Nxt will implement colored coins, a decentralised blockchain based stock exchange. You will be able to exchange altcoins using the Nxt block chain, i.e., NXT will be the base currency for a massive p2p on-line alt coin stock exchange.
Reference:
https://bitcointalk.org/index.php?topic=345619.0Nxt is purely proof-of-stake and, therefore, requires no CPU for mining. The block reward is the transaction fee. Currently, NXT requires a transaction fee of at least 1 NXT for any transaction.
The number of blocks a miner can mine depends on the number of NXT the miner owns (i.e., his/her stake).
The formula for the number of blocks a miner can mine is
blocks_per_day(STAKE) = STAKE*(AVG_BASE_TARGET/100)/694444
= STAKE*AVG_BASE_TARGET/69444400
STAKE is the number of NXT you own.
The AVG_BASE_TARGET is a network parameter that varies over time that represents how much of the money supply is active for POS mining. You get this number by averaging the last K base targets (the little red and white target icon under "Recent blocks").
Reference:
https://bitcointalk.org/index.php?topic=345619.msg3726410#msg3726410Now the question is: how many Nxt could you expect to mine per day if Nxt becomes the defacto online exchange for crypto currency?
Each block will contain multiple Nxt, at least 1 for each transaction. So how many transaction will there be per block? Recent stats on the bitcoin block chain show 98753 transactions over the last 177.00 blocks. So, that's about 557 transactions per block.
Reference:
http://blockchain.info/statsBut Nxt has 1440 blocks per day (bitcoin has should have 144). So, we can divide 98753 by the number of Nxt blocks per day: 98753/1440 = 68.57 Nxt transactions per block.
So, you could expect 68.57 Nxt transactions per block. If Nxt is traded as much as BTC. It could actually be more though, because Nxt could facilitate trading across all different types of crypto currency.
Our estimate for the amount of NXT per day is
nxt_per_day(STAKE) = 68.57*blocks_per_day(STAKE)
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So for AVG_BASE_TARGET = 1000 and STAKE = 1000000
blocks_per_day(1000000) = STAKE*AVG_BASE_TARGET/69444400
= 1000000*1000/69444400 = 14.4 Nxt blocks / day
nxt_per_day(1000000) = 68.57*14.4 = 987 NXT /day
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But, how much is 987 NXT worth? How much could you earn per day?
Well what are the average transactions fees mined from a single bitcoin transaction?
Total transaction fees over the last 177 bitcoin blocks is 31.825982 BTC. So that's 31.825982/98753 = 0.000322 BTC / transaction.
Reference:
http://blockchain.info/statsNxt has 68.57 transactions per block, so we can calculate the average BTC value per Nxt block: 0.000322*68.75 = 0.022 BTC / Nxt block
Right now that is about 0.022 * 1080 = $23.76 / next block.
So, if you get 14.4 Nxt blocks per day, then that is about $342 / day or about $10,000 / month.
There are a lot of assumptions here, but the basic parameters guessed at are:
- STAKE
- AVG_BASE_TARGET
- NUMBER OF TRANSACTIONS PER NXT BLOCK (estimated from BTC)
- VALUE OF MINIMUM NXT TRANSACTION FEE (estimated from BTC)
It will be interesting to hear your replies and all the errors you spot in my quick calculations.
