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Three unappreciated Nxt services

Nxt is a hugely versatile and powerful platform, with a massive range of functionality. Nxt’s current and upcoming releases have already incorporated capabilities that are each a sole or major focus for other coins – shuffling, decentralised asset exchange, voting, messaging and more. Few other platforms have anything like Nxt’s sheer number of tools.

However, this extensive toolbox is both a strength and a weakness for Nxt. There are the killer services, like the AE, which has seen massive use since its launch 18 months ago. Then there are other functions such as Voting, which have seen some use. Others, like Aliasing, have attracted some interest but have yet to find a widespread use-case.

Then there are other features, each impressive in their own right, which have become all but lost under the other tools that are taken out and used on a daily basis. Three of these are the MS (Monetary System), Digital Marketplace, and Tokens.

Monetary System

The MS is a fantastic innovation that aims to simplify the creation and administration of new coins. It allows anyone to design and issue a new, off-the-peg cryptocurrency on top of Nxt – choosing from a list of features and using the Nxt blockchain to secure it, rather than bootstrapping a whole new network.

In theory, this should have been far more popular. After all, new coins are created every day, mostly by cloning bitcoin and tweaking one or other parameter. But it hasn’t happened with Nxt MS.

There are at least two reasons for this. One is that the MS has a clunky and somewhat user-unfriendly interface, which makes it hard to engage with the process, whether as an issuer or user. Secondly, these coins are not independent. They are based on Nxt and require NXT transaction fees, rather than fees being paid in their own currencies. NautilusCoin (NAUT), which was ported to Nxt, deals with this issue through a dedicated wallet that deducts fees in NAUT automatically, taking care of the conversion to NXT behind the scenes.

It may be wrong to think of these as truly independent new cryptocurrencies, but that doesn’t mean MS lacks use cases. One of the most obvious and powerful lies in crowdfunding – as recently proved by the Tennessee marketing campaign. TNSSE (the coin code) collected 10 million NXT for marketing activities. Two built-in properties made this a safe process. Firstly, if the 10m target was not met, all pledged funds would be returned to the senders automatically. Secondly, TNSSE tokens cannot be transferred or sold, except back to the issuing account. This ensures that no fraudulent secondary market develops.

Digital Marketplace

The Marketplace – originally titled the Digital Goods Store – is the true Cinderella of Nxt. It’s a great service, but it’s all but unused. It enables users to buy and sell digital files – music, ebooks, images, software and apps – quickly and easily, and returns their money if the link isn’t provided in a given window of time.

The Marketplace has seen almost no adoption. At first, a few people used it to sell physical goods, despite the fact that it wasn’t designed for this – there is no way of ensuring that a physical object has been delivered, whereas delivering a file is a different matter (though of course, there’s always the problem of ensuring it’s the right file). A few people also sold music on it. There was a significant project, Melodius, which aimed to use DGS to power a platform for independent artists. Coupled with a seamless fiat gateway provided by an exchange, the idea was to keep Nxt very firmly in the background, using the platform to make it easy to upload and sell music without the assistance of a major label. The project was unfortunately mired in complications and delays, and has not (yet) made it to completion.

The marketplace remains under-used and almost unused. Once again, the reason may be the friction of converting funds into NXT, as well as a lack of visibility outside of Nxt circles, let alone crypto circles. With a proper interface and fiat gateway, and the right marketing, it remains a powerful proposition.

Tokens

One last function that deserves a mention is tokenisation. This is a rather obscure process, but it has far-reaching applications.

A token is a string of characters that encapsulates a given piece of text (a name, phrase, URL – it doesn’t matter) and the public key of the user providing the token. Tokens can be created easily within the NRS, simply by providing your passphrase and the required text. This can be decoded by any other user, again using the NRS. There is no charge for this.

What this means is that users can provide cryptographically verifiable proof of ownership. Anyone can, for free, create a token which proves they own a particular address – without needing to show anyone their passphrase.

This may sound mundane but the implications are profound. Tokenisation could be used for signing into websites, for example; submitting a token consisting of the website’s URL and encapsulating the user’s Nxt address could allow them to log into their account without worrying about passwords or usernames. The username would effectively be the Nxt address, and there would be no concerns about passwords being hacked from the site, because a password would never be submitted – ownership of the Nxt account would be confirmed from the token.

Tokenisation isn’t unique to Nxt, though it makes it very easy. However, this action could be combined with further Nxt services. For example, in connection with the Marketplace, it could be used to subscribe to an online journal or media service. Files could be made available to the recipient’s Nxt account on submission of a token that proved their ownership of the account in question. If a Nxt account is also used for payment of a subscription, a token could be used to establish that the user had paid their fees – and access cancelled once the period covered by the fees expired.

Nxt’s toolbox enables a vast, thriving system of trustless e-commerce. Going into its third year, we hope to see more of these being realised.

NXT to power a full economic ecosystem

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.

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

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.

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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

Nxt crypto explained

Nxt explained in 20 minutes by Bas Wisselink (Nxt Foundation);
This Nxt presentation was made @ the Mind The Gap online conference, 10.04.2015.

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