NXTcoin is one of the altcoins that have been mixed up with a lot of controversy ever since its release back in 2013. It has been years since then, but a lot of people are still hesitant in giving the altcoin a try. Here are a few answers to common questions that plague those who want to get into NXT coin, including information on mining and the NXT wallet.
Is NXT a scam?
The main problem plaguing NXT coin is that a lot of people think it is a scam. This mostly stems from the idea that the coin is “pre-mined” and that there is no current NXT wallet. It is true that there the 1 billion coins in circulation are the max limit, but that was part of the design. Initial investors bought shares of the genesis block. The coins given them depend on their contribution. These stakeholders distributed the coins by donating them and spreading them out to the community.
If NXT are not mined, where do all the coins come from?
Though there is no NXTcoin mining going on, the network still needs processing power to operate. This is where the proof-of-stake system comes in. Users validating the transactions use the client and get rewards. The reward comes from transaction fees and donations by the stake holders. The system asks for everyone to participate and to be rewarded. Those that do not participate in the processing are temporarily prevented them from earning transaction fees.
Where is the NXTcoin wallet?
Another big difference for NXT coin is that there is no NXT wallet. The system works pretty much like a “cloud” program. The information to access your funds stays safe and decentralized in the network. Every next user gets a secret passphrase when making an account. To get access to your account, just use the passphrase again. There is no need to install anything for a NXT walletsince all of the account information is stored on the network. This allows users to access an account from anywhere.
How do I get started?
If you want to get started on NXT coin, you can earn it by contributing to the community. NXT is still growing and needs a lot of work. A NXT wallet is still something in consideration. Quite a few of the original stockholders encourage people to do this by setting bounties on various tasks. Another way to earn NXT coin is to just buy some from an exchange. There are several exchanges that have NXT coin available on them. Finally, you can always drop by a faucet for a minimum amount of NXT.