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Table Of Contents
The NEM (XEM) “New Economy Movement” seeks to provide enterprise-level clientele a more efficient way to verify and move blockchain assets. To this end, the company functions as the missing link between private and public blockchains by connecting these networks in ways that expand usability. NEM (XEM) continues to see growing interests due to its versatility and unique business strategy. Users can easily manage assets and data more efficiently using this new era blockchain. Importantly, NEM was built from the ground up with the needs of large businesses in mind. This desire to meet the market’s requirements has led the platform to earn the nickname the “Smart Asset Blockchain.”
What Problems Does NEM (XEM) Solve?
NEM (XEM) tackles a variety of issues currently plaguing the crypto market. One of the core missions for this platform is to increase interoperability between private blockchain networks. There is a boom currently underway within the private blockchain sector. Companies are investing billions into this technology. The problem is that each of these blockchains functions as an island at the moment. They are incapable of communicating digital assets between each other.
Intercommunications in a variety of ways. The protocol enables easy transfer of any digital asset including tokens, contracts, or files. Additionally, the blockchain is set up in a way that it can send data from a privately held internal enterprise network, routed via a public blockchain, over to another business’s private network.
Supply chain Mismanagement
Another sector in which NEM is set to disrupt the current business systems is logistics. Today’s supply chain management systems are bulky, outdated, and inefficient. NEM replaces these systems with one that is open, secure, and fast. The platform makes it simple for companies to manage, access, and share validated data via a variety of access controls.
How Does NEM (XEM) Work?
NEM (XEM) is able to accomplish these tasks through the integration of a variety of new technologies. This versatile blockchain introduces a new consensus mechanism to the market – Proof-of-Importance(PoI). PoI differs from other consensus mechanisms such as Bitcoin‘s PoW in a variety of ways. Primarily, in a PoI mechanism, the time and amount someone has vested in the NEM network is taken into account.
PoI in Action
The PoI algorithm requires that you have at least 10,000 XEM vested within the system to qualify for generating new blocks. Users that get to add new blocks to the blockchain receive rewards and a portion of the transaction fees. To take your XEM from normal to vested XEM you will need to hold them in the network’s wallet. Your new holdings become more vested at a rate of 10% per day.
Another cool feature about PoI is that it rewards users who make transactions with others in the network. The system evaluates these transaction amounts and uses this information to boost your PoI score. Every PoI user has a PoI score based on their participation and overall contribution. This score ensures that the best network nodes get the most opportunities to earn.
Another crucial element of the consensus system is the harvesting protocol. This coding links your account to an existing supernode. Supernodes form the backbone of the NEM ecosystem. Linked accounts allow supernodes to utilize a bolstered PoI score to increase the chances of block generation in their favor.
In essence, supernodes borrow an account’s PoI score to complete blocks on its behalf. This strategy allows the NEM blockchain to remain secure without requiring all users to exert large amounts of computational effort. As such, NEM is far more energy-efficient than PoW systems such as Bitcoin or Ethereum.
Advantages of Harvesting over Mining
These power savings are a huge draw for firms that consider sustainability in their business plan. NEM provides users with unmatched efficiency in this regard. For example, NEM nodes don’t need to have their computer or mining rig running to perform the harvesting process. Additionally, since harvesting doesn’t require expensive mining rigs, it democratizes the blockchain sector further.
NEM’s blockchain integrates the Eigentrust++ algorithm to maintain the PoI reputational architecture. The protocol is able to accurately monitor network nodes to ensure only quality contributing nodes are a part of the consensus system. The system automatically removes dead weight from the network such as noncontributing nodes.
Uniquely, the system has a security clustering algorithm that monitors the past behavior of nodes in the network and enables nodes to lend reputation points to their neighbors in clusters. This strategy helps keep NEM nibble and efficient when compared to generation one and two blockchains.
NEM brings the concept of Namespaces to the blockchain sector. Namespaces function kind of like domain names on the internet. You can create and manage your own domain names on the NEM blockchain. Interestingly, users are able to operate a domain name 3 levels deep. This approach provides more flexibility for businesses and users alike.
Multisignature transactions are a big draw for enterprise-level clientele. These businesses need to provide administrators the ability to monitor and expand the network to meet the firm’s needs. NEM makes it simple for companies to track the activity of an account, control assets such as XEM from one account, other mosaics, or create new tokens.
Keeping in line with the company’s commitment to security, all Multisignature smart contracts reside directly on NEM’s blockchain. Most of the competition currently in the market utilizes third-party off-chain systems to accomplish this task. NEM raises the bar in this sector via its blockchain direct Multisignature functionalities.
Benefits of NEM (XEM)
There are a ton of benefits to NEM. The platform is vital to mainstream adoption because it brings together some of the best blockchains in the world. Additionally, the firm’s focus on large businesses makes it an important cog in the gears of growth. Developers recognized the fact that their platform must remain agile to achieve continued growth in the market. As such, they packed it with helpful features such as a full API interface.
NEM users can customize how they allow the access and use of NEM. Best of all, these tasks are complete in an open and self-scaling framework. The system enables developers to easily create, distribute, and trade cryptocurrencies and tokens via the NEM blockchain.
History of NEM (XEM)
The history of NEM begins in 2015. The entire NEM concept began when a Bitcoin Talk forum user called UtopianFuture explained how the cryptocurrency NXT inspired him to build a new project. By March 2015, a forked version of NXT called NEM went live. It wasn’t long before developers decided that they would rebuild NEM from the ground up.
The end of the year saw NEM receive its own codebase. These improvements made the platform more scalable and faster than NXT. The project continues to gain momentum until 2016 when the NEM Foundation entered the sector. This non-profit focuses on ways to increase NEM adoption including brand awareness, marketing, training, and partnerships
In January 2018, the popular cryptocurrency exchange Coincheck was the victim of a hack that saw nefarious coders make off with 523 million XEM coins. At the time, the value of these coins amounted to just over $400 million. The losses stuttered the value of NEM for weeks. Sadly, the funds were never recovered. However, NEM spent two years monitoring and flagging every account that handled the stolen crypto. This information was sent to the authorities.
In 2018, NEM got its first real-world application. The system was chosen by the Ukraine Central Election Commission for a pilot program to test the feasibility of blockchain-based voting systems. NEM introduced a new-era voting protocol that provided more transparency and efficiency than the previous methods.
The same year, NEM secured an agreement with Malaysia’s Ministry of Education to test a system that authenticates academic certificates. To accomplish this task, the Ministry formed a consortium of universities that all agreed to test the system. News of the pilot program helped to push NEM prices higher.
XEM is the native utility token of the NEM blockchain. XEM serves a couple of vital roles in the ecosystem. Users vest XEM to gain voting rights and block approval rights. Additionally, NEM can serve as a cryptocurrency with lightning-fast transaction times. However, XEMs main purpose to date has been to facilitate smart contracts.
How to Buy NEM (XEM)
How to Store NEM (XEM)
NEM users have a nice variety of wallet option to store their crypto. Developers offer a desktop wallet known as NEM Nano Wallet. This lite wallet that allows you to store and manage your XEM coins with ease. This wallet includes some NEM specific features such as NEM address and Namespace.
There is also a mobile app from the NEM Foundation that is available for both Android and iOS operating systems. The app is free to download and very easy to navigate. Consequently, this is one of the most popular ways to store XEM.
If you seek to make a major investment in XEM or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support NEM (XEM).
NEM (XEM) – An Interesting Project that Has a Lot of Potential
NEM has proven to be a very resilient blockchain and community. The platform bounced back from a major hit with the Coincheck hack. To go from a $400 million dollar loss to one of the most interactive online communities in the market is impressive. For now, NEM appears to have found its niche in the industry. You can expect this coin to gain more ground as more pilot programs go live.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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