What is NEM / XEM?

 

NEM is a peer-to-peer cryptocurrency and blockchain platform, the currency symbol is XEM. NEM is the world’s first “Smart Asset” blockchain, the “blockchain for enterprise” with a low transaction fee of 0.01% and very scalable.

 

 

NEM was started by a BitcoinTalk user, UtopianFuture, who was inspired by the cryptocurrency NXT. Work started on 19 January 2014 to create a community-oriented cryptocurrency.  

 

Unlike most other cryptocurrencies which are forked off existing codes and later altered, the NEM code was written from the ground up in Java – On 31 March 2015, NEM was launched and the total amount of 8,999,999,999 was created on the Genesis block. Transactions on the blockchain are confirmed every 1 minute.

 

The cryptocurrency XEM

 

XEM is the native currency of the NEM public blockchain that is used to pay for transactions on the blockchain.  XEM has zero Inflation as the amount of XEM tokens in the ecosystem is fixed. The NEM ecosystem is supported by harvesting XEM tokens with negligible electricity and hardware costs.

 

 

 

 

The blockchain

 

According to the NEM website, “NEM’s development team learned from the mistakes and shortcomings of other blockchain concepts and created something to stand the test of time. NEM’s core was built from scratch with a focus on solving real-world needs at a global scale. In short: NEM is higher performance, more customizable, easier to develop on, and more secure than other blockchain solutions – by design.”

 

  • Development on the NEM blockchain is simple

NEM’s API interface that can be used with any programming language, not a specific “smart contract” language.

  • NEM is highly customizable

With the Smart Asset system, NEM allows building exactly what is required – fintech system, tracking logistics, an ICO, document notarization, decentralized authentication etc.

 

  • NEM pushes blockchain performance further

NEM public blockchain uses its “proof of importance” consensus mechanism to optimize throughput and stability on the public node network

 

  • NEM’s blockchain platform is secure

NEM Blockchain uses proof-of-importance (POI) algorithm, multisignature accounts, encrypted messaging, and an Eigentrust++ reputation system harvesting XEM.

Public blockchain – NEM’s architecture provides an incredibly secure and stable platform through its use of Eigentrust++ and an incentivized public node network based on its two-tier architecture.

Private blockchain – NEM’s private blockchain option allows complete control over internal data privacy

 

 

  • NEM is 100% traceable

There are no private transactions – NEM’s traceability is a differentiating factor to other cryptocurrencies such as Monero

 

 

Adoption

The NEM blockchain is used in a commercial blockchain called Mijin.  This is currently being tested by financial institutions and private companies in Japan and globally.  Tech Bureau which is the operator of one of Japan’s largest crypto exchanges formed a partnership with NEM for a new blockchain in April 2016.

 

 

NEM Foundation – Mission Statement

We responsibly provide blockchain services that enable growth and economic progress.”

The CoinCheck hack

 

On 26 January 2018, Japanese cryptocurrency exchange Coincheck, was the victim of a massive hack resulting in a loss of 523 million XEM coins and at the time, they were worth approximately $400 million. In order to track the hacker, NEM created an automated tagging system as they refused to do a hard fork. This automated system followed the XEM and tagged any account that received XEM due to the hack.  Tracking stopped mid-March 2018.

 

For info:  When the DAO was hacked, Ethereum conducted a hard fork resulting in the creation of Ethereum Classic, a group of miners who continued mining on the original Ethereum blockchain.

 

Competitors

 

NEM / XEM has a few competitors such as  Ethereum and Ripple

 

Get your copy of What is Bitcoin

This e-book on Amazon explains what Bitcoin is, it explains that Bitcoin (BTC) is a virtual currency, digital, not physical, and independent of banks. Useful links and resources for the newbie and advanced Bitcoiner or cryptocurrency enthusiast.

 

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