An advanced blockchain technology for a smarter economy

Blockchain technology is one of the cutting-edge technologies that is going to transform a number of sectors in the coming years, including gaming, finance and so on. NEM, also known as the New Economy Movement, is a revolutionary blockchain platform that aims to develop a smarter and technologically advanced blockchain. Differentiating itself from other altcoins and blockchains, NEM seeks to provide efficient asset and data management features at a low cost.

Unlike the Bitcoin network, NEM is different in some ways such as the consensus mechanism. However, the Bitcoin network is not harmed as it remains the most favorite cryptocurrency for investors. If you are interested in Bitcoin trading, you may also consider knowing about Immediate Alpha.

In this article, we will explore the features, functions, benefits and potential uses of NEM. So let’s begin.

The origin story of NEM

NEM emerged in March 2015 as a fork-out version of NXT, a popular blockchain-based virtual currency and payment network platform.

The NEM Foundation, a non-profit organization headquartered in Singapore, took the initiative to create its own codebase with the goal of improving scalability and speed. This decision led to the development of a new and distinct cryptocurrency platform. By embarking on this mission, the NEM Foundation intended to filter out the limitations of its predecessor and provide users with a more efficient and advanced platform for cryptocurrency transactions.

The XEM cryptocurrency

NEM blockchain network introduced its own cryptocurrency called XEM. Although XEM is not widely used as a means of payment by merchants like Bitcoin, it has gained significant value. At the time of writing, XEM had the 108th highest market capitalization among cryptocurrencies.

Furthermore, NEM also supports a cryptocurrency wallet called Nano Wallet, which provides users with a secure storage solution for their XEM holdings.

NEM consensus mechanism: evidence of importance and harvesting

To address loopholes in the previous iteration, NEM strives to improve a blockchain network using two key concepts: proof-of-importance (POI) and harvesting.

Unlike other networks that use proof of work (POW) or proof of effort (POS) systems, which can be resource intensive or favor the wealthy, NEM addresses these issues with its unique approach. Furthermore, it makes the blockchain network more energy efficient.

Proof-of-importance (POI) focuses on the level of investment and vested interest a user has in the NEM system. By having a minimum of 10,000 earned XEM in their wallet, participants become eligible to generate new blocks and earn transaction fees. By doing so, the network rewards its participants.

Furthermore, transactions with others contribute to a user’s POI score, which encourages active participation and discourages abuse.

On the other hand, Harvesting is the alternative mechanism for mining on the NEM blockchain network. It utilizes a participant’s POI score. Furthermore, it eliminates the need for expensive hardware infrastructure such as mining rings, and does not require a huge amount of computational power.

Rather than requiring specialized hardware and high computing power, harvesting allows users to connect their account to a supernode, using the computing power to complete blocks on their behalf. This approach saves energy and improves transaction processing speed.

Applications of NEM

NEM offers seamless interoperability between public and private blockchains, enabling the easy transfer of digital assets, contracts and files. It can simplify transactions between internal company networks and public blockchains, and opens up opportunities for secure and efficient management. Apart from this, NEM offers various use cases, for example:

1. Customized payment solutions

NEMPay, an open source payment app on the NEM network, can be customized to enable easy money transfers using custom crypto-tokens.

2. Loyalty reward programs

Retail chains can leverage NEM to efficiently maintain and track customer loyalty reward points.

3. Supply Chain Management

NEM offers an open, secure and end-to-end logistics management system for the supply chain, which allows shipping companies to securely maintain shipping and handling data.

4. Secure voting and record keeping

NEM can be used for secure voting systems, record keeping, registration and access control, which increases transparency and integrity in various domains.

5. Token Creation and ICOs

NEM allows participants to create, distribute and trade custom cryptocurrencies and tokens, including the ability to conduct initial coin offerings (ICOs) on the platform.

Advantages of NEM Blockchain

Here are some benefits that the NEM blockchain offers.

1. Improved scale and speed

NEM is specifically designed to improve blockchain performance, enabling faster and more scalable transactions compared to traditional blockchain networks.

2. Unique harvesting process

Unlike mining, NEM uses a unique “harvesting” process to produce new coins. This method allows users who have 10,000 earned XEM to generate blocks and receive transaction fees as rewards.

3. Proof of Importance (POI)

NEM introduces a new algorithm called “Proof of Importance”, which rewards participants based on their active involvement in the network, rather than just the number of coins held. This inclusive approach ensures that everyone, regardless of hardware or coin holdings, has a good chance to harvest a block and earn rewards.

4. User-friendly development

NEM’s blockchain offers a customizable API interface that can be seamlessly integrated with any programming language, such as Java or C++. This user-friendly feature makes it easier for businesses to use NEM’s blockchain without the need for extensive infrastructure modifications.

5. Flexible Smart Asset System

NEM’s Smart Asset system allows for powerful modular customization, enabling users to build a wide range of applications and solutions on the NEM blockchain. Whether it is an ICO, fintech system, decentralized authentication or any other use case, NEM provides the flexibility to develop tailor-made solutions.

Overall, NEM stands out in the blockchain space with its focus on improving scale and speed, unique harvesting process, inclusive consensus algorithm, user-friendly development interface and flexible smart asset system. These advantages make NEM a compelling choice for businesses and developers seeking a robust and efficient blockchain solution.

Also read: The influence of blockchain on financial services and beyond

Conclusion:

NEM, “Smart Asset Blockchain, Built for Performance,” aims to overcome the limitations of existing blockchain systems by addressing issues such as slow processing times and network congestion. With innovative features such as proof-of-importance (POI) and harvesting, NEM offers a more efficient and sustainable blockchain solution.

Its versatility and API compatibility make it a promising platform with potential applications across industries, from finance and retail to logistics and management. But for the NEM network, there is still a long way to go before it becomes a prominent network and ecosystem as the curators dreamed of.

However, it is important to approach cryptocurrency investments with caution and seek professional advice before making any financial decisions.