NXT Cryptocurrency: Overview of Benefits and Prospects

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NXT – a new generation cryptocurrency

Many investors are so accustomed to Bitcoin and Ether that other cryptocurrencies simply do not accept. These projects really have a promising future, they are periodically updated and improved. But the fact that they were created one of the first leaves its mark. Younger startups are trying to take the lead from the “dinosaurs” of the cryptocurrency market, positioning themselves as coins of a new generation. How they manage to do this can be seen in the ranking of cryptocurrencies by capitalization level on the Coin Market Cap website (coinmarketcap.com), where BTC and ETN are almost unchanged. But competitors are stepping on their heels and there is no guarantee that new cryptocurrencies will not displace them in the future. About one such interesting startup, NXT cryptocurrency, read on.

Cryptocurrency NXT – decentralized payment system

The NXT cryptocurrency (Nextcoin official website – nxtplatform.org) appeared in 2013 and still has not lost interest from investors. Startup developers call the coin second-generation cryptocurrency. True, in the search engines it was not possible to find information about which cryptocurrencies belong to the first generation, and which to the second, and how many generations exist in principle. Therefore, it is rather a marketing move by developers.

The cryptocurrency is based on the Proof-of-Stake consensus algorithm (proof of stake). This algorithm is considered more advanced than proof of work (PoW), but this means that all coins were issued at the same time. That is, NXT mining is not provided, more precisely, has a slightly different form (forging). The developers did not immediately release all the coins into circulation, but use them as a reward for a particular work (something similar to charging interest on bank deposits).

Technical features of the NXT cryptocurrency:

  • The platform is based on its own code and is an independent software product (not to be confused with forks);
  • NXT is not a cryptocurrency in the usual sense. This is a platform with built-in support for created applications;
  • To perform tasks within the network, low-power equipment is sufficient (a competitive alternative to Bitcoin);
  • The possibility of re-selling one asset (“Double Spending”) is excluded even when the author of the attack has concentrated up to 90% of the network;
  • The transaction amount is automatically returned to the sender’s account if not a single confirmation has occurred;
  • The number of tokens is 1 billion.

Where to buy NXT cryptocurrency. The coin is quite common – trading volumes are held on more than 10 cryptocurrency exchanges, where you can buy it for BTC and USDT (some for ETN and national fiat money). The largest turnover is in Bitcoin Indonesia (bitcoin.co.id), Bittrex (bittrex.com) and Poloniex (poloniex.com). But exchanges are not reliable compared to wallets due to frequent hacks and periodic system failures.

An alternative option is to buy cryptocurrency through exchangers, for which you need a wallet. You can download it on the project website, but it will not be the usual wallet that other projects have. There is no local physical wallet here; we can say that it is virtual. It works according to the “Brain wallet” system (“wallet in the brain”). There is no wallet.dat file, that is, the account supposedly does not exist, although in fact it exists within the network. This was done in order to protect the NXT cryptocurrency wallet from interference from third parties and, in particular, the authorities.

The concept of storing the NXT cryptocurrency means that the user keeps the information for access not in a file, but in his head. The generated key can be not only a set of characters, but also, for example, a separate phrase that you need to remember. The first time you log in from the NXT website, the wallet is automatically created; later, using the generated key, you can access it from any computer.

 

 

Judging by the description of the NXT cryptocurrency, which is easy to find on the Internet, it is a revolutionary coin with an effective transaction mechanism and a high level of security. True, the developers were able to offer the revolutionary, while it remains incomprehensible. The existing consensus algorithm is used everywhere, compared to Ripple or Monero systems, NXT’s competitive advantages are unnoticed. It is possible that the situation will change in the future.

Recommendation. NXT cryptocurrency has many competitors with similar functionality. It hardly makes sense to add this coin to the portfolio for diversification, but it’s worth a closer look. Judging by the schedule, it is sometimes used for a pump, on which you can make money if you enter the market on time.

 NXT Cryptocurrency Rate Prospects

Regarding the prospects for the NXT cryptocurrency exchange rate, not everything is so clear. Despite the fact that the coin is hardly included in the TOP-100 in terms of capitalization (positions may vary), its leaders are still far away. On the NXT cryptocurrency chart, there are periodic bursts, after which quotes go down again. This suggests that investors have no stable interest, cryptocurrency is used to earn money on the pump and speculation. Also, there is almost no information about the interest in NXT from large corporations. Considering that several years have passed since the start-up of the startup and new projects successfully overtake NXT, it is hard to believe that anything will change in the near future. Therefore, the forecast for cryptocurrency NXT is pessimistic.

Conclusion

An attempt by developers in 2013-2014 to offer a cardinal alternative to Bitcoin has so far yielded no results. The MTC still remains at the head of the cryptocurrency market, and the NXT weaves closer to the lower boundary of the TOP-100. None of the TOP-10 coins went down 10 times in 1 month, while NXT had such a period. High volatility does not contribute to the flow of investor capital. And if the developers do not take action, then the cryptocurrency risks repeating the fate of Quark.

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