Blocks and Blockchain

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NXT is based on a 100% Proof-of-Stake model. Contrary to other cryptocurrencies that are based on Proof-of-Work (like Bitcoin and the vast majority of its derivatives) where blocks are mined and the coins are obtained as a reward, Proof-of-Stake systems require to have all the coins available from the genesis block. No new coins can be created afterwards, what this implies is that the notion of "mining" on a cryptocurrency like NXT makes no sense. The equivalent of the "mining" process in a Proof-of-Stake system is what in NXT is called "forging": as the coins move around, forgers process these transactions and all the transaction fees associated are given to the account that manages to generate the block. Blocks are generated, on average, every 60 seconds. The lack of high performance hardware and the way they differ shows that the parallelism among mining and forging is very weak, the system employed by NXT is more similar to an "interest" your coins gain. As the number of transactions and the value of NXT grow, the rewards of forging could become substantial, but it is nonetheless a process that rewards in the long term.

More details on the forging process and how it works can be found in the page devoted to forging.

1 Blocks

- fields + bytes

2 The Genesis Block

The Genesis Block is the name given to the first block of the blockchain. Given what said about the 100% Proof-of-Stake model, all the 1'000'000'000 NXT were available within the Genesis Block and got distributed to the initial stakeholders.

The problems related to the initial distribution of these coins are a heated topic, where reasonable arguments and accusations are often embedded with misconception. Claims of unfairness thrown at NXT rarely get applied, as they should, to so-called "fair distributions". NXT is young and despite the initial distribution, things have improved considerably in the few months of its existence.

If you want to make up your own mind on the subject, we invite you to read the dedicated section.

The following table shows the information concerning the Genesis Block.

Parameter Value Details
Genesis block ID 2680262203532249785
Genesis block generator 1739068987193023818 The Genesis Account
Date 24.11.2013
Timestamp 13:00:00
Block version -1
Block height 1
Total amount 1'000'000'000 NXT
Payload hash 72c8a92efffbd8695a866eabb13ca460a2f7cdf3283b82efb163360d6eec9469

As can be seen on the file nxt / src / java / nxt / Genesis.java or using any blockchain explorer, the first coins were distributed among 73 initial stakeholders, that paid BTC to get a corresponding portion of the billion NXT. In the end, the initial distribution looked like this:

Account Amount
163918645372308887 36742
620741658595224146 1970092
723492359641172834 349130
818877006463198736 24880020
1264744488939798088 2867856
1600633904360147460 9975150
1796652256451468602 2690963
1814189588814307776 7648
1965151371996418680 5486333
2175830371415049383 34913026
2401730748874927467 997515
2584657662098653454 30922966
2694765945307858403 6650
3143507805486077020 44888
3684449848581573439 2468850
4071545868996394636 49875751
4277298711855908797 49875751
4454381633636789149 9476393
4747512364439223888 49875751
4777958973882919649 14887912
4803826772380379922 528683
5095742298090230979 583546
5271441507933314159 7315
5430757907205901788 19925363
5491587494620055787 29856290
5622658764175897611 5320
5982846390354787993 4987575
6290807999797358345 5985
6785084810899231190 24912938
6878906112724074600 49875751
7017504655955743955 2724712
7085298282228890923 1482474
7446331133773682477 200999
7542917420413518667 1476156
7549995577397145669 498758
7577840883495855927 987540
7579216551136708118 16625250
8278234497743900807 5264386
8517842408878875334 15487585
8870453786186409991 2684479
9037328626462718729 14962725
9161949457233564608 34913026
9230759115816986914 5033128
9306550122583806885 2916900
9433259657262176905 49875751
9988839211066715803 4962637
10105875265190846103 170486123
10339765764359265796 8644631
10738613957974090819 22166945
10890046632913063215 6668388
11494237785755831723 233751
11541844302056663007 4987575
11706312660844961581 11083556
12101431510634235443 1845403
12186190861869148835 49876
12558748907112364526 3491
13138516747685979557 3491
13330279748251018740 9476
14274119416917666908 49876
14557384677985343260 6151
14748294830376619968 682633
14839596582718854826 49875751
15190676494543480574 482964
15253761794338766759 4988
15558257163011348529 49875751
15874940801139996458 4988
16516270647696160902 9144
17156841960446798306 503745
17228894143802851995 49875751
17240396975291969151 52370
17491178046969559641 29437998
18345202375028346230 585375
18388669820699395594 9975150

2.1 Unclaimed Funds

- list of accounts and amount of funds

- how they got used

2.2 The Distribution Problem

3 The Genesis Account

The Genesis Account is a special account. It generated the first block, the Genesis Block, and distributed the 1'000'000'000 NXT. This account can be accessed by anybody, the passphrase is:

It was a bright cold day in April, and the clocks were striking thirteen.

and it unlocks the account number:

1739068987193023818

The passphrase is the opening line to George Orwell's book '1984'. It is not the only reference (see for example the timestamp of the genesis block), plenty more are part of the "lore" of NXT and its enigmatic creator BCNext.

The uniqueness of the Genesis Account lies on the fact it has negative balance: -1'000'000'000 NXT.

3.1 AntiNXT

For every NXT in circulation, there exists an AntiNXT counterpart on the Genesis Account.

Any amount of NXT sent to the genesis account combines with the corresponding AntiNXT and gets destroyed (1 NXT + 1 AntiNXT = 0). This process is irreversible, once destroyed your coins can no longer be retrieved. This explains why the Genesis Account currently owns little less than 1'000'000'000 AntiNXT, someone destroyed those coins.

The same does not applie to Assets, there is no counterpart. By transferring Assets to the Genesis Account, however, the same effect is achieved. Even though they will not "disappear", they are nonetheless unavailable: the negative balance does not allow to transfer them back (or elsewhere). Even by sending 100% of the tokens, the asset itself will continue to exist but it will be, clearly, useless.

4 Blockchain