Monday, July 14, 2014

Why is Nxt decentralized Multigateway safer than any other centralized gateway? (by: jl777)

Server redundancy
In case of hardware failure, always remaining 2 servers provide ability to release funds.
jl777: Server redundancy is quite a benefit, especially when you consider blockchain forks. For a centralized gateway if their server (for any coin) goes on a fork, well, problems. With MGW, at least on the withdraw side everything comes to a stop. Granted response time isnt good, but I think stopping all withdraws until the fork is resolved is really the only practical solution and MGW design does this automatically. Also, MGW uses the blockchains as its database, thats pretty redundant.

More secure 
sile16: Potentially slightly better security. 2 hosts would have to be compromised, but assuming a hacker can compromise 1 host, and all 3 hosts are running the same OS, and MGW software then if he can find an other host whatever method worked on the first one would probably work on the second. As for finding the hosts, it seems like you could just crossreference all the IPs of BTC nodes as well as NXT nodes. However, if MGW was re-implemented 3 times by 3 different programers and secured (os, firewall, etc) 3 unique ways it could achieve significantly higher security.

jl777: Your assumption of "if he can find an other host whatever method worked on the first one would probably work on the second" is flawed. The three MGW hosts will be proving three different sets of operational security, each based on their own proprietary security procedures. Its not like there will be a magic incantation that opens all the pathways to the MGW private keys. Now even it there was, it wont be as simple as doing a sendmoney call as all the funds are in multisig accts. Maybe this is not a big issue, but also, there wont be a single large account, but lots of small accounts. So, this magical hacker needs to crack one server host then while undetected crack another MGW host, then deal with hundreds or thousands of accounts. All without being detected as once detected, everything can be shutdown. Now how exactly the hacker will even contact an MGW server externally is a mystery to me. In any case, MGW doesnt have to run faster than the bear, it just needs to be more secure than a centralized setup. I think a social engineering hack is the weakest link, but whatever the exposure the odds are P*P vs P, where P is the probability of being cracked. Add to that the difficulty of multisig tx, add to that the lack of a centralized account. Whatever those factors are, call it X factor we have MGW being (X / P) more secure. So, if odds of one facility being cracked are .001 and X factor is 5, MGW is 5000 times more secure.

Other benefits
Open
MGW is open. Meaning anybody can do a realtime audit on all the account balances and compare against the outstanding assets. In fact, the MGW client does this when configured with bitcoin-qt. I dont know of any centralized gateway that lets you verify they have 100% backing. Fractional reserve is always a tempting thing, but with MGW it is not possible. This is something that you overlook and I think could be one of the most powerful MGW advantages. You dont have to trust the issuer to not do fractional reserve, it is all there on the blockchain and the MGW clients can monitor this block by block. So in this most important sense, MGW is trustless. Realtime verification of unspent reserves.

Secure
MGW is thousands of times more secure than centralized gateways. MGW does NOT require trust that it has 100% reserve. MGW has lower target appeal due to no central wallet and multisig. MGW utilizes blockchain redundancy for its state data and is more immune to blockchain forks. MGW is monitored by all independent nodes running the MGW client (which is 95% the same code as MGW server) to obtain realtime verification of all MGW operations, eg. deposits and withdraws.

Now a totally blockchain solution is of course theoretically much more desirable, but I am not smart enough to figure out how to do it. The fundamental problem is "where are the private keys". If you can figure out how to store the private keys on the blockchain without allowing anybody to just empty the accounts, then let me know and I will implement it. To my knowledge, MGW is far and away the most secure gateway solution with the least trust required of any gateway in existence.

Basically, technically it is the best. The bottomline is users have to use either a centralized exchange, a centralized gateway or MGW. Well, OK, I guess people can use NXTsubatomic/NXTatomic and not have to deposit their bitcoins anywhere. Maybe for people like you that seem to want to eliminate all third party risk, that is the way to go. I do understand your point of view. So the best gateway is no gateway at all.

James
Source: https://nxtforum.org/nxtservices-releases/how-to-test-multigateway-with-nxtservices-a-test-user-guide/msg64364/#msg64364

Wednesday, July 9, 2014

What is Nxt Economic Clustering?

This concept is a development of the idea of Economic Majority introduced by Meni Rosenfeld.

In his notes BCNext states that EC solves the most critical flaw of Proof-of-Stake concept, according to the description this flaw is what others call "Nothing-at-Stake" problem. The 3rd part of the Plan contains such the words:
Mining in Nxt relies on cooperation of people and even forces it

That was said about EC.

The concept of economic clustering is quite simple. Words "economic majority" say enough to explain how it works. From technical point of view it means that if someone decides to rewrite the history of the blockchain he won't be able to include transactions of those who don't take part in the attack, because every transaction contains the id of one of the recent blocks. When Alice sends money to Bob in exchange for something she'll get what she wants only if Bob validates the transaction. And this can happen only if they are both on the same branch.

Forgers can't forge all branches at once, they are faced with a choice, an attempt to forge more than one branch will lead to their exclusion from one of the clusters.

The proposed technical solution will also be used for analysis of transactions to detect forks. This is one of the reasons why I decided to implement part of EC without waiting for complete TF. Another reason is that proposed solution should be peer reviewed. Recent hot debates on BitcoinTalk regarding Nothing-at-Stake show that people are paying a lot of attention to PoS cryptocoins. This is a good opportunity to get a lot of reviews.

Extra consensus rule mentioned in the 1st part of the Plan is a rule that defines choice of an economic cluster a node sticks too. I can't reveal all the details yet, we still need to build infrastructure of nodes and hubs and (this is more important) to form such a cluster...

By: Come-from-Beyond, https://bitcointalk.org/index.php?topic=587007.msg6877338#msg6877338

PS:
Monetary System will allow to create currencies on top of Nxt. In the very beginning only basic operations like money transferring will be available for such subcurrencies. At some point (BCNext wanted this to happen when market capitalization of Nxt == capitalization of Bitcoin with 21'000'000 coins) the community will allow to use subcurrencies for all other things - trading assets on AE, buying goods on DGS, etc. This is supposed to slow down the deflation caused by limited supply of NXT. We don't need Antideflation* right now, but it's better to have it ready earlier than later, coz some non-revealed features of Nxt may lead to explosive growth of the userbase.

Decentralized internet and Nxt solutions

People started to realize they have almost no privacy on the internet in last years. More and more web users are looking for free an independent network without any restrictions and spy agencies. John Perry Barlow in his 1996’s manifesto asked for naturally independent internet without any methods of enforcement from the governments. His ideas weren't accepted, so today Google comprises 25 per cent of all North American Internet traffic. You cannot access Facebook in Bangladesh or China. At some escalated days you couldn't use Twitter (and Facebook) also in Egypt, Iran, Syria, South Korea or Tajikistan. These restrictions are quite small if you compare them to the different kind of manipulation: internet controlled by major players: Google, Amazon and Microsoft.

Amazon Web Services decided to pull the WikiLeaks website from its servers in 2010.  They said it was a violation of their terms of service, but Amazon was also under a political pressure. This incident raised questions about freedom in independent media. Google removes 1300 sites every year by government requests from 25 countries, including Cyprus, France or Japan. The problem with Google Compute Engine or Microsoft Azure is in a monitoring system which controls its functioning. This regulation needs to be very massive, because users want to view only very limited content on their mobile platforms.

If you look at Apple, they are selling iPhones with iOs or iTunes, but they also decided to launch iPad news publication controlled by Rupert Murdoch's corporation. The readers of this iNewspaper will be able to read only texts approved by one company. Edward Snowden’s leaks brought another reason not to trust centralized cloud systems: Security Agencies were secretly collecting users’ data from data centers owned by Google or Yahoo. The fear of hidden back doors opened debates about need of truly decentralized internet network.

In centralized web all your data, used searches, messages, photos and videos are owned by corporations who know everything about you. There is no online privacy on the internet in 2013. Corporations are trying to create a new internet 2.0, where all information is stored on cloud services. So you will be able to access your files on your mobile phone, tablet and notebook. This way you are going to lose all privacy.  Pakistan already implemented a mandatory biometric regime for SIM-card users. All fingerprints used for purchases can now be used for the state fingerprint database. On the other hand in Mexican village Talea de Castro was built an independent mobile network, without any control of state governments or big corporations.

There are some places where decentralized network connects some local areas. Project Guifi started in 2000s by Ramon Roca. This local network has got more than 21.000 wireless nodes, most of them from Catalonia. Its users communicate with each other P2P. This project now hosts web servers, videoconferencing services and internet radio broadcasts. This system is based on radio wireless network, so it would work also if the internet was shot down. Very similar network based in the US is Hyperboria, a virtual meshnet that runs P2P through the existing internet. So it needs internet connection, but its content is unreachable by centralized servers.

Internet is centralized thanks to ISPs' (internet service providers) switches. That's why could be protesters in Egypt unplugged on 28 January 2011. This might be prevented by decentralized systems with enabled internet connection between all computers in the network. Decentralized computing can be used for file sharing, payments and all kinds of online communication. It is based on a peer-to-peer applications running on several local computers, whose connect remotely to each other.

One of the implementation of decentralized internet is a lightweight version of the free Linux operating system invented by Jacob Cook (ArkOS). It has a big advantage of its cheap maintenance: you can run it on Raspberry Pi, a little microcomputer, cheaper and smaller than your mobile phone. It allows hosting for any data that you can access anywhere. This way users don't have to use Dropbox or Amazon, services owned by someone else.

Bitcloud will try to make anonymous internet, with invention of routing traffic in a brand new mesh network (= Proof of Bandwidth). So the internet providers won't be needed. It's already aiming for replacing YouTube, Netflix, Hulu, Soundcloud or Spotify. It is quite similar to MaidSafe, which is a bitcoin for data that aspires to replace Skype, Facebook, Dropbox, Tor or Wuala.

A few years ago was created Diaspora, distributed and decentralized social network. The problem is even this project was backed by specific organization (Free Software Support Network) which means centralization. The FreedomBox brought decentralized system of encrypted voice and text communication. Anyone can anonymously talk to the media or public using FreedomBox, even from countries censored by governments. However FreedomBox foundation is a Delaware nonprofit corporation - so even this project is based on centralized group of people. Their goal was to eventually replace Facebook/Twitter/Flicker, but they didn't complete the application yet. Also using a Kickstarter and payment by Amazon for funding is very centralized way of getting to the system. Almost four years after the Kickstarter funding ($86.724) the backers still didn't obtain an application they paid for.

All these programs had a problem with getting a mass adoption. They were so specific, that they couldn't find a relevant number of users. So Identi.ca and GNU social didn’t replace Facebook,  Mega, Parley, Scramble,StartMail, BitMessage, Darkmail, FlowingMail or Pond didn’t gain as many users as Gmail. That's why is important to have one solution that could easily maintain the whole decentralized internet.

Nxt solutions
If you want to enter the game as a decentralized application, starting as a currency to obtain a wide distribution is a good place to start. All of the above mentioned projects have had problems with integration and distribution. Nxt started as the first pure Proof of Stake cryptocurrency in November 2013, and since then - in just a few short months - it has gained more than 20.000 users. The first part of BCNext’s plan, the anonymous inventor of Nxt, was spreading the monetary system among as many users as possible to create a network of decentralized P2P computers (nodes). This network is based on a lightweight client running on each connected node, so it can send data directly P2P. Thanks to the new code, it can provide up to 100 transactions per second.

Nxt uses an efficient system to maintain the network by using much lower processing power and electricity than is needed for Bitcoin and its clones. It is important to stay decentralized, by forming the Nxt network from thousands of users from all over the world, so this system cannot be censored. You cannot point to any owner of the Nxt system. Ordinary users don't own Nxt coins, they only know the passphrase to a Nxt brainwallet. This means that no legal entity can take Nxt coins from you… There is no creator to blame, no specific user to arrest, and you cannot take the Nxt network down. Nobody can censor P2P networks. Nxt also is not vulnerable to 51% attacks like Bitcoin, so even if someone owns 90% of all Nxt coins, the Nxt network is secured thanks to Transparent Forging algorithms.

Nxt evolved after the second part BCNext's plan was revealed. Nxt coins cannot only be used as currency, they can also be the building blocks to implement any other project on top of the Nxt platform. Different people may have different ideas. Nxt will provide a platform for easy creation of new currencies. Thousands of cryptocurrencies can be built on top of the Nxt network. They are maintained on Nxt blockchain, but they will have their own environment. Also, people can use assets to issue new coins, so they can easily create their own monetary system via the recently implemented asset exchange. All will be secured by Nxt’s green and attack-proof environment. It is up to the creators of those coins, whether their currency will be Proof of Work (Dogecoin), Stake (Peercoin), Bandwidth (Lakshmi, Bitcloud), Burn (Counterparty) or even Learning and Content (UNITAS project). These coins can be used for different purposes– as redeemable "points" and "credits" for businesses and organizations, as redeemable tokens for prepurchases, or local community and even national currencies. Iceland is introducing Auroracoin, when half of all coins will be sent to all of the Iceland inhabitants. Nxt could eventually replace even US Dollars.

Nxt applications similar to Twitter and Viber (messages app) are now available. Soon, the first game built on top of the Nxt network will be published: a decentralized Poker game. It is very simple to create new applications for Nxt. Nxt will be like Lego for cryptocurrencies. Developers can build anything they imagine on top of Nxt.
Nxt Arbitrary Messages lead us to the true decentralized web - torrent files have already been sent via this network. With multiple parallel blockchains running side-by-side, Nxt will be able to provide cloud storage and file sharing apps. The principle behind these applications is using different blockchains for different purposes: one for file storage, one for messages, and so on. Each app will use only a specific blockchain(s) and won't be spammed by the others. Additionally, with blockchain pruning, users will not need to download large blockchains as they do now with Bitcoin and its forks.

Other functions based on Zerocoin and mixing services can provide a completely anonymous infrastructure that was originally built in the Phantom protocol - a decentralized network that focuses on the anonymization of users. Currently, Bitcoin and Nxt are only pseudonymous - transactions from the same account can still be linked to each other. With the Zerocoin feature integrated into the NXT core, it will be mathematically infeasible to link the particular coins used by each user.

Decentralized computing systems built on the Nxt platform could locally solve all kinds of research projects. Thanks to the extremely fast Nxt network, home computers can work on mathematical projects so their owners may receive crypto coins. With built-in decentralized exchanges, such coins can be immediately exchanged for other coins. Currently being tested, the decentralized Asset Exchange allows users to transform these coins into assets for fiat currencies, shares or commodities such as silver and gold. Anyone can use these exchanges without any restrictions of high fees. Asset exchange will replace “kickstarter websites” because with Nxt you can create a kickstarter crowdfunding project without any 3rd party.

Nxt uses small fees, and these fees are always returning to the users who maintain the Nxt network. While fees in VISA or PayPal system go to the centralized corporations, in the Nxt ecosystem, they are distributed fairly between users. While Bitcoin is capable of 7 transactions per second (TPS), Nxt is going to have 100 and then even 1000 TPS, so Nxt payment network might replace VISA eventually.

Nxt will be soon cooperating with DAC (Distributed Autonomous Corporations), such as Bitcloud or ArkOS. Automated Transactions, the Turing-complete scripts, are already being developed. With Bitcloud, nodes on a mesh network can be rewarded financially for routing traffic in a brand new mesh network. This removes the need for Internet Service Providers. The goal is always same: to replace YouTube, Dropbox, Facebook, Spotify, and others with decentralized, open source alternatives.
ArkOS and Nxt systems are very ecofriendly, you can run Nxt on a Raspberri Pi too. Possible merging of these projects may lead to a future of free, decentralized and green internet. Especially if the programs created on top of Nxt network used applications similar to ArkOS.

Currently, United States Federal Grants have been used to invest into installing Fiber Optic Cables. The fiber was installed and then control turned over to Kitsap County Public Utility District. Then, it was forbidden from selling access to this fiber. So instead, they have installed a free mesh network providing access to the communities of Poulsbo, Bainbridge Island, Bremerton, and Port Orchard. NXT Cubietrucks or Odroids connected to federally funded community WIFI mesh connections will connection redundancy to the Nxt network.

Another example of the grassroots deployment of a Commotion Wireless firmware based mesh network is in Brooklyn New York following Hurricane Sandy at the request of the local authorities. This mesh network exists to this day and is served by a donated fiber optic backhaul. The network serves over 500 residents who access it with iPhones, Androids, and other WIFI client devices. The mesh network was deployed by a small group of wireless networking enthusiasts utilizing Ubiquiti Networks Picostations and Nanostations and federally unlicensed wireless spectrum.

These two examples of currently existing community wireless mesh networks are perfect candidates and examples of existing decentralized networking that can be immediately integrated into the operation of the Nxt network. The Commotion Wireless project is active is Seattle and many other major US cities. Wireless mesh networking holds the capability of creating geographic mesh networks that interconnect globally via existing fiber optic backhaul, sidestepping the stranglehold of telecommunications providers worldwide. The day the Nxt network has sufficient backhaul redundancy through mesh networking will be a glorious one indeed, as Nxt data will no longer be required to traverse legacy information channels dominated by government sanctioned communication oligopolies.

The third part of BCNext's plan will be released on April 2014. It will most likely be his idea about building all kinds of decentralized applications on top of Nxt’s green network. Since the Nxt system is democratic and users will be able to vote on all important decisions, people do not have to follow BCNext's plans and can continue with Nxt as a simple currency. This is one of the most important aspects of Nxt: the creator BCNext has no power over Nxt and he cannot control its development. All the power is in the hands of independent developers and code reviewers, with input from the community. He can only suggest new ideas, but he cannot implement them directly in the protocol. Nxt has no benevolent dictator, no sponsoring company or corporation. Instead Nxt is organized around active users and contributors. Some people have already begun to work on new coins and other implementations, so BCNext's plan will likely be fulfilled as well as inspire new ideas.

Nxt is one step ahead of all other decentralized platforms thanks to its kickstart as a cryptocurrency. It is now ready to become a new decentralized internet. Nxt provides a powerful and flexible platform for developers, allowing them to easily develop new applications for Nxt. Thanks to the great community behind it, from the participants of the now almost two thousand pages of discussion in the Nxt Bitcointalk “pub” thread, as well as other forums. Nxt has achieved so much in such little time. Anyone can join this fantastic group of open-minded individuals and make a positive contribution. You can join Nxt at http://mynxt.org / http://nxtcrypto.org / http://bitcointalk.org/index.php?topic=345619.0 to learn more.

Nxt cryptocurrency - introduction and texts for journalists

Dear Mr Journalist, 

I would like to inform you about new generation cryptocurrency - Nxt. Nxt is not based on Bitcoin's source code (like all other altcoins). It is faster than Bitcoin (10x) and cheaper (3000x) - you can run Nxt on smartphones and small devices like the Raspberry Pi. (see tech analysis)

Nxt is fully decentralized - there is no organisation above Nxt, no corporations or celebrities, all development and marketing is paid by community donations. Inventor of Nxt only created a source code and left Nxt, like Satoshi left Bitcoin.

Why is Nxt new generation cryptocurrency?Nxt allows building all kinds of decentralized applications on top of Nxt’s green and fast network:
  • decentralized internet
  • decentralized stock, currency exchange
  • decentralized online market
  • decentralized file storage
  • decentralized Facebook, Twitter, Email, Youtube...

Nxt will be used as a platform for easy building new cryptocurrencies on top of Nxt:
  • Casino Tokens
  • Airline miles points
  • Hotel/Travel Agency Tokens
  • Gaming currencies
  • Country currencies
  • Local currencies
  • Companies currencies

Why is it important to be decentralized?Decentralized Facebook cannot be censored by governments (like in China). Decentralized exchanges cannot be hacked (like MtGox in Japan). Anonymity allows decentralized internet and file storage for all freedom fighters. (see "Decentralized internet and Nxt solutions" paper)

Nxt brings the revolution to the free speech and to the democratization of the money.

Why are P2P payments and P2P crowdfunging important?Nxt crowdfunding allows straight micropayments aimed to the hands of everyone, even in Africa. Billions of people cannot have a bank account, but they can be crowdfunded by Nxt kickstarters, without charity providers, without middlemen.


If you have any questions, let us know: nxtsalsacz@gmail.com. We can arrange interviews with Nxt developers... We would be very delighted, if you wanted to write about Nxt. Thank you!

Test new Nxt interface right now here: http://nxtra.org/nxt-client/ - no installation, just 2 clicks in 5 seconds to get to the testing account (use password: "1" or anything else for testing)


Published articles





Unpublished texts. You can use or publish any of our texts




Economic texts:

Tech theses:

Infographics:

Videos:
What is Nxt?


Decentralized internet and Nxt solutions:

Download Nxt logos:

Nxt logo:

Nxt brochure

Lists of Nxt websites:

Main Nxt website:

Nxt clients:

Buy Nxt on:

Yours faithfully, Salsacz, contact: nxtsalsacz@gmail.com


Small unpublished articles

How is Nxtcoin (NXT) Proof of Stake and Transparent Forging better than Proof of Work systems?
https://docs.google.com/file/d/0BwAGADgnQcrtTGw4d1VrZVgzV1U/edit

Financial decentralization leads to financial freedom!
https://docs.google.com/file/d/0B_Hq3nkw2xHZU2tYVU1fVjU1Zjg/edit

NXT solution to payment terminal
https://docs.google.com/file/d/0B8Ditio3v8ptdm9DSEoxM2h3YWM/edit

Initial distribution of 100% PoS currencies (by: BCNext and revised by Come-from-Beyond)

Initial distribution of the coins and the forging schedule are more serious problems than they appear at first glance. A 100% proof-of-stake currency needs at least a small part of the coins to be distributed in the beginning because these coins is the only forging instrument. A forging schedule has a lot of influence on initial distribution and must be defined in the first place.

The PoS algorithm used in Nxt has such properties that give a little advantage to an account that holds more coins comparing to an account with a lower amount. If every block subsidizes the forger with extra coins (in addition to the fees) then bigger accounts become even bigger by following the compound interest curve. In a currency with selfish forgers most of the coins would be absorbed by very few accounts that would lead to centralization of the currency. Because of this all the coin in Nxt were distributed at once in the genesis block.

Bootstrapping requires to make a decision how to do the initial distribution. We consider three main schemes, any other scheme can be represented as a combination of them.

The first scheme – all the coins go to a single account controlled by one entity that transfers coins to the others in exchange for work done for development and promotion of the currency. This scheme is completely unacceptable because it’s not “compatible” to decentralized nature of cryptocurrencies.

The second scheme – all the coins are split equally among a group of people. This approach faces some problems. A Sybil attack can be easily conducted by an entity to acquire a significant part of the coins. Such a counterattack as usage of a certification service can’t be used because majority of potential users won’t agree to reveal their true identities. Another possible counterattack, based on proof-of-resources approach, can’t give “fair” distribution because the resources are distributed in “unfair” way. Anyway, even if the Sybil attack could be significantly mitigated, the second scheme is a bad choice because the history of humankind teaches us that an economy driven society where all individuals own equal amount of resources is unsustainable and even utopian. (Note by CfB: It would be interesting to hear opinion of NEM guys on this issue…)

The third scheme – all the coins are distributed in “chaotic” way. This scheme doesn’t have disadvantages of the previous ones, no centralization, no necessity to deanonymize users, no need to counteract Sybil attacks. Economy and sociology sciences state that distribution of the coins will follow the Pareto 80-20 principle. An important note should be made. The fact that (almost?) all the societies conform to this principle assures that the third scheme is the best one. The Pareto principle seems to be a result of universal but yet unknown laws of nature. If the distribution follows the principle then with high probability we can assume that our system will sustain for a long period of time. The previous schemes will transform into “80% of coins belongs to 20% of entities” systems anyway, but the third scheme has such an advantage that it doesn’t need to survive the period of instability.

According to the described above logic Nxt was created by issuing all the coins at once and distributing them by following the last distribution scheme.

Initial distribution has two properties – percentages and number of participants. Common sense says that number of participants should be as large as possible.  This seems to be true, but we should take into account that every system has three main stages of the progress – bootstrapping, normal functioning and decaying. We consider only the first two because our goal is to create an ever-functioning system.

We shouldn’t ignore the lessons of history. Societies created by a lot of people are abnormal phenomena. Number of participants in the very beginning should be rather small than large. This is an arguable statement but disputes on the issue lay out of the scope of this paper. The creator of Nxt preferred a small number of “founders” because he had no possibility to do several experiments on finding the best number nor he had time to build a theory that could predict this number. The most stable economic systems were always bootstrapped by a few people (feods, corporations, etc.) so it was safer to follow a similar way.

Now, half a year after the launch of Nxt we see that it didn’t die and keeps growing at fast pace. This lets us guess that the choice of BCNext was a correct one.

Source: https://nxtforum.org/initial-distribution/initial-distribution-of-100-pos-currencies/

Monday, June 30, 2014

A Fair Review of Nxt from a Ripple User (by: nwtrades)

Nxt seems like the closest competitor to Ripple so I figured I'd download it and give it a spin this past week. My results and impressions are below. SO far, it's the most interesting cryptocurrency and network I've seen of any of the "altcoins". It has some drawbacks but although it's a "small" competitor it could potentially become a real big thing if development continues. I will be watching this one more closely. First impressions below...

Setup (Nxtra 1-click client)
- Downloadable client was nice, with a quick install and setup process - just as easy as the old Bitcoin-QT.
- Needing to remember or store a long secret phrase seemed like a hassle, versus having a password separate from the secret phrase.
- Blockchain took a very long time to download (approx. 2-3 hrs).

Features:
- Send "Nxt" funds to other users, with approx. 1.5 minute confirmation time (seems slow relative to Ripple!)
- Send messages to other users for a 1 Nxt fee.
- Contacts section to store addresses, emails and description for each contact
- Messages inbox
- Asset Exchange - this seems like it could hold huge potential for decentralized issuing, buying and selling assets directly on the Nxt blockchain. Trades also seem to require the 1.5 minute confirmation time delay though... slow relative to what I was used to on Ripple. The only big asset trading right now seems to be NEM stake token trading (New Economy Movement) so at the moment it does not seem heavily used.
- Aliases
- Peers (view connected addresses, platform, etc)
- News

Missing features (things that Ripple has):
- Instant transactions (5 seconds or less)
- Sending / receiving other currencies in the network
- Currency trading
- Instant currency conversions
- Bitcoin bridge

If you want the TL/DR verdict: I'm still much more in favor of Ripple due to the speed and user experience.

A few additional notes unrelated to the direct user experience and features:

- From an outsider's perspective, the Nxt community and marketing seems very fragmented and disorganized. It wasn't exactly clear how to find the "official" place to go and get a summary of the information on the protocol, the Nxt currency or how to find a simple downloadable client to use. It took a few Google searches and reading online forums.
- Approximate network transaction times are not exactly clear anywhere. I just had to test and check myself.
- Nxt trading seems difficult right now, as it's mostly traded on a few small exchanges based in China and other foreign countries. The only US-based one is Cryptsy which was a relief to find. However, their deposit and withdraw times are unfortunately all over the map, ranging from minutes to hours wait time. Deposit and withdraws ranged from 1-3 hours when testing with Nxt which was a little taxing on my patience and could be stressful for anyone who moves large money there.

Overall, Nxt was interesting but does feel a little cludgy and rough around the edges. It does have some potential though!

-nwtrades

https://ripple.com/forum/viewtopic.php?f=1&t=7229&p=51906&sid=383542ae947d1a2d6cd58e6b92bc06fe#p51906

Source:
https://nxtforum.org/general-discussion/a-fair-review-of-nxt-from-a-ripple-user/

Isle of Man embraces NXT in cryptocurrency drive

As regulators and business owners recognise the benefits of digital money, new cryptocurrency NXT is well-placed to drive innovation and enterprise on the Isle of Man through a series of ground-breaking developments.

Second generation cryptocurrency NXT is poised to deliver unprecedented benefits to the financial services industry on the Isle of Man.

Cryptocurrencies are a suite of revolutionary new technologies that allow users to send money directly to each other over the internet, anywhere in the world, quickly and almost for free. NXT’s speed and versatility make it the ideal choice for a wide range of applications beyond money transfer, providing the backbone of a far-reaching digital economy.

Introducing NXT
Local business, banking and government representatives are invited to attend NXT Seminar at the Forum, Mt Havelock, Douglas at 5pm on 1 July, which will introduce NXT to a wider audience and explain how this powerful technology can be integrated into new and existing applications. The seminar will be delivered by Lee Gibson Grant, NXT entrepreneur and founder of TXT Coins Now.

The TXT Coins Now platform was built back in 2010 as bolt-on service for mobile operators and financial institutions that required an off-the-peg solution for their customers. The company has adopted NXT Coin as its default currency. Their platform is highly scalable and its use in real-world financial services applications will allow its users easier access to NXT Coin, too.

TXT Coins Now is a merger of Micropayment, Western Union, Escrow and PayPal for both the Fiat and Crypto Sectors. The business leverages NXT to allow customers to send funds anywhere on the planet via a simple text message or voice call, without any internet connection or further applications. Additionally, its verification step protects merchants by establishing that the transaction is legitimate.

Merchant benefits
ATM providers and POS providers will be able to link to the network via its merchant facilities, enabling merchant outlets to accept both fiat and crypto. This gives NXT Coin a cutting edge real-time financial network that bridges the NXT and fiat marketplaces.

‘Many jurisdictions have been sceptical or slow to move on cryptocurrency,’ Lee Gibson Grant comments. ‘But platforms like NXT can bring immense benefits to businesses and customers – reducing costs, delays and security risks to near zero. It’s enormously encouraging that the Isle of Man recognises this and is at the forefront of the cryptocurrency movement.’

Famed for its eGaming regulation and pro-enterprise culture, the Isle of Man is the ideal location for cryptocurrency and finance businesses to come together. The island recently positioned itself as a cryptocurrency hub, and in the coming days and weeks a series of initiatives will bring NXT and its developers into the mainstream.

World’s first regulated cryptocurrency exchange
NXT are in discussions to be listed on CoinCorner, a new exchange due to launch shortly, which aims to be the world’s first cryptocurrency exchange registered with a financial regulator – namely the Isle of Man FSC. CoinCorner will allow users to exchange crypto for GBP with no deposit fees and has been built by a team of seasoned programmers and cryptocurrency miners. Bitcoin has seen a number of high-profile thefts and scandals in its short history resulting from the proliferation of unregulated exchanges, and such a step is vital in allowing the public to buy and sell NXT and other digital currencies quickly, easily and securely. 

Additionally, there are a number of financial bureaux actively considering incorporating NXT into their business models. NXT will also be included as a payment option at the Java Express Coffee Shop and Noodle Bar on Prospect Hill in Douglas. At the NXT Seminar on 1 July, NXT coins equal to the value of a cup of coffee will be distributed for use in Java so that delegates can see how easy and safe it is to use NXT Coin and TXT Coins Now.

During a visit by members of the NXT community to the Isle of Man over the past two weeks, numerous meetings have been held with Manx service providers such as Dixcart, Manx Telecom and Capital Invest, along with many others who are interested in cryptocurrencies and would like to discover more about the benefits that NXT, its community and developers offer for the legal and regulated services they would like to launch. Meetings with government officials and local lawyers have also been held to gather as much information as possible to position the Isle of Man and NXT Coin for the up and coming crypto boom.