The group behind Nxt-based cryptocurrency Burstcoin have announced that users of Burst can start writing ‘customer ready Smart Contracts’ straight from the Burst wallet.
The Burst team claims to have beaten Ethereum and Counterparty protocols to launching trustless smart contracts. They note that they already have applications running on Burst that include atomic cross chain transactions, auctions, crowdfunding, and transfers of dormant funds. They plan to add autonomous corporations, self-mixing and “Smart Property Smart Contracts” in the near future.
According to Burst, this is how each of the applications running on its protocol work:
- Atomic cross chain transactions is decentralized trading between different cryptocurrencies. Users can trade Burst with a coin that provides a mixing service for the purposes of privacy, then sends it right back to a new Burst account. (Use case for atomic cross chain transactions)
- For auctions, participants send money to a smart contract, and “if a user sends more than the previous participant, the previous participant’s money is automatically refunded.” (Use case for auctions)
- For crowdfunding, it is possible to support a project by sending funds to a Burst account. If the account “receives enough funds by a certain block, then the project funds are released; otherwise the money is returned to the senders.” (Use case for crowdfunding)
- For dormant funds transfers, it is possible to make an account dormant for a specified period of time, and automatically forward the balance to another account. “This could be useful as a Last Will and Testament and/or backup of funds, in case users lose their password.” (Use case for transfer of dormant funds)
A fork of the Nxt protocol, Burst is a “Proof of Capacity” cryptocurrency that utilizes the capacity of hard disk drives for mining.
A Burstcoin mining rig from a mining pool
Nxt is a more established open source cryptocurrency and payment network that was launched in November 2013 by anonymous software developer BCNext. Nxt uses proof-of-stake (PoS) to reach consensus for transactions. Thus there is a static money supply and no mining phase as with Bitcoin or in this case Burst.