The tasks that can be accomplished using cryptocurrencies have been growing rapidly in the last ten years. When Bitcoin was launched in 2008, the target was mainly to provide an alternative to the fiat currencies that are highly unpredictable. Since Bitcoin was launched, it has demonstrated key flaws that have necessitated the creation of new platforms. One such platform is NEM.
What is NEM?
NEM is a blockchain platform and one of the latest cryptocurrencies founded in 2015. The initials NEM means New Economy Movement which is a community-based cryptocurrency. NEM was initially launched as an NXT fork, but the creators ultimately coded an entirely new platform. Though the alpha version of NEM was launched in June of 2014, the first stable version had to wait until March of 2015.
The cryptocurrency was conceived by Utopian Future, a group of users who targeted improving on Bitcoin, and NXT. The main objective of the group was addressing wealth inequalities that had become common with other cryptocurrencies such as Bitcoin, Ethereum, and NXT. Note that the name New Economy Movement has since been dropped so that the cryptocurrency is simply referred as NEM.
NEM has won the hearts of many because of its speedy transactions that are completed within 60 seconds. It also applies proof of importance and multisignature accounts. Notably, the NEM blockchain is applied even past the cryptocurrency realms. For example, it is the core platform in a new blockchain called Mijin that is used by a lot of financial institutions globally.
How does NEM work?
NanoWAllet communicates with the nodes to communicate all transactions to the entire network. It also receives information from other nodes in the network.
To use NEM, one is required to download NCC (NEM community client) and install it in the personal computer. Once you install the NCC, it becomes an important node that connects to the blockchain P2P network. The NCC is bundled together with the NanoWallet though users are also able to only download the wallet and use it.
NEM comes with unique protection from external attacks. If the NIS is properly connected via a firewall, it will be practically impossible to break in. Note that unlike other cryptocurrencies that require high profile computers to run, NEM can be run even on standard computers including mobile devices such as mobile phones.
Major NEM features
Proof of importance
As opposed to the common proof or work (POW) algorithm commonly applied in other cryptocurrencies such as Bitcoin, NEM uses the proof of importance (POI). This is a model that helps to timestamp transactions and user’s importance to establish the quantities of coins they have as well as all the transactions running in their wallets.
Open and closed sources
Every NEM client is considered open source and, therefore, available on GitHub. However, all NEM based components are closed sources and contain obfuscated binary. NEM developers do this to prevent decompilers from establishing the baseline of the operations.
Multisignature transactions require multiple users on the NEM network to always sign transactions prior to broadcasting on the blockchain. This has proven to be very helpful in the event that a user loses a wallet after an attack. In such a case, no money can be authorized unless another wallet steps in and signs a transaction. This means that all the money held on behalf of the users/community cannot be abused.
NEM uses a unique domain naming system referred as Namespaces that is in many aspects similar to the centralized ICANN systems. Namespaces allow users to create as many domains and subdomains that for all projects on the platform and even outside.
These are custom assets that can be customized to be either transferable/non-transferable or divisible/non-divisible and contain personal descriptions. Users can also opt to customize mosaics by the amounts held in NEM wallet as either fixed or mutable.
Node Reputation System
NEM utilizes Eigentrust++ system to maintain the health of the blockchain system. This makes it easy to measure all the nodes by the quantity of work they do.
This means creating blocks in the NEM platform. A harvester requires about 10,000 vested XEM in an account. You also have to be on a booted and synchronized node to maintain the integrity and security of the network.
This is a rewards program that is targeted at rewarding miners who contribute to the platform. This system has allowed the NEM platform to reward everyone running a node. If you have 3 million XEM, a payment of 140,000 XEM divided by the total number of nodes active every day. Note that the foundation has a minimum technological requirement for all users who expect to get rewarded.
Pros of using NEM
- The NanoWAllet and NCC are unique because they can be run away from the net. It is because of this advantage that miners use the wallet to provide enhanced security with the airbag system.
- The NEM platform can be run even on mobile phones. This means that users can be connected and continue trading or mining all the time no matter where they are.
- NEM is one of the securest blockchains out there. Even when an individual is exposed to a threat or gets hacked, the NEM wallet software helps to protect the other system. This has made NEM win the tag of the most secure cryptocurrency in the globe.
Cons of NEM
- It is among the latest cryptocurrencies in the crypto world. Its stability might require more time to win total trust from all people.
- Many people are still unable to connect NEM with the fiat currencies.
Where to Buy and Sell NEM in Australia?
Crypto Currency for Fun recommends buying NEM at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including NEM and they offer Instant Delivery or your coins right into your account.
Following the recent performance of NEM in comparison to other cryptocurrencies, it is apparent that it could outdo other bigger cryptos in the next years. The biggest concern for NEM is its young status. However, we cannot hesitate to recommend it to you because of its adoption of the latest technology.