial transactions, over and above its utility as a currency; however, this does not imply that NXT itself will become worthless. NXT remains a ‘decentralised store of value’, with fixed supply. MS currencies may become something akin to a decentralised credit system, meaning that users transact with MS coins but all of them depend on NXT for their ultimate utility.

Of course, this does not mean that MS will not catalyse a shake-up of the NXT ecosystem, providing an impetus for the redistribution of existing NXT wealth, as Come-from-Beyond writes:

‘In the beginning we will have an epoch of instability when hundreds of currencies will pop up every day. After a while some currencies will become more and more popular, but the whales will have their wealth dispersed among thousands and they will get only a fraction of initial wealth in the most popular currency.’

The Monetary System is necessary because different currency properties are suited to different applications. Having a series of currencies that fit the needs of the market are the obvious solution to the one-size-fits-all problems of both fiat and any single cryptocurrency. For example, as Come-from-Beyond also writes:

‘Having a fixed currency supply (like Bitcoin and NXT) isn’t ideal for all situations. Fixed currency supplies make a great ‘store of value’, but they make lousy credit systems. The Monetary System is simply another tool to allow people to create local currencies to break free of centrally controlled fiat.’

NXT will be bought by those looking to create currencies – it will not be used to purchase alternative currencies (as is presently the case).

ChuckOne writes:

‘NXT will have one specific use case only: to enable transactions. Nxt Monetary System is about separating power from economy. So, we can basically move the NXT Economy from this platform to another one if something is wrong with NXT or to penalize forgers if they misbehave.’

MS enables a series of far-reaching developments, including:

  • Coin shuffling. Claimable currency units can be shuffled and returned at the same exchange rate, allowing for anonymous transactions without potential loss of value in the process.
  • Fiat-backed tokens. Once USD, GBP, EUR or other fiat currency-backed coins are trading, it will be possible to send fiat money using the NXT infrastructure. This brings the benefits of speed and very low transaction costs to international money transfers. Unlike with Bitcoin and other cryptocurrency transactions at the moment, there would be no volatility, and exchange rates would be negligible (or zero, since these tokens could simply trade internally within the NXT system indefinitely, until the recipient wanted to redeem them against fiat).
  • Local currencies and exchange trading systems to benefit specific economies.
  • Niche loyalty tokens issued by businesses to reward customers. These tokens would also be freely and globally tradeable, meaning the market would set their value beyond what they could be redeemed for within the business in question.

ms_testnet2The NRS Client exchange, testnet screenshot

Monetary System: specifications

The following descriptions are taken directly from MS documentation as it stands at the time of writing. Documentation may change without notice. Latest version can be found here: https://bitbucket.org/JeanLucPicard/nxt/issue/205/monetary-system-documenation

Overview

The ‘Currency’ entity is the basic building block of the NXT Monetary System, currency has a unique name and code and uniqueness is guaranteed by the protocol, currencies can be deleted and their code can be reused under certain conditions.

The total currency supply is divisible into currency units. Like assets, currency units support decimal positions implemented as a client side feature. The maximum number of currency units which can be issued per currency is similar to NXT: i.e. 10^9 * 10^8. The actual maximum units supply is set by the currency issuer. The currency issuer is the account which issues the currency and pays the issuance fee. The issuer is responsible for setting the currency properties and in some configurations has additional control over the currency usage. Like asset balance, currency units can be transferred between accounts.

Currency Properties

The currency entity supports several properties. Properties can be mixed and matched in various ways to compose the currency type. The currency type then controls the inner workings of the currency. The list of available currency properties is as follows:

EXCHANGEABLE – the currency can be exchanged with NXT. Holders of the currency can publish an exchange offer specifying the buy and sell rate of the currency, in much the same way as banks or currency exchanges publish their exchange rates. Each account can publish only a single exchange offer at any given time. Exchange offers have an expiry block after which they are no longer in effect.

Buyers and sellers can issue exchange requests to match published exchange offers. Unlike asset bid/ask orders, exchange requests are not saved, they are either executed immediately (fully or partially) or not executed at all. A match of exchange offer with a buy or sell exchange request creates an exchange entity which represents the transfer of currency units, in return, to NXT balance and causes the relevant account balances to update. Issuing an exchange offer reduces the NXT and currency balance of the offering account temporarily until the offer expires. Exchange offers also specify a limit on the number of exchanged units which can be larger than the number of units offered. When a buy exchange request matches an exchange offer the number of units offered for sell is reduced and the number of units offered for buy is increased as long as the limit has not been reached. Once the exchange limit of an exchange offer has been reached, this exchange offer can no longer be used.

CONTROLLABLE – currency property suitable for currencies which need to track an external entity. It imposes the following limitations on the currency: (1) Currency can be transferred only to/from the issuer account (2) only the issuer account can publish exchange offers. The issuer account can issue a large (practically infinite) supply of units in advance, then transfer units to accounts, or offer to exchange units, to reflect actual transactions which take place in an external system. The large supply of units in the issuer account can be used to mimic the effect of creating units out of nowhere to support features such as creating new units and interest payments.

RESERVABLE – currency units are not issued immediately. Instead the currency issuer sets a block height by which the currency is to be issued and a limit of NXT per unit needed in order to issue the currency. Currency ‘founders’ then spend their NXT to reserve their currency stake. If the amount of NXT per unit needed in order to issue the currency is not reserved before reaching the block height the issuance is cancelled and funds are returned minus fees. If the required reserve is allocated, the currency is issued and units are split between founders according to their proportional stake of invested NXT. In case of rounding, leftovers are sent to the issuer account. See below for a discussion of usage scenarios for Reservable currency.

CLAIMABLE – currency units of reservable currency can later be claimed at the same NXT per unit rate reached when reserving the currency. The ability to claim a currency at a certain rate imposes some practical limits on the rates at which users would want to exchange it. However claimable currency can also be exchanged if only for the purpose of exchanging the whole currency supply, so that the currency can be deleted.

MINTABLE – currency can be minted using proof of work algorithms in much the same way as Bitcoin. Unlike Bitcoin mining, minting currency does not secure the network (this is done by NXT). Minting is used solely for creating new currency units and serves as the only mechanism to increase the number of available units after the currency issuance.

NON_SHUFFLEABLE – this property indicates that in the future this currency cannot participate in coin shuffling. By default currencies are allowed to participate in shuffling.

Properties are combined into an Integer bit mask designated as the Currency type.

Currency Exchange

For exchangeable currency, each currency holder account, can publish a single exchange offer specifying the buy rate and sell rate vs NXT and the number of units she is willing to exchange (which cannot exceed her available currency units and NXT balance). Users can observe all currency exchange offers (intuitively similar to fiat exchange offices) and try to match them with buy/sell exchange requests. An exchange offer has an expiration height, as well as a limit on the total number of units which can be exchanged. When units are bought from an exchange offer the number of units to sell increases automatically and vise versa. The publisher can also limit the total transaction volume of currency units traded for a specific exchange offer.

Deleting a Currency

Since the available currency codes are limited to 3, 4 or 5 uppercase letters, the total number of codes is limited to 26^3 + 26^4 + 26^5 – 1 = 12355927 unique values (The code “NXT” is reserved), it is likely that some of these codes will have value in themselves. Therefore deleting a currency is possible under certain conditions depending on the currency type. Users may re-issue a currency, or delete a currency and then issue a new currency, with the same code but with different properties. In order to delete or re-issue a currency an account must poses all the currency units (and additional conditions apply based on the currency type)

Creating new Currency Units

The only way to create new currency units after issuing a currency is using proof of work minting. Other methods of creating units are susceptible to denial of service attacks and/or sock puppets and are therefore not allowed. The controllable currency type provides a partial solution for creating new units, by allowing the currency issuer account to treat her supply as a treasury and only consider units outside of this account as the total currency supply. This approach requires users to trust the currency issuer which can increase the currency supply at any time.

Minting

Users can issue minting requests in order to mint additional currency units. Each minting request triggers a hash calculation based on the submitted data and the currency hash algorithm. The resulting hash code is compared to the target value derived from the current currency difficulty. Minimal and maximal currency difficulty values and minting algorithm are specified when issuing the currency and cannot be changed later. The expected number of hash calculations (i.e. difficulty) of minting the first unit is 2^minDifficulty while the difficulty of minting the last unit is 2^maxDifficulty. Difficulty increases linearly from min to max based on the ratio between the current number of units and the total supply. Difficulty increases linearly with the number of units minted per CurrencyMint request, small minters can mint only a few units per request while large minters can mint large number of units per request.

The number of units per minting request is limited to 1/10000 of the total unit supply. Minting is limited to a single minting transaction per block/account/currency. Currency issuers can specify initial supply of units as a ‘pre-mint’ supply assigned to the issuer account then use crowd funding by making the currency RESERVABLE and EXCHANGEABLE.

Once the currency becomes active the delta between the current supply (reserved supply) and total supply can be minted. The NRS provides a Java based, reference implementation minter, which can be used for minting. In practice we expect users to enhance this minter to calculate hash codes using their Asics or GPUs, trying to match the current target, and when solving a hash, to submit a currency mint transaction (thus paying a fee).

However the hash code is smaller than the target, the currency units are credited to the sender account.

See the documentation for the reference implementation ‘Mint Worker’ utility here #207

Store of Value

The combination of RESERVABLE and CLAIMABLE properties can be used to allocate initial value for a currency by locking NXT. Once the currency is activated the reserved NXT are locked and the only way to release them is to claim back the currency units in return for NXT. This provides the currency with a value based on the locked NXT balance. Note: locked NXT do not participate in forging, therefore, in theory its possible that a large amount of NXT becomes locked as a currency store of value thus reducing the amount of NXT used for securing the network; we are aware of this problem and will monitor it closely. We do not expect this to become a major problem any time soon.

Crowd Funding

The combination of RESERVABLE and EXCHANGEABLE properties can be used for crowd funding; in this configuration the NXT balance reserved by founders is not locked, instead it is sent to the currency issuer account once the currency becomes active. The issuer can use these NXT for its operations and the founders cannot claim back their currency units, only exchange them based on the published exchange offers. Currency issuers can specify the initial supply as ‘pre mine’ and the founders get to share the difference between the reserve supply (also named ‘pre-activation’ supply) and the initial supply.

Fees

Currency issuance fee is based on the length of the currency code:

3 Letters – 25000 NXT

4 Letters – 1000 NXT

5 Letters – 40 NXT

Re-issuing an existing currency with different properties costs 40 NXT regardless of the currency code length. All other currency transactions (as of today) have a fee of 1 NXT.

Unit conversion

Currency is measured in units and like assets has decimal positions, however the blockchain maintains currency balances as a whole number (QNT). Therefore, for example, in the case of a currency which has 2 decimal positions and the client has reserved 123.45 units, the ‘units’ value submitted in the API call should be 12345. APIs using NXT balances should send the value measured in NQT as usual. When specifying ‘rate’ in the API, it calculates the ratio between NXT balance in NQT and currency balance in QNT.

Example: For a currency with 2 decimal positions. When submitting a buy exchange request for 12.34 units at a rate of 5.6 [NXT/Unit] the values submitted to the currencyBuy transaction should be: units = 1234 i.e. units without decimal position or 12.34 * 10^2 rateNQT = 5600000 i.e. rate converted to NQT then divided by decimal position or 5.6 * 10^8 / 10^2

In order to prevent rounding problems when submitting information to the server, the UI enforces the following rule: If a currency has D decimal positions. Unit values cannot have more than D decimal positions and rate values cannot have more than (8-D) decimal positions. Therefore when issuing a currency, we do not recommend specifying more than 4 decimal digits so that conversion rates are also divisible to at least 4 decimal digits.

Disclaimer

  1. Before issuing a currency we recommend issuing a currency with the same properties on the testnet and experimenting with all parameters since these cannot be changed without deleting the currency.
  2. This documentation reflects the actual code implemented as of this date.

API Documentation

This section is relevant to API and client developers.
https://bitbucket.org/JeanLucPicard/nxt/issue/205/monetary-system-documentation

Nxt Monetary System is only one Nxt CORE feature.

Read other articles from the Nxt [CORE] article series.

Also see: Nxt – The Economy Platform – Usecases for everybody

Nxt [CORE]: Marketplace

Nxt Marketplace (formerly known as the Digital Goods Store, or DGS) is a decentralized mall created for buying and selling digital goods. Like the Asset Exchange, it is built into the Nxt client and enables direct peer-to-peer trading. Although it was designed for buying and selling digital merchandise – music, ebooks, software, and so on – physical items have also been listed for sale.

marketplace

The Marketplace was a planned feature from the start, detailed by Nxt creator BCNext before Nxt was launched. As BCNext remarked, the workflow is relatively simple:

1] A developer sends a message describing a product (it’s stored on the blockchain).
2] A user sends a payment to the developer’s account.
3] The developer sends an encrypted message with a link or a code (stored on the blockchain as well).
4] The user decrypts the message and uses the code to unlock premium in the application. *

Key points

1] Developer publishes their account on their webpage to prove they are the legitimate owner (or uses Reputation System of NXT).
2] All actions are public and can be audited (the encrypted message can be audited if one of the parties reveals the key).
3] Only transaction fees are charged, 100% profit goes to the developer.
4] No one can shut the store down nor they can DDoS it.

(* Note: ‘to unlock premium in the application’ means, in effect: to obtain the product).

Nxt’s decentralised Marketplace was released at block 210,000, on 1 August 2014.

Using the Marketplace

marketplace_mystore

Now, large parts of the workflow described by BCNext have been automized in the NRS client.

You can list your digital (or physical) goods with ease, set a price, change or cancel the listings if you wish, and communicate safely with your customers through encrypted private messages on the Nxt blockchain. Costs are limited to the transaction fee and the cost of exchanging messages (both currently 1 NXT). Listing and selling goods through the Marketplace is free, except for transaction fees.

Buyers are able to search goods by issuer ID (account), item name or by tag (category). Buyers can set an order expiration date, and also leave private or public feedback after receiving the product.

There is a video tutorial available here.

3rd party use cases

The launch of Nxt Marketplace was met with great enthusiasm in the Nxt Community, but since then relatively little community energy has gone into developing it further. There are few user-friendly solutions (like Secureae.com for the Nxt Asset Exchange).

Melodius.me is the most promising announcement so far.

Due in Q1 of 2015, Melodius is a website for independent artists, built on top of the Nxt Marketplace. A partnership with crypto exchange CCEDK allows users to buy and sell their music, concert tickets, merchandise and shares not only with cryptocurrency (NXT and BTC) but also with fiat money in their local currency.

This significantly enhances the buying process, since Nxt remains very much in the background. The attraction for indie artists is the low commission fees; whilst iTunes and Google Play take substantial percentages of artists’ sales, Melodius charges only the standard transaction fees required by Nxt Marketplace. Every penny earned goes directly to the artist. Interestingly, the CEO of CCEDK, Ronny Boesing, worked in the music industry for many years, selling music around the world for major brands. His partnership with Melodius brings together two areas of interest and expertise.

A possible concern with having a decentralized and unregulated global marketplace may be that it attracts people seeking to circumvent the laws of their particular country. Nxt has chosen not to censor goods, but 3rd party sites like Melodius.me can easily filter listings according to their niche, their users’ choices or their local laws.

When buying and selling goods online there is, as in the real world, a chance of getting scammed. There are far too many sad stories about people (and not all of them anonymous) in the crypto world who turned out to be scammers. The solution is to be on your guard at all times, preferably only deal with people you know, always do your due diligence and, if possible, use a trusted escrow for larger transactions.

Concorde_Logo

There is currently no escrow or reputation system implemented in the Nxt core (Reputation System is a feature planned for future development), but a solution for 3rd party clients or websites could be to implement CONCORDE, the escrow system developed by blackyblack, which is currently being tested on Nxt Testnet. Concorde will be included in the next release of FreeMarket, a 3rd party marketplace built on top of Nxt’s Arbitrary Message feature, but can be integrated into any Nxt system.

If you you want to help with the testing, make yourself known in this thread: https://nxtforum.org/freemarket/ann-concorde/, where further information about how Concorde works can also be found. Concorde is open-source and a direct download link can be found in Concorde’s nxtforum thread. As blackyblack writes:

‘It is an escrow system opened for all NXT users. Feel free to build your own projects on top of it or use for your daily needs.’

Conclusion

At present, Nxt Marketplace is being used, but mostly through the Nxt NRS Client. It remains a hidden gem of Nxt: an almost undiscovered secret, ready to be put to wider use.

A few listing sites are available, which detail all the goods for sale on Nxt Marketplace; users can see and search the goods, but everything must still be bought and sold with a Nxt Client. An example of such a listing site is http://jnxt.org/market/.

The goods sold are up to the imagination of the sellers. A house has been put up for sale, ebooks and articles are sold, domains, oil paintings, screensavers, a NXT faucet organised (NXT-55AK-82KK-DK3Q-6U4RN), crowdfunding has been attempted, NXT node operation services arranged (NXT-9TNK-QXJ6-YPMY-32CTA), NXT lapel pins (NXT-WBFF-3UMJ-RMLD-7VWS4) are available, even home-made maple syrup is offered (118670936523580125). Also, Nxter.org has its own store, NXTER STORE (NXT-EAVH-SLEV-KSEE-EE2KP).

The low fees and decentralized nature of Nxt Marketplace mean that it can solve real problems, not least for writers, musicians, developers and other digital content creators. Nxt Marketplace can easily be made the backbone of an app store, a decentralized crypto exchange, a subscription-based payment system for magazines, game updates, or even a full-featured crowdfunding platform. Only the imagination of the developer – or the business ordering the use case – sets the limits.

As one new Nxt developer wrote in early March 2014, ‘This [Nxt] is almost like building with lego bricks again’ – this person ended up coding SuperNET.

Nxt Marketplace is only one of the Nxt [CORE] features available.

Read other articles from the Nxt [CORE] article series.

Also see: Nxt – The Economy Platform – Usecases for everybody

Nxt [CORE]: Asset Exchange

The Nxt Asset Exchange (AE) is Nxt’s built-in decentralized trading engine. Using the AE you can create, buy and sell assets that represent data beyond simple coin transfers – opening up wide-ranging possibilities. Also, you can pay dividends to your investors with a single click and only a 1 NXT fee, or you can transfer or burn any amount of assets if you need.

Coloured coins

The AE is based on the ‘coloured coins’ concept whereby a coin or a set of coins can be designated (‘coloured’) to represent something-else. By contrast, many crypto currencies only ever operate as just that  – currencies, and nothing more. However, since the blockchain provides a trustworthy and permanent ledger of all transactions, it can be used to record far more diverse information than purely currency transactions.

NXT was designed and built to leverage this coloured coins idea. NXT coins can be designated (‘coloured’) to represent other crypto coins, stocks/bonds, property, commodities, or even ideas. As a result, the NXT network can be used to trade almost anything. It currently costs 1,000 NXT to issue an asset, and just 1 NXT in transaction fees to buy or sell them.

issue-asset-nxt-ae

Find a Nxt AE guide here

NXT assets

These crypto-assets can gain significant market cap, and many of them are listed on CoinMarketCap.com. In fact, since there are now so many, CMC has created a new page exclusively for assets, a high proportion of which (more than 70%) are, in fact, NXT assets. Many of these were launched by jl777, including SuperNET, NXTventure and InstantDEX. Others include Jinn and NXTTY.

As well as trading on the AE against NXT, some of these assets can now be traded against BTC on the BTER and Poloniex exchanges. SecureAE.com – an online NXT wallet that puts the Asset Exchange at the centre of its functionality – also allows trading on the AE with Bitcoin.

Examples

There are, of course, many different applications for assets, with hundreds already available. Here are just a few interesting use cases.

Mining

At present, the most common use of the AE is to create and trade dividend-paying assets – effectively shares of revenue-generating companies. Issuing an asset is a popular way of raising money for a new project. For example, mining enterprises can raise capital to buy ASICs by issuing and selling assets. The mining rigs using the ASICs then generate income in the form of Bitcoin or other PoW coins, which is exchanged for NXT and paid out to asset holders as dividends every week.

USD-pegged asset

Coinomat’s USD asset is tied to the US dollar. The idea is that this can provide a degree of stability within a crypto-portfolio, without necessarily having to cash out by selling the assets and transferring the money to a bank account (with the costs, time and inconvenience which that would entail). It also means that you can send USD over national borders for just a 1 NXT fee. Using Coinomat’s service you can withdraw your USD assets to any VISA / Mastercard.

Of course, the CoinoUSD asset’s utility/value depends on Coinomat honouring its promise to redeem it, and would be worthless if the company failed to do so; the concept therefore requires centralization to achieve its aims. You can read more in this article or on the NXT forum.

Reward points

Nxterpoints (NXTP) are reward points given to people who contribute to nxter.org. Every month, Nxter.org dividends out its net profit (generated by advertising, store sales and services fees) to all NXTP holders: writers, translators, editors, graphic designers, site developers etc. This means that any person who is having an influence on nxter.org’s net worth, gets monthly rewards in NXT through the asset exchange according to their contribution to the income. The dividends are transferred to their Nxt account for as long as they own the Nxterpoints, which can of course also be traded on the AE. You can read more about this groundbreaking reward concept here.

Company shares

Coin IPOs are commonplace in the crypto world, and after doing just a little research in the field you should realize that some of them are scams. It can’t be overstated that you must ALWAYS do your due diligence before investing in anything.

On the AE, it’s important to distinguish between revenue sharing assets and assets representing ownership (including voting rights) in companies. Here are some examples of each type:

Revenue sharing assets include BGCaffe, a South African café (with plans to expand), Lyth; an upcoming MMORPG based on Nxt features; FinHive (AI on the Nxt blockchain); Pangea, a decentralized poker game; Coinomat, an exchange accepting Nxt, Tradebots (NxtCoinsco) and a lot of revenue sharing mining assets.

Company stocks (shares of the entire company) include examples like Jinn Labs (which is developing a general purpose processor based on ternary logic); SuperNET; Nxt Mobile Applications Company (the company behind the Nxtty mobile messaging app), and more.

Crypto backed assets

mgwBTC, for example, is a crypto backed Nxt asset representing Bitcoin. mgwBTC is used by Multigateway, the distributed cryptocoin exchange developed on top of Nxt by jl777. You simply transfer your Bitcoins (or LTC, BTCD and what other coins are supported) to an address generated by the multigateway, and these are automatically made tradeable in the MGW exchange and on Nxt AE.

Software licensing

toknormal describes an example from the software development industry.

I am an independent software developer and I plan to use the NXT asset exchange to issue software licenses as follows:

[1] – a licensing component in the software makes a call to the NXT network and creates an account (instantaneous).
[2] – it writes the private key to disk and informs the user of the account number.
[3] – the user purchases one license unit from the NXT asset exchange.
[4] – on a subsequent launch (or periodically) the software detects the presence of the appropriate asset in the account it created for itself and considers the installation licensed.

InstantDEX: addition to the Asset Exchange

Nxt is among the fastest cryptos with 1 minute block times, compared to Bitcoin’s 60 mins. To some though, even this may not be fast enough. Step forward InstantDEX: A Nxt 3rd party service, and now also a core service of the innovative SuperNET project, which aims to provide its users with nearly instant transactions. It’s also an asset which will dividend out a percentage of the commissions  generated by the service; currently, it’s paying asset dividends to its investors from its holding of NXTventure.

jl777:

With the NXT AE, people are able to trade things, but there will be the blocktime to wait. 1 minute usually, but sometimes could be more. Also 1 minute will feel like a really long time if the market is changing dramatically.

The goal of InstantDEX is to offer realtime trading of NXT, NXT assets and other cryptos. there won’t be any centralized servers, there won’t even be an actual website as the GUI will be running locally. Just direct peer to peer trading in realtime.

The monetization model is very clear and simple. InstantDEX will not have any fees for withdrawals [or for changing a bid or ask] and the commissions will be set to 0.1% at first.

Caveat emptor!

The AE is completely decentralised and completely unregulated. The substantial benefits this offers – freedom, cost savings, lack of intervention, and so on – also come at a price. There is no hand-holding or policing, and scam assets can be and often are created. Whilst the community generally picks up on these relatively quickly, if you make a mistake then there is very little recourse as transactions are irreversible. As valarmg puts it, ‘When an unknown issues a new asset, it should be treated in the same way as a ‘Nigerian prince’ sending you an email. After a week of due diligence, maybe people could start thinking about buying assets.’

The bottom line: research, research and research. If a long-standing member of the community with a proven track-record issues an asset, there is more reason for confidence than if a newcomer does – no matter how impressive their sales pitch. Ultimately, the responsibility to check out an asset, its issuer and business plan is yours.

Nxt is a versatile, open source cryptocurrency platform. In this Nxt CORE article series we will dive into the main 2.0 features of Nxt. The first article was about NXT, the token itself, the second about Nxt ALIAS system, and the third about Nxt Arbitrary Messages. Upcoming: Nxt Marketplace (DGS), Nxt Monetary System (MS).

The information contained in this article does not constitute (and is not intended to constitute) any form of advice, recommendation, representation, or endorsement by the author or the web site owner and should not be relied upon when making (or refraining from making) any investment decision.

Relevant links

Nxter.org/assethub

Nxtforum asset board
Sorted list of premium assets
Guide: How to use Nxt Asset Exchange

Read other articles from the Nxt [CORE] article series.
Also see: Nxt – The Economy Platform – Usecases for everybody

This article is also available in French.

Nxt [CORE]: Arbitrary Messages

The Arbitrary Message (AM) feature enables Nxt users to send small amounts of data to the Nxt blockchain. A simple concept in theory, but the applications for this feature are extensive.

Arbitrary Messages commonly take the form of SMS-length communications between users. This was the first application and is still one of the most popular uses for AMs, but the term ‘message’ is a loose one: as well as being used to send public or encrypted text messages to each other, AMs can also be used to send up to 1,000 bytes of any form of data.

Messaging

At its simplest, messaging involves sending a string of text from one NXT account to another. These messages can be viewed within the client. There is also an option to encrypt messages. If they are left unencrypted, they can be read by anyone since the blockchain is a public record of every transaction. Like a regular transaction, AMs are subject to standard tx fees – currently 1 NXT.

Nxt_msg

There are, of course, many valid use cases for unencrypted messages. A famous example is the AMs sent to the hacker who stole 50 million NXT from BTer’s hot wallet on August 15, 2014, or jl777’s use of an AM to cancel the SuperNET deal with CoinEVOLVE after the dev created a series of scam assets and went missing in action. You can view a list of all blockchain messages here.

Although transactions on the blockchain are meant to form a permanent record, AMs are intended to be removable. In the future, when the blockchain has grown and needs to be slimmed down to ensure its sustainability, messages may be pruned. Nevertheless, they form a critical building block in NXT’s second-generation functionality, underpinning a series of features.

MORE USE CASES

At the most basic level, the AM system can be used to transmit human-readable messages between accounts, creating a decentralised chat system. However, advanced applications can use this feature to store structured data, such as JSON objects. These can be used to trigger or facilitate services built on top of NXT.

Nxtmemo

The idea of a Twitter clone based on NXT messaging has been around since the earliest days of the platform. Nxtmemo (https://nxtmemo.com) is a straightforward version of this idea.

You can add your nxtmemo profile to the blockchain, and BBcodes are available for showing images, links, medialinks, etc. Log into your nxtmemo account with a NXT token to choose your display name – it must be a NXT alias that belongs to your account. Simply send your unencrypted messages to NXT-W6CT-NPDH-AAQW-HWCHA to have them show up on the site.

nxtmemo

NXTMemo is free and open source, and is created and maintained by toenu. See more on the NXT forum.

Cryptamail

cryptamail_nxt-inside

Cryptamail is a project created at Techcrunch Disrupt NY 2014 by a group of five developers, led by Kushti (now a Nxt core developer). The goal was to create a user-friendly decentralised email client with Alias-based identification. Although not currently in active development, Cryptamail is still running on the NXT testnet. It’s at cryptamail.com.

Read more about this proof-of-concept on the Nxtforum.

Multigateway

mgw

The Multigateway (MGW) is Nxt’s distributed cryptocurrency exchange – the least centralised such service currently available anywhere.

The primary use case for AMs in MGW is the automated deposit and withdrawal of bitcoins and other supported cryptocurrencies. These are held on MGW’s secure servers and exchanged for tokens representing each currency in the Nxt Asset Exchange, allowing for direct peer-­to-­peer trading. There are three separate servers, at least two of which have to agree for a transaction to take place – making it vastly more secure than traditional exchanges.

Essentially, MGW creates a deposit address for the Nxt user account for each of the supported coins. When the user sends coins to that deposit address, MGW delivers to the associated Nxt account the same quantity of coin assets (designated mgwBTC, mgwLTC, etc). Each of these assets represents one coin. Coin assets can then be traded on the NXT Asset Exchange like any other asset. MGW uses a similar process in reverse to withdraw coin assets back into the user’s own coin wallet. The requests to the MGW servers are broadcasted to the Nxt blockchain as Arbitrary Messages.

Multigateway was originally a plugin to the Nxt NRS client from NXTservices. It has now been incorporated into the SuperNET client v.0, in the form of a modified Nxt client that can be downloaded from the Multigateway site.

You can read more about the Multigateway here.

Helix

Helix is a standalone cross-platform financial analytics and visualisation client. As a part of FinHive, a powerful distributed financial analytics initiative that is the backbone of SkyNET, Helix has the ability to learn. A small apps store for financial tools will be included in the client, not only for crypto but also for traditional traders. The Helix client includes a distributed computation module to provide BOINC-like functions, tailored towards the financial industry.

Helix uses AMs as data containers to store whole apps. Developer nexern explains:

‘The multilayer perceptron app is 2.3 kb in size and chunked into 3 AMs. You can see the compressed and encrypted perceptron (and tetris game 4 AMs) in the blockchain here

Helix simply loads, concatenates, decompresses and decrypts these AMs directly from the blockchain, where they are stored, into memory. The process takes just three seconds. No disk space is needed. It is a fast, clean and secure solution which has a number of important real-world advantages:

  1. It makes apps very independent and robust against attacks.
  2. It provides nearly unrestricted access from anywhere due to the decentralised storage.
  3. It provides on-the-fly autorepair/update capabilities.

For example, if an app is broken due to an outdated API link, Helix can look for additional update/repair resources by scanning AMs and looking for the current app id. Where higher resource stamps are found, they can be added while Helix is running.

helix_finhive

Helix will be used by FinHive, a wholly owned subsidiary of SkyNET. You can see FinHive’s roadmap here.

Read more on the Nxtforum.

 

Conclusion

As a result of its versatility, AMs can be used to build a vast range of projects, from simple messaging apps to file-sharing services, decentralised applications, and higher-level NXT services.

NXT is in ongoing and constant development, and changes to the core can always be proposed by the community. One of the topics currently being discussed about the AM feature is adding a standard for multipart messages or increasing the allowed message length, as new projects have started to link AMs together so they can save more data to the NXT blockchain. You can join that discussion on the Nxtforum here.

Nxt is a versatile, open source cryptocurrency platform. In this Nxt CORE article series we will dive into the main 2.0 features of Nxt. The first article was about NXT, the token itself, the second about Nxt ALIAS system. 

Read other articles from the Nxt [CORE] article series.

Also see: Nxt – The Economy Platform – Usecases for everybody

Nxt [CORE]: Alias system

nxt_alias_system

The Alias feature was released with block 22,000, on 22nd of December 2013. Aliasing is a decentralised Domain Name System that allows NXT users to register a string of characters and point it to anything.

In simple terms, Aliasing allows one piece of text to be substituted for another, so that keywords or key phrases can be used to represent other things – names, telephone numbers, physical addresses, web sites, account numbers, email addresses, product SKU codes… almost anything you can think of.

As soon as Aliasing was enabled, Aliases with commercial potential were grabbed by NXTers who hoped that they might one day be able to sell them on at a vast profit – just like domain squatting on the web. Brands and big corporation names were bought for the bargain sum of 1 NXT – along with a lot of sex-related aliases, of many and highly diverse permutations. Later, a bot was even used to suck up every word of up to four letters that hadn’t already been registered.

Send NXT and messages to Aliases

Whilst these early ‘squatters’ are still waiting for their rewards, the immediate use for Aliases is simply to make it easier to send NXT. Thus, by registering an alias and pointing it to a NXT account address you no longer have to specify that address when sending coins or messages to it; instead simply send the coins and messages to the alias and they will be received by the NXT account. As an example, writing ‘nxteracc’ in the recipient field will look like this:

nxteracc_alias

 

Another use of the alias system is that it enables you to quickly distinguish between different NXT accounts.

Aliases to URLS

Aliases can also be set to point to a URL.

Chrome and Firefox browser plugins that use the Alias system to replace domain names have been developed – making it possible, for example, by entering nxt:google in your browser, to go to Google.com, or by entering nxt:nxter to surf to NXTER.ORG. Unfortunately these plugins haven’t been kept up to date.

Another use case is linking aliases to .torrent files.

Register, trade and delete Nxt Aliases

Alias registrations are made in the Nxt client. Enter your preferred alias name and the type: URI, ACCOUNT or OTHER (the alias can contain any data you want).

register_nxt_alias

Aliases can be transferred and traded, just like assets. Some are put up for sale on the NXT Marketplace, but there is also a built-in SELL option within the client. You can set a price and if someone tries to register that Alias, they will see your offer and be able to buy it or contact you directly. The trade is automated, again as it is with assets: On payment, the buyer receives the Alias, and the payment is transferred to the seller.

With NRS 1.4, Alias deletion will be enabled. (This is a relatively trivial matter, which is just waiting for the UI work).

Namespaced Aliase

The MOFO Wallet allows for encrypted and namespaced Aliases. Namespaced Aliases can be public or encrypted so only the account owner can decrypt it or the account owner and one other account owner can decrypt it.

One use case could be a business who issues an asset and sends a lot of messages to the investors of this asset. With namespaced aliases each message could be a namespaced alias, viewable in a client, for example the MOFO Wallet. Now the investor could search per timestamp or partial key ranges and load all announce messages (and only those) in one call.

Another use case, which is available as a demo plugin in MOFO Wallet, is a strong Blockchain authenticator that, for example, allows a person to identify himself by decrypting some verified data about himself in the blockchain and send the decrypted data back to the merchant or entity who asks for identification.

If, for instance, a merchant wants Alice to identify herself he could provide a URL on his website which points to the plugin and allows Alice to identify herself. The Namespaced Aliases feature is native to the FIMK currency but you can make plugins that work on the NXT blockchain just as easily since NXT is fully supported by MOFO.

Aliases as Hyperboria DNS

Another practical application of NXT Aliasing is described in the article ‘Nxt aliases as Hyperboria DNS’.

‘Hyperboria is a connection of local meshnets, which works as a self-organizing network which itself builds routes between nodes. It is currently using the Internet to connect nodes / local meshnets but it is designed to run independently of the Internet.’

Nxt and Hyperboria community member Slothbag explains his use of Nxt aliasing:

‘Up until now Hyperboria has not had any decentralized DNS solution. I created a p2p DNS solution for the Hyperboria network to use Nxt aliases as the domain->IP resolution. I prefer Nxt’s alias system, it’s pretty much the same as Namecoin but without the wasteful mining, and with heaps of other cool Nxt features thrown in.’

You can read more about NXT and Hyperboria here, and there’s a 1000 NXT reward on offer for Nxters running a Hyperboria node. There are currently about 40 Hyperboria domain aliases registered in Nxt.

Simple feature, powerful potential

NXT is so full of functionality that something as simple as Aliasing often gets overlooked. In fact, it’s a powerful feature that has great potential – albeit that will only be fully realised some time in the future.

The next article in the Nxt [CORE] series will explore the Nxt Arbitrary Message (AM) feature.

Nxt is a versatile, open source cryptocurrency platform. In this Nxt CORE article series we will dive into the main 2.0 features of Nxt. The first article was about NXT, the token itself. Read other articles from the Nxt [CORE] article series.

Also read: Nxt – Usecases

 

 

Image in the top is created by QBTC. 

Nxt [CORE]: The PoS coin

NXT_accepted_gold

Nxt is a versatile, open source cryptocurrency platform. In this Nxt CORE article series we will dive into the main 2.0 features of Nxt. This first article is about NXT, the token itself.

NXT, which launched on Nov 24 2013 as a 2.0 crypto coin, was the first 100% pure proof-of-stake currency.

It is built in Java, distinguishing it from most other coins, which simply tweak one or other parameters of the Bitcoin protocol. Rather than being a simple coin, usable only for basic send/receive transactions, Nxt can be thought of as a complete platform for economic activity.

Creation and distribution

As a proof-of-stake currency, NXT was never mineable. Instead, all 1 billion NXT were created at once, in the first block. No new coins can ever be added (though coins can be destroyed by sending them back to the Genesis block, and if users forget their passphrases their coins will remain permanently locked in their accounts and therefore, in effect, removed from active circulation  – as is the case with Bitcoin).

Nxt was created by BCNext, a long-term member of the Bitcointalk forums under a different name who started the BCNext user account for this project so that he could remain anonymous; he has since handed the project over to the community (in the best tradition of Bitcoin creator Satoshi Nakamoto). Towards the end of 2013 he advertised for investors for the new platform, receiving a total of 21 bitcoins from 73 backers. Of these, 8 invested the maximum of 1 BTC; the others gave smaller amounts. The 1 billion NXT were distributed proportionally between these investors, with the largest risk-takers receiving in the region of 50 million NXT each. The market cap of NXT rapidly increased from 21 BTC to over $70 million immediately after launch, later fluctuating between $20 and $100 million. The long-term bear market in BTC has returned it to the $20 million range, though NXT has still appreciated in BTC terms and remains largely linked to Bitcoin’s fortunes at the present time.

The initial distribution has attracted much criticism in the year since Nxt’s launch (Nxt celebrated its first birthday on November 24). Many people claim it is unfair – though, as with other such ventures, those who took the risk and invested in the first place get the biggest reward.

It turns out, however, that the supposedly unfair distribution was, in fact, a deliberate move to create a sustainable system. One key advantage is that there are large amounts of NXT available from generous initial stakeholders for further development – something that explains the dizzying pace of innovation and quality of the devs in the Nxt community. Over the last year the number of accounts has grown from 73 to over 85,000. The Monetary System, which will allow new coins to be created on top of the Nxt blockchain by ‘locking’ existing NXT, will also provide a solution to this ‘problem’ of distribution.

Differences from Bitcoin

Nxt has many differences from Bitcoin. For one, as a PoS currency, it does not require wasteful mining to maintain its security. This solves a huge problem with Bitcoin, since the PoW model is extremely wasteful of energy and if the Bitcoin network ever scales enough to be truly useful then it will have serious environmental implications. A client ‘forges’ (rather than mines) to secure the network. Powerful computers are not needed; even a Rasberry Pi can forge NXT. Forgers are rewarded with transaction fees alone.

nxt_solar_powered_node
Legendary Nxt node setup, by davethetrousers. Cubie + solar cell. Greenpeace should be happy.

Nxt’s blockchain is lightweight compared to Bitcoin’s, and transactions are fast. The ideal is for 1-minute block times, which will be achievable in the future as the network grows and with new releases. Current block times average around 110 seconds, compared to Bitcoin’s 10 minutes.

Another significant difference is that Nxt uses a ‘brainwallet’ system. Users need only their passphrase – a long (30+) string of random characters or around a dozen random words to access their accounts. This maps to the Nxt address. Any transaction requires the passphrase. This is unlike most other currencies, which generally use a wallet.dat system (though there are some Nxt wallets, such as the MOFO wallet, that have been adapted to use a wallet.dat). This approach has advantages and disadvantages, but is built into Nxt. One obvious advantage is that you can sign in from anywhere; all necessary information is stored in the blockchain.

Other features include:

  • A cap of 255 transactions per block.
  • New accounts are automatically secured with a 256-bit public key, which makes it perfect for cold storage.
  • Account Leasing allows a user to lease ‘forging’ power to another account for a fixed period of time, without having to send coins anywhere. This allows for the creation of secure forging pools.
  • No new NXT coins will be created.

Nxt has come a long way in its first year, with many new features already included (not least the Asset Exchange and Digital Marketplace). However, new features are still being added to the core, and there is some way to go before all the planned features have been coded and implemented. According to the core developers, there are two reasons for this:

  1. They want to ensure that the platform grows naturally, by releasing the right features at the right time.
  2. Every big new feature requires a hard fork. Releasing only one major feature at a time allows bugs to be easily located and fixed.

https://wiki.nxtcrypto.org/wiki/Whitepaper:Nxt
Sourcecode: https://bitbucket.org/JeanLucPicard/nxt/src