More on Nxt Proof Of Stake Forging

Now, on to the nuts and bolts of NXT’s implementation of Proof Of Stake Forging — PoS.

It is elegantly simple: block generations with their transaction fees are competed for proportionally to all active forging wallets based on the amount of NXT a wallet has. So if a wallet has 1 million NXT, then they have 1/1000 of a chance of forging any block and receiving any transaction fees in that block. The math here is 1 million (amount the client has) divided by 1 billion (total NXT in existence) is 1000, so that is 1/1000 of a chance. An even added bonus is that it is your NXT balance that forges for you, not ASICs that requires lots of power, maintenance, and that depreciates in value and processing power. Instead of buying equipment to mine with, you just buy NXT to forge for more NXT with.

Forkedchain. (January 2, 2014). What is NXT in the world of cryptocurrencies? Nxtcrypto Foundation Forums. Retrieved from http://goo.gl/wHnBUl