NEM- Everything you should know about this Smart Asset Blockchain
NEM (New Economic Movement) is the first cryptocurrency built after Bitcoin and is completely written in Java. Quite similar to Ethereum, NEM was launched on 31st March 2015 and is designed to support multiple ledgers on its cryptocurrency layer. The NEM Smart Assets support mosaics representing the store value. XEM, the native currency of the NEM, the digital coin is used for transaction purpose on the public blockchain to incentivize the network of public nodes and record transactions for business purpose.
The Basic concept of NEM-
One thing that makes NEM a unique cryptocurrency concept is its powerful Smart Asset System. It was started out to build smarter and advanced Blockchain technology. If studies step-by-step-
- It is a part of cryptocurrency family providing an improved platform and streamlined methods to maintain the ledger for safer transactions.
- Get rid of mining and expensive hardware which another cryptocurrency coin requires. NEM has made the cryptocurrency transactions simple and efficient. In fact, it has brought down the energy requirement for the transaction purpose.
Before getting ahead with its structure, let us first research the insight of NEM and the market performance of XEM, NEMs proprietary crypto coin on the market.
The Development of NEM-
Originally started as fork of NXT, it was later developed using own code right from the scratch to become NEM. The backbone of this crypto is NEM.io, a NGO based in Singapore. Lon Wong, the president of NEM foundation says, “NEM keeps its designs simple and functional. It is developed for mainstream applications where logic and business rules are usually decided off chain in an environment whereby these off-chain smart contracts or business logic can be developed in any language. The outputs of these smart contracts are fed into the NEM blockchain as immutable records.”
When we read that NEM was started as a fork of NXT, this means developers of NEM made the copy of open source code of NXT. After its development, NEM brought many upgrades to make this crypto worth in the market.
NEM development came with some advantages that built trust among investors to invest over it-
Similar to other crypto coins, NEM blockchain has some good benefits in long-term. This blockchain technology offers a fundamentally streamlined method to make secure ledger. Let us now check some of the advantages NEM offers-
NEMs blockchain platform is designed and coded from the scratch that scales up the speed. It has a permissioned private blockchain delivering industry-leading transaction rates for internal ledgers. It has a revolutionary consensus mechanism and Supernode Program that ensures that NEMs open, public blockchain without compromising the security.
Ease of Development-
Blockchain offers a drastic variety of secured ledger, transactional and tracking systems. NEM carries powerful API interface that works on the programming language. The code also allows easily mate up of business logic and use blockchain where it's strongest. You can configure NEM with your business and deploy blockchain incrementally.
Unlike other cryptocurrencies, NEM is built from scratch using powerful modular customization for virtually any application. It is called as Smart Asset System, that lets the user to focus on building what you need, be it fintech system, tracking logistics, ICO, and decentralized authentication.
NEM is designed to be a more secure platform. It has Eigentrust++ and incentivized public node network based n two-tier architecture. NEM has private blockchain option that allows complete control over the internal data.
Another set of advantages NEM technology has are-
Unlike cryptocurrencies, NEM coins aren't designed to mine. Instead, it is obtained through Harvesting. Harvesting is an alternative to mining system designed by NEM itself and to generate XEM. In this, everytime someone carries out the transaction, nearby users will be notified, thus creating multiple information. This process is also called as Generating the Block. For instance, when someone invests more than 10,000 vested XEM in NEM, they will receive transaction fees.
Secondly, NEM has also adopted consensus system which is different from Bitcoin's proof-of-work and proof-of-stake called as Proof-of-importance (explained below). The basic principle of this system is to give away more block rewards and benefits to the user owning more than one NEM tokens.
XEM is the native currency coming from the home of NEM public blockchain. XEM method is used for transaction to incentivize its network of public nodes. In fact, XEM carries some fundamental values to.
XEM vs. Ethereum-
Industry experts feel that the speed at which XEM cryptocoin is growing, it is going ahead of Ethereum. For beginners, Ethereum is decentralized, while NEM incorporates degree of centralization, but is more suited to quick and easy integration with current enterprise-grade technology then Ethereum.
NEM offers both private and public blockchain technology using Mijin platform. This also allows companies to maintain some degree of privacy. Moreover, NEM blockchain technology can be integrated by developers into existing technological framework using programming language, compared to restrictions of platform-specific language for Ethereum.
Ethereum integration is old process which the companies who built Ethereum from the outset. This is the long way off realization for vast majority of Legacy Corporation. NEM, on the other hand, is an overnight integration solution. This way, companies looking to migrate to blockchain technology doing through NEM in the initial stage, may migrating to Ethereum.
Buying and Storing XEM-
When you step to buy NEM coins, you will find that there are around 25 exchanges to choose from, compared to other cryptocurrencies like Bitcoin and Ethereum. Binance, Coinsuper and Bittrex are three most popular exchanges to buy XEM. Other than this, NEM also uses fiat currencies like Exrates (USD), BuyUcoin (INR), and Litebit (EUR).
The online cryptocurrency trading platform, CoinSwitch will actively help you in making the decision of showing the right market price of NEM coins. Presently, the site supports 140 coins and 45,000 pairs of cryptocurrencies. No matter which pair of coin you want to pair NEM coin, CoinSwitch will help.
If you are looking to store XEM cryptocurrency then the best place is NEM Nano Wallet, which is available in both desktop and mobile app version.
NEM Smart Asset System-
One of the key features introduced by NEM is the Smart Asset System. This feature makes NEM a unique cryptocoin. Developed as customizable blockchain solution, Smart Asset will allow for dozens of use cases using API calls. Like other decentralized blockchain solutions, NEM is secured by the global network of nodes using API Gateway server. For developers, NEM is quite easy to use and help them to build powerful DApps without investing in software.
NEM Addresses and Mosaics-
NEM Addresses are containers used for holding assets, which can be updated and changed. The Address can be simple as wallet holding coins. Upon defining addresses, developers can create Mosaics. Here Mosaics are defined as identical, transferable assets representing assets held in addresses. When both Addresses and Mosaics are created, NEM becomes viable.
Bitcoin and other coins use Proof-of-work, NEM blockchain uses Proof-of-Importance to achieve consensus. Proof-of-important incentivizes participation in the network by assigning as per the importance of score. Overall part of the system is similar to POS (Proof-of-Stake), but the difference here is that the coin needs to be vested before counting towards the importance of the account. One of the benefits of using Proof-of-Importance is that it is not processing intensive, and the nodes can run on any computer. In this, smaller players can get a strong foothold and earn well.
Other Features of NEM-
There are some good features that make NEM the most preferred coin compared to others-
- Built-in spam filters to prevent garbage transactions from flooding network
- P2P time synchronization system allowing the network to maintain accurate timestamps without relying on outside servers
- Encrypted messaging on the blockchain without hacking the transaction fields
- Has multi-signature addresses allowing developers to define addresses and multiparty control
About Coincheck XEM Hack-
There are cases where Bitcoins and cryptocurrencies were hacked, and XEM isn't different too. In January 2018 Coincheck got hacked resulting t 523 million XEM worth $530 million got vanished. However, many experts did believe that the Coincheck XEM hack didn't affect NEM. It was found that Coincheck was full responsibility for this hack that apparently held coins in the wallet rather than at industry standard cold storage. Later, the company agreed to compensate 260,000 customers who were hugely affected by the hack.
In the statement it released, the company said, “We will solemnly and seriously take the measures we take care and will deeply reflect on ourselves and will drastically review our internal control system and management control system and will review the management strategy that thoroughly protects customers.”
Cryptocurrency, on the other, typically stores actual coin balances in Cold wallets, which makes coins safe.
The Future of NEM-
Compared to other cryptocurrencies, the current market cap of NEM Coin is more than 1.69 billion USD. Since it has survived from hack; it becomes the major investor in future of coins. There is no doubt that NEM platform is certainly the most promising addition in the family of blockchain. Developing on NEM platform certainly makes it the biggest attraction for investors. Moreover, with its flexibility and Proof of Importance surely makes it attractive to developers.
Another interesting thing that makes NEM successful in future is XEM mining isn't possible. In fact, XEM ranks quite high in terms of market cap. One thing that makes NEM different from other coins is its code which is completely original. Moreover, it also claims to have a faster transaction rate of 4000 transactions per second, compared to financial giant visa products.
If you are considering investing in XEM, then you must know that its individual price is quite lower. Although it is stable in the current market, won't be shooting up soon, it still doesn't make it to investment portion. It is better to do a good research before investing in the fluctuating market like cryptocurrency and Bitcoin.