Last February 18th members of Nimiq Team participated in an AMA organized by the group of traders CryptoFriendlyCommunity. This blog post collects all the questions in single source of information for future reference.
Please explain, What is Nimiq in brief? What motivated you to start this project?
Nimiq is special because its unique Blockchain allows you to run a node in your browser. No installation, no downloads, just works. Nimiq Wallet actually runs a node in your browser that communicates directly to the Blockchain. This is one step forward in decentralization because you are removing the middle man between you and the Blockchain. It is the easiest crypto to use by far. You can create an account in under 30 seconds https://www.nimiq.com.
What is the aim & vision of Nimiq?
To make crypto accessible to everyone. With ease of use and lightning fast performance while not sacrificing decentralization and security.
Please share us the milestones that Nimiq has achieved so far?
Last year, Nimiq achieved major milestones! Here are the most important:
- Released a new nimiq.com website https://www.nimiq.com/
- Released a brand new version of Nimiq KeyGuard and Hub. The secure app that allow your browser to execute transactions securely. https://medium.com/nimiq-network/the-biggest-release-since-mainnet-launch-f8096e33dab9
- Accquired a share in TEN31, developed a close partnership https://www.ten31.com/
- Invented what could be the fastest POS algorithm out there: Albatross – Here is the technical paper that our 4 team members Philipp, Pascal, Marvin and Bruno wrote https://arxiv.org/abs/1903.01589
- Released a crypto checkout plugin for wordpress. https://wordpress.org/plugins/woo-nimiq-gateway/
- Got integrated with Bidali gift cards https://www.bidali.com/
Haha, and there's even more:
- Got integrated with Binance's TrustWallet https://www.cryptosquawk.com/nimiq-collaborates-with-binance-dex-trust-wallet/
- Released a new Browser-first whitepaper https://www.nimiq.com/whitepaper
- Announced Nimiq OASIS, Nimiq's unique fiat-crypto bridge https://www.youtube.com/watch?v=NCUqr4W4Mvs
- Our brandnew webservice for artists, freelancers and owners of small businesses to start accepting crypto! The easiest way for freelancers, influencers, owners of small businesses and rental experiences to start accepting crypto for their work and monitor payments. https://www.nimiq.com/blog/nimiq-launch-cryptopaymentlink/
We have see a lot of developments in NIMIQ, especially in the application of OASIS and ALBATROSS. Why these so important for NIMIQ ?
- Scalability: Albatross will enable 1000+ TPS at peaks – that is 3x more than PayPal, enabling Nimiq to become a global payment system.
- Move to proof of stake is enviromentally friendly. This is in keeping with our environmentally friendly ethos by drastically reducing the amount of electricity needed per TX.
- PoS also means that stakeholders will be rewarded for holding NIM and that should reduce the tradable supply, increasing scarcity.
Check out this article for all the details: https://www.nimiq.com/blog/nimiq-2020
It's also important to us because we want to contribute to the blockchain space in general. As an open-source project, we advocate for collaboration and co-production. OASIS and ALBATROSS could be used by other projects as well – and we would welcome that.
Can you tell us about your achievements? What important achievements have been achieved since the project started?
Yes, for sure!
- We created an incredibly easy onboarding process geared towards crypto newcomers. With NIM you can get set up and good to go with your wallet faster than creating a Google account.
- We established our Ten31 Bank partnership. This is a critical component of releasing our cutting edge research project Nimiq OASIS which enables a non-custodial way to get in and out of crypto. The HTLC also supports ERC-721 and ERC-1155 standards which means that Nimiq OASIS is capable of trading non fungible tokens to fiat. The HTLC is also capable of exchanging any digital asset so it could be a real game changer. It could also integrated into DeFi platforms wanting non-custodial fiat to crypto on and off ramps. After all, DeFI is non-custodial finance after all. Then of course you have DEX's as well.
- And of course every achievement I already mentioned above 😊
What is the Nimiq business model? How do you generate the profit?
Nimiq is a not-for-profit project. However, there are many ways Nimiq is creating value for itself and its investors. First of all, if NIM increases in price, the project's NIM funds increase in value. Besides that, Nimiq creates fintech solutions like OASIS and FAST. Those will charge small fees to facilitate transactions and can be used independently from NIM. In the same regard, Nimiq is a shareholder in TEN31, which is creating for-profit revenue and potentially increasing in price. So even without a business, Nimiq is able to create a revenue stream. This revenue will be used exclusively to fund the project.
Marketing is a significant factor for every project. What's your plans for attracting users, developers towards Nimiq ecosystem?
Yes, Marketing is indeed very important and we're currently ramping up additional measures and campaigns to attract new users, online shops and developers. We've already intensified our social media interaction and outreach and are also happy to hold more AMAs with great communities like yours in the near future. We are also working on targeted social media campaigns to raise awareness for our project and to bring it to the attention of a broader audience. Also, besides engaging with new users at Meetups, Events and Conferences, we are also looking into new (even some more mainstream) advertisement possibilities that reach an even broader audience. In addition, I am already proactively reaching out to important target groups for Nimiq in order to raise awareness and create positive buzz for the project.
After switching from Proof-of-Work to Proof-of-Stake Nimiq 2.0 is Here, My questions is, What is the procedure to stake NIM? and what are the requirements to stake $NIM?
As soon as Nimiq 2.0 is going to go live in Q3, we will provide a user interface for staking as simple as miner.nimiq.com – in parallel, we're also talking with other staking-enabled wallets to add staking for NIM (still ongoing). But the cool thing is that you can start staking with 1000 NIM only. So you can stake directly if you have the technical skills, and easy delegated staking for the non-technical users – similar to our mining pools now.
I follow the news of your project. In the last article I read, I learned that the Nimiq Team has had a hard time planning and preparing for the future. What are the reasons for this?
Hi, thanks for your question. I don't know where this sort of "rumor" came from, but we actually didn't have any problems with framing or formulating our strategy at all. With so much innovation in our development pipeline, we clearly know what our mission and plans are and what kind of role we want to play in the crypto and blockchain tech space. The times when the team was re-aligning the general strategy and plans are long over. It actually was a real pleasure to sit together and integrate all the measures and ideas we had for the future into our new 2020 strategy. So we did not have any hard time at all 😊
How is your collaboration with WEG Bank going? Which service are they offering Nimiq? and which other bank do you look forward to collaborating with in the future?
We recently received the visit of the Owner and CEO of WEG Bank. We are making good progress in the products that we are building together (TEN31 Implementation of OASIS, FAST). We are also looking into other banks and have started working with a couple of financial institutions to create implementations of OASIS that support more currencies like USD, CRC, CNY, etc. We cannot share more details right now since we are still on negotiation but stay tuned for more excited news on this topic.
Europe user's get more benefits from OASIS but apart from other continent users what are benefits will get from OASIS ??
Yes, so TEN31 is a German bank and the first to implement OASIS. As part of the European SEPA network, they will initially only support EU accounts to do fiat-crypto trades. BUT OASIS can be implemented by any other bank or project, allowing the use of OASIS anywhere. It's a limitation of the first integration – not the technology. We are already assessing new partnerships with USD and YUAN being the most interesting, of course, but it's too early to be specific here.
DeFi is projected to buzz up in 2020 and is on everybody lips, what ROLES does NIMIQ play in the innovativeness and future of DeFi and how does it spearhead adoption of DeFi using blockchain solution?
Think it would be much easier for crypto newbies to get into DeFi if there was a quick and easy way to get Ethereum on some of these DeFi platforms using their bank account. As things stand, DeFi still remains the preserve of crypto veterans and that could potentially hamper growth in the future.
That's why we are working on a non-custodial way to get in and out of crypto or fiat on the horizon that could solve this problem. What we have coming out this year is a FIAT smart contract (called Nimiq OASIS) that will enable non-custodial crypto/fiat trades. This is being built in collaboration with Ten31 bank (owned by WEG Bank) and the tech aims to make fiat currencies programmable as if they were tokens on a blockchain.
The exciting thing is that OASIS is set to launch with support for Bitcoin, Ethereum and NIM this year.
Nimiq owns a 9.9% stake in WEG and Ten31 Bank and through this partnership OASIS would enable the reach of 20 European countries and 2,000+ banks via the SEPA instant network.
In short, Nimiq OASIS will enable customers at over 2000 European banks to buy Ethereum directly with their bank account or to sell their Ethereum and get Euros paid directly into their SEPA instant bank account. Now that's the type of solution that we think many DeFi projects would be interested in.
Can you tell us more about the Albatross consensus algorithm? What are its technical specifications, Security and performance analysis? and How is it different and better than the classical consensus BFT (Byzantine Fault Tolerant) algorithm and the likes?
Top level, Albatross is an optimistic consensus algorithm and thus can reach a speed close to the theoretical maximum of a single chain blockchain when "everything goes fine". And if an attack or misbehaving validator is detected by the other validator, the system switches back to a "classical BFT" to handle the situation, doing a view change, remove the misbehaving validator, slashing its rewards and selecting the next validator to continue normally. So, in such a cash, the chain is slowed down, but just to the normal speed of other BFT chains.
You can find a general overview with a lot of details in the whitepaper: https://nimiq.com/whitepaper#albatross
And technical details here: https://arxiv.org/abs/1903.01589
Albatross boast 1000 TPS, don't you think this TPS is small and might need some upgrade to bigger figure as you gain more traction and adoption?
In the future Nimiq may need more than 1,000 TPS in the future. However, PayPal operates perfectly fine on an average of 193 TPS and we'd say they are a pretty successful payment system. Nimiq's tech will evolve in time and better scaling solutions could certainly be made in the future. However, we think 1,000 TPS is more than enough for now.
Hi, also thank you for your message! We are just getting started with reaching out to shops and merchants and educate them about the possibilities of accepting crypto in general and specifically about Nimiq Checkout, cryptopayment.link and of course upcoming Nimiq OASIS. At this stage I would personally appreciate it if the community supported me with suggesting interesting online shops and merchants that I can reach out to. There is also a list in our forum that can be extended: https://forum.nimiq.community/t/merchant-targets/27
kindhumans.com is accepting NIM
What is the Most Important things that Nimiq trying to solve in the present problems in Crypto? What are the Crypto Problems that has been solved by Nimiq?
Is Nimiq blockchain agnostic? Can it interoperate with any blockchain? Technology is evolving, what will Nimiq do to remain relevant for the foreseeable future?
We follow the philosophy that the crypto sphere is better with many coins – it's part of decentralization and makes crypto as a whole stronger. Thus, Nimiq puts two essential pieces in place to ensure interoperability: the blockchain supports standard HTLCs – so atomic swaps to other chains work on protocol level. In parallel, we're working on Nimiq OASIS to enable swaps not only between crypto but also between crypto, fiat and maybe in the future also stocks and actually anything that can be tokenized.
Would the nimiq team, themselves, be happy if their own native currency was replaced with notes containing the cute avatars currently part of the UX (last time I checked)? Would you expect the rest of the population to accept such a look?
We discuss quite a bit about them because we get very mixed feedback. Some love them, some really dislike them. What you might not know: They serve a security purpose. Every identicon is generated from the respective address. This means, if you send money, you can check the identicon to make sure you have the right address. They serve as a way to have the same icon in two separate wallets (like sender and receiver) without the need for a centralized DB. I, personally, don't mind them looking fun 🙂
How do you evaluate that there is a big problem about the usage and adoption of crypto money? How is this going to take shape in the future, and is Nimiq frightened about Adoption?
Nimiq's not frightened about adoption at all. Indeed, we think that adoption is the most important thing in crypto and if we were not going for it then we'd pack up our bags and go home.
First, we are tackling the scalability problem via Nimiq 2.0 that will be capable of processing 1000 TPS per second (5 times more than PayPal uses on average).
Second, Nimiq is creating a non-custodial crypto-to-fiat bridge called Nimiq OASIS via our collaboration with WEG Bank. The DeFi space is a $1 billion market and there are currently no non-custodial fiat on/off ramps available. We think that many DeFi platforms would be interested in such a solution.
Nimiq is also starting an adoption effort in Costa Rica to test our product in the real-world. We like to think of this as a real-world testnet. The aim is to gather valuable feedback and create the best crypto payment system possible.
Why does Nimiq not use a centralized corporate structure?
Nimiq as a project is doing everything to be as decentralized as possible. Just as the intro on our team-page says "Created by some, developed by many, owned by NONE" we live and breathe the philosophy of a decentralized, non-custodial open source project to the maximum. Everyone can be a part of the project and there will never be a central (centralized) authority or institution that controls Nimiq. We're a truly decentralized crypto project in the real tradition of blockchain.
What makes #NIMIQ is better compared to other projects? Are there any unique mechanisms?
Nimiq is the cryptocurrency native to the Web. Nimiq is the only cryptocurrency where you run a node in your browser without even having to install anything. That makes it easier to use and more resistant to censorship that the other payment coins out there.
How does Nimiq aim to outperform the convenience of the current conventional payment systems?
Honestly, in some aspects, we already have. Try to create an account https://www.nimiq.com/. It's easier and faster than creating a Facebook account. Currently, a big convenience hurdle is that you have to provide your password for every TX. We aim to solve this with our native app (probably this year) where you can sign TX with your fingerprint etc. In general, we aim to push convenience to the max while NEVER compromising on decentralization. But honestly, please try and create an account and PM me after, I would love to get feedback and will pay some NIM 🙂.
What is Nimiq Technology? what are the issues that Nimiq solves in the blockchain space?
To provide value in the crypto space, we believe it is crucial to focus on doing one thing and doing it good. For Nimiq, that means doing payments secure and fast, but most of all easy to use and convenient. And includes that the user experience must be great, but also that the user interfaces adapt: so far, our UIs are working on the web on desktop and mobile, this year, we will also add a native mobile app as well as internationalization so that also the less tech savvy can feel confident using NIM. And the special thing about Nimiq is that everything is running in the browser: when you pay in a web shop with NIM, it's just a click away. When you sent a transaction from your wallet in the browser, there is no third party relaying your transaction, you are a real member of the network directly from within your browser.
Could you give me 3 key points to convince me and other angel investors invest in Nimiq in the long-term?
Sure, it's my pleasure to answer this question!
Reason #1: Our technical development pipeline: When you look at our past achievements (above) and our roadmap for 2020 (https://nimiq.com/roadmap) we strive to deliver cutting-edge and breakthrough blockchain tech that has the possibility to have a positive impact on the crypto space in general.
Reason #2: Nimiq OASIS, which stands for the Open Asset Swap Interaction Scheme. This is our blueprint for a crypto-to-fiat bridge, which makes fiat currencies like the Euro behave as if it were a token on the blockchain. This could provide a unique way of connecting the traditional banking world to the crypto universe and we hope to attract new partners such as shops, merchants, banks or DEXs to expand our payment ecosystem.
Reason #3: Our ongoing and strict focus on accessibleness of use, as we will continue to build the easiest to use and most accessible blockchain tech and cryptocurrency.
DeFi is one of the hottest topic in the blockchain space right now. Can you share your opinions on DeFi with us? Do you think that DeFi will disrupt the existing financial system? What is NIMIQ approach towards the DeFi sector?
We are exceptionally excited about DeFi and believe it's going to go from strength to strength as even more people dip their toes into the DeFi waters and even more products and services are built.
$1 billion of total value doesn't usually get locked up in something without good reason and no one can argue about the amazing growth trajectory of Decentralized Finance either.
We think that one of the key things set to supercharge DeFi's growth is the terrible returns that banks try to give you on your savings. Here in the UK, HSBC made a massive deal about raising their interest rates to 2% but only if you lock up your money for 3 years. We think that's a terrible return and the truth is that many people are looking to get a better return on their cash. Within DeFi you can get over 5.5% per year. The problem for most regular people is that it's super hard to get into DeFi – right now it's impossible to get money into the DeFi ecosystem directly with your bank account.
Thats the problem we are looking to solve with Nimiq OASIS by providing a non-custodial way to get in and out of crypto by using your bank account. As DeFi is another way of saying non-custodial finance we think that many platforms in the niche will be interested in using our tech solution (coming out 2020).
Scalability of blockchain is one of the main aspects! So, What's the current maximum TPS NIMIQ has achieved yet?
Agreed! Scalability is the holy grail, although we deem easy usability as important. Currently, our blockchain can do up to 12 TX/s. With Albatross, our unique PoS consensus algo, we will have around 1000 TX/s at a sub-second blocktime. The performance bottlenecks are presumably latency and validator's (our PoS 'miners') hardware. Our testnet is supposed o be released end of this week (not guaranteed though), so stay tuned!
Are there any privacy-preserving features implemented in the Nimiq blockchain? Or are some in your roadmap?
We're fully focused on releasing Nimiq 2.0 right now, but Pascal (core dev and security researcher in Team Nimiq) already started researching on private TX. So, it's currently on hold, just to not lose focus, but the team is very keen on getting private TX in as soon as possible, hopefully still this year.
We are researching on privacy and will be considering about privacy features after mainnet has been released. There are also some counter arguments to privacy since projects focused on privacy get delisted from exchanges because of Money laundering issues.
What are the benefits of the partnership between WEG Bank and Nimiq ? What's the main reason behind the collaboration?
With WEG Bank, now TEN31, Nimiq and Nimiq OASIS getting access to the European SEPA Network, reaching users of any of the 2000+ banks in 20 countries.
Should I lose my device, how do I recover my Nimiq since I didn't register with email?
Usually, with many crypto wallets, you have to write down 24 recovery words. And better store them safely, because anybody that finds them can get access to your NIM. But Nimiq has a cool feature: the Login File. It does not replace the recovery words – they are important and you should store them safely – but the Login file is much easier to handle because it's a little graphics file (that also comes with a QR code, so you can import easily on your mobile). But it's encrypted so it's much safer to use. So in short, with Nimiq you have two independent ways to secure your funds so you can recover your funds yourself if you lose your recovery words.
In the future is Nimiq planning to create its own Blockchain or to migrate to other blockchain?
Nimiq is a unique blockchain, implemented in JS and Rust. Not only that, we are about to release our version 2.0, switching to PoS and probably breaking some performance records 😉
Seriously speaking, we do a lot of original research.
Do you think crypto will be able to be mobile? As in, right now, for mining you need to have a powerful computer – but what will happen in the future?
If you read Nimiq's 2020 strategy article (https://www.nimiq.com/blog/nimiq-2020/) you will find that we will be creating a native Nimiq mobile app in 2020. We are building a mobile app that will combine the features of Nimiq in a single product. This app will feature NIM and BTC in one account (one Login File, one password), complete wallet functionality, elegantly designed, non-custodial buying and selling of NIM and BTC and also easy NIM staking.Our goal is to make it the most essential, decentralized cryptocurrency wallet to date. In the future Nimiq moves to Proof of Stake so you don't need to mine NIM from your phone anymore. You can then easily stake your NIM for rewards.
Now the big problem in the crypto space is the problem of volatility and liquidity. What is Nimiq doing to overcome this problem? Are you going to get Nimiq listed on major exchanges?
In terms of addressing volatility Nimiq is using Nimiq OASIS to provide a merchant solution that allows online store owners to accept crypto and receive fiat direct to their bank account quickly. This means that there should be minimal volatility.
We are always on the look out for new exchange listings 😉.
How do you view your participation in the kucoin play, what exposure does it give NIMIQ project?
It was a great experience and good results for our visibility. We felt pretty happy about KuCoin integrating us as one of the first projects there. Nice and capable guys over there.
Currently, there are many strong developing projects, so why should we choose Nimiq and not others? What in Nimiq makes you more confident than other projects?
Many work on scalability and that's important. But as blockchain tech matures, it's time to get the non-tech people in! That is what Nimiq is doing. We want to create easy-to-use interfaces but do not compromise on security and decentralization. I think that makes us unique!
What are the main Utilities use of NIM token? Whats the benefits of Investors by Investing and holding NIM Tokens as a long term prospects?
By holding NIM you support the Nimiq Ecosystem, the community and the foundation. Nimiq Foundation has a separate foundation with NIM allocated, this foundation focuses on good will and eco sustainability projects. By holding NIM you also get to stake and support the Nimiq Network that way, while getting some passive income on your NIM earnings with the easiest Staking Ecosystem designed to date.
Please explain how did your payment system works for new User?
You can try it out right now: Go to hub.nimiq.com and create your account in just 30sec. Now you gotta watch out for some cashlink airdrops and you're ready to use our payment network to send NIM to your friends. If you are a small business owner, artist or freelancer you can start accepting crypto right away with our new free webservice cryptopayment.link
No one achieve anything of value on its own, please can you share about your present and future partnerships that will drive you to success in this highly congested crypto space?
1) Ten31 Bank/WEG Bank: This strategic partnership is key to enabling Nimiq OASIS to serve 22 countries across 2000 banks with a non-custodial crypto-to-fiat bridge.
2) Trust Wallet: Have already agreed to integrate Nimiq staking. As the official wallet of Binance they are a pretty big player in the space.
3) Bidali: Means that NIM can be used to buy giftcards for companies like Uber and Starbucks.
4) Kindhumans: This partnership helps us bring blockchain tech to the charity sector. Kindhumans is an Ethical marketplace co-foudned by one of the early employees at GoPro.
We know that Ethereum Blockchain have many scalability issues & is comparatively slow ! Then, why you choose ethereum blockchain for your project's developments? Any reason?
Nimiq is not build on the Ethereum Blockchain, Nimiq has its own Blockchain. Second version of the Nimiq Blockchain will implement a Consensus Algorithm that we created in house and can potentially be faster than all other POS chains out there.
Nimiq used the Ethereum chain for 'NET' an ERC-20 exchange token, issued during the token sale. After that, Nimiq developed its own, unique blockchain! It was the first blockchain written in JS (now there is a Rust implementation too). Not only that, we are month away from releasing our new and massively improved blockchain, based on our own PoS consensus algo. We are talking about 1000 TX/s here.
With Nimiq being open source for anyone to contribute to the code, is there any security in place if someone codes a hack into the code to steal or create more Nimiq like with what happened with bitcoin private?
We have three measures in place: first the contribution has to be send as PR and will be reviewed by the team; then the code will become part of a release to the Testnet where the community can check it out and test it thoroughly; finally, it will become part of our bug bounty program https://www.nimiq.com/bug-bounty/ offering up to $13000 for severe bugs; only then it finally become part of a Mainnet release.
How does the reward system in albatross work for stakers?
Users can temporarily lock up a part of their NIM funds and delegate them to a validator. Validators then collect transactions from the network and integrate them into new blocks. The likelihood for validators to be chosen as a block producer depends on the amount of funds delegated to them. For every new block added to the blockchain, validators receive a NIM reward. The rewards earned by the validators are then shared with the users who delegated their funds to them. This way users can easily earn NIM rewards by staking a part of their funds.
What can we do with Nimiq token could it be used for online shopping as payment? Or do you have partners that accept Nimiq token?
To buy something with NIM the best thing to do is to use Bidali where you can use NIM to buy giftcards for over 100 topbrands like Amazon, Apple, Uber, Hotels.com and more.
What are the outstanding advantages of Nimiq?
Every user connects directly to the chain (not over a miner like e.g. BTC)
Original and continuous research with tangible results
Most kick-ass community.
⛓️ 🔗 Helpful Links 🔗 ⛓️
► Meet Nimiq – Crypto made Easy: https://www.youtube.com/watch?v=dA40oyDVtqs&t
► Nimiq is preparing for an upgrade… https://www.youtube.com/watch?v=q2n4GBQ-qNE
► Nimiq Review: https://www.youtube.com/watch?v=7gjDQ7_DHdc&t
► Nimiq 2020: https://www.nimiq.com/blog/nimiq-2020/
► Groundbreaking Crypto Payment Solution for Online Merchants: https://www.nimiq.com/blog/groundbreaking-crypto-payment-solution-for-online-merchants/
► Research Collaboration: Albatross (Nimiq 2.0) https://www.nimiq.com/blog/research-collaboration-albatross/
► Nimiq Acquires Stake in WEG Bank AG https://www.nimiq.com/blog/nimiq-acquires-stake-in-weg-bank-ag/
Where To Buy Nimiq?
► Changelly: https://www.youtube.com/watch?v=WcZFn4v-L4E
► Kucoin: Currently ~$259K vol NIM/BTC https://www.kucoin.com/
Want to stay updated with Nimiq developments?
► Sign up to our newsletter here: https://www.nimiq.com/blog/
📱 Make sure to follow us on social. We do giveaways and drop cashllinks regulary.
► Telegram: https://t.me/Nimiq
► Twitter: https://twitter.com/nimiq
Original article: https://cryptofriendly.in/nimiq-ama-recap/