Features of the Nxt Cryptocurrency

So far I’ve written a post on What is Nxt? and how it uses proof of stake for distributed consensus. Today I’ll talk about the features of Nxt.

The Nxt cryptocurrency can be used to create and distribute two kinds of user-defined tokens, either as assets or monetary system currencies.

Asset Exchange

The Nxt Asset Exchange is a peer-to-peer exchange build directly onto Nxt. It allows for fast and secure trading of Next Assets. This eliminates the need to transfer assets or put trust in an outside third party. Nxt Assets can represent literally anything.

Potential uses: stocks, bonds, derivative, commodities, coupons, vouchers, reservations, movie tickers, patents, copyrights, trademarks, software licenses, videogame licenses

Monetary System

The Nxt Monetary System allows you to create and trade user-defined Tokens called Currencies.

Currencies are a specific class of Asset which have extra parameters, such as the ability to back them with the Nxt cryptocurrency to stabilize their value. Monetary System currencies can be freely traded within the Nxt system and on external exchanges.

The Monetary System allows individuals or projects that need a digital currency to quickly create one ‘off the shelf.’
Potential uses: currency, crowd funding, micro-finance, charity, voter IDs, escrows

Marketplace

The Nxt Marketplace feature allows you to list items for sale and make sales on the blockchain. Transactions are done by the seller and buyer directly.

Messaging

The Nxt Messaging system allows you to send and receive data on the Nxt blockchain, thus allowing any Nxt account holder to communicate directly will all other account holders. Messaging is securely encrypted by default.

Example: A project developer could use the Messaging system to embed machine-readable data within an Nxt transaction. This allows automated functions by reading the data sent to you on the blockchain.

Voting

Voting in Nxt is a way for decentralized systems and organizations to arrive at a consensus. That can be done through simple polls. Nxt Voting can also be used as part of the Nxt Account Control system, allowing transactions to be approved or rejected by a group of users.

Potential uses: voter IDs, voting, voting records, contracts, signatures, arbitration, package delivery

Account Control

Account control enhances the security of accounts and ensures that only specific people have access to funds, under specific conditions. This is done by using enhanced multisignature methods.

Potential uses: decentralized autonomous organizations, secure accounts, charity accounting, private investment funds, private insurance funds

Coin Shuffling

The Nxt blockchain is fully transparent. The Nxt Coin Shuffling system is a privacy feature that enables users to mix their funds quickly and efficiently with other users’ funds, making their transactions anonymous.

Data Cloud

The Nxt Data Cloud is a decentralized data storage system. It keeps a record of all Nxt transactions and can also be used to store user-defined data. Since the Nxt blockchain is permanent and immutable the Data Cloud can be used for legal records.

Potential uses: land titles, vehicle registries, business licenses, regulatory records, criminal records, passports, birth certificates, death certificates, building permits, gun permits, forensic evidence, court records, wills, trusts, HR records, medical records

Alias System

The Nxt Alias System allows for one piece of text to be substituted for another. A long, complicated or hard to remember string of data can be replaced by a shorter one.

For example, you could use the Alias System to create one for your own Nxt account number.

As you can see Nxt has a lot of functionality. Plus, Nxt allows for plugins from third parties to add functionality to the Nxt client, so the possibilities are endless.

It can be a bit difficult to get your head around all these features and how they might be used in the future. Here’s one example I thought showed the potential of Nxt:

A videogame company could build their next game on the Nxt blockchain. It could create a loyalty token using the Nxt Monetary System. All users’ game assets could be tracked using the Nxt Asset Exchange. Users would use Nxt Messaging to send data and messages. And all of it would be stored on the Nxt Data Cloud.

In a future article I’ll go over some of the real world case uses for Nxt.

And I’ll also be writing about the upcoming Ardor ICO… stay tuned!

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How to Get Nxt

You’ll want to start by getting yourself some bitcoin. I use Coinbase
Then you’ll need a Nxt wallet. You can get one at MyNXT.info
One way to purchase Nxt is through a cryptocurrency exchange such as Poloniex. You transfer bitcoin to Poloniex and then buy Nxt on the exchange. For safety keep the Nxt in your Nxt wallet.
The other option is to use ShapeShift. It’s a way to exchange cryptocurrencies without signing up for an exchange.
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