The NEM (XEM) “New Economy Movement” seeks to provide enterprise-level clientele a more efficient way to verify and move blockchain assets. To this end, the company functions as the missing link between private and public blockchains by connecting these networks in ways that expand usability. NEM (XEM) continues to see growing interests due to its versatility and unique business strategy. Users can easily manage assets and data more efficiently using this new era blockchain. Importantly, NEM was built from the ground up with the needs of large businesses in mind. This desire to meet the market’s requirements has led the platform to earn the nickname the “Smart Asset Blockchain.”
What Problems Does NEM (XEM) Solve?
NEM (XEM) tackles a variety of issues currently plaguing the crypto market. One of the core missions for this platform is to increase interoperability between private blockchain networks. There is a boom currently underway within the private blockchain sector. Companies are investing billions into this technology. The problem is that each of these blockchains functions as an island at the moment. They are incapable of communicating digital assets between each other.
Intercommunications in a variety of ways. The protocol enables easy transfer of any digital asset including tokens, contracts, or files. Additionally, the blockchain is set up in a way that it can send data from a privately held internal enterprise network, routed via a public blockchain, over to another business’s private network.
Supply chain Mismanagement
Another sector in which NEM is set to disrupt the current business systems is logistics. Today’s supply chain management systems are bulky, outdated, and inefficient. NEM replaces these systems with one that is open, secure, and fast. The platform makes it simple for companies to manage, access, and share validated data via a variety of access controls.
How Does NEM (XEM) Work?
NEM (XEM) is able to accomplish these tasks through the integration of a variety of new technologies. This versatile blockchain introduces a new consensus mechanism to the market – Proof-of-Importance (PoI). PoI differs from other consensus mechanisms such as Bitcoin’s PoW in a variety of ways. Primarily, in a PoI mechanism, the time and amount someone has vested in the NEM network is taken into account.
PoI in Action
The PoI algorithm requires that you have at least 10,000 XEM vested within the system to qualify for generating new blocks. Users that get to add new blocks to the blockchain receive rewards and a portion of the transaction fees. To take your XEM from normal to vested XEM you will need to hold them in the network’s wallet. Your new holdings become more vested at a rate of 10% per day.
Another cool feature about PoI is that it rewards users who make transactions with others in the network. The system evaluates these transaction amounts and uses this information to boost your PoI score. Every PoI user has a PoI score based on their participation and overall contribution. This score ensures that the best network nodes get the most opportunities to earn.
Harvesting
Another crucial element of the consensus system is the harvesting protocol. This coding links your account to an existing supernode. Supernodes form the backbone of the NEM ecosystem. Linked accounts allow supernodes to utilize a bolstered PoI score to increase the chances of block generation in their favor.
In essence, supernodes borrow an account’s PoI score to complete blocks on its behalf. This strategy allows the NEM blockchain to remain secure without requiring all users to exert large amounts of computational effort. As such, NEM is far more energy-efficient than PoW systems such as Bitcoin or Ethereum.
Benefits of NEM (XEM)
There are a ton of benefits to NEM. The platform is vital to mainstream adoption because it brings together some of the best blockchains in the world. Additionally, the firm’s focus on large businesses makes it an important cog in the gears of growth. Developers recognized the fact that their platform must remain agile to achieve continued growth in the market. As such, they packed it with helpful features such as a full API interface.
NEM users can customize how they allow the access and use of NEM. Best of all, these tasks are complete in an open and self-scaling framework. The system enables developers to easily create, distribute, and trade cryptocurrencies and tokens via the NEM blockchain.
History of NEM (XEM)
The history of NEM begins in 2015. The entire NEM concept began when a Bitcoin Talk forum user called UtopianFuture explained how the cryptocurrency NXT inspired him to build a new project. By March 2015, a forked version of NXT called NEM went live. It wasn’t long before developers decided that they would rebuild NEM from the ground up.
The end of the year saw NEM receive its own codebase. These improvements made the platform more scalable and faster than NXT. The project continues to gain momentum until 2016 when the NEM Foundation entered the sector. This non-profit focuses on ways to increase NEM adoption including brand awareness, marketing, training, and partnerships
Conclusion
NEM has proven to be a very resilient blockchain and community. The platform bounced back from a major hit with the Coincheck hack. To go from a $400 million dollar loss to one of the most interactive online communities in the market is impressive. For now, NEM appears to have found its niche in the industry. You can expect this coin to gain more ground as more pilot programs go live.
