NXTER.ORG

Bitcoin Alternative Jetcoin to be “Powered by Nxt technology”

Bitcoin Press Release: Singapore, 8th April 2015 – Bringing Wall Street and blockchain technology to the world of sports and entertainment, Jetcoin Institute is pleased to announce the Jetcoin presale. Jetcoin is backed by gold bullion allowing anyone to own IP rights of promising athletes and talents.

Jetcoin, the new digital fuel for the world of sports and entertainment, gives fans and supporters a unique opportunity to benefit directly from the success of their favourite athletes and stars. It disrupts traditional fan-athlete/talent relationships by enabling anyone to launch and support the careers of tomorrow’s stars.

Using block chain technology, Jetcoin decentralises the world of sports and entertainment, ruled today by powerful agents and corporations. Jetcoin tilts the power balance by establishing the first platform where anyone can own IP rights of promising athletes and talents. Also the first digital currency to be backed by precious metal collateral (gold) via a partnership with XNF, Jetcoin is tradeable across 3 continents through DXMarkets.

Uniquely backed by physical assets, Jetcoin is issued by the Jetcoin Institute, which has gathered a team of first-class advisors led by world famous currency expert, Prof. Bernard Lietaer. The Jetcoin Platform will be built with NXT technology to deliver a unique and decentralised financial platform. Jetcoin holders are able to earn revenues through Jetcoin Contracts and its social media rewards system, P.O.S.E. (Proof Of Social Engagement) as well as access unique lifestyle experiences.

In August 2014, in a bid to both establish the branding of Jetcoin internationally as well as to secure a testing ground for a myriad of innovative tech applications and crowd funding concepts customised for sports and entertainment, Jetcoin became the first digital currency to become the main sponsor of a Serie A football team, A.C. ChievoVerona. In developing the Jetcoin ecosystem of partnerships, deals have been made with top service providers like Samsung Sportsflow and Pogoseat to optimise fan experience and engagement in sport entertainment. Jetcoin Institute has also recently developed and launched Stadia, a free sport app aimed at increasing fan interaction and engagement during live football.

For a limited time period, jetcoins are available at a promotional price of US$ 0.02 at the official website implementation by https://jetcoininstitute.com. Compared to the Bitcoin, whose rise from its initial sale price of less than US$0.01 to its peak of US$1250, Jetcoin – backed by physical assets – is poised to track an interesting trajectory.

About Jetcoin

Main sponsor of Serie A football team, A.C. ChievoVerona, ‘jetcoin’ is a new digital fuel issued by the Jetcoin Institute. It gives fans and supporters in the world of sports and entertainment a unique opportunity to benefit directly from the success of their favourite athletes and stars, both financially and also through unique lifestyle experiences such as seat upgrades, access to VIP boxes, exclusive events, behind-the-scenes and/or after-parties etc. Jetcoin Institute continues to work with partner teams, brands and service providers to offer exclusive deals to jetcoin holders. Visit https://jetcoininstitute.com

About Prof. Bernard Lietaer

Prof. Lietaer is the author of The Future of Money (translated in 18 languages), and is an international expert in the design and implementation of currency systems. He co-designed and implemented the convergence mechanism to the Euro. Visit http://www.lietaer.com

About A.C. ChievoVerona

A.C. Chievo Verona is a professional Serie A Italian Football club named after and based in Chievo, Verona, in the Veneto region. Visit http://chievoverona.tv

About Samsung Sportsflow

SportsFlow delivers the latest sports news, photos and videos from around the world via one single app. Visit http://www.sportsflow.me

About XNF

XNF is a digital currency with a physical collateral in GOLD. XNF Trading provides the easiest way to acquire virtual currencies (Jetcoin – XNF) in exchange for traditional currencies (USD and EUR) and bitcoins. Visit http://www.nofiatcoin.com

About DXMarkets

DXMarkets is a cutting-edge trading platform for digital currencies. The platform offers a fully customisable dashboard that caters for beginners and experienced traders. DXMarkets aims to position itself as the preferred choice for financial institutions wanting to integrate digital currencies into their product portfolio. Visit https://dxmarkets.com

About NXT

NXT is an open source cryptocurrency and payment network, using proof-of-stake to reach consensus for transactions. As such there is a static money supply and no mining as with Bitcoin. NXT is specifically conceived as flexible platform to build applications and financial services around. Visit http://www.nxt.org

About Pogoseat

Pogoseat is an enterprise solution for sports teams and concert venues that enables their fans to upgrade seats and purchase unique VIP upgrades. Pogoseat currently works with clients across the NBA, MLB, NHL, AFL, The Football League and NCAA all over America. Visit https://www.pogoseat.com

About Stadia

Stadia is a free app powered by Jetcoin that optimises fan experience during live football, available for download on Android and IOS. Visit http://www.stadia.club

Nxt Moving Forward in 2015 With Nxt Foundation, Conference Sponsorships And Technical Development

Press release: Nxt, the second-generation cryptocurrency platform launched in November 2013, has just established the non-profit Nxt Foundation. Nxt’s conference partnerships, built-in cryptocurrency (NXT) and the overall Nxt-based ecosystem are also experiencing rapid evolution and growth. 

Nxt is pleased to announce the recent incorporation of the non-profit Nxt Foundation in the Netherlands, and sponsorship of upcoming high profile payments conferences PayExpo 2015 and Mind the Gap Expo. A number of tech start-ups harnessing the unprecedented features of Nxt are also emerging; as Nxt’s new multisig technologies – Voting System and Phased Transactions – are also due to be demonstrated soon. For well over a year, Nxt’s broad and active community of developers and builders have been working to perfect the system. The Nxt platform offers simple yet powerful features, bringing a wide range of solutions to enable businesses to harness the benefits of blockchain technology.

Versatile tech

Nxt’s Asset Exchange (which can be seen as an implementation of the ‘Coloured Coins’ concept) has proven to be very popular, allowing businesses and other ventures to raise and distribute capital using a crypto-based platform.

Similarly, the Nxt Messaging System, which facilitates data transfer and storage, is being taken up as a means of creating a long-anticipated Smart Contracts implementation by www.smartcontract.com.

Additionally, Nxt’s newest major startups are building Decentralised Business Networks, frameworks for using Nxt like Jay, security systems to work with Nxt like the Keystash Project and much, much more.

Nxt Foundation

Last month, Nxt Foundation was incorporated as a non-profit trust based in the Netherlands. The Foundation will act as a front-end organisation for support, promotion and education on all aspects of the Nxt ecosystem, partnering with the leading Nxt resource site Nxt Inside.

Crypto conferences

Nxt Foundation will be representing Nxt at the Mind the Gap Expo, for which it is the Platinum sponsor, together with Manx Telecom and 44Phones.

In June, Nxt will also have a strong presence at PayExpo 2015, where it is the official cryptocurrency partner. Nxt representatives will deliver PayExpo’s keynote speech, explaining how Nxt and its associated systems can play an important role in the development of financial services. There will also be a cryptocurrency seminar, focusing on educating mainstream financial professionals about the potential uses of the Nxt platform.

Upcoming features

At these events, which are taking place both within and outside the traditional cryptocurrency space, Nxt will showcase its upcoming Voting System and Phased Transactions – a more powerful version of multisig transactions.

As always, these systems will be easy to combine with any of Nxt’s already active features and will add to the family of modular transactions that Nxt supports.

If you are interested in using Nxt for your business or would like to integrate Nxt into your current systems, please contact Bas Wisselink at the Nxt Foundation (bas@nxtfoundation.org).

For more information please go to: www.nxt.org

SuperNET Newsletter #15

Welcome to the SuperNET!

As ever, life moves fast in crypto, and never more so than in the SuperVerse. The main news is that InstantDEX is approaching launch, another dividend is about to be distributed, we have a SuperNET v1 beta LiteWallet, but that’s not all, there’s plenty more still to tell you about – including a new addition to the CORE coins list: FIBRE.

Topics

  • v1.1.3beta
  • v1.1.3beta LITE
  • MGW
    • Coin IDs
    • MGW fees
  • FIBRE: New SuperNET CORE coin
  • Jay dividend
  • InstantDEX
    • API level test of InstantDEX
    • Testing help required
    • InstantDEX Lotto
  • Half-anon Cryptocards available
  • VPN Bounty
  • BTCD and NXT
  • SuperNET CORE coins

SuperNET v1.1.3beta

SuperNET wallet v.1.1.3 beta is available for testing:
https://bitbucket.org/longzai1988/supernetv1/downloads/supernetv1-1.3b.zip

Hash: 4B186C0DDE96C5F1432213BD1F4C96A34CDD98F177CCCBE63BF2F39025BDDEA6

SuperNET v1.1.3 beta litewallet

The litewallet version – a pure html client – is now available for testing: https://bitbucket.org/longzai1988/supernetv1-lite/downloads/supernet-JAY-1.0b.zip

Hash: 57E04EFCE3D25608E59270E03B0EF9477CDCC4953AF95F6C0284BED3E46CB8C9

The ‘advanced’ view is currently disabled for Jay wallet.

Supernet-litewallet-nxtinside

 

SuperBTCD-Bitcoindark_nxt

MGW

SuperCoins ID

As part of the ongoing evolution of the Multigateway to become a key part of SuperNET, coin token names have been updated, as have asset IDs.

‘Note that all the assets delivered by SuperNET v1b (and found in the new SN wallet dashboard) follow different naming.’, writes VanBreuk. ‘The SuperNET MGW uses new assets. mgwBTCD has become superBTCD. And although James said iDEX could handle old and new assets as equivalent, we’ll be offering an asset swap for anyone who wants to update assets soon.’

And Longzai advises us that: ‘When we decide to drop the legacy mgw there will be 1:1 asset swap’.

The SuperCoin IDs are:

superBTCD – 6918149200730574743
superVRC – 9037144112883608562
superOPAL – 6775076774325697454
superBITS – 13120372057981370228
superVPN – 7734432159113182240 (withdraws still not operational)

SuperFIBRE (multisig details in development) and the SN versions of BTC, DOGE and others will soon be added. See https://multigateway.org for more information.

When you fund your SuperNET Wallet, the corresponding tokens will automatically show in the AE of your Nxt account where you can trade them manually for NXT or other assets, for example US$-pegged CoinUSD asset (ID 12982485703607823902) or the EUR-pegged equivalent (ID 18331302471589054607), which are also Coinomat gateways to fiat, via SEPA transfers to VISA / Mastercard.

Asset < – > Asset trades will be enabled in SuperNET with InstantDEX integration.
Interesting Nxt AE assets include: http://test.nxter.org/sorted-nxt-asset-exchange-listing/

MGW fees

‘Current MGW withdrawal fees are based on coin transaction fees and Nxt transaction fees, which need to be covered by the service. Since fees are subtracted from, for instance, BTCD withdrawal, there is a value in the servers’ configuration that defines the approximate equivalent of the NXT transaction fee in BTCD. Then the system applies twice that amount (covering the asset transfer and messages costs) plus a safe amount based on the regular BTCD tx fee, keeping in mind that multisig transactions may involve higher fees than regular ones. When InstantDEX brings price feeds, these “approximate equivalents” should refer to current market rate.’

At this point, the total MGW fees are these fixed amounts:

BTCD – 0.022
VRC – 2.002
OPAL – 2.02
BITS – 20.02
VPN – 200.002 (VPN withdraws are not working until coin developers patch the VPN daemon for full multisig support)

Minimum withdrawals are

BTCD – 0.5
VRC – 50
OPAL – 50
BITS – 500
VPN – 5000

New CORE coin: FIBRE

SuperNET has a new CORE coin: Fibre.

supernet-fibrecoin

Last week, the announcement was made:
‘Fibre will be leaving the Blocknet Project.’

‘We wish the Blocknet all the best, decisions like this aren`t easy but we are changing direction for Fibre in 2015. Fibre community and investors will always stand in the first place. In our opinion we are choosing a better future for Fibre’.
https://bitcointalk.org/index.php?topic=737771.msg10698947#msg10698947

‘The Fibre dev team has been represented in SuperNET Slack for more than a month but has always made it perfectly clear that Fibre was part of the Blocknet initiative. Recently, a real attempt to fulfill the requirements to integrate Fibrecoin in SuperNET as a CORE coin was started; opening Fibre’s source core tech to SuperNET analysts (the review was done by chanc3r), and after that, a swap of SuperNET assets with Fibre assets was required’, writes Eth.

Learn more about Fibre @ http://test.nxter.org/new-supernet-core-coin-fibrecoin/
and enjoy the rest of this newsletter while listening to an Interview with Fibrecoin leader Killakem!

This is SuperNET Radio:

https://soundcloud.com/supernetradio/fibre-coins-founder-developer

Fibre is available on the SuperNET Multipool http://altnuts.com, and also Xpool.ca multipool.

We welcome the FIBRE Team and look forward to finding out more about their forthcoming projects.

Jay dividend

The Jay dividend is ready for distribution. 7.5% to SuperNET, 7.5% to NXTventure and 5% to JLH (jl777hodl) will be distributed. This will occur when fewer than 8,161 SuperNET assets are left in BTER. At the time of writing, BTER’s cold wallet has just over 20,000 SuperNET assets in it.

Jay (ID 8688289798928624137) will allow people without any software on their system to run the SuperNET GUI and access all coins. Jay will get an InstantDEX revshare when it makes a lite-InstantDEX. ‘I added a ‘GUI’ field so we can track which GUIs the orders are coming from’, writes James.

InstantDEX

iDEX1

A preview video of the InstantDEX client alpha is available here.

You can see InstantDEX in realtime (thanks to MyNxt.info) here.

‘InstantDEX core API is feature complete other than automatching hybrid orderbooks’, James writes. ‘Got the asset<->asset trading working and looks good. So now what is left is the most advanced case (hybrid orders), which isn’t even necessary at first and making it automatch and chart signals.

Then I will switch over to network security enhancements while the testers are pounding on it.

So, the ramchains, realtime MGW and InstantDEX should go into maintenance mode for me very soon. Then the security revamp will be squeezed in and that leaves Tradebots and Privatebet. Once I get the raw data parsed properly, I was just going to create a transaction list, along with summary stats for each asset that was traded and a global summary too.’

InstantDEX is getting inputs from the central exchanges, NXT AE and its own orderbook, so from a single display you can see prices from all the places at once.

API level testing of InstantDEX

InstantDEX is progressing nicely – and, more to the point, is working effectively. ‘Trade completes faster than I can switch tabs! The only difference performance-wise from a central exchange is if you don’t have any inventory of something, then you can’t retrade it until you have enough confirms. I will let each node decide what “enough confirms” means. But if you are trading with plenty of inventory and have enough aged assets, then you won’t even notice this.

‘Another nuance is that even though the trade is locked and done (like after hitting Send Money), until there is at least one confirmation, there is always some very small chance that it won’t get confirmed. I am talking about a big blockchain event or some sort of attack scenario. However, even in such unlikely events, all the components of a trade are atomic swaps of NXT <-> asset, so at worst you have a dangling half of the trade, but you didn’t lose any funds. As with any trading, if the market moves against you, well, not much can be done about this

‘So, not quite 100%, but 99.99%+ with the downside being partial fills. Since the performance is fast, the security of not having to worry about any central exchange is well worth this and I hope that people will be able to understand the slight difference. For the cost of one out of many thousands of trades not completely filling, needing to wait a block to be sure it confirmed, and some users requiring N confirms, we get to trade without worrying about the exchange dying. This being said, if you are trading assetized crypto, I still recommend to withdraw after you are done trading, if only so you can be staking. And nothing is as safe as your local wallet.’

Testing help required

James writes, ‘I made an instantdexbeta private group, only for people who will actually test, no spies. The best testers are usually becoming very good coders. This is because a lot of coding is about finding and fixing your own bugs.’

DM James in Slack for access – but only if you have the time to really test it.

InstantDEX Lotto

James writes, ‘My idea is to fund a monthly lotto with this 5% [the unallocated InstantDEX revenues], winner take all (shared between all that tie).

 If total InstantDEX revenues are 20 million NXT, this is a 1 million NXT monthly jackpot, and each 2.5NXT fee you pay to InstantDEX gets you a lotto ticket.’

For those who still don’t understand how the pieces fit together (which is understandable, when there are so many pieces), InstantDEX can be considered ‘the grand central station of SuperNET. It connects everything to everything else and the more popular it becomes, the larger the monthly lotto. The high end of projections have it up to $100,000 per monthly lotto. At NXT blockchain saturation levels, NXT itself will be at least 2x if not 4x. It all combines to help everything else – and not to forget about BTCD, which is getting an InstantDEX revshare.’

Half-anon Cryptocards available

The half-anon VISA cards are now available to order – but not yet officially launched. Coinomat writes: ‘We are waiting for a dozen successful orders and activations to announce it officially.’

Getting your own card is simple, just register on coinomat.com, click the ‘First Swiss Card’ menu link and follow instructions.

Cryptocard is a semi-anonymous way to cash out cryptocurrency to an ATM card. Photo id but no bank details are required, meaning that a resale market can provide a convenient and private way to move funds from crypto to fiat. Cryptocard was originally funded by the BTCD community, and Coinomat will integrate BTCD within 2 weeks, and then start integrating the other SuperNET coins.

VPN BOUNTY

James has organised a 10 million VPN bounty for a new dev to join the team.

‘I would like to offer a bounty to make VPN for non-Windows environment to link up to the VPNcoin Windows VPN. There are several methods possible. One is to have a separate VPN and bridge to the Windows. The other is just to connect directly to the Windows VPN from unix.’

There is a 10 million VPN bounty for a working solution.

BTCD and Nxt

A reminder about BitcoinDark and Nxt’s status as lynchpins of SuperNET, and the financial benefits holders will enjoy:

BTCD

  • 5% revenue share from InstantDEX
  • 5% revenue share from SuperNET
  • 5% staking interest

This week’s BitcoinDark Bulletin: ‘Privacy and Anonymity’.

Nxt

NXT_accepted-5_blue

5% revenue share from SuperNET goes to NXT core development. And InstantDEX fees are paid in NXT, because SuperNET has NxtInside. James writes: ‘At 50 trades per minute it saturates current NXT blockchain (makes NXT earn 10% per year), but NXT devs say they can boost this capacity pretty easily. With average fees of 6 NXT per trade that is 300K NXT per day or 15 million per month. So even at current ATH prices InstantDEX is trading at PS ratio of 5 and PE of 10.’

Nxt is clearly one of the few platforms that’s going to survive long term, making it not only a safe place in which to trade and park your funds but also a hugely prosperous one as well, once (as anticipated) it’s earning 10% per year.

If you are interested in using Nxt, visit the official website: http://nxt.org.
Get the latest Nxt news from http://test.nxter.org or join the movement @ https://nxtforum.org.

payexpo2015

Nxt is going to present the key speech for crypto at this year’s PayExpo 2015. Damelon writes: ‘I want to invite ALL Nxt related businesses to provide us with their promo materials and relevant information! We are not there just as the platform, you also can get your products and services out there! This Payexpo will have a separate part especially dedicated to cryptocurrencies!

http://www.goshowoff.com/ClarionConf/PayExpoFull2015/page.cfm/Link=28/t=m/goSection=4_28

‘We are co-organising this, so if you feel you want to help out with this and have workshop experience or knowledge: let us know! Also, help us raise the last 500,000 Nxt to go here. We already have gathered a significant amount thanks to all of you. Let’s get this last part together. Donation address: NXT-ZGDQ-W9Q3-YFK6-4L8F4.

Read more on the Nxt Forum here or join SuperNET Slack channel #payexpo to learn more.

SuperNET CORE coins

As the name UNITY suggests, SuperNET is not a coin but a cooperation between selected coins. If you’ve been following the SuperNET Newsletters, you will know that all SuperNET CORE coins have been chosen with great care. No copycats, no simple clones, no scamcoins pumped by a huge marketing budget: only truly innovative, useful coins with active developers.

Here they are in a flash: http://test.nxter.org/supernet-core-coins/

BITCOINDARKBITSTARBOOLBERRYCHANCECOIN
FIBRECOINNXT CRYPTOOPALCOINVERICOINVPNCOIN

All SuperNET CORE coins and services are more than welcome to claim a paragraph in the SuperNET Newsletters > DM apenzl to join SuperSlack #unity-news and make sure to get featured.

Any 1.0 crypto coin can enhance their wallet with SuperNET. Write to: info@supernet.org.

 

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

NXT Solutions – financial decentralization

Financial freedom

The last twenty years has heralded the transition from analog to digital systems.  Most of us have no idea how people used to obtain information before the existence of the Internet.  Every person born today will use digital replacements to obtain the information that used to be delivered by centralized sources such as newspapers, television, theaters, books, radio, etc.  Each of these analog information delivery systems have been based on a model of centralization.

Thanks to the evolution of technology, the cryptocurrency movement has today the ability to decentralize the operations of the world financial system with amazing new features.

The introduction of the Internet has heralded an information revolution.  Freedom of sharing, large neutrality, and universality are key values at the core of our digital world today.  By design the Internet allows the instant and viral spread of information, while also providing a permanent record of the data transmitted over the network.

Legacy financial markets today share similarities to the pre- Internet era. Large banks, international exchanges, rating companies, or even the central banks, are similar to the news corporations, the book publishers and the moviemakers of the analog era. These financial markets still operate on an analog model of centralization; still providing possible single points of failure.

The primary advantage of centralization is that is allows for centralized control.  The creators of the current financial system allege that our current system was designed and built for the good of the many.  However the fact remains that the power and control of the world financial systems remains in the hands of a few people now grasping to retain control of the status quo.  The current legacy financial system was built in the past with outdated tools and technology.  Thanks to the evolution of technology, the cryptocurrency movement has today the ability to decentralize the operations of the world financial system with amazing new features.

This evolution of finance driven by cryptocurrencies will bring the ability to engage in finance to people that have been denied this ability by the centralized status quo.

The cryptocurrency movement, and specifically the Next (symbol NXT) currency, values the interactions of many small, vested, players than the decisions of a small, yet powerful, number of entities.

Over past few weeks  the Bitcoin (symbol BTC) currency suffered the abrupt closing of its largest exchange, Mt. Gox.  Bitcoin lost $1 billion in market capitalization in about 48 hours between February 24th and February 26th, accounting for about 12% of its total market value.

What lessons should be learned from the Mt. Gox default of February 2014? The first large payment default of the digital financial market era has illustrated that even within decentralized systems, power and resources will congregate if not given a reasonable alternative.  The total loss at Mt. Gox is approximately 774,000 Bitcoins, or $335 Million USD and could have been prevented with adequate internal controls within the Mt. Gox exchange.  The centralized exchange Mt. Gox failed to provide adequate internal controls and failed due to theft, becoming a single point of failure due to the reliance on a model of centralization.

Defaulting, in the traditional world, is a very common thing. It has happened dozen of times, and over again.  Countries, corporations, wealthy individuals have defaulted. Not that nobody cared, but the world survived.

The financial markets, traditional, or cryptocurrency based, are built on trust. Trust underlies all traded assets, whether Dollars, Euros, or Bitcoins. When any reasonable market player starts to worry whether her asset will still be worth something tomorrow, that market player will attempt trade it against something safer very soon.

The features of the Nxt Cryptocurrency Ecosystem include 100% Proof of Stake system, Decentralized Asset Exchange, and Automated Transactions on which logic can be built.

The Bitcoin market lost more than 10% of its market capitalization in 24 hours, largely due to panic resulting from the Mt. Gox Bitcoin Debacle.  Yet many rational people are purchasing 400€ Bitcoin, providing support to the market (outside of Mt. Gox).  Despite the bankruptcy or corruption of one major centralized cryptocurrency exchange and despite the machinations of politicians worldwide using such descriptions as “evil tool”, “used by criminals”, “largely speculative”, and  “relying on manipulated markets”, people worldwide continue to purchase cryptocurrencies to escape the analog financial system rife with single points of failure.

The underlying value of cryptocurrencies that makes them resilient even in the face of attempts by corrupt politicians to suppress them is decentralization.  Cryptocurrencies are still young and evolving to break their ties to centralized models of finance.  This evolution of finance driven by cryptocurrencies will bring the ability to engage in finance to people that have been denied this ability by the centralized status quo.

Today, Bitcoin is only the first step in the direction of decentralized global financial interaction. It is today paying the first mover price. Tomorrow, a new generation will follow. It is being led by Next (symbol NXT), which offers more decentralization than Bitcoin. It has the same basics, but Next has a lot more to offer to its users. The features of the Next Cryptocurrency Ecosystem include 100% Proof of Stake system, Decentralized Asset Exchange, and Automated Transactions on which logic can be built. The Next Cryptocurrency Ecosystem facilitates super fast transaction confirmations. Another feature is Transparent Forging, which allows the network to know which single node is about to create the next transactions block, eliminating unnecessary computing load on the network. More decentralization means less control by the few, and more resilience of a system that empowers those who own a stake in its success.

Very few in the eighties would have imagined what the Internet is today. We are building a new financial world and as many have wrote recently, it won’t be easy nor quick. But one day, the world will be contemplating an entirely digital and decentralized financial system that is deeply different than what it is today. The Next Cryptocurrency Ecosystem leads this revolution in establishing a decentralized financial system.

This article was written by frmelin. 

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