ELI5 NEM cryptocurrency [XEM]

ELI5 NEM cryptocurrency [XEM]

NEM is an acronym for New Economic Movement.

NEM coin’s main objective is to create a community driven, open and thriving digital economy that lies outside the territory of current world powers.

NEM coin is the cryptocurrency that will deployed in developing a fresh economy grounded on the principles of financial solidarity, freedom, equality and decentralization.

NEM coin uses the XEM symbol.

How to harvest (mine) NEM?

Unlike other cryptocurrencies which use Proof-of-Work or Proof-of-Stake, NEM uses the Proof-of-Importance consensus mechanism.

In this consensus mechanism, nodes with more importance have a higher probability of harvesting a block.

Note
Harvesting is the name given by NEM to the staking/mining process.

Proof of Importance takes 3 factors into consideration: amount staked, the importance of the peers you transacted with and size of your TX’s during the past month.

This way PoI avoids rewarding only coin hoarders but also other activities performed by the harvester.

In essence PoI is very similar to PoS, except it takes more than just stake size into consideration.

Maximum Circulating NEM Coins

The maximum number of XEM coins in circulation is 8,999,999,999 XEM

NEM History

NEM was announced on Bitcointalk in June of 2014.

The NEM blockchain went live on March 31st, 2015, 9 months after the initial announcement.

In early 2018 NEM was the target of an exchange hack. U$ 500 million worth of XEM cryptocurrency were stolen from the Coincheck exchange.

Ukraine and Malaysia have studied using NEM for elections and academic certificate verification respectively.

Read more NEM history at Wikipedia

What makes NEM different?

What makes NEM different is its functional yet simple designs.

It is created for mainstream apps where business and logic rules are decided off chain in a surrounding where such off chain business logic or contracts are saved into the blockchains of NEM as records that are immutable.

Furthermore, NEM is an asset that is highly customizable that it can be created without any required programming. This significantly lowers errors in assets’ provisioning compared to other assets created through competition. Also, it is quick to deploy.

Moreover, NEM has a smart feature called multisignatory for its transactions. It does not require the user to do any programming. It is designed to be on-chain multisig meaning that if one party signed a transaction, it will be broadcasted to the whole network.

Who is behind NEM?

NEM was announced by a Bitcointalk user called UtopianFuture.

Today NEM is run by the NEM Foundation.

Links

NEM XEM’s Official Website

NEM at CoinMarketCap

Reddit introductory post

Wikipedia entry for NEM (cryptocurrency)

Interview with Lon Wong

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