NEM (full name: New Economy Movement) is a digital currency based on blockchain technology, whose history can be traced back to 2014. This article will introduce in detail the history, technical characteristics, operating principles and advantages and disadvantages of NEM.
History of NEM
Utopian Future, one of the founders of NEM, published the "NEM Genesis Post" on the Bitcointalk forum on January 19, 2014, calling on people to participate in this new plan. In the early days, NEM was a fork of the NXT blockchain, but then the development team decided to rebuild NEM from the ground up.
In March 2015, NEM started operations and had its own code base by the end of the year. NEM's enhancements make its platform more scalable and therefore faster than the original NXT. Over time, the NEM project grew in popularity, and the NEM Foundation joined the market in 2016, focusing on collaboration, growth, marketing, and brand awareness.
Although NEM was founded earlier than Ethereum, the first private chain version was not released until the fourth quarter of 2017. NEM has a highly customizable and user-friendly asset system that can intelligently customize multiple types of assets without development and reduces risks caused by code bugs.
Technical features of NEM
NEM's native token is XEM. In its ecosystem, XEM is more than a simple currency, it can be used to gain voting and approval rights, and has extremely fast transaction speeds. The main goal of XEM is to make smart contracts easier to use.
NEM is written in Java, and the C++ model is included in the build. It hopes to create a broad distribution model by adding some new features to blockchain technology, such as a mini-signature account system, a proof-of-importance (POI) algorithm, and the delivery of encrypted messages.
The goal of NEM is to create a more advanced blockchain technology that not only reduces the energy requirements for payments and transactions, but also makes the process simpler by eliminating the concept of mining. Its operation does not require powerful and complex machines.
How NEM works
The special thing about NEM is that it is an intelligent asset system. It's designed in a way that allows for multiple use cases and a lot of customization through simple API calls. NEM's architecture has two components, the NEM Infrastructure Server (NIS) and the client used to interact with the nodes.
The overall structure of NEM provides great flexibility in the design and the way different applications use the NEM system. Developers can define NEM addresses that behave like containers for different types of assets. It can be just a wallet that holds coins, or it can be a more complex container that stores documents, which requires a signature to open.
Developers can also create mosaics, which are identical, transferable resources that can be generated multiple times and suitable for many use cases. Anyone can build any type of storage they want and easily connect it to the NEM blockchain.
Compared to the Proof of Work (PoW) used by Bitcoin and most other cryptocurrencies, NEM introduces a new process called Proof of Importance (PoI). This increases the quality of nodes as each node is awarded a score and XEM coins can be harvested based on that score.
XEM Token Economy
NEM’s native token is called XEM. Like any other blockchain, XEM’s primary function is to transfer value within the network. In addition to transferring value, it can be used to vote on governance decisions and pay fees for validating transactions.
The maximum supply of XEM is 9 billion. Since investors must hold at least 10,000 XEM to harvest, the theoretical maximum limit possible on the network is 899,999 XEM. The distribution method of NEM is very simple, that is, participate in the discussion through the Bitcointalk forum. Those who reply on the first ten pages will receive XEM for free. Those who reply on the following pages must donate a certain amount of Bitcoin or Future Coin according to the order to obtain XEM. In the end, they will be evenly distributed to 1,500 people. Each person received approximately 2.25 million XEM, for a total of approximately 3.375 billion XEM. The remaining part is transferred to the foundation account and used for marketing, operating expenses, development, node rewards, etc.
XEM Mining
NEM uses the POI algorithm, which allows NEM to perform an approval process on the network using a technique called harvesting instead of mining. Thanks to this feature, NEM users can harvest NEM through their personal computers without any hardware. In this way, they can ensure network continuity while making profits.
Since the harvesting method is not a mining operation, it does not require the use of super powerful computers, thus saving on electricity bills. Harvesting consumes less electricity than mining, which can save users money on electricity bills.
Nem Coin (XEM) Pros and Cons
Advantages: Low energy consumption: It has advantages over other cryptocurrencies that use the PoW algorithm (such as Bitcoin) in terms of energy consumption.
Strong technical compatibility: Complies with NEM API, thus allowing any global application to connect and use the NEM platform.
Namespace function: NEM brings the concept of Namespace into the blockchain industry, and its functions are similar to domains on the Internet.
Focus on large enterprises: One of NEM’s main goals is to focus on large enterprises, making it one of the important cogs in the blockchain wheel in the coming period.
Disadvantages: Lack of regular updates: NEM is relatively slow to develop and update.
Anonymity and Lack of Marketing: Awareness of NEM is low due to the anonymity of its team and the lack of a strong marketing department to communicate with the community.
in conclusion
As a digital currency based on blockchain technology, NEM has unique technical characteristics and operating principles. Despite some shortcomings, its advantages in energy consumption, technology compatibility, and namespace capabilities make it somewhat competitive in the market. With the development of blockchain technology, NEM is expected to play a greater role in the future digital economy.