NXT “Monetary System” Goes Live, Permits Creation of New Currencies on NXT Blockchain
The organization behind Java-based alternative digital currency NXT has announced that its new Monetary System allows users to launch new currencies like Bitcoin, securing them with the NXT’s own blockchain. Thus groups behind new currencies can avoid investing in development to create a coin from scratch and bootstrap it with its own network.
The ultimate value of a currency is determined by the market, depending on adoption and demand, and by the parameters set by the issuer. However, coins may also be created by ‘locking’ a certain amount of NXT, thereby giving a floor value to the issued currency.
The idea is similar to the sidechains development taking place in Bitcoin. The difference is that the additional functionality is all contained within the NXT platform, without the need for an external two-way peg.
According to the NXT Organization:
The NXT Monetary System brings a high degree of speed and convenience to a process that can otherwise be lengthy and complex – and inaccessible to most users. MS is tailored to real-world applications as well as the cryptocurrency community, and aims to make it as simple as possible for individuals and businesses to launch a new cryptocurrency. The range of potential use cases includes loyalty points, crowdfunding efforts and fiat- or commodity-backed tokens, as well as new altcoins.
The NXT team claims that the new system permits the creation and launch of new cryptocurrency coins and tokens in as little as two minutes. Coin features are selected from a list to give the currency the required properties, making the process not only extremely fast but remarkably flexible.
The parameters of the NXT Monetary System include:
- Exchangeable: Currencies can be exchanged all within the NXT platform or on traditional exchanges, each identified by unique name and ticker symbols.
- Controllable: Currencies may optionally only be traded with the issuing account. AN example would be backed tokens such as gift vouchers.
- Reserveable: Currency units are released and distributed if funding requirements are met within the given timescale, if not funds are automatically returned.
- Claimable: Reserveable units can later be exchanged at an agreed rate.
- Mintable: Currencies can be mined by proof-of-work algorithms, such as SHA-256, SHA-3, Scrypt and keccak, whilst still being secured by NXT’s proof-of-stake algorithm.
- Shuffleable: Coins can be shuffled when this feature is implemented in anonymity.
The NXT believes that the new system improves distribution of wealth across the NXT ecosystem, each currency unit possessing its own financial value. It allows for the further decentralization of cyptocurrency and the wider economic landscape, by permitting importing and exporting of currencies from the system.
- Importing: First generation cryptocurrencies can transition into an Monetary System currency, allowing them to take advantage of the features of the NXT platform and ecosystem – including the Asset Exchange, Marketplace, encrypted messaging and Alias registration, as well as a fast-growing list of third-party applications and services.
- Exporting: In the future a whole economy based on a MS currency could be transferred out of the NXT system to another platform should the necessity arise.