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- 1 NEM is a programmable blockchain that is technologically advanced and easier to use than competitors.
- 2 Its key features set it apart from all the other blockchains. NEM stands for “New Economy Movement.”
This blockchain platform was introduced in 2015. It is aimed to improve the lackings found in the blockchain systems of the time. NEM is run by the NEM.io Foundation which is a Singapore-based non-profit organization. Later NEM.io chose to create its codebase to improve the scalability and performance of NEM.
The platform allows mosaics of the unique coin to be created on its blockchain. XEM, the currency of NEM, is one of these mosaics. The mosaics can be used in many ways like internal tokens, voting rights, etc.
Use Cases of NEM
XEM is not mined like Bitcoin or any other cryptocurrency. It is harvested from transaction validation. The entire 9 Billion XEM token supply was put into circulation at its launch and the pool of tokens was set aside to be used as a reward for transaction validation.
Users can earn XEM by harvesting NEM using a different consensus called Proof of Importance. It is different from the proof-of-work of Bitcoin and the proof-of-stake of Ethereum.
Harvesting
Validating and adding transactions to the blockchain is called harvesting. The harvesting nodes then collect rewards for the block in the form of an XEM token.
Harvesters are picked by the consensus mechanism built into the blockchain and have to have at least 10,000XEM vested for some time eligible. This incentivizes user participation in the maintenance of the blockchain and within the network.
For validating transactions, the user must hold 10,000 XEM and hold it for a certain amount of time, 10% held become vested.
Score Importance and Proof-of-Importance
The harvesters are chosen based on their score of importance. The importance scores depend on the participation activeness within the NEW network. The more the users use the network, the more will be the chances they will be selected for validating the blocks and receive XEM in return.
This encourages users to make transactions through the coin instead of holding them. Harvesters with high contributions are given a high score of importance while those with no contribution are automatically removed.
This computational method needs much less computing power than other mechanisms and needs no special hardware. NEM has very little impact on the environment compared to many other blockchains.
Supernodes and Confirming Blocks
Once a block is created and the transaction is completed, it is confirmed by supernodes. These are users who have vested at least 3 Million XEM tokens and run a high-powered computing device 24/7 to mathematically confirm the validity of the block before it is added to the block.
The supernodes collect the transaction fees when the block is added. Supernodes are more likely to be chosen when they have a high importance score.
Delegated Harvesting
NEM has a form of delegated harvesting. Users who have vested 10,000 XEMs can delegate for supernodes to confirm the blocks. The user who has delegated their importance score will receive a part of the transaction fee in return. Any holder who vested 10,000 XEM can earn tokens by delegating their important score.
Governance
Users can purchase the annual membership with XEM tokens. After taking the membership, the user can take part in the yearly meetings and can vote for the members of the foundation boards.
The membership fee is $50 worth of XEM for individuals and more for corporations. The elected members have the right to make decisions regarding NEM.
Transferring Fees
XEM is designed to function as smart money. NEM is aimed at fast transactions with low fees. The transaction time on Bitcoin is an hour and on Ethereum, it can take 5 minutes to an hour while on NEM it is just 30 seconds.
NEM has a fixed transaction fee depending on the amount transferred.
Market Analysis
CoinMarketCap data shows that XEM has a market cap of $330,542,968. The token has a circulating supply of 8,999,999,999 XEM and a fully diluted market cap of $330,439,868. Some of the exchanges where these tokens are available are
Binance, OKX, Bybit, Bitrue, and DigiFinex.
How is NEM Unique?
NEM is unique because it is enterprise-ready. It is written in the widely used computer programming language Java. The platform is API-based, which permits separate computer programs to communicate with each other.
Users can create their crypto tokens called mosaics on NEM. For this, they have to register a namespace which is like a web domain. The company issues mosaics which are like files. Mosaics have many potential applications like providing voting rights on the user’s project.
NEM has the same functionality as other blockchain projects. However it has a different way of validating the transactions.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
