Reading through the official WHITEPAPER of the NEST project got me really excited in so many ways, the distinctive approach in which the NEST team took to solve some of the deficiencies in mainstream blockchain technology is to be applauded and appreciated by all cryptocurrency enthusiast.
One of the main information from the NEST protocol Whitepaper is that, Bitcoin is a digital asset, Ethereum is a functional asset and NEST is a stochastic asset, before we go further into anything else, let us first know some of the terms such as Stochastic asset, probabilistic virtual machine and stochastic computer that was used in the Whitepaper and what they mean.
We cannot deny the fact that Ethereum have so many functions that is very important to the future of the cryptocurrency Ecosystem as a whole, however there is still one place this great technology (EVM) is lacking. ETH is a functional/ information asset but it's potential for future revenue stream is finite, this is because the total number of ETH that will be available is 100 million. However, NEST token is a Stochastic asset which have infinite and continuous value. This means that the problem of introducing random variables and distribution transformation for on-chain programming has been solved.
It is common knowledge especially amongst crypto enthusiasts that most smart contract are run by the EVM (Ethereum Virtual Machine) this is because the EVM behaves as a mathematical function would, that means when Given an input, it produces a deterministic output. However the NEST protocol uses another type which is known has the PVM, this machine works as a distributed computing architecture from a probabilistic connected system that works as a single unit to process any high-end computing information. It is quite different from the EVM which is maintained by thousands of connected computers running an Ethereum client.
Stochastic computing is a collection of techniques that represent continuous values by streams of random bits, what this simply means is that instead of solving the problem of asset value using arithmetic techniques like the EVM, it can be done using probabilistic technique (PVM) effectively expands the boundary of EVM and greatly it also shortens some financial products’ development process.
Now lets go to the next exciting phase of this article which is all about NEST coin and it's usage. NEST coin is essentially more complex than the ordinary information assets that are in the crypto ecosystem, basic knowledge of economics shows that the price of any coin is greatly affected by the law of supply and demand but when it comes to the NEST coin, there are three factors (game networks) that will affect the price which are the game between the offerer and verifier, the game between the token buyer and token seller and lastly the game between stochastic investor and the system. The game between the offerer and verifier is all about the process ensure the accuracy and verifiability of the information flow provided by the NEST oracle, offerers or bidders can also become miners in the system. The game between the buyer and seller is all about the economical game of supply and demand, this means that it is based on people's judgement about the future of NEST coin. The game between investors and the system, as was early stated in this article, NEST is a stochastic coins that runs with the PVM system, so Investors can select and customize stochastic tokens on NEST’s platform to meet their risk requirements, the system makes the gains and losses of the stochastic assets selected by the investors.
NEST coin is an asset that is applicable to a wide range of practical fields, for example data flows in the NEST system can be unified with NEST coin as the unit of value, which means that if the value of a stochastic is a particular value x at some point, then the address that owns the stochastic will have x NESTs. It can be used in Derivatives, parallel asset/stable coin, Bond and interest rate oracle, Borrowing and lending, probality coin and many others.
As stated before NEST as a stochastic asset can be applied in so many fields, in this section we are going to discuss some of them in brief details.
1) Futures: is a contract to buy and sell at a predetermined price at a specific time in the future, however since NEST asset is going to be at a probabilistic price at a specific time in the future. Anyone can make good profit from the NEST protocol future trade because of it’s easy and userFriendly interface, all you have to do is choose a probability range of time and then stake your NEST coin.
2) Option: with the NEST coin will allow investors to speculate on the future price of the coin using the probabilistic virtual machine system, there is the Buy and Sell option that can be used.
3) Win: This is an opportunity for people to play games as many times as possible, in order to earn some rewards and when you WIN you can withdraw to your desired wallet address.
4) Oracle: From my experience NEST oracle is the only truly decentralized oracle on the market today. The solution to price oracle that NEST got to offer is including collateral asset quotation, arbitrageverification, price chain, beta coefficients, and other modules to form a complete NEST protocol.
NEST Protocol Price Prediction
From all we have discussed in this article, it is clear that NEST Protocol creative solutions to some of the deficiencies of mainstream blockchain technology, such as the usage of probabilistic virtual machine PVM, based on basic functions, which will program stochastic assets, that applies to a large number of real-world scenarios. All these innovations will drive the price of NEST coin to unlimited heights.
At the time of press, the NEST coin is about $0.03122 even if the crypto market is not in it’s optimal state, which means by the end of 2022 there is a very good chance that NEST will hit $0.041 or around that price range.
By the year 2023 NEST will surely maintain its price range as more and more people continuing to get to know more about the many applications of NEST protocol.
There is no doubt that as the years roll by the NEST coin will see a steady increase that will bring it to the 1 dollar mark, that is why it is better to get in on the project while it is still in it’s early stages.