NEM Blockchain – A Short Introduction

There are several Blockchain platforms scattered here and there, offering a wide range of solutions to enterprises to scale up their businesses. One such interesting blockchain platform is NEM or New Economy Movement, which is known for its altcoin named XEM. The creators of NEM aim to build a financial ecosystem that grants its members a decentralized platform offering financial freedom and equality. Such a decentralized platform would be free from any sort of centralized governing body which is seen in the case of Ethereum and Tron. 

So, let us know those features which make NEM an ideal choice for those users who are looking for a transparent system for digital assets. 

What is NEM Blockchain?

NEM (New Economy Movement) is a smart asset Blockchain and as a technology, it seeks to incorporate the best features of Bitcoin, Nxt, and Bitshares while adding its own features. NEM seeks to be a platform where people can efficiently manage assets and data at a low cost. NEM owes its existence to a blockchain-based virtual currency and payment network named NXT, which was developed as a platform in 2015. 

NEM is actually a forked version of NXT, but later NEM developed its own codebase for advancing the NEM network and achieving more faster speeds, scalability, and more functionality. The native cryptocurrency of the NEM network goes by the name of XEM, which is used for trading purposes by holders of cryptocurrency. 

Origin of NEM Blockchain

NEM was founded on 21st January 2014, as a personal project by a team of developers and programmers from the Bitcointalk forum like Erik Van Himbergen, Jeff McDonald, Leon Yeoh, and Lon Wong. The concept of NEM was first mooted by an avid crypto enthusiast named UtopianFuture on the BitcoinTalk forum in a post. At that time NEM wasn’t planned to be built from the ground but initiated as a small-scale project. Later the project NEM further grew to become a community-driven ecosystem with full-fledged developed infrastructures and code-base. It was finally in June 2014 when the Java written alpha version was released, while the official stable version release happened in early 2015.  

How does NEM Blockchain work? 

Consensus Mechanism – Proof-of-Importance

NEM uses the Proof-of-Importance (PoI) mechanism to achieve consensus, which is the first of its kind and innovative as no other cryptocurrency uses it. NEM is built in Java and Java Script languages, the Proof-of-Importance mechanism incentivizes the users to participate in securing the network by assigning each node an importance score. This importance score depends upon the good behavior of the user, as any sort of bad behavior can lower the score. The factor of how frequently a node can “harvest” or collect XEM token rewards gets determined by the important score. 

Compatibility – Public vs Private Blockchain

Anyone can create an app over the NEM network using its APIs, as its internal network and blockchain can be run on internal servers. While the nodes can be predefined by the user or organization by doing an internal setup. This lets NEM be a preferred choice for a private in-house implementation where an application or organization requires more privacy than is provided on a public blockchain. 

This solution would provide unprecedented levels of speed and security without ever needing to expose the data like in the public network. Enterprises can easily leverage by opting for NEM Blockchain development without the overhead of a public blockchain. 

Native token – XEM

The native token of the NEM network goes by the name of XEM and the total supply of XEM coins is fixed at 9 billion, out of which 8.9 billion are out in circulation. XEM is primarily used as a payment method in the NEM network, but its blockchain network allows leverage of creating own cryptocurrency to NEM developers. People of Japan have highly invested in the XEM and it has already had past history of witnessing an all-time high. 

Conclusion

NEM is a unique and highly promising platform that can turn the tables in enterprise solutions reports the Blockchain expert at Rejolut. Once the Catapult update is released it is highly anticipated that more developers will investigate the possibilities of NEM, as they have promised to develop new solutions. The combination of Proof-of-Importance (PoI) and flexibility of the blockchain can surely attract the developers of both public and private blockchains to NEM. Businesses and Corporate institutions would also find the NEM Blockchain to adopt and deploy their services in the future.