The National Settlement Depository (NSD), Russia’s central securities depository, has developed and successfully tested an e-proxy voting system running on a distributed ledger built with Nxt blockchain.
The NSD, a member of the Moscow Exchange, is a Russian nonbanking credit organization, Russia’s central depository and a professional securities market player. The organization provides depository, banking settlement and relevant services to market players.
Mike Rymanov, founder and CEO of DSX Technologies, said the NSD choses Nxt above Bitcoin and Ethereum after careful consideration. Here’s the reason why Bitcoin and Ethereum weren’t a good solution.
Why they chose Nxt instead of Bitcoin or Ethereum
“Using the proof-of-work (PoW) Bitcoin blockchain would have potentially created a situation where a particular node with a superior computing power could gain an unfair advantage over its peers, thus jeopardizing the security of the network and, if being a malicious actor, could rig the results of the vote,” said Rymanov. “Furthermore, we see PoW systems as an unnecessary drain on resources in private permissioned blockchains.”
“With regards to Ethereum, our team has been in touch with the Ethereum core developers and has been informed that the current limit on processing is around 60 transactions per second,” added Rymanov. “However, even though Ethereum offered a huge improvement both in functionality and processing speed over Bitcoin blockchain, it did not match the NSD requirements.”
Nxt is much ahead of the competition because it has a fully functional decentralized platform running for a few years now. It’s build with Java which is often used by banks and businesses. Also it’s much easier to build anything on Nxt than on other blockchains. Here the response of Mike Rymanov about why the Russia’s National Settlement Depository did go for Nxt:
“After a careful consideration we have selected NXT,” Rymanov said. “The proof-of-stake (PoS) blockchain has provided us with enough flexibility to architect a solution that is scalable, stable and with processing capabilities well in the range of NSD expectations. In the lab environment we have pushed DSX fork of NXT to process up to 800 transactions per second. With the custom developed e-proxy voting module running on top of the NXT fork we have stabilized the system at 80 votes per second, which is 160 transactions per second reaching a notable result in line with NSD expectations.”
More information about this amazing project: Bitcoinmagazine.com.