What is NEM?
NEM also includes a stable and encrypted P2P optimized chat framework, multisignature accounts and a credibility system for Eigentrust++.
Essentially, NEM is developed as a financial blockchain solution which can be used in a highly regulated private ecosystem for payment, clearance and settlement. This means that in the banking sector, NEM follows some of the legislative standards and guidance.
This enables the settlement (change of ownership) of any commodity using the blockchain to be used. Mijin, which is a private NEM chain, has gained prominence and has also been adopted by businesses like Hitachi.
What is the history of NEM?
In March 2015, NEM evolved as a fork-out variant of NXT, another common virtual currency and payment network platform built on the blockchain.
It is run by a non-profit organisation named NEM.io Foundation, headquartered in Singapore. NEM.io agreed, after the fork, to build its own codebase to advance NEM, to render it more flexible and quicker. A new NEM cryptocurrency network, which was entirely separate from the first NXT, has thus arisen.
NEM has a cryptocurrency of its own, dubbed XEM. While XEM is not used as a form of payment by retailers as bitcoins are, XEM has nevertheless increased considerably in value and currently has the twelfth largest market cap among cryptocurrencies.
How does NEM work?
NEM attempts to create a “better” blockchain and aims to do so using two main proof-of-importance (POI) and harvesting principles.
Some cryptocurrency networks, such as Bitcoin, utilize a method of proof-of-work (POW) or proof-of-stake (POS), and involves a blockchain mining device to work. Based on their task achievements, the prizes are distributed to the miners.
The miners with greater computing/processing capacity, however, have unfair benefit over those with less efficient machines in POW. In addition, POW adds to further power use, leaving the resources of the process ineffective.
Coin hoarders have the undue edge in POS since the participants with most coins have better odds of having more coins by mining and processing of transactions. Instead of cryptocoin investing, it also supports cryptocoin saving.
Using its POI mechanism, NEM solves the problem when it offers more “importance” to how often one is “invested” in the NEM scheme, with practical “vested” interest. In gauging the significance, the XEM coins in the wallet and the keeping time play a key role.
To qualify for creating and receiving new blocks and for earning different transaction fees, one needs to keep 10,000 “vested” XEMs in one’s pocket.
Where can I hold NEM?
It is often advised to pick a wallet from the cryptocurrency’s page, as is the case for other cryptocurrencies. The recommended wallet for NEM is the Nano wallet, which can be downloaded directly from the NEM website. Windows, OSX, Linux and more are compliant with the Nano wallet.