Forging NXT

In the NXT environment the process of block generation is called forging. Every NXT node is involved into this providing the associated wallet is not empty and stays open no less than 24 hours. When the node generates block all transactions fees go to the wallet as a reward. The more NXT the wallet holds the more chance to generate the block. In fact you can see every NXT as some kind of lottery tickets of equal worth, so the more tickets your wallet has the bigger the chance for reward. And the key point here is that you do not need both the huge computational power and electric energy consumption in order to validate transactions included into the block. In practice you can lease your coins to NXT pool that combines the forging power of multiple NXT holders to increase the chance of generating the block.

Open wallet does not mean that your client must be always open. To initiate forging launch your NXT server ( run bat file in NXT directory), launch client and login into wallet with your password. After this the forging will start automatically. Now you can close the client but the forging will proceed providing you will not close the server. If you did close it the above procedure to start forging must be repeated.

There is a cool feature that allows NXT holder to lease his/her forging power to another account in order to increase the chance of validation. That account you lease to in fact receives additional forging power for limited period of time you established but it does not acquire the right to do anything with NXT in your wallet for example spent, transfer, re-lease, etc. them while you can spend freely. In practice you may lease your account to some NXT pool that combines the forging power of NXT holders to increase the chance of generating the block. After finding the block the pool redistributes the fees included into that block over lessors who leased their accounts to the pool. To lease your NXT accouts:

    1. Open your NXT client.
    2. Go to the dashboard in the client.
    3. Click More info on Account Balance widget.
    4. In opened window click "Account Leasing" tab.
    5. In opened window click "Lease your balance to another account".
    6. In opened window type down the NXT account of recipient and period of time (expressed in number of blocks, 1440 blocks = 24h) you allow for leasing.
    7. Put into "Your Passphrase" field the passphrase your have.
    8. Click Lease Balance.

In 1440 blocks (after the moment you lease) the pool will proceed with forging on your behalf. This avoids the need for you to run a server 24/7. So, you will end with the lower electricity bill.

Forging NXT is green-energy process in sense that it does not require too much power to run. In the nearest future we will describe how to run the Droid based node with extremely low power consumption to forge NXT 365 x 7 x 24 hours.