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When Bitcoin, the world’s first cryptocurrency, was introduced in 2009, it was touted as a peer to peer electronic cash system that could be used as a payment method for goods and services. However, nearly a decade later, it is still struggling to find widespread adoption among the public. While it is true that a few companies, including Microsoft and Expedia, accept cryptocurrency as a payment method, adoption rates among brick and mortar stores are almost non-existent.
The transaction fee for popular digital currencies such as Bitcoin and Ethereum is often quite high, even for smaller amounts. The online technology publication Ars Technica reported Bitcoin fees as high as $28 only a few months ago, in December 2017. Even more recently, fees on the Ethereum network reached an all time high of $5.5 after the cryptocurrency faced record congestion and slowdown. While these fee values do not necessarily represent a major issue for transfers involving larger amounts, they are a major limitation for daily commerce and payments. Transfers of such nature typically do not go beyond a few dollars at a time.
Nexty, a blockchain startup, believes it now has the solution to this and other problems faced by digital currencies currently on the market. In contrast to the previously mentioned cryptocurrencies, it boasts zero transaction fees, which immediately makes it the superior choice for daily use. Furthermore, Nexty transfers can be completed and confirmed within a few seconds. The Bitcoin network, on the other hand, can take as long as an hour to verify that a payment has indeed been made.
The Nexty Platform manages to achieve these advantages with its unique algorithm that employs the Proof of Foundation consensus mechanism. In a typical cryptocurrency, miners are rewarded for verifying transactions as well as sealing blocks. Due to this, there is the risk of dishonest miners clogging up the network in an attempt to spike transaction fees for everyone else. Nexty’s algorithm intelligently detects such spam and prevents it from affecting the rest of the network, thus allowing it to be feeless permanently.
The adoption of cryptocurrencies in daily commerce is also hindered by their massive volatility in price. In the past six months alone, for instance, Bitcoin has lost over 60 percent of its valuation, with most other digital currencies also following suit. For a merchant accepting cryptocurrency, such a loss would not only be infeasible but also potentially catastrophic. This is even a problem for technology startups hosting their ICOs on a particular cryptocurrency platform as the amount of money they raise one day could suddenly be worth dramatically lesser the next.
Nexty also addresses this issue with a feature named Smart Staking that automatically regulates supply and demand to maintain a stable price. The platform will effectively incentivize its users to either sell, buy or hold Nexty tokens (NTY) depending on current market conditions. Nexty has set aside a total pool of 5.4 millions pNTY to be used for this purpose alone.
When the pool is eventually depleted, Nexty plans to introduce a feature called Smart Holding in order to reward holders of NTY tokens. The program is open to anyone holding at least 1,000,000 NTY tokens in a single wallet and is willing to lock in their balance over a three month period. Individuals that decide to participate will be rewarded with a range of benefits, including the ability to vote, receive discounts and gain access to certain luxury services. They will also receive airdrop tokens from ICOs hosted on the Nexty platform over a period of 12 months. The development team believes these benefits will encourage users to stay within the ecosystem.
NTY tokens can currently be purchased on the IDAX cryptocurrency exchange. Nexty has also released initial versions of its mobile wallets for Android and iOS. In the immediate future, the team aims to introduce a fully functional e-commerce integration demo as well as an official mining pool.