NEM or NEM, or the New Economy Movement, wants to create a more sophisticated and technologically more sophisticated Blockchain. It aims to be not just an altcoin based on another blockchain.
NEM, also known as”the blockchain for smart assets is a platform for technology that aims to provide an efficient method of managing the data and assets quickly and with a minimal cost.
Let’s look at NEM how it works characteristics, features, benefits, and potential applications.
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Key TAKEAWAYS
- NEM, which stands for the New Economic Movement, is an application of technology designed to manage assets and information quickly and cheaply.
- NEM was launched in 2015 by NXT, a cryptocurrency based on blockchain technology and a payments network service platform.
- NEM is a cryptocurrency with its currency, known as XEM, that is used for trading by cryptocurrency holders. However, it is not used as means of payment.
- NEM also includes a cryptocurrency wallet known as the Nano wallet.
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NEM Facts | What is NEM (XEM)?
NEM was created in March of 2015 as a fork-out model of NXT, a popular virtual currency based on blockchain technology, along with a network of payment networks. 1
A non-profit organization runs it in Singapore known as NEM Foundation. NEM Foundation. Following the fork, NEM.io chose to create its codebase to advance NEM to make it more flexible and speedier. This led to the creation of a brand new NEM cryptocurrency platform that was totally distinct from NXT.
NEM is a cryptocurrency owned by NEM named XEM. Although merchants aren’t utilizing XEM for the purpose of payment as bitcoins do, XEM has nonetheless grown substantially in value and, at the time of writing, is the 75th most valuable market capitalization among cryptocurrency.
NEM currently supports one wallet, dubbed Nano wallet.
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NEM’s Efficiency Pillars: Proof-of-Importance and Harvesting
NEM seeks to create a “better” blockchain and tries to do it by using two main concepts: the concept of proof-of-importance (POI) as well as harvesting.
Some cryptocurrency networks, including Bitcoin, use the system called a proof-of-work (POW) as well as a proof-of-stake (POS) system, which requires a mining device in order to be able to work on the blockchain. The rewards are distributed to miners according to their contribution to the work.
In POW, miners with greater processing or computing power enjoy an advantage over miners with smaller machines. Furthermore, POW results in higher power consumption, making the process inefficient and energy-intensive. In POS, coin hoarders enjoy an advantage because users with the most coins have a higher chance of receiving more coins via processing transactions and mining. Also, it encourages saving on crypto coins instead of spending cryptocurrency.
NEM solves the problem using its POI mechanism as it assigns greater “importance” to the amount one has “invested” in NEM. NEM system, and has an actual “vested” in. The XEM coins in the wallet and the period of time for holding play an essential role in determining the importance.
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You must hold 10000 “vested” XEMs in their wallet to be eligible to generate new blocks and to earn various transaction fees.
How POI functions
As an example, suppose that Martin receives 20,000 XEMs into his account today. As each day passes, NEM’s mechanism assigns 10% of the holdings to be vested. 2000 of Martin’s holdings will become fully vested on the first day, leaving 8,000 unvested XEMs. On the second day, 10% of 18,000 will also be considered a vested asset, increasing the number of XEMs vested to 3,800, and the process continues. On the seventh day, the vested XEMs will reach 10000, which would allow Martin to pursue blockchain-based rewards.
In addition, POI also rewards users who conduct transactions with other users on the network. Making more transactions than the minimum amount also adds to a person’s score on POI and gives them more opportunities to win an award. To avoid misuse by allowing the back-and-forth of dummy transactions within groups of users, NEM examines the total amount of transactions to increase the POI score.
Harvesting can be a viable alternative to the normal mining process, which is typically used by other blockchain-based platforms such as Bitcoin as well as Ethereum.
By mining, newly discovered cryptocurrency coins are introduced to the blockchain, and the transactions taking place on the network are analyzed and are added to the public blockchain ledger. However, the conventional mining technique is very power-intensive and could require a long time which results in the processing of transactions being slower and creating the network becoming overwhelmed.
The NEM harvesting system works differently. Instead of every miner contributing their mining power in a way that is cumulative to a computing node, participants who are harvesting simply link their account and supernode and utilize the computing power of that account for completing blocks on behalf of them. In essence, one lends their scores on POI to the node, which enhances the likelihood of harvesting blocks jointly, without any requirement to increase processor power.
When the transaction is made within the NEM blockchain, the first node or computer that detects and confirms the transaction notifies others, which causes an explosion of information, increasing the likelihood of the generation of blocks.
A mining device used by the participant or laptop computer does not need to be in use to complete the harvesting process, which aids in power savings. Harvesting instead happens by a wallet that the user uses. Harvesting does not require any special equipment similar to that used to mine bitcoins.
NEM utilizes the Eigentrust++ algorithm, which keeps a “reputation method” for all the nodes in the network. It assists in balancing the load placed on the network and may even choose to eliminate non-contributing nodes, keeping the network flexible and efficient.
A case study of NEM Utilization
NEM gives users the ability to connect both private and public blockchains. It makes it easy to transfer any type of digital asset — like contracts, tokens, or files, from a private internal enterprise network that is routed through a public blockchain and then on to another company’s private network. The current system does not allow users to transfer money directly from their PayPal account to a Venmo account. NEM private blockchain to public blockchain interfacing could make transfer possible, provided all parties agree.
NEM can handle everything–financial assets, contracts, documents, and a variety of digitized assets.
One can build your personal Paypal or Venmo through NEM. NEM network. For instance, NEMPay, an open-source payment application, is available on NEM and is easily customizable by the user to make use of the crypto tokens of his or her choice to make it easy to transfer money.
Other applications of NEM include a chain that uses it to maintain and track the loyalty rewards program for its customers, as well as a shipping company making use of it to keep track of details about handling and shipping or for a secure, open, and end-to-end supply chain logistics management system for supply chain logistics management.
Other uses for social media are secure voting record-keeping and registration as well as access control. To pass, for instance, an overwhelming resolution at a meeting of the constituents using NEM’s built-in multi-signature feature, it can be used to decide if the minimum N from the possible M signatures has been obtained or not.
NEM can also allow a user to develop, distribute, and trade crypto coins, tokens, and cryptocoins compatible with wallets and other trading apps accessible in the NEM ecosystem. It is possible to conduct an initial coin offering (ICO) through NEM by using this feature.
Technically speaking, NEM is API-compatible, which means that every global app can be connected and used. NEM platform. Any existing or new mobile or web-based application or database software can be easily connected with NEM’s NEM blockchain and communicate via it in a safe way using API Gateway. API Gateway server and API calls. It lets users easily and fully customize the way they grant access to as well as use NEM in an open, self-scaling, and flexible framework.
The Bottom Line
“Smart Asset Blockchain Designed to Deliver Performance”–NEM’s tagline summarizes it perfectly for a brand new blockchain that has provided many possibilities to build more efficient and better blockchain-based systems. NEM is directly at the issues with current blockchains, which are lengthy processing times as well as network traffic. It also aims to integrate the needed public and private blockchains, which makes it an ideal candidate with more potential for wider adoption in the near future.
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