What you should know about the Nexa Digital Economy
Since the invention of bitcoin and blockchain as a base layer technology, multiple innovative applications have been birthed helping to make society better and unlocking newer potentials and opportunities for shaping the future. This article covers a new layer one blockchain — Nexa.
What is Nexa
Nexa is a layer 1 UTXO (Unspent Transaction Output )-based blockchain like Bitcoin and operates contrary to the ‘account’ model like Ethereum. Nexa seeks to provide a decentralized platform suitable for P2P, P2B, and B2B transactions that would meet global demand. Some of the existing roadblocks faced by crypto blockchains include limited functionality, poor economics, centralization, and scalability. Moreso, these problems have as well not been able to be solved simultaneously. Nexa wants to solve these challenges.
Nexa aims to revive the advantages of UTXO-based blockchains over account-based blockchains that have been overlooked by developers. Nexa sees UTXO-based blockchains to be more scalable on layer-1, easier for validating transactions and poses advanced functionality. Nexa’s key focus is rewarding miners and offering an environment that allows the implementation of tokens on the network. With this, Nexa hopes to open up the possibility for a variety of different types of assets and economic systems to be created and used on the network.
Nexa Key Features
The Nexa Proof-of-Work (PoW) algorithm PoW would allow the platform to handle large strings of transactions in 24 hours or more using technologies that eliminate the challenges of bandwidth, storage, and computation speed of nodes. Nexa runs EVM-compatible smart contracts, which it calls “wise-contracts” and claims to offer users low transaction fees and faster transaction processing times using the PoW mechanism.
The Nexa’s algorithm called “Nexapow” utilizes SHA-256 hashing with Schnorr signatures to achieve consensus and contribute computing power. However, Nexa is planning to upgrade the algorithm to include UTXO (Unspent Transaction Output).
Nexa also offers the ability to create fungible tokens and non-fungible tokens (NFTs). This functionality provides an environment where users can create and use available assets natively on Nexa without the need for certain or special smart contracts or token standards. Users can create NFTs from digital artwork, asset ownership, certificates, tickets, and in-game assets on Nexa.
The Nexa wallet is currently available on desktop (Windows, MacOS and Linux), and has four released versions. The Android and iOS version are unavailable.
Mining on Nexa
Currently, the block reward for mining on Nexa is 10 million Nexa, which is halved every 4 years, in a similar way to Bitcoin. Mining Nexa is done with third-party mining software with GPUs from either AMD or NVIDIA.
The maximum supply of NEXA is 21,000,000,000 NEXA and a current market cap of $29,958,170, also, ranks #3350 on Coinmarketcap.
Third-party mining software for mining Nexa on Windows and Linux include BZMINER, WILDRIG, RIGEL, or LOLMINER in either Linux or Windows. Nexa mining pool options include VIPOR-POOL, RPLANT, ACC-POOL, NEXAPOOL, WOOLYPOOLY, and POOL 137. To calculate mining profitability, resources such as MiningPoolStats, Minerstat, Profit-Mine, Vipor.Net, or Hashrate.No can be used.
Nexa initially ran a CPU mining but migrated to GPU in November 2022. Nexa’s PoW algorithm and transactions function with cryptographic schnorr signatures and implies that Nexa’s mining network would become more efficient in producing and validating signatures. For Nexa, it is a solution to the problem of scalability in the ability of nodes to validate signatures.
Additionally, with the Nexa UTXO lookups upgrade, Nexa is pushing to ensure that miners on the Nexa mining algorithm will have fast access to the UTXO set.
Nexa’s future plans and initiatives for the next few years involve working on the NEX token functionality; implementing tokens in the explorer and mobile wallet. Then, upgrading Rostrum, and developing a prototype token DEX service which is expected to be put in place before mid-2023.
Building a business-oriented token infrastructure, and fully-featured token services like ticketing and token generation, are Nexa’s focus from mid-2023 to end-2024. Also, this time would include building Gigablock Scaling Phase 3, the final mining algorithm and UTXO lookup.
Further, Nexa plans to develop Tailstorm, a UTXO-based DAO smart-contract research, script libraries and other technical upgrades like PQC Sig Schemes for quantum resistance.
Who is Behind Nexa?
Nexa is a decentralized project powered by the Bitcoin Unlimited team. The team claims to have extensive experience in building and maintaining network infrastructure for other major cryptocurrencies. Bitcoin Unlimited is known to be the developer behind the Bitcoin Cash (BCH) protocol and aims to provide a scalable and decentralized cryptocurrency. Bitcoin Unlimited focuses on increasing the block size limit of a blockchain in order to improve its transaction throughput and reduce transaction fees. It supports some other features like configurable block size caps, emergent consensus, and Xthin blocks.
Bitcoin Unlimited is being led by Andrew Clifford President as the president, Andrew Stone as the Lead Developer, and Dr. Peter Rizun as the Secretary and Chief Scientist.
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