nxt myths: what should we know about nxt generation pos cryptocurrency

8/9/2019 Nxt Myths: What should we know about Nxt generation PoS Cryptocurrency

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Nxt MythsWhat should we know about Nxt generation PoS Cryptocurrency

Mgr. Salsacz

Content1. Nxt is not a scam, it wasnt created by anonymous de!elopers........"

". #he !ery $air %istribution o$ Nxt.....................................................&

'. (riginal Stakeholders..................................................................)

*. Source code..............................................................................11

+. nsa$e password.......................................................................1+

&. Worthless coin without mining...................................................1-

-. ich get richer..........................................................................."+

). /nno!ations o!er 0itcoin............................................................'

NXT Donations: 15003961341330858247

1


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1. Nxt is not a scam, it wasnt created by anonymous

de!elopers

Nxt was in!ented by anonymous programmer

Nxts source code is being re!iewed by knownde!elopers

New code implementations will be appro!ed bydemocratic !oting

Nxt was invented by BCNext, who is a programmer at the age of !", who lives

in #$rope.1

%e is a veteran member of Bitcointal& for$m, b$t he stays anonymo$sli&e Satoshi Na&amoto.'%e can still reveal his identity, as he promised. %e iswatching the Bitcointal& for$m from his real acco$nt, he s$pports the Nxt helpersby donations(rewards. BCNext prefers to wor& on creating the pro)ect alone. %epaid a team of core developers to help him with the client and create somef$nctionalities li&e decentralized exchanges. *ne member of the coredevelopment team Come+from+Beyond was paid by BCNext to wor& on Nxt from*ctober '1 till -pril '1.Come+from+Beyond is a years old programmerfrom Mins& in Belar$s.!

1 /his g$ess is based on -ssembler style in the code 0Come+from+Beyond 23 noticed thesame things, the code is written in bac&+to+4s style. /he a$thor de5nitely $sed to codein -ssembler.http((www.reddit.com(r(nxtcoin(comments(1toz'd(warning6nxt6so$rce6code6is6very6low67$ality(ceafrr8 and the statistics of the posts of BCNexthttps((bitcointal&.org(index.php9action:pro5le;$:1!'4>.msg!'1>?msg!'1>2*ne of my employe is developing Nxt client.A https((bitcointal&.org(index.php9topic:>4>.msg!>>>?msg!>>>.

! https((bitcointal&.org(index.php9topic:114


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Awor& for Nxt f$lltime or at least halftime are oefox, *pticalcarrier, =inarelloand Salsacz.

! diOerent people had already been disc$ssing at the main Nxt thread inBitcointal&.1*nce there were 4 active nic&s in last days. 3n the middle of

an$ary they reached '. posts at the page of 1. /he statistic from theend of '1 shows the biggest spammers of the Bitcointal& topic Come+from+Beyond 0'!8, laowai> 08, nitedStates01EE8, http((peerexplorer.com(.Map https((mapsengine.google.com(map($((edit9mid:zRbwNr)a https((bitcointal&.org(index.php9topic:''!'.msg


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2bout 0CNext, in!entor o$ Nxt

3uestions $or 0CNext

4anuary "1*14

35 Why was the initial $unding cancelled suddenly with $ew people6- 3 wanted Nxt to be la$nched by the comm$nity, not by a single person.S$ccess of Nxt is s$pposed to be achieved by wor& of a */ of =#*=#.

35 7ow would you sol!e problem with scam accusations according

to 8un$air8 distribution Nxt to -' big stakeholders6

- /his problem can not be solved. #ven if we had a million sta&eholders therest seven billion people wo$ld call this $nfair. - world with the moneycan not be perfect.

35 What are the most important + things the community should do,

in order to properly support Nxt in the next & months6

- Heview all my ideas, they might be Iawed. -void centralization. Ro notpay m$ch attention to the price of 1 NG/ meas$red in 5at money.Hemember that half+meas$res is a way to nowhere. Ro not tr$ststrangers on the 3nternet, especially if their nic&name is UBCNextU.

No!ember "1'5

35 how many bitcoins are you going to contribute6 92re you going to

keep the coins you contributed yoursel$6 (r you will take a creator

cut 9certain :;"

- 3 don@t &now how m$ch 3 will contrib$te. /his depends on the price ofBitcoin and some other factors. /hese bitcoins, li&e the others, will be $sedto pay bo$nties for development. No creator c$t.

0CNexts citations5

% ot of time &as s'ent on ta"ing( the o)t*ome #i# not satis+e# me, That is

&h- no& . am &or"ing aone, The things are im'emente# m)*h faster this

&a-,21

What others said about 0CNext5

Come


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/. #ont thin" Next is intereste# in mone-, e s'ent more than he raise#

f)n#s,22

/With a m- res'e*t to Next( he is too 'aranoi* ao)t

.aiensi)minati( the- r not intereste# in "i#na''ing of -etanother

*r-'to*oin *reator, . eiee that &as )ns)**essf); 4>.msgE1


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' 4anuary the release of Nxt happened ! years after the release of

Bitcoin.

"1 0itcoins5/he 3=* was stopped in the time when were gathered '1

Bitcoins, i tis 1(1. of the all existing Bitcoins from now on.

2nonymous 0CNext BCNext plays the same role as Satoshi Na&amoto.

Pe donFt &now who they are.

@unny descendants o$ Nxt5

JetVisaCoinSibling of NG/Born for retrib$tion Q deterrent'!

WN#GX Nxt Heimagined'

M#./** descendant of NG/ + billion coins'4

N#GG descendant of N#G descendant of NG/ descendant of

Bitcoin

N#M descendant of NG/ + billion coins1 K*N# descendant of NG/ + 1 Million Coins + V#H H-H#Y

'! https((bitcointal&.org(index.php9topic:4 https((bitcointal&.org(index.php9topic:''!.;topicseen.

'4 https((bitcointal&.org(index.php9topic:''14..

https((bitcointal&.org(index.php9topic:'''E'..

1 https((bitcointal&.org(index.php9topic:''1'4.

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https://bitcointalk.org/index.php?topic=409696.0https://bitcointalk.org/index.php?topic=398461.0https://bitcointalk.org/index.php?topic=422052.0https://bitcointalk.org/index.php?topic=422353.0;topicseenhttps://bitcointalk.org/index.php?topic=422139.0https://bitcointalk.org/index.php?topic=422272.0https://bitcointalk.org/index.php?topic=422129.0https://bitcointalk.org/index.php?topic=409696.0https://bitcointalk.org/index.php?topic=398461.0https://bitcointalk.org/index.php?topic=422052.0https://bitcointalk.org/index.php?topic=422353.0;topicseenhttps://bitcointalk.org/index.php?topic=422139.0https://bitcointalk.org/index.php?topic=422272.0https://bitcointalk.org/index.php?topic=422129.0


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". #he !ery $air %istribution o$ Nxt

35Do you think the unequal distribution of bitcoin / big gains of earlyadopters / will be a deterrent in a ore widespread adoption of

bitcoins!

-/No, Aar- a#o'ters get igger gains as the- sho)#; e*a)se the- ta"e onigger ris", % it*oin *an e #ii#e# into 100 miion 'ie*es( so . #ont see

#iisiiit- or #istri)tion as a 'roem,

Cameron Winkle!oss

#he distribution o$ Nxt has many phases5

(riginal /P(501 NG/ : ' Satoshi8 : 0September '> + November 1> : 4>.;https((bitcointal&.org(index.php9topic:>4>.msg


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s$ccess or ret$rn on investment.3n order to get more $sers they startedto sell their sta&es in $nderval$ed prices and also they spent tenths ofmillions on bo$nties or giveaways. /here are many types of originalsta&eholders those who paid ' Satoshi d$ring


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la$nch will be leaded by all Nxt comm$nity. /his will be made by decisions ofsta&eholders. /he s$ccess of Nxt is now s$pposed to be achieved by Nxtcomm$nity, not BCNext.

/here has been a hell of a lot development and implementation since the

initial creation of the bloc&. 3t@s called Ucapital appreciation,U or Usweat e7$ity,Uand it means that the val$e of the prod$ct is increasing beca$se it is becoming amore rob$st prod$ct thro$gh the eOorts of developers, who are a$gmenting thef$nctionality, as well as mar&eters, and vario$s other s$pport people andmechanisms.


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7ow is NA# distributed6+ 3f 3 don@t co$nt Jenesis transfers, in !' days were transferred '.'! Billion

NG/

NA#5 0itcoin5 S%5*

").D: o$ NA# is ownedby .-:

'>.4Z of B/C is owned by.+:

Z SR .1:

"1.+:5 .1*: 5 "x '1.!Z .>EZ 1-x 14Z SR + .1:01x8

"*.):5 .++: 5 )x '.>Z .4>Z "x 'Z SR + .1:01x8

".-:5 DD.-&: 5 1.+x '.EZ 4>.4'>Z ".x 14Z SR + 44.4Z01x8

http((bitcoinexaminer.org(wp+content($ploads('1(1(Pho+owns+all+the+bitcoins'.png

http((www.b$sinessinsider.com(4'E+people+own+half+of+the+bitcoins+'1+1'

https((bitcointal&.org(index.php9topic:1E'''

3n this table yo$ can see that NG/ distrib$tion is m$ch better than Bitcoin or SRollar. Nxt has got more fair distrib$tion than Bitcoin. 3n Nxt Z is owned by.EZ of $sers, in Bitcoin Z is owned by .!Z of $sers.

By these metrics Nxt@s distrib$tion is already $airer than 0itcoins. /his is afterro$ghly 1.! months of distrib$tion, and it@ll probably improve even more in thecoming months. /here is a simple r$le abo$t Nxt distrib$tion. Big sta&eholderswill lose more val$e, if they hold a lot of NG/. So it is in their interest to sharetheir sta&es.

/he same thing applies to +1: attack in =oS coins li&e NG/ !1Z is moreexpensive and less logical, beca$se

o$ need to pay and ac7$ire !1Z of the sta&es to be able to attac& #ven if yo$ s$cceed, after yo$r attac& the =oS coin loses val$e beca$se

of the attac& and insec$rity. -gain the attac&er himself loses more, ashe owns !1Z of coins and they lost val$e.1

Eitecoin

+ /op 1 /C addresses own E million of /C : 'EZ.+ /op E itecoin addresses own 1 million of itecoins : Z.

http((bitcoinexaminer.org(wealth+distrib$tion+part+ii+5at+c$rrency+vs+btc+infographic(, http((www'.$csc.ed$(whor$lesamerica(power(wealth.html.

1 https((bitcointal&.org(index.php9topic:!


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+ *ther million addresses own 1! million itecoins.'

0itcoinownersFaccou

nts Nxtaccount

s

[1 1 ' 1+1 NG/ E !'

1 B/C '> 11+1 NG/ >'E1 B/C


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2 49 875 751 49 874 767 25 9 476 393 1 599 999

3 49 875 751 0 26 8 644 631 49

4 49 875 751 51 170 795 27 6 668 388 6 575 345

5 49 875 751 25 925 690 28 5 486 333 5 399 971

6 49 875 758 9 500 626 ? 29 5 264 386 0

7 49 876 257 46 781 257 30 5 033 128 2 427 700

8 49 875 751 30 776 494 31 4 987 575 4 980 418

9 34 913 026 2600 ? 32 4 987 575 2 558 217

10 49 875 651 1000 ? 33 4 962 637 100 001

11 30 922 966 27 071 647 34 2 916 900 1 000 000

12 29 856 290 0 35 2 867 856 500 039

13 29 437 998 25 849 742 36 2 724 712 224 622

14 24 912 938 1 986 246 37 2 690 963 489

15 24 880 020 15 669 333 ? 38 2 684 479 3 058 444

16 22 166 945 10 + 15mega ?

39 2 468 850 219

17 19 925 363 9 895 683 40 1 970 092 1 469 943

18 16 625 250 800 41 1 845 403 2 100 606

19 15 487 585 12 600 371 42 1 476 156 9 476 896

20 14 962 725 0

21 14 887 912 0

22 11 083 556 4 502 427

23 9 975 150 875 135

2ll originalaccounts5 NA#

'.11.'1 1,,,1.1'.'1 ''.1'.'1 ','1,1'

E https((bitcointal&.org(index.php9topic:!;topicseen?msg1!41>

>

http((www.reddit.com(r(nxtcoin(comments(1toz'd(warning6nxt6so$rce6code6is6very6low67$ality(ceafrr

1
https://bitcointalk.org/index.php?topic=303898.msg3442282#msg3442282https://bitcointalk.org/index.php?topic=345619.msg4415918;topicseen#msg4415918https://bitcointalk.org/index.php?topic=345619.msg4415918;topicseen#msg4415918http://www.reddit.com/r/nxtcoin/comments/1toz2d/warning_nxt_source_code_is_very_low_quality/ceafrr3http://www.reddit.com/r/nxtcoin/comments/1toz2d/warning_nxt_source_code_is_very_low_quality/ceafrr3https://bitcointalk.org/index.php?topic=303898.msg3442282#msg3442282https://bitcointalk.org/index.php?topic=345619.msg4415918;topicseen#msg4415918https://bitcointalk.org/index.php?topic=345619.msg4415918;topicseen#msg4415918http://www.reddit.com/r/nxtcoin/comments/1toz2d/warning_nxt_source_code_is_very_low_quality/ceafrr3http://www.reddit.com/r/nxtcoin/comments/1toz2d/warning_nxt_source_code_is_very_low_quality/ceafrr3


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when the algorithms are gro$ndbrea&ingly better than anything that@scome before.

*$r investment is in the extremely clever people behind the NG/pro)ect. Comp$ter science and software engineering, tho$gh related, are

diOerent things. 3 am glad the NG/ has a comp$ter scientist li&e BCNextbehind it who act$ally has new ideas and can bring them to life, no matterhow messy the code may be. New capabilities are something that hasbeen missing from every other alt coin that has come before NG/.

-s 3 said, some really great comp$ter scientists do not follow greatsoftware engineering principles, b$t their code does things no one else@scan. -nd that, my friend, is the point.

Bcnext is a frea&ing geni$s. 3 wor&ed so hard to try to 5g$re something

o$t li&e this myself to no avail. Phat i proposed in my thread is a far cryfrom this m$ch better sol$tion.

/hat we are not investing in so$rce code, we are investing in thealgorithms, the big ideas 0BCNext8 and the h$ge comm$nity s$pportingNG/.

Comp$ter science and software engineering, tho$gh related, are diOerentthings. 3 am glad the NG/ has a comp$ter scientist li&e BCNext behind itwho act$ally has new ideas and can bring them to life, no matter how

messy the code may be. New capabilities are something that has beenmissing from every other alt coin that has come before NG/.

lh5

3 &now that this is abo$t fees and not generating c$rrency, b$t theconcept of ad)$sting system metrics, based oO daily transactionalstatistics is something 3@ve loo&ed at and tho$ght abo$t for a loooooongtime. 3 thin& we co$ld do the same type of thing here.

tk))5

/his is the real+world d$de, not an algorithm fo$nd in a textboo&.

bitcool

o$ have to give the creator credit for implementing the 5rst versionbitcoin+era crytoc$rrency in ava. 3 am s$re a lot of time and eOort wereinvested in this.

achimsmile

1!


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3 am amazed how motivated, innovative, and intelligent 0sometimes 3only $nderstand half of the tech tal& in the main thread the comm$nitybehind NG/ isY

2dama0it

3f yo$@d read all of BCNext@s posts 0which 3 did8 yo$@d see that lots ofpeople wanted to give him more coins, and not )$st one at the most, whichhe p$t the cap on. B$t he wasn@t motivated by that he )$st wanted to getthe coin o$t there, he co$ld have ta&en a lot more of people@s money, hellif 3 hadn@t have come late to the party 3 wo$ld have )$mped on in there andta&en a p$nt on him. B$t he act$ally only wanted '1 B/C@s so that itmirrored satoshi@s '1 million B/C@sY %e@s &inda of &oo&y and probably a bitof a geni$s 0$sed lightly8. B$t 3 li&ed his enth$siasm and paranoid

personality. 0%e got a call on S&ype from someone saying that they werethe police and then stopped posting8.

4l---5

So$rce code appears to be the wor& of a s$per+geni$s with a strangeformatting style.4

2sian Prepper5

3 can totally see the words Ugeni$sU Q UmasterpieceU being $sed to

describe Satoshi b$t lets wait for some solid proof Q evidence 5rst beforewe $se those words to describe BCnext. Hight now we have lots of hype nUsizzleU b$t 3 dont see any solid Ustea&U yet to show for the Nxt hype yet.Hight now, from an early adopter Q Nxt investor perspective, all 3 see isanother copy cat programmer attempting to copy satoshi@s shro$d ofanonymity, idea of a p$blic ledger, etc.

Being UoriginalU is geni$s. Being UdiOerentU is N*/ geni$s.

Keep in mind that Satoshi created B/C to ta&e power away from the 1Z

on wall street n give it bac& to the 44Z on Main Street while BCnextcreated Nxt for personal 5nancial gains. Keep in mind that there is nothingwrong with doing some thing for personal 5nancial gains b$t 3 wo$ldhesitate to compare or place an $nproven coder on the geni$s level ofSatoshi.

3 invested in Nxt beca$se it was the 5rst copy cat coin to ma&e anattempt to come $p with its own so$rce code instead of being lazy ncopying Satoshi@s code. 3s it possible that BCnext is another geni$s li&eSatoshi9 *f co$rse its possible... 3 hope BCnext is able to prod$ce the



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code that he claims n provide proof of his geni$s. .. ntil there is proof...BCnext is )$st another wanna be copy cat... once proof is clearlyavailable. .. 3 will be the 5rst to promote the geni$s of BCnext@s.!

topian$uture5

3t ta&es a historical perspective to &now what &ind of contrib$tionsBCNext wo$ld ma&e so 3 agree that at this point over+hype is premat$re.B$t in my personal observations, he has shown some signs of a geni$s inthe ma&ing in some levels. /here are technical innovations s$ch as =*S,transparent forging, however what 3 see the most val$able in his wor&s is acoherent vision of what a decentralized networ& co$ld be. 3t@s similar tothe way Steve ob designs the 5rst 3phone. /here are technicalimprovements compared to earlier smartphones in the 5rst 3phone, b$t

m$ch more important innovation is the way everything is bro$ght togetherto de5ne what a smartphone sho$ld be. NG/ decentralized networ& co$ldbe the same. 3t will s$cceed not on a speci5c feat$re b$t on the way all thediOerent feat$res are bo$ght together in a coherent framewor&; pl$s allthat hi+techs are accompanied with strong message of decentralizationand comm$nity involvement. /hat the whole pac&age together imho is thenovel contrib$tion.

Satoshi has paved the way with his bloc&chain original idea. B$twitho$t a written evidences, 3 do$bt Satoshi has s$ch a strong vision of

how a decentralized networ& based on bloc&chain technology co$ld be. Soin a sense, BCNext extends Satoshi@s original idea.

Pe still need to wait for the act$al implementation of NG/decentralized networ& and there are still m$ch $ncertainty ahead. B$t theonly reason 3 has devoted so m$ch my time to this vent$re is beca$se 3has a conviction in my above )$dgement. 3 believe in NG/ s$ccess and thevalidation of BCNext@s ideas.!1

! https((bitcointal&.org(index.php9topic:!!

1E
https://bitcointalk.org/index.php?topic=345619.msg4454375#msg4454375https://bitcointalk.org/index.php?topic=345619.msg4455835#msg4455835https://bitcointalk.org/index.php?topic=345619.msg4454375#msg4454375https://bitcointalk.org/index.php?topic=345619.msg4455835#msg4455835


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+. nsa$e password

Since all Nxt accounts are stored on the network, isnt it

possible $or someone to guess my 8secret phrase8 and get easyaccess to my coins6

/his is a very important 7$estion. See o$r -cco$nt Sec$rity page for anin+depth answer. 3n brief /his 7$estion emphasizes the importance of$sing a strong, sec$re password to create yo$r Nxt acco$nt.!'

3f yo$ enter a passphrase less than characters long in the Nxt client,yo$ will be warned that yo$ are creating a sec$rity ris&. - tr$ly randomstring of ! to


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- brainwallet is created simply by starting with a $ni7$e phrase. /hephrase m$st be s$ciently long to prevent br$te+force g$essing + a shortpassword, a simple phrase, or a phrase ta&en from p$blished literat$re isli&ely to be stolen by hac&ers who $se comp$ters to 7$ic&ly try

combinations. - s$ggestion is to ta&e a memorable phrase and change itin a silly way that is dic$lt to predict.

/he phrase is t$rned into a '!


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&. Worthless coin without mining

%n- other #istri)tion &o)# e )nfair,B

Come Nxt Pi&i

'
https://nextcoin.org/index.php/topic,1783.msg24927.html#msg24927https://bitcointalk.org/index.php?topic=345619.msg4478929#msg4478929http://www.links.org/files/decentralised-currencies.pdfhttps://nextcoin.org/index.php/topic,1783.msg24927.html#msg24927https://bitcointalk.org/index.php?topic=345619.msg4478929#msg4478929http://www.links.org/files/decentralised-currencies.pdf


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attac&s on the networ& that Ufa&eU sta&e. Since the creator of Nxt wanted a1Z =oS platform, this was not a desirable co$rse of action.

Second, the term Upre+minedU is a misnomer beca$se Nxt coins are notbeing mined at all. /he original sta&eholders in Nxt contrib$ted Bitcoin in

order to seed the creation of the 1 billion coins represented in the genesisbloc&, and these coins were distrib$ted among the original sta&eholders./he sta&eholders are expected to distrib$te coins by donating them, $singthem as Ubo$ntiesU to pay for wor& on the coin 0software, doc$mentation,translations, s$pport, etc.8 that is done by the comm$nity. #ven thecreator of Nxt 0BCNxt8 made an investment. /he coins were not generatedfrom nothingY /hird, the creation of the genesis bloc& was f$lly p$blic, andall of the original acco$nt n$mbers and their assigned amo$nts of Nxt arevisible.!4

Why is it called $orging instead o$ mining6

Pith Bitcoin and many other cryptoc$rrencies, the act of sec$ring andverifying the bloc&chain res$lts in new coins being created. Pith Nxt,however, all possible coins already exist, and acco$nts earn coins fromtransaction fees alone. -s a res$lt, it was felt that a new word + UforgeU +was needed to describe the manner in which coins are earned.


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#very ' ho$rs, there sho$ld be 1 bloc&s added to the chain. o$rprobability of forging a bloc& depends on yo$r share of the total n$mber ofcoins that are active on the networ&. 3f all available coins 01 billion8 were$sed for active mining, then an acco$nt balance of Can / $orge Nxt more Huickly by running multiple ser!ers and

multiple accounts6

No. o$r ability to forge Nxt depends solely on yo$r total acco$nt balanceas a percentage of all available coins. /his is what sets Nxt apart as ap$re U=roof+of+Sta&eU cryptoc$rrency. C= power, J= 0graphics processor$nit8 power, and the n$mber of servers yo$ r$n have no eOect L in fact,

yo$ co$ld even forge Nxt on a very old, low+power comp$terY

''
https://bitcointalk.org/index.php?topic=411279https://bitcointalk.org/index.php?topic=411279


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only the richest and the biggest corporations with h$ge mining systemsget most pro5ts.

0itcoin had o!er * years o$ proItable mining by e!eryday CPs

and JPs. /n!estment


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3n the present an everyday J= will most li&ely never generate a pro5tmining bitcoin. /hey are either mining alt+coins to reco$p or gain freepro5ts or sold on e+bay to others loo&ing to mine alt+coins.

!o asi*a-( -o) hae a arge n)mer of miners that get er- *ross

&hen the- are to# the- *annot mine a 'arti*)ar *oin( e*a)se the-

area#- ineste# in the har#&are, Aen if another nonmining #istri)tion

s*heme is egitimate( the- &ont i"e it e*a)se the- area#- ineste# into

the mining #istri)tion s*heme, Cness that s*heme inoes giing o)t

free st)>; 69

/he only reason mining has gotten so big 0and s$rvived8 is beca$se ofbasically $seless copy+cat coins. 3f yo$ co$ld only mine Bitcoin " itecoin,the mining scene wo$ld die very 7$ic&ly beca$se of escalating dic$lty.

We are in a 8copy4.

'
https://bitcointalk.org/index.php?topic=411279.msg4456143#msg4456143https://bitcointalk.org/index.php?topic=411279.msg4465089#msg4465089https://bitcointalk.org/index.php?topic=411279.msg4456143#msg4456143https://bitcointalk.org/index.php?topic=411279.msg4465089#msg4465089


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sit$ation where two competing chains coexist for a long time, damagingthe credibility of the coin.E'

+ Nxt came with transparent forging idea that sol!es the problem o$competing chains. /his invention is really very important for =oS

c$rrency. - Nxt node forging two chains at once will 5nd their miningpower red$ced to zero.

What about power heating houses by 0itcoin mining6

3n the S- alone million homes $se electric heat. sing a pc with twohdE4!@s at itecoin will provide heat and ma&e money. o$ will have 1'>?msg1'>.

E! J$idoDox, https((www.yo$t$be.com(watch9v:&tMJC+N74oQgoogle6comment6id:z1'zfz!)vmygz)5''yhp1iwnvbf1p!z.

'!
https://bitcointalk.org/index.php?topic=411279.msg4465214#msg4465214https://bitcointalk.org/index.php?topic=411279.msg4468128#msg4468128https://www.youtube.com/watch?v=ktMGC-Nq9Zo&google_comment_id=z123zfz5jvmygzjfi22yhp1iwnvbf1p5z04https://www.youtube.com/watch?v=ktMGC-Nq9Zo&google_comment_id=z123zfz5jvmygzjfi22yhp1iwnvbf1p5z04https://bitcointalk.org/index.php?topic=411279.msg4465214#msg4465214https://bitcointalk.org/index.php?topic=411279.msg4468128#msg4468128https://www.youtube.com/watch?v=ktMGC-Nq9Zo&google_comment_id=z123zfz5jvmygzjfi22yhp1iwnvbf1p5z04https://www.youtube.com/watch?v=ktMGC-Nq9Zo&google_comment_id=z123zfz5jvmygzjfi22yhp1iwnvbf1p5z04


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/oo many big players invested a lot in mining(-S3C related b$siness./hey will try to stop =oS c$rrencies. /hey were the bosses of Bitcoin in theend of '1. /hey are and will be trying to spread DR abo$t how bad is=oS.E


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Kou can play Call o$ %uty during Nxt mining

/his is tr$e, Nxt needs only a little H-M from yo$r =C. o$ can 5nally $seyo$r graphic card only for playing R games. Pith more =oS c$rrenciesand after all =oP coins die all gamers will 5nally be able to b$y cheaper

graphic cards. -nd they wonFt be all sold o$t li&e todayY

Nxt reHuires 1 times less bandwidth and storage than 0itcoin.

/t uses signing algorithm which is $aster than 0itcoins one. #hus

it can scale to a higher degree than 0itcoin can. /here is no animplemented decentralized sol$tion of the V3S- vol$me problem yet.Sho$ld we sit and do nothing waiting for it9E>No, we can $se Nxt.

Why shouldnt we use PoW mining6

/he proof of wor& model is $ns$stainable in terms of the energyre7$irements to sec$re it http((www.bitcarbon.org(introd$ction.html /heabove isn@t an iss$e now as not eno$gh people aro$nd the world haveadopted =oP coins. B$t if they did, this wo$ld be at the front of mostpolitical arg$ments. -lso, the vast ma)ority of bitcoins is also held by aminority + not )$st in B/C b$t also in hashing power. 3n many respects,Bitcoin is a ponzi(pyramid scheme too. %ell, so is D3-/. S$ch is the nat$reof c$rrencies in general. Bitcoin was also considered a h$ge scam bac& inits infancy.E4

=*P is s$ch a waste of reso$rces, we are spending millions onreso$rces to mine B/C, it doesn@t seem li&e the direction we sho$ldcontin$e heading as the world str$ggles with limited reso$rces. /heamo$nt of power wasted mining B/C is absol$tely atrocio$s. Hegardingyo$r concerns with =*S, read $p on /ransparent Dorging. =*P iscompletely s$sceptible to corporate control, loo& at the mining pools, yo$are close to !1Z with Jhash.io alone. Meanwhile Nxters are forging NG/right now on their Has=i.>

/snt late to start with Nxt6

o$ can get into the =roof of Sta&e system at almost any point, whichde5nitely drives adoption. o$ have to pay for NG/, b$t then yo$ can mine

E> https((bitcointal&.org(index.php9topic:>4>.msg4'?msg4'.

E4 https((www.yo$t$be.com(watch9v:z-/Ch=sGhTQgoogle6comment6id:z1'y$rm)fseairhbcdlsi)vf)tzsc& .

> https((bitcointal&.org(index.php9topic:1'>E>.msg


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NG/ and th$s get into the system witho$t investing more 5at money. /hisis also the reason why Nxt has a rather fast adaption compared to Bitcoin.

'>


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What is Proo$ o$ Stake6

=roof of sta&e does away with the comp$tational waste of proof of wor&

entirely. Hather than re7$iring the prover to perform a certain amo$nt ofcomp$tational wor&, a proof of sta&e system re7$ires the prover to showownership of a certain amo$nt of money. >1

/he reason why Satoshi co$ld not have done this himself is very simplebe$ore "D, there was no kind o$ digital property which could

securely interact with cryptographic protocols. =aypal and onlinecredit card payments have been aro$nd for over ten years, b$t thosesystems are centrali=ed, so creating a proof of sta&e system aro$nd themwo$ld allow =aypal and credit card providers themselves to cheat it by

generating fa&e transactions. 3= addresses and domain names are partiallydecentralized, b$t there is no way to construct a proo$ o$ ownershipof either that co$ld be veri5ed in the f$t$re. 3ndeed, the 5rst digitalproperty that co$ld possibly wor& with an online proof of sta&e system isBitcoin 0and cryptoc$rrency in general8 itself.>'

B$t proof of sta&eFs real advantage is in decentralized systems li&eBitmessage. C$rrently, Bitmessage $ses proof of wor& beca$se it has noother choice. %owever, proof of wor& is wastef$l, and ma&es Bitmessage a

somewhat c$mbersome and power+cons$ming system to $se for instantmessaging. Soon a system li&e Bitmessage will be integrated into Nxt and$se it as proof of sta&e. Dinally m$ch of the dic$lty and waste will bealleviated.>

Roes proof of sta&e have a f$t$re9 BitcoinFs sec$rity will become toowea& over time as its bloc& reward contin$es to drop. ==Coin is not f$llyproof+of+sta&e; beca$se it is a small cryptoc$rrency with a highlycentralized comm$nity. - centralized chec&pointing system does exist,allowing developers to create Achec&points that are g$aranteed to remain

part of the transaction history forever.>

>1 http((bitcoinmagazine.com((what+proof+of+sta&e+is+and+why+it+matters(

> http((bitcoinmagazine.com(
http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/http://bitcoinmagazine.com/6528/what-proof-of-stake-is-and-why-it-matters/


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lending 0hardware+related costs will be negligible8. /he total vol$me of txnfees $nder p$re proof+of+sta&e will )$st need to be )$st s$cient tocompensate labor involved in maintaining bandwidth and storage space./he associated txn fees will be exceptionally low. Respite these

exceptionally low fees, a proo$


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-. ich get richer

/ dont understand the positi!e associations with proo$ o$ stake./snt it a model which increases the power o$ the rich 9owners o$

the coins; guys, !ery similar what we ha!e in real li$e6 %oesnt

that lead to power monopols6

/here are several problems with =oS UminingU that are not present in =oP+systems. Dor one, =oS s$Oers from a rich+get+richer problem, since forgingtypically re7$ires coins to not move for some time. /his isn@t an iss$e now,as everyone is mostly hoarding anyway, b$t if s$ch a coin wo$ld be widely$sed as general c$rrency, people with large 7$antities have relatively

large amo$nts of coins they can save, while people with small amo$ntswill have to spend most or all of their coins. /his will ca$se coin ownershipto become more and more centralized.4

+ 3n NG/ this problem was solved. -n acco$nt only has to be active for1 bloc&s before it can forge, so it doesn@t matter what the $serdecides to do with their coins after.41

/hat is a gen$ine concern especially with a p$rely =*S coin s$ch asNxt, b$t signi5cantly less so with a combination =*S(=*P coin s$ch as

=eercoin, since the initial generation and distrib$tion of coins wor&s thesame way as for bitcoin. =l$s the rich4

41 https((bitcointal&.org(index.php9topic:11'E4.msgE'4?msgE'4.

4' http((bitcoinmagazine.com(4'(mining+pool+centralization+crisis+levels(

'
https://bitcointalk.org/index.php?topic=411279.msg4465089#msg4465089https://bitcointalk.org/index.php?topic=411279.msg4470209#msg4470209http://bitcoinmagazine.com/9402/mining-pool-centralization-crisis-levels/https://bitcointalk.org/index.php?topic=411279.msg4465089#msg4465089https://bitcointalk.org/index.php?topic=411279.msg4470209#msg4470209http://bitcoinmagazine.com/9402/mining-pool-centralization-crisis-levels/


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of+scale gives an advantage to the rich. Dor instance, they can b$y 1 or1 miners 0or man$fact$re their ownY8 for a m$ch better deal than thelittle g$y who can only aOord one.4

/he person with 1 million Nxt has 1x higher chance to get the

transaction fees than the person with 1 Nxt. %e still pays the sameelectricity. /he person with 1 million J= miners has 1x higher chanceto get Bitcoin bloc& than the person with 1 J= miners. B$t he pays1x more for the electricity.

conomies o$ scale are a real problem $or PoW cryptos. 2

person who in!ests 1 billion gets W2K more than 1 times as

much hashing power out o$ that in!estment as someone who

in!ests 1 billion.D*

- person with ! NG/ only forges ! times as many as someone with 1NG/. 3tFs not li&e there is some advantage to having a lot in that respect,itFs not li&e someone with ! NG/ gets to forge < times as many assomeone with 1. 3t will only lead to strati5cation if people with smalleramo$nts of NG/ don@t feel that it is worth their time to forge. 3deally wewill have clients someday that give no barrier to entry for someone whowants to forge with even a single NG/ and so there will be no reason forhim not to and so no strati5cation.4!

World o$ 0itcoin5

+ 3f yo$ have 1[, yo$ can mine G Btc than&s to the J=+ 3f yo$ have 1.[, yo$ can mine 1G Btc than&s to some

s$per machine yo$ b$y+ if yo$ have 1x1[J=, yo$ get 1G Btc 0" pay 1x for

electrocity8+ if yo$ have 1x1.[Machine, yo$ get 1G Btc 0" pay for

electrocity8

World o$ Nxt5

+ o$ have 1 Nxt, yo$ can mine G Nxt+ o$ have 1. Nxt, yo$ can mine 1G Nxt

So in the world o$ 0itcoin, it is ich get richer. /n the world o$ Nxt,

it is E/N2O

4 https((bitcointal&.org(index.php9topic:E>>.msg!>41!?msg!>41!.

4 https((bitcointal&.org(index.php9topic:E>>.msg!>41'?msg!>41'.

4! https((bitcointal&.org(index.php9topic:>4>.msg!>>'


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(nly PoW is un$air and rich gets richer/hose that invest a < year old laptop to mine bitcoin are going to be

severely disappointed. et those that have [', laying aro$nd, canaOord to b$y a top of the line mining rig. -nd those people will act$ally

t$rn a pro5t, b$t will always have to re+invest in hardware that becomesobsolete beca$se of competition. So with the J=(C= world, the rich aregoing to get richer and the poor get nothing. o$ cannot expect to investless than [1 and get anything in ret$rn in =oP system.4

Now, the poorest person doesn@t have this option, so he decides to be

ind$strio$s and starts a b$siness that provides him a moderate amo$nt ofincome that allows him to earn more than his cost of living(doing b$siness.-fter one year in this economy the poorest person will still have no lessthan .1Z of the total wealth than&s to the interest he earned on forging,

4< https((nextcoin.org(index.php(topic,1.msg'E.html?msg'E.

4E https((nextcoin.org(index.php(topic,E.msg'4E.html?msg'4E.

4> Rtto.
https://nextcoin.org/index.php/topic,3413.msg32470.html#msg32470https://nextcoin.org/index.php/topic,3474.msg32974.html#msg32974https://nextcoin.org/index.php/topic,3413.msg32470.html#msg32470https://nextcoin.org/index.php/topic,3474.msg32974.html#msg32974


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and will in fact have gained extra wealth than&s to his s$ccessf$l b$siness.et@s say he now owns .'Z of the total wealth.44

Now let@s loo& at the richest person. -fter one year of doing nothingexcept collect transaction fees from forging, he earns no more than !Z of

the total interest from forging than&s to the way =oS forging wor&s.%owever, he had living expenses, so we m$st s$btract these from hisearnings. et@s say he was wise and didn@t exceed the amo$nt that heearned from forging; however, when yo$ s$btract his expenses from hisforging pro5ts, his net income for the year is obvio$sly less than !Z of allinterest earned from forging that year. Since everyone else was alsoforging 1Z of the time, this means his wealth has grown at a slower ratethan even the person who earns )$st eno$gh from his )ob to pay for hisliving expenses.1

S$ppose this contin$es $nchanged for the next 1 years. #ach year theparasitic rich person@s wealth grows at a slower rate than the basic forginginterest rate, and each year the poorest person is able to increase hiswealth at a greater than basic forging interest rate, than&s to hissavings.11

/his is )$st a little scenario to ill$strate that in =oS, while the rich maybe able to s$stain their lifestyle by doing nothing b$t forge, their wealthwill grow at a slower rate than anyone who has a )ob that can s$pport their

living expenses, so long as everyone is forging. Dorging is a trivial tas&, sothere is no reason why everyone sho$ldn@t be able to forge. Pho isrewarded the most in a =oS system9 /he ind$strio$s, )$st li&e in everyother healthy economy.1'

PoW economy1'

Now let@s ta&e a loo& at a simple =oP economy. -gain, let@s s$ppose this isa networ& of 1 people, the richest person has !Z of the wealth and thepoorest person has .1Z of the wealth, and no new wealth enters thesystem. etFs be optimistic and ass$me everyone is committed to mining,

44 Rtto.

1 Rtto.

11 Rtto.

1' Rtto.

1 Rtto.

!


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and they all set aside 1Z of their wealth to pay for mining hardware andelectricity costs.

/he poorest person can only aOord one of the newest -S3C miners, andsince he is only b$ying one, he pays the f$ll retail price. /he richest person

realizes that he can save a lot of money by man$fact$ring his own -S3Cminers, and he can even sell some to the other members. So he sets $p anice little -S3C farm of 1 miners for himself which he was able to5nance for m$ch less than f$ll retail, and he poc&ets the money thepoorest person and many of the other members gave him to b$y one ofhis miners.

So, at the end of the year, the richest person owns a large percentageof the 1Z everyone set aside to pay for their mining costs, and he was

also able 5nance and operate his miners m$ch more cheaply, giving him am$ch higher H*3. So the richest person has earned m$ch more than !Z ofall mining pro5ts for the year, and the poorest person has earned m$chless than .1Z of all mining pro5ts for the year.

/he poorest person is a pretty ind$strio$s g$y tho$gh, so he has hisown b$siness which has enabled him to earn a small pro5t, and he@s doingo&ay, and he might )$st be able to )$stify $pgrading to one of the newmodel of -S3Cs that the richest person is releasing for next year. %isneighbor is not so ind$strio$s tho$gh, and he is thin&ing he won@t be able

to aOord a new mining rig next year.

*bvio$sly, the richest person in this example is also ind$strio$s,beca$se he set $p an -S3C man$fact$ring b$siness, b$t this is anopport$nity that is only aOorded to the rich. etFs say his neighbor, who isnot 7$ite as rich, and not as ind$strio$s, simply bo$ght > -S3C minersfrom him at a Z disco$nt rate from f$ll retail, and then sat bac& and didnothing all year except to be a Uparasite to society and oOer N*/%3NJbac&U. Pell, he is still receiving a MC% higher H*3 than the poorestperson who co$ld only aOord one miner at f$ll retail.

#he distribution o$ wealth in a 0itcoin economy can be altered

much more easily in comparison to a 1: PoS coin economy

3t can be altered m$ch more easily in favor of the rich than a p$rely=oS economy.1



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an$ary '1 [
http://www.businessinsider.com.au/fastest-growing-large-companies-2011-2http://en.wikipedia.org/wiki/History_of_Bitcoinhttp://coinmarketcap.com/http://www.businessinsider.com.au/fastest-growing-large-companies-2011-2http://en.wikipedia.org/wiki/History_of_Bitcoinhttp://coinmarketcap.com/


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). /nno!ations o!er 0itcoin

A.ts har# to s*am in 'ro'ose# s*heme, e WBCNextX'romise# to a)n*h Nxt,#ll ain features are copleted an# Nxt *an e a)n*he# een to#a-, . *an#o it - m-sef after . +g)re o)t ho& to *reate Fenesis o*", Disasseme# *o#e

is G)ite )g- )t rea#ae, This *oin is the most innoatie among a other *oins

. s)''orte#( so if Next is hit - )s . &i a)n*h it,B107

Come


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Aar- at*oins are high- )nerae to 51H


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'. Create a plan, divide it in parts. Share only 5rst part of the =-N. Startwith a cryptoc$rrency

. Share the coins to the original sta&eholders after fair ' months long 3=*. 3mplement all existing f$nctionalities very slowly, so the price of NG/ can

be low for many months

!. eave everything decentralized. Change the world

1


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/nno!ations o$ Nxt < @eatures

Nxt @eatures

unning Prepared /n progress Concept not readyRecentralized

-lias System

Recentralized -sset

#xchange

Recentralized

Mar&etplace

Recentralized Mixing

ServiceBasic RRoS=rotection Colored Coins Ristrib$ted Storage Ristrib$ted Comp$ting-rbitrary

Messaging /ransparent Mining M$lti+signat$res Smart Contracts

3nstant /ransactionsBloc&chainShrin&ing %ardware Pallets

/wo+phase=ayments

-dvanced RRoS=rotection

Voting SystemHep$tation System

0itcoin @eaturesunning Prepared

M$lti+signat$res Colored Coins%ardware Pallets

nxt myths: what should we know about nxt generation pos cryptocurrency

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