To increase number of transactions per second, to include a slew of new features into the blockchain technology
Pros & Cons
- New code written in Java
- Handles up to 3000 transactions per second
- System called namespaces similar to domain naming
- Standard users still cannot understand the information on the NEM official website
- NEM growth is possible only if widely adopted
- NEM still has few users
- NEM is written in Java
- Uses the proof-of-importance algorithm instead of the proof-of-work algorithm
- Open-source software can be found on GitHub
- Namespaces are similar to the Internet’s domain naming system
- Uses a reputation system called Eigentrust++
- Allows developers to send hex, unencrypted, or encrypted messages
- Multi-signature transactions
- Includes Mijin, a private blockchain based on NEM software
- User on Bitcoin Talk Forum
- Holders of XEM stakes
- GitHub Last Updated
- Dec 22, 2017, 11:50 PM GMT +5:30
NEM is the first smart asset blockchain in the world, developed from scratch for the purpose of enterprise-grade performance. All varieties of assets including supply chains, currencies, ownership records, notarizations, and others can be managed on the NEM blockchain. The developer interface is secure and straightforward, enabling developers to deeply their blockchain solutions in time. NEM is fully capable of making blockchain technology work for developers working on projects such as integrating blockchain technology into their business infrastructure or building a new mobile app.
Anybody can use NEM’s smart asset blockchain network to customize the way they use the blockchain. The system comes with features such as multi-signature control and namespaces resembling domains, which can be easily accessed via a simple API. This makes integration within contract logic, business infrastructure, and mobile applications a lot easier.
History of NEM
The founders of NEM are known only by their pseudonyms. The project was started by UtopianFuture, a user of the Bitcoin Talk Forum. Greatly inspired by Nxt, he decided to create a blockchain project of his own and began inviting participants for his project on the forum. His aim was to create a community-based cryptocurrency right from the beginning.
NEM’s alpha testing was kick started on June 25, 2014d. This was followed by an extensive beta testing, which began on Oct 20, 2014. Finally, the platform was launched on March 31, 2015 and its unique coin was christened XEM. As many as 1500 investors purchased XEM stakes, each stake having a value of 2.25 million XEM coins.
NEM Foundation: This is a not-for-profit organization with members from all over the world. Launched in Singapore, it is devoted to the development of the NEM blockchain technology and to the creation of a lively and dynamic team of NEM developers and users.
Those interested can join the foundation either as a corporation or as an individual. The foundation’s mission is to provide blockchain services capable of fostering economic progress. It aims to integrate NEM’s blockchain technology in government, industry, and academia.
Mijin: Late in 2015, NEM signed a partnership deal with Tech Bureau Corporation involving Mijin, a private blockchain project based on the NEM code. Miji has turned out to be a huge success as its applicability as a microfinance ledger, bank, and digital money banking system has been proved. Many Japanese banks have thoroughly tested Mijin and found that it is capable of processing 1500 transactions per second across 2 million online bank accounts.
Catapult: In April 2016, NEM extended its partnership with Tech Bureau to work on another project called Catapult, which is meant to be a better version of the existing Mijin. Catapult is expected to be rich in features that will improve its stability, flexibility, overall performance, and throughput. It will also be able to migrate easily from Java to C++ and to communicate with any system.
Chronobank: In Feb 2017, a blockchain project called ChronoBank partnered with NEM to create a NEM cryptocurrency wallet. Chronobank will use on-chain multi signatures and issue Labor Hour tokens in the NEM blockchain network.
EcoBit: After a partnership deal forged with EcoBit, XEM experienced quick growth. This project enjoys the support of the Kelantan State government of Malaysia as it involves the management of many acres of rainforest and will last for the following three decades.
Xhai Studios: On May 13, Xhai Studios, a video game publisher in Malaysia, announced that it would incorporate NEM technology into its upcoming platform. This will enable developers of video games to distribute their products to gamers efficiently and in a cost effective manner, eliminating completely the need for intermediaries.
Reasons to Use NEM
NEM is too young a project and investing in XEM coins is still fraught with risks. You should avoid investing money that you cannot afford to lose. NEM has many interesting features that make it worth using, and here is a list of reasons you should consider this blockchain project:
POI: The NEM project has replaced the proof-of-work algorithm with the proof-of-importance (POI) algorithm, which it uses to put a time stamp on transactions. POI serves as an excellent alternative to proof of work and proof of stake algorithms. NEM’s POI determines the user who can calculate the upcoming block. A NEM user’s importance depends on the number of XEM he/she controls and the number of transactions he/she makes. NEM’s POI has been designed to encourage users to not just hold XEM, but also actively transact in XEM on the NEM platform.
Resistant to Spam Attacks: The NEM system has in-built spam protection, which becomes functional as soon as the blocks are full. Spam attackers are instantly detected and the transaction fees are raised for them as per the intensity of the attack they have launched. This serves to keep spammers away.
XEM: About 75% of the XEM coins have already been distributed among 3000 early investors. Since XEM coins have already been distributed, nobody enjoys any advantage over the others. Each stakeholder controls just 0.025% of the cryptocurrency. But these figures may change as the market is free, so a few users may end up with too many XEM coins.
Devoted Developers: NEM has developers who are really interested in the growth of the project. They do not post speculative posts on their blogs just for short-term gains.
Robust Wallet: The NEM Nano Wallet is a robust system with features that allow file sharing and secure messaging.
Environment Friendly: NEM works on the basis of harvesting, which is the term used for block creation, and proof of importance. Both processes are inexpensive and environmental friendly as they need no additional electricity. Moreover, users are rewarded for making transactions on the NEM network, not just for holding coins.
Innovative Features: NEM comes with innovative features such as Apostille, a time stamping and notarization service that can be updated, transferred, and branded, along with mosaics and namespaces.
How Does NEM Work
NEM is not only a blockchain platform, but also a peer-to-peer cryptocurrency (XEM) that was established on March 31, 2015. The current version is written in Java, but another version is now in the process of being written in C++. NEM’s goal is to introduce some new features such as multi-signature accounts, proof-of-importance (POI) algorithm, Eigentrust++ reputation system, and encrypted messaging into the blockchain technology.
NEM is special as it can be used to create one’s own blockchain, a feature that enables banks and financial institutions to partner with it through API sets. NEM’s source code is totally different from that of Bitcoin and competitors such as NXT.
All transactions on the NEM network are permanently stored, unlike Bitcoin that recycles historical data and slows down the whole network. NEM has a harvesting concept that is far superior to the mining concept in Bitcoin. While mining needs super computers and a lot of electricity, harvesting XEM is possible even on smaller devices. NEM also uses proof of information instead of proof of work or proof of stake, a feature that makes harvesting easy without taking a toll on your computer.
Whenever you make a transaction on the NEM network, you can use its multi-signature feature for enhanced security. This is just like a joint bank account, which requires the signature of all partners for the transaction to be processed. The multi-signature feature makes sure that NEM wallets and accounts are safe and does not require the involvement of any third party.
Value of XEM
Although only two years old, XEM has captured the interest of investors who feel that it is worth investing in the coins. It is worth noting the fact that the price of XEM has increased by 5,950% in 2017. In the first quarter of the financial year 2017 – 18, the price of XEM shot up to $0.29314. But it proved its volatile nature by plummeting to $0.0090656. It continued to rise and stumble throughout the year. At the time of writing, its price is at $1.0642.
Future of NEM and its Cryptocurrency XEM
Both NEM and XEM are still in the infancy stage and need to develop a lot. At the time of writing, XEM is used to reward NEM members and to pay fees for transactions processed on the NEM Network.
Although NEM is young and needs to develop a lot, some experts feel that it is a “sleeping giant” that may wake up at any moment. Although NEM shows a great deal of promise, the fact remains that it is just another altcoin at present, created to overcome certain issues in the original blockchain platform, Bitcoin. While NEM value is on the rise, it may be replaced by other digital currencies. At the same time, the NEM platform is now home to some exciting projects.
The future of NEM may be bright if one takes into consideration factors such as the following:
- Many investors have profited from NEM in the past 10 years.
- NEM has more use cases and is ten times more efficient when compared to Bitcoin
Still the fact remains that it is still new and one cannot make any definite predictions about it.
Where and How to Buy NEM
Buying XEM is a bit tough; it is not like purchasing Ether or bitcoins. While you can easily exchange your fiat currency for bitcoins or Ether, the situation is a bit different for XEM. This does not mean that there are no exchanges that allow you to exchange traditional currency for XEM, but the trading volume and liquidity is very low at these exchanges.
The easiest way to buy XEM is to first purchase Ether or bitcoins and then exchange them for XEM coins. You can easily do this at noted exchanges such as HitBTC, Bittrex, and Poloniex.
However, you should never store your XEM coins at these exchanges. You never know when an exchange could shut down or run into issues. As soon as you have purchased your XEM coins, transfer then to your NEM Nano Wallet.
NEM Nano Wallet v2.0.14
You can download the NEM Nano Wallet v2.0.14 at the official NEM website.
The wallet is compatible with Windows, Mac, and Linux. You will need to run the NIS or node if you want to establish a full node or a supernode.
The NEM Nano Wallet v2.0.14, however, is not meant for desktop computers alone. It is also compatible with Android and iOS devices. You can download the mobile NEM wallet app for Android at the Google Play Store and the app for iOS at the Apple Store.
Here is a list of the various features of the NEM Nano Wallet:
- You can use it to send messages, mosaics, and XEM to any namespace or address.
- The wallet is compatible with a variety of operating systems and devices such as Windows, Mac, Linux, Android, and iOS.
- You can create multi-user and on-chain multi-signature accounts.
- The wallet comes with mosaics, namespaces, and subdomains.
- You can avail of the Apostille Notarization Service and the Changelly Instant Exchange.
- You can easily upgrade to the Nano Wallet from the NCC Wallet.
- The wallet is fully integrated with Trezor, a highly reputed hardware wallet. At the time of writing, Nano is the only universal client that has Trezor support.
You can use the following links to improve your understanding of the NEM blockchain technology:
David is a forex trader and writer who has spent the last few years giving his opinion and spreading news about oncoming markets and trading tips. Besides from being a trader he is also a lifelong Everton fan and enjoys spending free time watching his beloved team in the premier league.