CORE MAGAZINE March 2016 | Page 10

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Monthly NXT/SuperNet News Wrap-up

NXT 2.0 - The Good and the Bad

At the beginning of the month, Jean-Luc, the main core developer of NXT proposed a radical change to the infrastructure of the NXT blockchain. Needless to say, it has caused a wave of controversy. The NXT community is now clearly split into two groups, those pro NXT 2.0 and those that oppose it. This article will go through what NXT 2.0 is and what the arguments are for and against

The NXT 2.0 Proposal

NXT 2.0 in it's simplest form is the splitting of the NXT token and the forging power. Using a hard fork, those holding NXT tokens will receive an additional token named "fNXT" at a 1:1 rate. Essentially "fNXT" represents a token that only forges blocks. In addition, childchains are created. Childchains are blockchains that are on the NXT network. The NXT network will not only consist of NXT and fNXT, but also childchains. Assets and the Monetary System tokens all turn into childchains. The NXT token also turns into a childchain. Entrepreneurs who wish to create blockchains on the NXT network can do so by setting their own rules, as well as using all the features that are already available such as voting and shuffling. fNXT will receive revenue from all childchains.

The Good Points

1) Pruning: As it currently stands, the NXT blockchain is not ready for the wide world of finance. Everyday the NXT blockchain's file size containing transactions increases in size. As it currently stands the blockchain is 1 gig per year, even with it's limited usage. This is a problem which has divided the BTC community.

2) Real Life Businesses: One of the biggest stepping stones for real life businesses wanting to use NXT as their platform are the set fees involved in making transactions and little control they have over the future of the NXT blockchain. If NXT 2.0 is implemented, businesses could issue a childchain and set their own values and rules. Childchains have the ability to use any NXT features that are already implemented on the NXT Blockchain.

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