What is Nem (Xem)?
The abbreviation NEM stands for the New Economy Movement, but now the developers prefer to call their project just NEM. The coin of this SAS platform is indicated as XEM. Initially, the NEM project was launched as an NXT fork, but further development led to a gradual transition to a new platform created from scratch. It is popular in Asian countries the most, and first of all in Japan. Among a list of innovations, NEM is unique for its 1-minute block time, the POI algorithm (proof of importance), and multi-valued accounts. But the greatest achievement of the NEM blockchain is the suitability of the platform for various projects and startups beyond the cryptocurrency field. It is best known for being used, for example, in a commercial blockchain called Mijin.
Major NEM (XEM) Features
What NEM Started From
The first version of the project based on Java was introduced on June 25, 2014. But it turned out that a more stable version of the resource was required for a full-fledged operation in the cryptocurrency market. The plan had been fulfilled by March 31, 2015, when 9 billion coins were supplied (mining of new ones is unavailable). The project named Catapult was introduced at the global blockchain conference Consensus 2018. The second modernized coin showed higher speed and efficiency. Besides, aggregated financial transactions and tiered accounts were added, but these were not all innovations. New functions that had not previously been implemented in the blockchain were provided in a more progressive version. The platform updates every several months, this ensures not only the stable operation but also the elimination of minor flaws and errors.
Recent History of NEM
In 2017, the developers of NEM presented a cryptocurrency exchange with a new useful function. The NEM virtual wallet became available for users of App Store and Google Play Market. This helps to make the platform more convenient and improves its performance.
The creators of NEM say that one of the purposes of their product is to solve the problem of wealth inequality, which is urgent for both existing cryptocurrencies and the “old economy”.
"NEM is a movement created to increasing opportunities of every individual by creating an economy based on the principles of decentralization, freedom in the financial context, and equal opportunities."
All the work done on this project brought impressive results. Like Bitcoin and a lot of other popular cryptocurrencies, XEM coins are available to trade on most exchanges: Binance, Bithumb, HitBTC, Bittrex, P2B, etc.
How Does NEM (XEM) Work?
NEM (XEM) uses the proof of importance algorithm. This approach makes it possible to analyze each wallet according to three criteria: balance, transaction history, wallet age. The NEM system uses a client-server relationship model where the infrastructure server is in an independent relationship with the community client. This helps to avoid repetitions and critical errors in the blockchain.
One more distinctive feature of NEM (XEM) lies in using its own custom assets called mosaics. A mosaic can participate in a transaction along with encrypted messages that are supported by the NEM blockchain. Each transaction on the platform requires a fee.
NEM uses two types of blockchain: public and private. The first one is a regular coin that can be exchanged between wallets, traded on exchanges, and be used for transactions. The second one is a personal blockchain system for companies with a large daily turnover of funds.
Other Features and Systems Used By NEM
NEM (XEM) uses some systems that are also unique developments expanding the functionality. Smart Asset System enables users to customize the blockchain. Thus, the namespace defines the client's domain in the chain, where the trader can name their own mosaics and transfer easy-to-remember names for custom addresses. The mosaic elements can be compared to the building blocks of the SAS.
The Mijin resource is a private type of informative blockchain to be used in many financial industries, where services aim to reduce banking costs. In other words, it improves the banking system and makes it more secure. In addition to the standard function set, Mijin supports smart agreements.
Another nonstandard algorithm of NEM (XEM) is Eigentrust ++. It is required for the node reputation system in which each node checks the information received from similar elements. If the data are true, the node receives grounds to improve its reputation, and vice versa.
NEM (XEM) Pros and Cons
The platform has a list of advantages:
- Lightning-fast transaction processing. On average, one request takes about 20 seconds. This differs NEM from a list of other cryptocurrency types including Bitcoin.
- Low commission fees (0.001% of the total amount of money transferred).
- The blockchain is independent of the programming language.
- Mobile wallets for Android and iOS, as well as a desktop version.
- A reliable security system protecting users from external and internal attacks.
NEM (XEM) is a stable and rather promising project that has the potential to overtake the market leaders (Bitcoin and Ethereum).
But even the most progressive systems have their weaknesses, and NEM (XEM) is not an exception. First of all, you should remember that classic XEM mining is impossible, but NEM uses a completely new rewarding system.
Prospects of NEM (XEM)
According to analysts, the future of NEM is quite encouraging. The platform is developing rapidly and at the same time, the creators have chosen the most win-win course of modernization.
Algorithms like Smart Asset System and Catapult technologies make up a completely new technical solution of a new generation. Besides, due to the diverse functionality and convenience of the platform, not only private users, but also public investors are interested in the project.
The unique harvesting method and high performance of the network are the most remarkable advantages of NEM (XEM). But there is one more factor that could be potentially considered as another disadvantage. This is quite a poor trade policy causing the situation, why NEM (XEM) is not so well-known outside Japan. But this circumstance does not slow down the development of the blockchain.
Is NEM (XEM) Mining Possible?
Issue of new XEM assets is not provided for, that is why classic mining is impossible for NEM users. But the developers offered an alternative way called harvesting that can be considered as a mining type.
Harvesting means the process of converting completed transactions into the information blockchain. This sort of mining means, that tokens are awarded not for blockchain forming, but for you contributing further development of the whole ecosystem.
It is important for harvesting, how many XEM tokens you have, how long you have been owning them, and how many transactions you have conducted in the past 30 days. This makes XEM "mining" easier since all you need to be rewarded is only at least 10,000 XEM in your wallet.
Don't be upset because classic XEM mining on this blockchain is impossible in contrast to Bitcoin and other cryptocurrency types. Harvesting is a pretty interesting rewarding method for the users who help to develop the project.
Is XEM Worth Investing In?
Despite classic mining is unavailable for NEM users, XEM is a popular cryptocurrency type for its advantages and progressiveness. Another reason to draw your attention to this coin is the new Symbol blockchain based on the multilevel node network that will have a considerable impact on the whole industry.
Thus, NEM (XEM) is a truly unique project claiming to change the global rules. Both private and public traders and interested in this project and they are ready to support it financially.
XEM can be traded on most cryptocurrency exchanges, including P2B. We offer more than 700 trading pairs involving over 300 coins and tokens. Don't worry about the transaction convenience and speed: our platform is perfectly protected and optimized to carry out up to 10,000 safe financial operations per second.
In addition, you are welcome to take part in our monthly games and compete for the prize of several hundred or even thousand dollars. The rules are as simple as that: you just need to invite friends to get game points and a 50% discount on fees. We wish you luck!