NEM

#17
Price: $0.0941888213
Change(24h):
-0.15%
Volume(24h): $4,613,677
Market Cap: $847,699,392
NEM is a peer-to-peer open-source cryptocurrency written in Java. Moreover, NEM is a blockchain-based community initiative that aims to build a smarter and more advanced crypto platform. Lon Wong created the NEM platform in 2015 and in 2016 founded in Singapore the NEM foundation as a non-profit organization to support the platform. The token, XEM, and the Proof-of-Importance (POI) algorithm, which NEM implements, were introduced in 2017. POI is a protocol that rewards users and contributors through "harvesting", so mining is not required. Hence, XEM is a non-minable token with a total coin supply of 9 billion units.

Minable: No

Coin Prefix: XEM

Type: Coin

Latest Hight: $0.45

NEM Markets

# Source: Pair: Price:
1
Zaif
XEM/JPY
$0.0933536234017823
2
HitBTC
XEM/USDT
$0.0943417163997966
3
HitBTC
XEM/BTC
$0.0944399694420135
4
Bittrex
XEM/BTC
$0.094763615670396
5
Poloniex
XEM/BTC
$0.094375240196337
6
Huobi
XEM/BTC
$0.0944399694420135
7
Huobi
XEM/USDT
$0.09394108530072

 NEM – smart asset blockchain, made for enterprises and built for performance

 

Area to disrupt: Cheap transactions, Fast transactions, Scalability

Competition: Ethereum, Ripple, Factom, Ubiq, Icon

Founded by:, a Bitcoin Talk forum user by the nickname UtopianFuture

Based in: The NEM.io Foundation is incorporated in Singapore, centered in Japan and Malaysia

Max supply:   8,999,999,999 XEM

 

NEM lost 90% of its value in the first half of 2018

It is important to make а difference between NEM, the blockchain technology and ecosystem, and XEM, the native token that is not meant to be used as currency.

NEM was launched with fixed supply of 8,999,999,999 XEM with no inflation. This means that if the demand increases, the price of 1 XEM will increase, too.

During the first year after the release of NEM there weren’t many people who were using it. The price of 1 XEM was under USD 0.001 for about a year.

The first major milestone for XEM was reached in March 2017 when the price passed USD 0.01. Similarly, to most of the cryptocurrencies out there, 2017 was extremely profitable for early NEM investors. In May 2017 it surged up to USD 0.28 and in September set a new record of USD 0.34 for 1 XEM.

The all-time high as of mid-June 2018 was recorded on January 4, 2018, when XEM skyrocketed to USD 2.06 for 1 XEM. Just six months later XEM is trading at USD 0.20 per coin, which means that it lost 90% of its value since the peak in the beginning of the year.


NEM – smart asset blockchain, built for scale and speed


NEM was launched in March 2015 by pseudonymous developers. A user on the Bitcoin Talk forum, called UtopianFuture started everything with the goal to create a community-oriented cryptocurrency from the ground up. He/She was inspired by NXT and that’s why the original plan was NEM to be a hard fork of NXT. However, eventually the community decided to start everything from scratch.

In the early days, 1,500 early investors bought XEM stakes, where 1 stake was equivalent to 2.25 million XEM coins. More information about the history of the redemption process can be found here - https://forum.nem.io/t/not-claiming-nemstake-why-it-is-no-longer-possible-and-the-history-of-the-process/2859)

NEM describes itself as the smart asset blockchain, built for performance. This means that the main purpose for the creation of NEM is to improve some of the issues the crypto market faces today –  like scalabilty, ease of use, cheap transactions, energy consumption and consolidation of power by miners.

The main target market for NEM are businesses, governments and educational institutions that are willing to adopt their existing networks to be compatible with the NEM blockchain, in order to become more transparent and effective. The main selling point of NEM is that it is designed and integrated with crucial enterprise features, called smart assets.

NEM Smart asset system makes it easier for businesses to create custom blockchains, without the need of writing code. NEM gives enterprises direct API access, which can be used to configure and manage financial payments, supply chains, notarizations, grades, financial instruments – you name it. You can even create your own cryptocurrency or crowdfund a token, using NEM.


Harvesters and Proof of Importance


One of the concepts that makes NEM unique is the fact that it doesn’t have any miners. Instead, it has harvesters. Harvesters are basically people who are running super nodes on the blockchain and are processing the payments on the network. Once they get their job done, they harvest the rewards. In order to start harvesting you need 10 000 XEM but this amount may be increased in the future.

This technology is more cost-effective compared to the Proof of Work consensus mechanism. It takes a hundred times less electricity to send a XEM payment compared to the electricity needed to make a bitcoin transaction. Practically, if you have enough vested XEM you can turn off your computer and still earn payments.

This is possible because NEM uses the so called Proof of Importance (PoI), which is very similar to Proof of Stake. The idea behind PoI is that if you own at least 3 million XEM you are able to become a super node. If you are a super node you are able to take part in the voting process. The more coins you own, the more votes you have.

This doesn’t sound like a libertarian dream for the financial system, but the idea is that those who have a lot of coins are going to vote for changes that help NEM increase its value. Because if you own a lot of coins you wouldn’t want their price to go down.

However, this system is a trade-off. Cheap and faster transaction for the price of lower security.

How many super nodes are there on the NEM network?


As we said earlier, NEM is built from ground up and it is optimized for scale and speed.

It takes about 6 seconds for a payment to show up in a wallet and about 20 seconds to be confirmed. It’s been proven that NEM can handle 3000 transactions per second whereas the bitcoin network is struggling with 6-7.

The different nodes on the network time stamp different blocks to keep them consistent. A new block is created every 60 seconds. The super nodes have a key role in creating blocks and confirming transactions. As of mid-June 2018, there are 532 super nodes on the NEM network. around 27% of them are located in Japan, 22% in Germany and 15% in USA. (source - https://nemnodes.org/)


Mijin


The NEM blockchain software is used in a private blockchain called Mijin. It can be implemented by any company that would like to adopt blockchain technology in order to improve their business operations. The developers of Mijin claim that it will make banking a lot more secure and also it will drastically reduce banking institutional costs – by more than 90%.

Transactions across private chains (Mijin) require the use of the public blockchain and XEM.

Address “Container” Smart Assets


An address on the NEM blockchain can be as simple as a user account full of coins, but it can also be “smarter”- containing information about the production history of a product, a document to be notarized or even a physical asset. In addition to that, those addresses may be programmed how to update or transfer the data they contain.

For example, if someone pays for a house to a seller who put his property on such smart address, this address may be programmed to transfer the deed for the house, immediately after the payment is received.

One crucial feature of the smart addresses that I have to mention is the multi-signatory control, a.k.a Multisig. It allows the ownership of address assets to be shared in a variety of ways between multiple parties. Multi-signatory control helps users to sign transactions without running a server.

For instance, if the owners on the house mentioned in the previous example were three brothers, the multisig address may send the payment directly to the wallet of each brother.

Mosaic “Fixed” Smart Assets


Addresses on the NEM network contain Mosaics. Mosaics are basically the smart assets of the platform. You can connect whatever asset you want to a mosaic. It could be a token, stock shares, signatures, etc. They look similar to an email with an attachment, the attachment being the asset. Mosaics are customizable, you can change their names, descriptions, divisibility, quantities or even to set transferability restrictions.

Mosaics can be transferred between addresses using the NEM API. Some of their use-cases include: sending coins, updating the status of an item, registering a signature.

For example, The DIMCOIN ICO distributed their coins via mosaics.


Personalized Namespaces

Namespaces are basically a domain naming system on the NEM blockchain. First, you need to choose a name and then you can add subdomains, as well as names of your assets.

There can only be one namespace in the blockchain, so their function is to make an asset unique and trustable.


Transactions

Transactions are the process of transferring mosaics between addresses. This is where the “smart” information is written.

Transactions could include different messages with length of up to 320 characters (272 encrypted). All transactions are automatically and accurately time stamped on the NEM blockchain.

 

NEM may not be so innovative


It looks like NEM solves a lot of problems that bitcoin has. It is created with the main purpose of fast and very cheap transactions, addressing the scalability. It is made for enterprises. NEM foundation believe that businesses and institutions are those who have to be attracted to blockchain technology and if they adopt it – the mass users will follow. That’s why enterprises, governments and educational institutions are the target customers of NEM.

However, this is a very slow process. In order for XEM to increase its value its demand should increase, too. The only way this to become a reality is many companies, governments or educational institutions to adopt NEM and XEM to become the native currency for transactions between the private and public blockchains.

With the arising competition on the crypto market I think it will be really hard if not impossible for NEM to achieve mass adoption. NEM was built from scratch but its code is closed source which makes it in a way a centralized project. I see that as a drawback rather than something really innovative.  That’s why it could be a smart decision to use a more conservative approach when investing in this asset.

However, there is definitely a room for growth. NEM plans to release the Catapult software this year which will add even more improvements to its current Mijin software. This, supposedly, could lead to an increase of XEM price.

NEM could be a good bet for anyone who believes that huge number of businesses will adopt the blockchain technology in the near future. Being currently at number 16 based on market capitalization NEM looks like a top competitor in this game.

 

Description text: Lyubo Zhechev
(The views and opinions expressed by the contributor in this text should not be considered financial advice, neither treated as an expression of Coins.Online’s view.
Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.)

 

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