NXTcoin is one of the many altcoins that popped up shortly after Bitcoin’s release. Launched in November 2013, the cryptocurrency has a rather checkered history in the cryptocurrency world. Quite a few people have criticized it as a scam, while other people are quite adamant in the support for it. Here’s a brief primer on what to expect with it.
NXT: Bitcoin 2.0
Developed by anonymous software developer BCNext, NXT is both a cryptocurrency and a payment network. Unlike Bitcoin, it uses proof-of-stake to verify transactions. This means it has a steady money supply already and does not have any mining adding to it. Developed mainly as a flexible platform to build applications and financial services around, it has several characteristics that make it unique.
First of all, there is the fact that the entire network is based around delivering developer accessibility. External development is welcomed, with no centralized service needed to access the API. This means people can develop their own apps around the network. Next is the use of proof-of-stake as its mean of verifying transactions. Though it has an unchanging coin supply, NXT manages to pay off those who contribute to block processing via transaction fees.
NXTcoin is the digital currency that acts as the network’s main medium of transaction. People can use it like Bitcoins or dollars to buy goods or services. It can also be used to power NXT network features like creating tokens, paying for data storage or transaction fees for transfers.
Why use NXTcoin?
There are several reasons you might want to use NXTcoin. The primary one is to use the features of the NXT network. This includes asset exchanges where people can perform decentralized trading of shares and crypto assets, data storage, alias systems, voting systems and more.
For individual users, NXTcoin presents an unparalleled level of freedom. The decentralized network of NXT allows for transactions without middlemen or restrictions. The philosophy behind NXTcoin means no one can stop your transactions and you can use it for any purpose. For example, you can create your own token system to facilitate trades or use the tokens to ease global deals, skipping the foreign exchanges.
With its interesting features, NXT cryptocurrency is similar to Ethereum than to Bitcoin and is a natural evolution of the technology. This is why a lot of experts are classifying it as one of the various Bitcoin 2.0 cryptocurrencies that are slowly emerging across the globe.