Noblecoin is one of those rare altcoin gems which gets overlooked by pretty much the entire cryptocurrency community. Whereas most other digital currencies facing such a scenario would face their demise relatively soon, NOBL has been pushing forward and adapting their strategy. As a result of all of this hard work, a whitepaper was released recently, discussing the launch of a crowd funded coloured coin called NOXT.
Coloured coins work very differently from your regular cryptocurrencies, and they could be subject to increased regulation and accountability. Several aspects of the NOXT whitepaper are still just theories at this point in time, but the whitepaper in itself makes for a very interesting read. We will try to provide a small recap below.
Jason Curby, Noblecoin Developer and NOXT “Mastermind”
It is only fair to introduce the man behind all the coin and proposal before we get into the technical aspects. NOBL developer Jason Curby recently released a ton of his personal and financial information to the public, as a way of being as transparent as possible about himself and his current/future projects.
Not only did Mr. Curby shares his LinkedIn profile link, but he also provided details about his Australian Business Number. Further details include mentioning his Perth Mint Australia trading account, which will be used for bullion trading once legalities and funding are finally resolved.
Other noteworthy details include Jason’s largest expenditures for cryptocurrency-related purposes, not requesting tax deductions for Noblecoin donations to charities, and how he is not involved with either market manipulation or development of other coins. You can view his original post here.
The choice of creating a coloured coin comes from merging much of the Noblecoin core philosophy, work ethic, branding and infrastructure with market expectations, industry thought-leadership and a legal and regulatory framework. The NOXT coloured coin can be for exclusive services, rewards and most importantly, e-commerce. Focus of NOXT will be on information and corporate systems running on top of blockchain technology.
NOXT’s goal is to present the community with different choices to move into different blockchain 2.0 technology platforms using their current coin, if they are unhappy with the original specifications of NOBL. Furthermore, NOXT will serve as a way to fund development of blockchain 2.0 supportive infrastructure , as well as licensing for a changing landscape come 2015 (especially considering Australia’s ruling on whether or not cryptocurrency is subject to taxes).
One of the more common questions is what else is in it for the community, as Noblecoin is working fine in its own right, and will transition to PoS in the future. Giving your community a chance to move on to platforms which offer a potentially great chance of success, while keeping a stake in the current infrastructure is one step on the evolutionary path of digital currencies. For those users who stick with the current infrastructure, they will see a reduction in the total coin supply, thus making their existing coins more valuable.
As these kinds of new projects attract both speculators and potential new investors, As both NOXT and NOBL are intertwined, the exposure of both related coins should increase. Users will be able to exchange NOBL to NOXT either through Jason Curby or a third party escrow service. Dedicated services for such exchanges will be developed for future projects, and there is even a mention of paying exchanges to list Noble-related trading pairs (such as NOXT/NOBL).
There is some confusion as to why you should hold NOBL when you can hold NOXT and vice versa. Noblecoin will remain the decentralized cryptocurrency distributed to its supporters, as it is now. NOXT on the other hand, is more of a “business” mini-project with an estimated life span of two to three years.
There are a lot more questions and answers to be found in the FAQ here.
As far as distribution of NOXT goes, there will be a fixed number of coloured coins, eliminating emission pressure from affecting the value. In order to reduce the risk of overvaluation of NOXT, the market cap of the total crowd funded distribution should not exceed US$150,000. As NOXT has a zero emission schedule, a long-term roadmap and infrastructure from day one, that amount is incredibly conservative, and far from overly greedy as is usually the case in the altcoin space these days.
Most issued coloured coins have one key flaw : they are tied to the price of its master via trading pair exclusivity (as would be the case with NXT/NOXT). However, NOXT will not suffer the same fate, as there will be exchange pairs with both Bitcoin and fiat currency. In doing so, NOXT can be traded on a decentralized blockchain 2.0 platform or on any number of (de)centralized exchanges.
Make sure to check out the NOXT Distribution PDF file which can be found here.
There is far more to the issuing of NOXT coloured coins than we can cover at this point in time, so make sure to check out the original thread on BitcoinTalk.