Nxt is considered to be a second-generation crypto currency that is seen as an alternative, perhaps even competition, to all the Altcoins that only change things such as hashing mechanism, time between blocks, starting difficulty, etc. Nxt is currently being traded by people on a 1-on-1 basis as well as on centralized exchanges such as: DGEX, Cryptsy, and BTER.
Nxt is not an “alt coin” like Litecoin, Peercoin, and others whose code is based on Bitcoin’s source code. It is written from scratch, in all-new source code. Nxt provides built-in support for robust features such as a decentralized peer-to-peer exchange, voting system, messaging/chat, decentralized DNS, and options for instant transactions. While many Bitcoin-based currencies implement one or two of these features on top of the existing Bitcoin network, Nxt implements all of them on an improved network model that is built for speed and scale.
Nxt is 100% proof of stake (PoS), as opposes to the proof of work (PoW) mechanism the most other coins are based on. Instead of using powerful computers to “mine” new coins, Nxt leverages the balances of existing accounts to “forge” blocks, rewarding forgers with transaction fees. The Proof-of-Stake algorithm is efficient enough to run on Smartphones and small devices like the Raspberry Pi platform. In addition, this method effectively removes a large security risk that is often inherent in most other coins.
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Nxt will be implementing a cool feature called “Transparent Forging”, that will allow each user’s client to automatically determine which server node will generate the next block. This allows clients to send their transactions directly to that node, minimizing transaction times. Immediate and high-priority transactions can be processed for additional fees. Transparent Forging also offers an outstanding security feature that can temporarily reduce to zero the forging power of nodes who should generate the next block, but do not, penalizing accounts that do not actively support the network, and distributing that power to nodes that do.