Today, Fiat currencies depend on governments, central banks, and third party payment service providers. Banks charge fees for cross-border transactions, and can take many days to clear. Additionally, payment services such as Visa charge fees to the end-user as well as the merchant.
Nexus is used to verify transactions. However, unlike traditional methods, the data is verified by a decentralized global consensus, rather than a central authority. Thus, NXS can be exchanged between peers, and its issuance is independent of a central authority, which replaces the requirement of central banks, commercial banks, payment services and similar intermediaries.
The creation of NXS is very different to the issuance of tokens via Initial Coin Offerings (ICOs), which are produced at zero cost. Instead, the process of creating NXS requires mining (similar to that of BTC) or staking, which gives a base value to the currency being backed by the physical resources required to create each individual NXS coin.
There are three ways to obtain NXS:
Staking is an energy efficient form of mining that processes transactions and provides security to the Nexus Blockchain. In order to Stake, you must hold your NXS in a Nexus Wallet. In return, you are rewarded NXS at a rate of 0.5% to 3.0% per year on your holdings.
Mining is a process in which a computer program is run by high-performance hardware to process transactions and provide security to the Nexus Blockchain. In return, miners are rewarded NXS. All transactions on Nexus are validated by three channels; two Proof-of-Work (PoW) channels (Prime and Hashing) and one Proof of Stake (PoS) channel.