NEM ($XEM) is a decentralized cryptocurrency operating on its own blockchain & ecosystem. NEM is primarily built for enterprise/commercial-grade solutions. NEM was originally meant to be a fork of NXT but at the last minute, the project proceeded with an entirely new code base.
NEM’s major point of difference is there consensus algorithm which is based on “Proof of importance” or PoI. The major reason for this new consensus algorithm is that it does not require a large number of resources and large-scale computing. PoI is very similar to PoS (proof of stake) which only requires a user to hold the coins to receive rewards or benefits – however, PoI takes this a little further by incorporating and evaluating other metrics that are deemed to be positive for a blockchain community.
NEM has a very strong community and the foundation is very vibrant which major communities seen in Japan, Australia, New Zealand and more…
Lets see how NEM is tackling problems that other blockchains and cryptocurrencies are not.
TITLE/TICKER : NEM / $XEM
COMPANY ORIGIN : Japan
PLATFORM : NEM
CONSENSUS ALGORITHM : Proof-of-importance (PoI)
CODING LANGUAGES : C++
PURPOSE : Enterprise level, highly scalable blockchain.
POINT OF DIFFERENCE : Ecosystem, PoI
MAJOR PARTNERS : See the full list below
WEBSITE : NEM Website
POSITION PAPER/WHITEPAPER: NEM Technical Whitepaper
WORKING PRODUCT ? : Yes
CURRENT PRICE ACTION :
How does NEM work? What is Proof-of-importance (PoI) ?
To understand NEM it is crucial to know about their ‘Smart Asset System’ . This allows for a seamless, easy path for developers to plug into the NEM blockchain and ecosystem simply by accessing API calls rather than having to download any special or unique software or run nodes to access the network. This gives great ease and flexibility to developers looking for a platform to build on as they no longer need to write and configure complicated ‘Smart Contracts’ – but rather they can access their own customised blockchain to develop projects on.
There are three methods to which a dAPP can access API’s;
- By accessing a separate server
- existing servers can be customised to run NEM
As stated, NEM runs on a “Proof of Importance” (PoI) consensus algorithm to control the direction of the project. There are a number of differences with this model and vs traditional models such as PoW, PoS and more.
Some of the major differences are;
- Not only rewarding those with large stakes or holding balances / but rather transaction frequency and to whom with.
- ‘Trust Scoring’ is an integral part of the NEM ecosystem – this validates and incentivises participation on the network
- ‘Harvesting‘ is NEMS version of ‘Mining’ – users are rewarded for helping confirm blocks, however, you are rewarded based on your ‘Trust Score’.
What problems is NEM looking to solve?
NEM, as stated earlier, is by design created for large-scale/commercial applications, let us look at how NEM is looking to serve this audience;
1. Transaction Fees
2. High Transactions per second (TPS) / No latency
3. Ease of use and on-boarding for users and developers
5. Removing barriers for Developers and Users – with the introduction of the likes of Catapult and API’s for developers, NEM is leading the way adoption with all target markets & audiences (Developers / Merchants / Everyday users and more)
NEM’s potential use-cases
Due to NEM’s core features and benefits stated earlier such as – TPS/scaling capabilities by design NEM would be best suited to the following applications/industries/verticals (as per NEM’s website);
- Financial payments
- Creating your own value/cryptocurrency
- Mobile payments
- Equity markets
- Escrow services
- Be your own ‘Paypal’
NEM vs Competitors
NEM being a platform that is built and designed for high output and enterprise level use-cases only have a few major competitors who are by large – not tackling the same amount of issues and are not producing the same level of innovation as NEM is.
The closest competitors, in my opinion, would be EOS, Ziliqa (to name a few) who are eyeing up the same slice of pie in terms of the enterprise level, commercial-ready, high-output market. Other projects are aiming to scale in due time e.g NEO (1000 tps), Ethereum among the familiar faces.
See the full NEM team here;
NEM currently has some of the best partnerships to date, further providing validity around the project. Some of the major partners include but not limited to;
- Tech Bureau Corp.
- Dragonfly Fintech
- Atraura Blockchain
- Blockchain Global
- K Chain
- Asta and more…
Where can you purchase NEM tokens?
How to protect & store your NEM ($XEM) coins?
We recommend downloading an approved wallet from the official NEM website once on their main-net otherwise we always recommend using a Ledger Nano S.
Outlook for NEM?
When I think of Enterprise level blockchains and ecosystems – NEM is one that comes to mind right away. You only need to look at the NEM team, partners, foundation and wider network to know that is project is serious and with a real, long-term vision and user-adoption strategy. NEM is ticking all the boxes so far – hitting roadmap goals, breaking down the problems and barriers that are hindering the space currently and innovating their own new features paving the way for further adoption. If you are interested in a 360-degree project – NEM should be on your list. Rest assured we are watching NEM very closely.
Reach out if you have questions about NEM or need help with any topic.
Disclaimer : None of our Analysts are holding NEM ($XEM) at the time of writing this article. All content is research, opinions and personal view points from our Analysts. This is not financial advice and should not be treated as such. If you have any queries please contact [email protected]