The key differentiators between NUTS and other blockchain networks are (i) CPoS consensus protocol and (ii) Credit Mining. Integrating CPoS and Credit Mining create the following benefits for FSPs in the NUTS network:
Accessibility – Anyone (individuals or FSPs), at anytime, can issue financial contracts on the NUTS network. Execution and settlement processes are defined by contract creators, and governed by parameters set forth in the smart contract. In addition, CPoS can qualify FSPs in becoming a network validation node.
Pricing and Discovery – FSPs can conduct risk adjusted pricing based on counterparty credit profiles. This is particularly useful for transactions conducted over-the-counter due to the high level of asymmetric information. Transaction participants can audit a counterparty’s credit profile at any time, creating a more transparent pricing and discovery environment for all participating roles.
Reward and Reputation – CPoS provides the opportunity for FSPs to qualify as a network validation node. Network nodes have the capability to mine for NUTS tokens. In addition to reputation, pricing, and discovery benefits, credibility level and token stake determines the network node’s mining power.