Nem was developed in 2015 as an improvement to what was obtainable in the blockchain ecosystem. It uses what is regarded as a smart asset blockchain to offer users the opportunity for complete customization in a decentralized peer-to-peer network. It offers both private and public blockchains and users can build their own applications including cryptocurrencies and crowdfunding tokens. Users can also manage things like supply chain tracking, financial instruments, ownership records and much more.
Nem’s technical infrastructure works on the premise of allowing users to customize the blockchain to meet conceived requirements. The noteworthy flexibility of the platform means that users that can use it for more complex projects have some remarkable advantages. There is a certain similarity to the ‘smart contract’ goal of Ethereum here, only that you are dealing with ‘smart asset’ in the case of Nem. Users can decide to make payments, or even decide to invest by means of creating coins in the blockchain. It offers something new and the team is insisting that programming is not needed to get things done.
Nem uses a currency named XEM. Since it debuted in 2015, XEM has seen some fluctuations in price. Initially, 9 billion XEM coins were created and distributed to 1500 trusted suppliers who have since distributed it to the community. In January 2018, it was as high as $1.90 but dropped afterwards to $0.75. There was news of a hack that saw some individuals stealing up to $530 million worth of xem IN Japan. Though the hackers will be unable to do anything with the stolen currency as a result of NEM’s advanced technology, many did not feel very comfortable with the development and value dropped.
Major advantages of Nem
As stated earlier, Nem was developed to offer improvement in the cryptocurrency space and there are some advantages that are considered quite significant.
Instead of proof-of-work or proof-of-stake that is seen in many blockchains, NEM uses proof-of-importance. The consensus algorithm verifies transactions based on comparative importance. The ‘importance score’ that is assigned to users depends on such factors as size of completed transactions and number of completed transactions. The algorithm is an energy saving alternative.
Verifying transactions in NEM is referred to as harvesting. It does not require any special hardware like what is obtainable in mining Bitcoin. To get the harvesting account, you need to maintain about 10,000 XEM in your normal account for a couple of weeks.
NEM is really more scalable than bitcoin and some other cryptocurrencies. The platform has the capacity to complete up to 3,000 transactions in a second.
There is a messaging feature in NEM that can be used to attach messages in a transaction. They will take about 17 seconds to show up and costs 1 XEM per 15 characters.
Mosaics refers to assets that can be created and traded on the blockchain of NEM. The normal currency XEM is a Mosaic and users can equally create their own mosaics and use it for transaction in the platform. This gives enterprises an opportunity to create a meaningful cryptocurrency presence.
For improved security, NEM requires multiple signatures to approve a transaction. You need to set up the multi-signature account, however, and it will cost only 0.5 XEM.
The future of NEM
NEM has an incredibly flexible blockchain and can be of great help to individuals and brands that need customized cryptocurrency experience. The small contract idea is impressive. The currency XEM has the potential to grow though it seems to be followed by declines after each growth. What is certain is that the platform is strong and can be a good place for investment.