Miami:Advantages

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1 Faster transaction processing

  • in Bitcoin, transactions must be cryptographically recorded (hashed) into a block in a blockchain, then confirmed multiple times.
    • this block hashing occurs around once every 10 mins.
      • Success is random. So transactions must be broadcast widely to increase chances of getting hashed into a successful peer's block
    • then hashing success must be broadcast to peers for them to hash further blocks and extend the blockchain.
    • this must be done repeatedly in order for the network to come to a consensus about what transactions took place.
    • so transactions may take up to hours to confirm
  • because of all this, Bitcoin transactions worldwide are limited to ~7 transactions per second. Scaling it higher requires very large improvements in peer-to-peer networking.
  • in Nxt, blocks are hashed around once every minute
  • transparent forging allows the network to predict which server will generate the next block
    • transactions can be sent directly to this server, instead of being broadcast widely and hoping to find a successful hasher.
  • 1000+ transactions per second is possible

Anon136's article explains this in much greater detail: https://docs.google.com/document/d/1E_ToOMG2l1XThx6YnyXEajXaf6H1k2yjq8XkAF0ScB4/mobilebasic?pli=1 The crux of the matter lies with how networks can achieve consensus about transactions, while avoiding cheating behaviour like double-spending.

In Summary: Bitcoin will continue plodding along, while we take on VISA.

2 Much lower resource costs

  • small blockchain size. Bitcoin and friends have huge blockchains
  • low processing requirements, because there's no race to hash most quickly. Works fine on old hardware and mobile devices
  • no advantage from using GPUs, ASICs, other fancy shit. So no hardware barrier to entry and no hardware arms race
    • consequently low electricity requirements

Solar powered cubietrucks forging: https://bitcointalk.org/index.php?topic=345619.msg4468215#msg4468215 https://bitcointalk.org/index.php?topic=345619.msg4675599#msg4675599

3 Security

  • Bitcoin transactions are secured by the paradigm "he who solves fastest and broadcasts mostest wins"
  • so he who has the most computation power is most likely to solve faster.
    • Leads to 51% attacks (51% means you control most of the computation power), 33% attacks, 25% attacks (smart ways to use smaller amounts of computation power to manipulate the system)
    • also leads to long confirmation times to ensure that you are on the most widely broadcast and worked on (i.e. correct) blocks

4 Accessibility

  • like Bitcoin, the blockchain is completely transparent, so you can check your account balance from anywhere with an internet connection.
  • Only a passphrase and Nxt software needed to access your account and send Nxt. Bitcoin requires an additional wallet file