What Is NEM (XEM) | Beginner’s Guide

NEM | The Smart Asset Blockchain

The NEM Foundation

The NEM Foundation is an international network of professionals with the business’ ethos to provide NEM’s blockchain technology platform to enhance enterprise. The NEM Foundation has built a blockchain for all industries, that is run by the people, for the people. NEM offers both public and private blockchain deployment options. 

NEM is short for New Economic Movement. The NEM Foundation describe themselves as a movement that aims to empower individuals by creating a new economy based on the principles of decentralization, financial freedom, and equality of opportunity. 
NEM was founded by BitcoinTalk user UtopianFuture. NEM is built ground up from scratch, and was not forked from another cryptocurrency, such as Bitcoin. NEM is the first cryptocurrency to use the Proof-of-Importance protocol, which provides fast transactions, low fees, and low power consumption.

XEM

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XEM is the native currency of NEM’s public blockchain, designed to be a new medium of exchange. The amount of XEM tokens in NEM’s ecosystem is fixed. XEM is also Scalable. XEM is transparent and traceable.

Technical

The NEM Network is comprised of NIS Nodes. Each of NEM’s nodes works with other nodes to build its peer-to-peer blockchain network. NEM’s blockchain platform was designed and coded for scale and speed. NEM’s permissioned private blockchain delivers tested industry-leading transaction rates. Block confirmations take around 20 seconds. 

NEM (xem)
via: https://nem.io/

The Proof-of-Importance protocol does not use expensive mining hardware like Bitcoin or Ethereum. NEM uses harvesters to validate the network. Harvesters are people or entities who are staking their coins (XEM) to assist in network validation. Like Proof-of Stake you need a specific amount of coins to be a validator. To be a harvester for NEM you need 10 000 XEM, cluster nodes and your level of net transfers. After staking your 10 000 XEM you qualify to earn transaction fees through delegated harvesting on your account.

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By utilizing Proof-of-Importance, NEM allows nodes to run on almost any hardware while still providing a secure network that can scale without limit. NEM nodes make use of a built-in spam filter that prevents the network from being swamped by a flood of transactions.

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NEM also offers multi-signature contracts. NEM’s multi-signature contracts are universal which simply means that they are built into the blockchain, and not on top of the blockchain as with third-party reliant software.

NEM’s Ecosystem

NEM’s ecosystem consists mainly of Namespaces, Mosaics, and Smart Assets. Namespaces are similar to domain names. Namespaces can also have sub-namespaces. Namespaces have 3 levels, a namespace and its two levels of sub-namespaces.

Mosaics are digital assets which are stored on their unique namespaces, or sub-namespaces on the NEM Blockchain. XEM can be described as a Mosaic on NEM’s Network. Anything you can sell or trade can be a Mosaic on the NEM Network. 

NEM’s Smart Asset system allows developers to develop NEM applications with ease. Smart assets are put into action through transactions.

Use Cases

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NEM gives you a platform to deploy the best of blockchain technology quickly and securely, All while NEM’s Smart Asset system and development API puts blockchain to work for you with maximum customization and minimum disruption. NEM’s modular Smart Asset system enables businesses to build an incredible variety of real world applications.

Various NEM (XEM) use cases include; creating your own cryptocurrency, financial payments, mobile payments, accounting, know your customer (KYC), loyalty reward points, shipping and inspections, logistics (supply chain management), encrypted messaging, authentication and notarization, anti-counterfeiting, certificate issuance, crowdfunding and much more.

Governance

The NEM Foundation is a fully committed team that focuses on expanding the technology and its use cases. The NEM Network is governed by users of the network.

Community

NEM has one of the largest communities in the blockchain and cryptocurrency space. Hosting various events and conferences, The NEM Foundation actively engages with developers, businesses and crypto-enthusiasts. For the latest discussions on NEM, check out the NEM Forum.

NEM (XEM) Advantages

The key advantages of NEM is its performance, ease of development, deep customization possibilities and their security through their chain architecture, which provides an incredibly secure and stable platform through the use of Eigentrust++ and an incentivized public node network based on a two-tier architecture. The NEM Network fee is 0.01% of all transactions ( R1 to send R100). Another advantage of XEM is that it is inflation resistant. It is deflationary, just like Bitcoin. Compared to Bitcoin’s Network fees, NEM’s Network fees is next to nothing.

Conclusion

NEM is designed to be functional and easy to use for enterprises, developers and the public. Providing fast transactions, low fees and low power consumption, NEM is leading the way for both private and public blockchain technology.

To get started with NEM, you will need a client to access the network. The Nanowallet is a browser based client that will allow you to use all of NEM’s features.

NEM (XEM) South Africa
image credit: Kim De Jesus

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