Genesis Block: April 17, 2019.
NEXT.chain Blockchain explorer.
A unique differentiating factor between NEXT.exchange and other cryptocurrency trading platforms, with the exception of a few, is that we have developed and deployed our own blockchain. NEXT.chain will be used to deploy NEXT.exchange for fully decentralised exchange operations in the future, and is used to house NEXT, our native exchange utility coin, providing it with fast transfer speeds, asset security, and flexibility.
Initially, NEXT was created on the Ethereum Blockchain, in November 2017. However, in January 2020, we completed a token swap to our own Blockchain.
We are building an entire ecosystem around NEXT.
Why did we need a blockchain of our own?
Many currently active blockchains within the industry are unfortunately incapable of facilitating transaction throughput that can accommodate the needs of a mass and growing market.
Legacy systems such as Visa are capable of processing 1,736 transactions per second while Bitcoin TPS hovers around 4.6. To reach the TPS of Visa, Bitcoin is required to scale its TPS by over 300 times. With Ethereum, the throughput challenge is a hard-coded limit on per block computation which limits TPS to roughly 30 per second. However, the power of the Ethereum network is set to increase with ETH 2.0.
It became quite evident during our development path that the Ethereum blockchain was incapable of handling a massive and sporadic transaction influx during the CryptoKitties hype phase. At one point, Ethereum saw almost 30,000 queued transactions to be processed. Almost 15% of the Ethereum network was occupied by the CryptoKitties Smart Contract. Ethereums performance dropped significantly while processing CryptoKitties Smart Contracts. A single Ethereum transaction would be queued for 20–30 minutes, transactions would frequently result in failures and subsequently require to be resubmitted.
Transaction Price Eruption
Users who required their transactions to be processed in priority would need to cover increasing transaction costs during peak load times. If a transaction fails to process on the Ethereum network due to loads, a resubmission of the transaction would require additional fees. The CryptoKitties Smart Contract influx led to Ethereum transaction costs increasing significantly, at which point the reliability of the network came under question.
Such events lead us and provided us with reason to create a new blockchain architecture that combines tried and true parts of other networks (Bitcoin, Dash, SYS) under one hood, with the goal of providing a unique and powerful blockchain that can power the future NEXT ecosystem.
In May 2019, after an intensive and extensive testing period of our own blockchain together with our extremely supportive and enthusiastic community, we deployed the NEXT.chain mainnet that addresses the above issues.
In building NEXT.chain, our developers adopted and extended the original Bitcoin core protocol, DASH, and SYS Blockchains with asset support (similar to Ethereum based ERC-20 assets) and Masternodes with seniority bonuses (as seen within Dash). Thus NEXT.chain is a hybrid blockchain with combined security and efficiency aspects of POW (Proof-Of-Work) and POS (Proof-Of-Stake).
Advanced DAG Technology (ITC - Instant Transaction Confirmations) In order to enable the ecosystem with high capacity and efficiency, NEXT.chain includes Instant Transaction Confirmations (ITC), which is an advancement of DAG technology so that assets can be transacted in real-time. As DAG is known because of projects like Fantom or IOTA, ITC is a further development that adds an extra layer on top of the blockchain consensus mechanism, resulting in a high throughput of up to 100k+ TPS, while enabling instant transactions since it abstains from confirmation times.
NEXT.chain with PoW, PoS and the ITC layer will act as the backbone of NEXT.exchange, allowing for the instant-trading of coins and tokens with utmost security and reliability. We don’t plan on simply deploying a blockchain and digital asset exchange platform, we aim to become leaders in the blockchain field.
A hybrid consensus mechanism
NEXT.exchange is a hybrid exchange platform (HEX). Our blockchain is also hybrid, but in a very different way. It’s important to understand why.
NEXT.chain is a hybrid blockchain because it combines a Proof of Work (PoW) consensus algorithm with a Proof of Stake (PoS) algorithm. These multiple consensus layers create a blockchain which is extremely fast, private if chosen, all while being highly secure and ruling out the 51% vulnerability.
As the core layer, PoW carves all data into stone. The PoW is the strongest layer and makes NEXT extremely robust by using the SHA256D algorithm. Once mined, the transaction cannot be undone or changed. The miners receive packages of data that are bundled by the Masternodes or the Proof of Stake (PoS) layer of the blockchain.
This is the second layer, which makes private and instant transactions possible. Once a transaction is sent to the network, Master nodes are the first point of contact, and they make it possible for verification to happen while the block is technically still unmined. This technology of instant transactions is inspired by Directed Acyclic Graph or DAG-technology and runs on top of the Master node. NEXT.chain is home to the latest technology, leaving behind older blockchains which are often slow, expensive, and easily congested.
On top of these two layers, you could say that the NEXT.exchange acts as a third layer.
Masternodes are the PoS layer of the NEXT.chain. Primary requirements to operate a NEXT Masternode include 25,000 NEXT (to be used as collateral, which cannot be spent once unlocked, though once collateral is unlocked for an extended period of time, seniority bonuses are lost), a server with 24/7 uptime. NEXT.chain masternodes are responsible for upholding transactional privacy, executing instant transactions, and upholding the decentralized network of NEXT.chain.
In general, transaction speeds are one of the most prominent features offered by any state-of-the-art blockchain. (Retail) users have grown accustomed to fast transactions. NEXT.chain, the core foundation of the NEXT ecosystem, ensures instantaneous transactions between users and peers. With the power of the NEXT.chain Masternode consensus and transaction locking combined, anyone can transfer NEXT coins seamlessly, securely, instantly.
Transaction locking is a feature that prevents double spending on Next.chain. Current systems (for example, Bitcoin and Ethereum) use block confirmation as an assurance against the double spend. The problem with block confirmations is that it takes a while for a given transaction to be confirmed. Transaction locking exists to improve upon block confirmation and to significantly speed up transactions on the NEXT.chain.
Masternodes are selected algorithmically to receive a transaction locking message, after which they vote on the validity of the transaction lock. If the selected Masternodes do not reach consensus then the transaction will resort to a standard confirmation for the assertion of transaction validity.
Masternodes are utilized as observers and are given greater authority in regard to InstantSend transactions, and by doing this, double spend protection can be guaranteed whilst ensuring low transaction times. Using Masternodes as such contrasts to how merchants currently obviate double spends in other cryptocurrency systems; where clients observe a network and signal to the merchant if any double spending attacks are identified. For reference.
As a seniority benefit, Masternode operators receive a bonus to their base reward every 4 months that adds up to a 27% bonus after 3 years. This benefit is paid only if the collateral for an active Masternode is kept locked at the same address for the entire qualification period.
Provide a payout from funded budget proposals that are approved by Masternodes by means of a governance system. These Super Blocks will be issued on a monthly basis with a coinbase which can be larger than average. There are 10% block rewards that are set aside for Super Block payouts.