NEM (XEM) Blockchain-Based Cryptocurrency

NEM (XEM) Blockchain-Based Cryptocurrency

in Cryptocurrency, Blockchain, Know-it-all, Altcoins
NEM (XEM) is a decentralized, peer-to-peer cryptocurrency and blockchain platform launched in March 2015. Since then, it has grown to become a Top 10 cryptocurrency with a market cap of more than $1.8 billion (at the time of this writing). There are 9 billion XEM coins in circulation, all of which were created before the launch. NEM is written in Java, and it was built from the ground up, in order to address issues that are faced by many cryptocurrencies today (such as ease of use, speed, and scalability).
Cryptocurrency

NEM’s Key Features:

  • Proof of Importance

NEM introduced a new feature to blockchain technology called Proof of Importance (POI). It is somewhat similar to Proof of Stake, but it includes more variables. With NEM’s POI, the more coins a user has—and the more transactions they make—the more importance they’re given. This impact encourages actively using XEM coins, rather than simply holding them.
  • Harvesting

Instead of mining, NEM has a feature called harvesting. It doesn’t require any special hardware, but to start harvesting, you do need to have at least 10,000 vested XEM coins. Anyone running Supernodes (see below) and processing transactions get paid by processing the payments for the network. The advantage of harvesting is that it uses a lot less electricity than mining, which means lower transaction fees. As such, NEM is a much more energy-efficient cryptocurrency than Bitcoin (BTC).
  • Supernode Program

The Supernode program rewards people who are running active nodes. High-performance nodes help secure the network. Those meeting bandwidths, chain height, ping, and responsiveness requirements are randomly given awards. However, in order to participate in the Supernode program, you must have at least 30 million XEM.  

NEM Advantages

  • Performance

Blockchain technology offers a fundamentally streamlined method of maintaining a secure ledger of transactions compared to a traditional database.
How does NEM push blockchain performance further?
NEM’s blockchain platform was designed and coded from the ground up for scale and speed. NEM’s permissioned private blockchain delivers industry-leading transaction rates for internal ledgers. And its revolutionary consensus mechanism and the Supernode program ensure that NEM’s open, public blockchain can grow without ever compromising throughput or stability.
  • Ease of development

Blockchain technology offers the potential to drastically simplify an enormous variety of secure ledger, transactional, and tracking systems compared with traditional databases.
blockchain
How does NEM make blockchain development easier?
NEM’s blockchain exposes its functionality through a powerful API interface that can be used with any programming language, not a specific “smart contract” language. Existing business logic code can easily mate up and use blockchain where it’s strongest: secure transactions and ledger keeping. In short, configure NEM for your business, and then deploy blockchain incrementally and without forced retooling of existing infrastructure.
  • Deep customization

Blockchain technology offers the potential to drastically simplify an enormous variety of secure ledger, transactional, and tracking systems compared with traditional databases.
How does NEM make blockchain development easier?
NEM’s blockchain exposes its functionality through a powerful API interface that can be used with any programming language, not a specific “smart contract” language. Existing business logic code can easily mate up and use blockchain where it’s strongest: secure transactions and ledger keeping. In short, configure NEM for your business, and then deploy blockchain incrementally and without forced retooling of existing infrastructure.
  • Security

Blockchain technology naturally provides a secure method of recorded transactions through its unique consensus-driven ledger concept. But every blockchain’s implementation is different and has different weaknesses and vulnerabilities.
How does NEM make blockchain use even more secure?
NEM’s architecture provides an incredibly secure and stable platform through its use of Eigentrust++ and an incentivized public node network based on its two-tier architecture. The significant risks inherent in on-blockchain “smart contracts” are eliminated by providing building block customization to NEM functionality that keeps application security in your hands, not on the blockchain. And NEM’s private blockchain option allows complete control over internal data privacy when a public blockchain isn’t the right solution.  

NEM Smart Asset System

The NEM Smart Asset System allows you to totally customize how you use the NEM blockchain. First, your Namespace defines your home on the blockchain where you can name your own Mosaics, provide easy-to-remember names to user addresses, and more. Mosaics then are the basic building blocks of Smart Assets that you can use to represent lots of simple things: it could be a coin, a signature, a status update or more – you decide. To create truly Smart Assets, however, NEM allows you to create Addresses that act as containers for Mosaics that can be connected with Multisig rules. An address can simply represent a user, such as an account holder. But it can also represent an individual unique asset such as a document, or a song, or a package. You can then update that asset through configurable Transactions. See our “example use cases” below to see how Smart Assets can be used to create a wide variety of blockchain solutions, quickly and reliably.
blockchain currency
NEM’s modular Smart Asset system enables businesses to build an incredible variety of real-world application uses. By using NEM’s built-in features to define your Smart Assets and connect them together, you can represent almost any system of business transactions on the blockchain with minimal development.
blockchain for dummies
NEM’s architecture is designed for both simplicity and flexibility of development. The blockchain itself is supported by nodes running NEM-provided software that implements NEM’s feature set and unique consensus mechanism. This may either be the open, decentralized, self-supporting NEM public blockchain, or it may be a permissioned private NEM blockchain running on your own servers. The NEM blockchain's range of features is made available to you through simple RESTful JSON calls to an API Gateway Server. This drastically simplifies creation of client apps, or interfacing servers to the blockchain. You can implement your usage of the blockchain using any language you prefer without being forced to reimplement existing business logic or develop in an unfamiliar environment.  

How is NEM different from bitcoin?

The NEM platform and its associated coin XEM set out to build a better blockchain, and here are two key strategies:
  • Harvesting

An alternative to mining, harvesting is a system designed by NEM to generate XEM, in order to help maintain the integrity of the NEM blockchain. Every time someone carries out a transaction, the first computer to see and verify the transaction will notify nearby users of that transaction, creating a cascade of information. This process is called “generating a block”. Whenever someone with more than 10,000 vested XEM generates a block in NEM, they receive the transaction fees on that block as payment.
  • Vesting XEM and proof-of-importance

Bitcoin and most other mining cryptocurrencies use a proof-of-work system: Your computer does the work for the blockchain and you get coins in return. When it comes to harvesting, NEM uses a proof-of-importance system instead.
blockchain course
Importance is a measure of how much you’re invested in the NEM system. The XEM assets in your wallet become “vested” after a set amount of time. Once you have 10,000 XEM vested you will be able to generate new blocks and earn the transaction fees for all transactions on that block. XEM is vested at a rate of 10% of the non-vested XEM in your wallet, per day. As seen below, with 20,000 non-vested XEM in your wallet it will take 7 days to reach the minimum required of 10,000 vested XEM.  

NEM’s team

The NEM.io Foundation is incorporated in Singapore as a company limited by guarantee. The sole purpose of the Foundation is to introduce, educate, and promote the use of the NEM blockchain technology platform on an international scale to all industries and institutions.
Blockchain Technology

Nem’s Market Cap


how cryptocurrency works

Nem’s wallets:

  • NEM Nano Wallet (desktop client)
  • NEM Wallet (for Android and IOS)  
You can buy Nem in the same way as any other cryptocurrency.

Conclusion

NEM is a very transparent and traceable cryptocurrency. But much like Bitcoin, it has little in the way of privacy features. While not revolutionary, NEM is a very functional coin. The fact that it’s a Top 10 cryptocurrency is evidence of its functionality. Although there aren’t many NEM Wallets available, the NEM Nano Wallet works well. Purchasing NEM is straightforward enough that it has a number of exchanges that offer a NEM/BTC pair.  

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