This post is sponsored by Nimiq
Nimiq is a cryptocurrency that allows you to connect to the blockchain with nothing more than a browser. That means that anyone with an up-to-date browser can access the Nimiq payment network so as to pay and accept payments.
In this Review, I will cover:
- What makes Nimiq unique
- OASIS Technology
- Transition To Proof Of Stake ("Nimiq 2.0")
- Progressively Diminishing Supply Emission
- Nimiq Team
Simple & Frictionless Blockchain Payments
Nimiq is a browser-first blockchain which means that anyone with access to a browser can create a wallet. It takes 30 seconds to create a wallet and requires no installation of any software.
This level of accessibility is made possible due to the fact that Nimiq does not require a third-party node to send transactions directly from the browser, unlike Bitcoin.
Nimiq's web-based blockchain approach is a major step in making blockchain payments so much simpler and easy to use, without compromising on its censorship-resistance and decentralization as a payment solution.
Throughout the Review, we'll be exploring some of Nimiq's exciting releases and developments coming up over the next few months, specifically the launch of OASIS, the reduction in supply emission of the native NIM token, and the transition to Proof Of Stake consensus algorithm.
Launch of OASIS technology
Later in 2020, Nimiq will be launching OASIS which stands for Open Asset Swap Interaction Scheme.
OASIS is a non-custodial technology that will help users seamlessly covert their fiat to both Bitcoin and the native NIM token serving as digital cash.
For example, OASIS will allow merchants to accept crypto like NIM or BTC while receiving fiat like Euro into their bank account.
OASIS is also designed to provide cheap and non-custodial remittances. Remittance provides would be able to request such remittances from two banks that have implemented Nimiq OASIS.
Already, OASIS is enjoying real-world adoption. German bank TEN31 is the first party to integrate OASIS into their regulated banking infrastructure.
Transition to Proof Of Stake
Since April 2018, the NIM token has utilised a Proof-of-Work consensus mechanism on the Argon2d hashing algorithm.
In 2021 however, Nimiq will finally be transitioning to a Proof Of Stake consensus algorithm in a venture the team refers to as "Nimiq 2.0."
Proof Of Stake is one of the mechanisms that cryptocurrencies utilise to achieve distributed consensus on their network.
Proof Of Stake coins include Zilliqa, Kyber Network, Cardano, Binancecoin, and DASH to name a few.
In POS cryptocurrencies, the creator of the next block is chosen via random selections that would indicate someone's stake in the coin, such as wealth or age.
Transitions to a POS mechanism tend to have large ramifications for price, reason being that people stake their holdings, effectively lowering the circulating supply of the coin and thus making it more scarce.
And scarcity enhances value.
But it's not just this scarcity that enhances the value of the token.
It is staking as a process itself whereby people who stake interact with the NIM network and produce blocks simultaneously increase the value of their assets but along with that increase the value of the network itself.
As a reward for staking, people who stake receive a passive income for doing so in the form of the native NIM token.
Progressively Diminishing Block Reward
The NIM token has a progressively diminishing block reward and one-minute block times, which means that with each reduction in supply emission the token becomes a little more scarce.
That said, the Nimiq Team ran a much-requested public vote among stakeholders on how to make adjustments to the coin supply curve for the switch to Proof-of-Stake (PoS) with Nimiq 2.0.
Ultimately, the large majority of Nimiq stakeholders voted for what the community now refers to as the "Blue Curve."
The stakeholder community feels that the Blue Curve is an adequate compromise between initial scarcity and reward amounts and how these evolve in time.
Therefore with Nimiq 2.0, the supply emission will be more gradual and fair, with the total NIM emission/reward decreasing by 1.47% every year, all the while still providing a competitive initial staking reward range of ~8.3 – 15.5%.
The next diminishing of the block reward will take place in the next few months.
Since its inception, the Nimiq team has largely been developer-heavy. The team's focus revolved around building a strong project with very little emphasis on any sort of marketing efforts.
Over the past couple of months however, Nimiq has doubled-down on building a marketing presence which has helped the project reach an audience larger than ever before.
The combination of a simple to use browser-based blockchain approach, exciting upcoming developments and releases later in the year and increased marketing efforts have contributed to the exponential rally that the NIM token had experienced in July 2020, moving from the Top 500 cryptocurrencies closer towards the Top 100.
In conclusion, Nimiq strives to make blockchain payments universally accessible by adopting a browser-based blockchain approach and streamlining the user experience of making cryptocurrency payments.
While the browser-based approach is a vital component in reaching the masses, the new OASIS technology will play a sizeable role in enabling seamless merchant adoption and the streamlining of NIM-to-fiat conversions.
Along with that, Nimiq will be transitioning to a Proof-Of-Stake consensus algorithm which will incentivise users to stake their NIM, in turn making the token as well as the network more valuable.
The value of token will also be enhanced by the pre-programmed progressive reduction in supply emission; the next reduction is scheduled to occur in the next few months.
The Nimiq Team places a strong focus making blockchain payments simple and universally accessible all the while putting measures in place to make the Nimiq network valuable and the token increasingly scarce.
Thank you for reading.
Original article: https://www.rektcapital.co/articles/nimiq