What is NEM (XEM)?

What is NEM (XEM)?

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New Economy Movement, or NEM, refers to a network of platforms that use blockchain technology and encryption to deliver corporate and individual solutions. XEM is NEM's native money on its public blockchain, NIS1.

NIS1 is like Bitcoin (BTC) in that it relies on a network of distributed independent nodes to process and record transactions on a public ledger known as a “blockchain.”

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Through transaction fee awards, these nodes are rewarded for contributing their time, computing resources, and remaining incorruptible; these incentives are given out in XEM coins to each node that successfully adds a new block of transactions to the blockchain's end.

However, NIS1's blockchain is distinguished by several unique characteristics that distinguish it from Bitcoin and most other cryptocurrencies.

 

Component NEM (XEM)
Technologies Proof of Importance, delegated harvesting, Symbol
Market Capitalization $1.04 Billion+
Open-Source Yes
Consensus Mechanism Proof of Importance
Smart Contracts Yes
Founders/Authors Jaguar0625, BloodyRookie and gimre (Bitcointalk.org)
Launch Date 2015
Circulating Supply of Coins 8,999,999,999 XEM
Maximum Coin Supply 8,999,999,999 XEM
Mining-based Coin? No
Is NEM a Stablecoin? No
Does NEM have a burn rate? No
Does NEM have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of NEM

NEM was first proposed on the bitcointalk.org forum. The objective behind the blockchain project was to establish a new economic zone that is based on financial liberty, decentralization, equality as well as solidarity.

The mainnet was released on March 31, 2015, after an open alpha and beta test. NEM was initially founded by three developers who went by the pseudonyms Jaguar0625, BloodyRookie, and gimre, who were participants on the forum.

Since its start in 2014-2015, NEM has developed from a three-programmer personal initiative to a massive ecosystem comprised of several platforms.

NEM Group is currently responsible for the general development and marketing of NEM. NEM Group is a parent business dedicated to fostering the development of the NEM ecosystem in the years preceding up to and including the introduction of Symbol (NEM 2.0).

The NEM Group was founded by a group of seasoned NEM representatives and enterprise veterans who saw that streamlining the ecosystem's structure would benefit the whole ecosystem while also encouraging more community input and involvement.

The NEM Group Board of Directors is responsible for developing the company's strategy and finances, as well as ensuring that its subsidiaries work together toward common goals.

The NEM Group is made up of three distinct entities:

  • NEM Software, which is responsible for product and business development
  • NEM Trading, which oversees all financial matters, including liquidity management, exchange support, and token lending
  • NEM Ventures is responsible for venture capital and investment and is focused on strategic partnerships.

 

What makes NEM unique?

NEM is a Java-based blockchain that enables numerous ledgers on its coin levels. NEM's ecosystem is designed in such a manner that any digital asset may be effortlessly connected and transferred across any private blockchain as well as public blockchains.

A collective development attitude compelled NEM to renounce the POS consensus in favor of the POI. NEM is the world's first POI (Proof-of-Importance) consensus practitioner. While it is like Proof-of-Stake in that it needs the locking of a certain number of coins in the ecosystem, there are some significant distinctions.

The main distinction between the POS and POI consensus algorithms is that under the POS consensus, the number of coins staked does count, while a Staker assigning 10% of the staked value will be able to mine 10% of the network's blocks.

The POI consensus is used to identify which network users are allowed to contribute blocks to the blockchain; in the NEM blockchain ecosystem, this process is referred to as “harvesting.”

While in POS, the more coins staked, the greater the return and reputation. In POI, three important elements contribute to the node's reputation: vesting (holding of 10,000 XEM in the wallet), transaction partners, and several transactions within 30 days.

Symbol is NEM's enterprise-focused initiative. Symbol is a hybrid blockchain, which implies that it is not completely available to the public but retains the benefits of a blockchain, such as transparency, security, and solidity.

The hybrid blockchain is completely customizable, with nodes determining which transactions should be verified, who may participate in the blockchain, and which transactions should be published. Harvesting is fundamental to the PoI consensus mechanism's operation.

This code links the user's account to an already existing supernode. The supernodes represent the backbone of NEM's ecosystem since they may leverage connected accounts to enhance their PoI score and increase the possibility of block generation in their favor.

Simply stated, supernodes employ the PoI score of an account to execute blocks on its behalf. This is advantageous because it enables the NEM blockchain to remain secure without requiring massive amounts of computing power from all users.

Therefore, NEM and PoI use less energy than systems based on proof-of-work, such as Bitcoin.

 

What are the main uses for NEM?

NEM enables easy interoperability among public and private blockchains. It facilitates the simple transfer of any digital asset—such as tokens, contracts, or files—from a privately owned internal corporate network to a public blockchain and eventually to the private network of another organization.

Users cannot transfer money straight from their PayPal account to their Venmo account. Such transfers are feasible using the NEM private to public blockchain interface if all parties agree.

NEM can manage many types of assets, including financial assets, contracts, papers, and other digital assets.

On the NEM blockchain network, users may construct their own PayPal or Venmo. For instance, NEMPay is an open-source payment application that currently exists on NEM and can be readily modified by a participant to utilize their own bespoke crypto tokens for quick money transactions.

Additionally, a retail shop chain may use NEM to manage and monitor its customer loyalty rewards program, or a shipping corporation could use it to handle data regarding shipment and handling, or as an open, secure, end-to-end supply chain logistics management system.

Secure voting, record keeping, registration, and access restriction are other social applications.

For instance, to approve a majority motion at a constituency meeting, NEM's built-in multi-signature capability may be utilized to determine whether the required minimum N signatures out of the total potential M have been obtained or not.

Additionally, NEM enables participants to quickly develop, distribute, and trade crypto coins and tokens that are interoperable with the NEM ecosystem's wallets and other trading applications. This feature also enables the conduct of initial coin offers (ICOs) on NEM.

 

What is the future potential for NEM?

NEM does not include a year-ahead plan with specific objectives and milestones. Its Catapult upgrade is presently the most major modification still under development. It is described in full in NEM's Catapult white paper. Several of the primary characteristics include the following:

  • Utilizing a layered web architecture, which is common in business computing
  • Scalability on a never-before-seen scale
  • Rapid messaging
  • The establishment of an open integration architecture based on a high-performance, highly scalable API gateway server tier

 

The improvement to NEM's Catapult is one of the primary drivers of XEM's pricing. It is critical to note that although NEM was initially created in Java, it is presently being rewritten in C++ as part of the Catapult update. NEM is also involved in several other initiatives, which contributes significantly to its future price. Consider a few of these businesses.

 

Price analysis on NEM

NEM was initially launched in 2015, and its price analysis over the past five months are as follows:

 

  2017 2018 2019 2020 2021 to date
ZEC Price High $1.05 $1.84 $0.099 $0.303 $0.47
ZEC Price Low $0.003 $0.05 $0.03 $0.03 $0.09
Market Cap $2.99B $16.5B $892.6M $2.73B $7.16B

 

Price prediction on NEM

There is a possibility of growth in the value of XEM, which is estimated to reach at least $0.448 by the end of 2022. According to analysts' forecasts, the NEM price is expected to rise overall, and therefore the XEM price is expected to reach $1.242 by the end of 2023.

 

Where can you buy NEM?

XEM tokens can be bought, sold, and exchanged on the following exchanges:

  1. KuCoin
  2. Gate.io
  3. Huobi Global
  4. ShapeShift
  5. Binance

 

1. KuCoin: KuCoin, founded in 2017 in Hong Kong, is a worldwide cryptocurrency exchange that trades a wide variety of digital assets and cryptocurrencies.

The Exchange gives traders access to the KuCoin trading platform, which is accessible in two forms: an online trading terminal that works directly on most contemporary web browsers without the need to install any software, and a mobile app for Android and iOS devices.

 

PROS CONS
The exchange has several innovative trading platforms across devices Unregulated
There is 24/7 dedicated support The exchange does not accept United States clients
There are several crypto assets offered   

 

2. Gate.io: Gate.io is a Cayman Islands-based cryptocurrency exchange that provides traders with competitive online trading conditions for the exchange of a variety of digital assets.

The Exchange gives traders access to the Gate.io trading platform, a centralized trading platform that delivers real-time market data to consumers. It includes a one-click trading service, an intuitive user interface, and data analysis.

 

PROS CONS
The exchange features sophisticated cryptocurrency platforms Unregulated exchange
There are a range of useful trading tools offered A limited selection of digital assets
There are educational sources provided Limited deposit and withdrawal options
There is a choice between crypto assets  

 

3. Huobi Global: Huobi Group's aim, as a global leader in the blockchain sector, is to produce advances in core blockchain technology and to incorporate blockchain technology into other industries.

Huobi, as a supplier of digital assets services, is far ahead of its primary rivals in terms of creating a worldwide network of licenses.

 

PROS CONS
There is a decent selection of educational material Unregulated
There are several crypto coins offered Only offers crypto trading, no CFDs, stocks, or forex trading
The exchange provides 24/7 customer support United States clients are not accepted
There is a low minimum deposit  
There are multiple powerful trading platforms offered  

 

4. ShapeShift: ShapeShift was launched in 2014 as a Bitcoin-to-Bitcoin trading platform. The Swiss company has been a pioneer in delivering instant Crypto trading services across dozens of pairings.

Additionally, it has remained true to the original objective of the Blockchain: to enable decentralized, private peer-to-peer transactions. However, as cryptocurrency rules evolve in the trading business, ShapeShift is adapting as well.

 

PROS CONS
The transaction speeds are instant and reliable The trading fees are not transparent
Offers real-time trading with competitive pricing Customer support is lacking
The exchange has a native cryptocurrency hardware wallet  
Non-custodial wallet where users are in control of their funds  

 

5. Binance

Binance is a major cryptocurrency exchange headquartered in Malta and is one of the biggest in the world. Clients may exchange one cryptocurrency for another. Over 100 different cryptocurrencies may be traded. Additionally, cryptos may be purchased with fiat currency using debit/credit cards.

 

PROS CONS
Over 150 digital assets that can be exchanged The exchange is not regulated
There are several powerful trading platforms offered There is no telephonic support
Users have the option of purchasing coins with credit cards Daily market analysis is not available
There is a comprehensive training academy offered  
A dedicated 24/7 customer support desk is offered  
High trust score among traders and investors alike  

You can buy NEM safely from these cryptocurrency platforms.

Are there criticisms against NEM?

Yes, there are criticisms against NEM.

In response to significant budget constraints, the NEM Foundation, which was founded in 2019, revealed intentions to lay off all 150 of its staff. Following that, the newly elected president filed a financing request to the NEM community claiming to be able to save the organization.

However, what truly happened could be traced back to the previous governing council's mismanagement and the amassing of debt for marketing purposes.

Later, when NEM burned through 80 million XEM and previous foundation president Lon Wong supported “sketchy” initial coin offerings (ICOs) such as Ecobit and ProximaX, sparks of disagreement ignited.

The NEM Foundation began as an experiment in decentralized governance but contributed to the XEM price crash.

Additionally, the NEM Foundation promoted itself as having decentralized governance yet has the considerable centralized ability to do anything it pleases with development money.

 

What is NEM’s largest Competitor?

XRP is the largest competitor of NEM in the race to become the most prominent enterprise-grade blockchain that was designed for security, scale, efficiency, and speed.

While both NEM and Ripple are built for corporate and mission-critical applications that demand high processing speeds and scalability, they are developed differently.

Ripple is a distributed ledger technology, not a blockchain, that was built primarily to handle money transfer and cross-border settlements. NEM is a more flexible blockchain network that uses unique technology to power a diverse range of sectors.

 

Is NEM a Good Investment?

Yes, NEM is a good investment.

NEM has several real-world benefits and applications. Each XEM coin may be an excellent investment if it continues the same trajectory as Ethereum, which has not yet achieved all its objectives.

 

What is the supply and distribution of NEM?

There are 8.999 billion XEM coins in circulation, all of which were produced since the network's inception, which means that no new XEM can be mined.

Through the allocation of fees on the transactions contained in each new block, the network nodes are rewarded for processing transactions.

 

Is NEM a viable Alternative Coin?

Yes, NEM is a good alternative crypto coin based on the following factors:

  • Security – NEM's unique blockchain uses robust security features.
  • Transaction speed – The blockchain can handle up to 4,000 TPS.
  • Technology – NEM uses innovative proprietary technology, including Proof of Importance, delegated harvesting, Symbol.
  • Potential Investment – NEM has several real-world applications, and if it continues its current trajectory, it could remain a viable investment option.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between NEM and Bitcoin?

Bitcoin is the largest cryptocurrency with a much higher value and market capitalization than NEM, with a much higher 24-hour trading volume because of its value and applications.

While XEM is capped at 8.9 billion, BTC is capped at 21 million, and while both have the aspect of rarity, BTC is much more valuable and higher in demand.

 

  Bitcoin NEM
Price change 20/21 +400% -50%
Market Cap $800 Billion+ $1.04 Billion+
Past Hacks None None
Popularity Very High Very low
Altcoin Rank #1 – Original Crypto #88

 

What are the differences between NEM and Ethereum?

While Ethereum is the second-largest cryptocurrency and a platform that enables application developers to code on the blockchain, NEM offers some beneficial and convenient services that developers may use at any time.

Ethereum is the most popular programmable blockchain technology in the cryptocurrency market for launching smart contracts, peer applications, and Decentralized Applications (DApps), despite the competitors that are trying to outperform it.

 

  Ethereum NEM
Price change 20/21 +880% -50%
Market Cap $460 Billion+ $1.04 Billion+
Past Hacks None None
Popularity Very High Very low
Altcoin Rank #2 #88

 

What are the differences between NEM and XRP?

Aside from being created for corporate and mission-critical applications, NEM and Ripple vary in who they are meant for. No, Ripple is a distributed ledger built for executing monetary transactions and cross-border settlements.

For a more flexible blockchain network that may be used in a variety of businesses, look no further than NEM. In terms of value and volume, Ripple's XRPL distributed ledger ought to be recognized.

There has not been a rival that can construct a decentralized network that can power billions of payments and settlements globally in seconds and cost next to nothing while also being picked by so many organizations.

With huge banks all around the globe as clients, Ripple is the closest thing to broad industry use of blockchain-like technology. NEM, though, deserves mention.

 

  Ripple NEM
Price change 20/21 +840% -50%
Market Cap $50 Billion+ $1.04Billion+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #6 #88

 

What are the differences between NEM and NEO?

Neo is an open-source, community-driven platform that uses blockchain technology to create the future's ideal digital environment. NEM is a Smart Asset system that was launched in 2015 and used Java, with XEM as the native currency of the project.

A 10,000 XEM deposit in the official NEM Nano cryptocurrency wallet starts ‘harvesting' and hence grows in quantity. Smart Assets enable the creation of unique data describing any asset, allowing for XEM trading.

 

  NEO NEM
Price change 20/21 +160% -50%
Market Cap $1.70 Billion+ $1.04 Billion+
Past Hacks None None
Popularity Medium Very low
Altcoin Rank #69 #88

 

What are the differences between NEM and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. NEM, on the other hand, is fungible, which means that one XEM has the same value and characteristics as another XEM.

 

What are the differences between NEM and Solana?

SOL coins are 1000 times cheaper to transfer than XEM. It also confirms transactions 200 times quicker. The decentralization of Solana makes it more trustworthy and secure.

Both Solana and NEM have sovereign wallets, reducing reliance on the main development team for upgrades and security. While NEM's available quantity of XEM coins is 100%, with no current or future inflation, Solana's supply of SOL is unlimited.

 

  Solana NEM
Price change 20/21 +9,300% -50%
Market Cap $54 Billion+ $1.04 Billion+
Past Hacks None None
Popularity Very High Very low
Altcoin Rank #5 #88

 

What are the differences between NEM and Litecoin?

Litecoin was created to make ordinary transactions cheaper and more efficient. Compared to this, bitcoin was employed as a long-term value storage.

NEM hails itself as a smart asset blockchain and a technological platform that aims to simplify and reduce the cost of managing assets and data.

 

  Litecoin NEM
Price change 20/21 -20% -50%
Market Cap $9.15 Billion+ $1.04 Billion+
Past Hacks None None
Popularity High Very low
Altcoin Rank #24 #88

 

What is NIS1?

NIS1 is NEM's first blockchain. Through simple but strong built-in capabilities, it enables configurable solutions. NEM has had no significant downtime or chain attacks since 2015, demonstrating it is NEM's development playground.

On NIS1, users can establish voting, asset exchange, and reward points. The Plug-and-Play design of NEM NIS1 makes it ideal for the user's cryptocurrency project. Aspects of NEM NIS1 blockchain:

  • The NEM NIS1 blockchain platform was developed for scalability and speed.
  • The flexible NEM NIS1 API works with any computer language.
  • NEM NIS1 is designed to be easily customized for any application.
  • The NEM NIS1 two-tier design uses Eigentrust++ and an incentivized public node network to deliver a safe and reliable platform.

NEM NIS1's architecture is intended for ease of use and development. Nodes using NEM-supplied software implement NIS1's unique feature set and consensus method. The nodes can support either the decentralized public NEM blockchain or even a permission private NEM blockchain.

Users may access NIS1 capabilities through RESTful JSON calls to an API Gateway Server. This allows developers to use whatever language they choose to create client applications and use blockchain technology.

 

Which wallets support NEM tokens?

The best wallets for XEM tokens are:

  1. NEM Desktop Client
  2. Trezor Wallet
  3. NEM Mobile
  4. Exodus

 

1. NEM Desktop Client: NEM Desktop is a desktop wallet intended to store and manage XEM coins. This wallet works on Mac, Windows, and Linux. Users can easily send XEM to any address or namespace users.

The interfaces and setup procedure are simple enough for novices. Users can also establish multi-signature or multi-user accounts, and users retain total control over their private keys, making it one of the finest XEM wallets in 2019. V2.4.4 of the Desktop Client is also compatible with the Trezor hardware wallet.

 

2. Trezor: The Trezor wallet is one of the greatest hardware wallets with a very secure architecture. The private key of the user is stored offline, so hackers cannot access it online. A backup passphrase is required to retrieve the Trezor wallet.

 

3. NEM Mobile App: NEM Mobile Wallet is one of the greatest XEM wallets that are currently offered to Android and iOS users. The NEM mobile wallet app allows users to send and receive NEM, as well as import and export NEM balances.

 

4. Exodus: Exodus is a desktop-based bitcoin wallet that just added support for Android and iOS. In addition to the prominent digital currencies, Exodus supports several lesser-known coins such as Zcash, Dash, and NEM.

Best Bitcoin Wallets are the same as NEM wallets.

What is harvested cryptocurrency?

NEM's NIS1 blockchain enables the “harvesting” of tokens instead of PoW-style mining, which has limited scalability and may result in network congestion, sluggish processing times, and expensive gas prices.

With harvesting, a network participant needs to connect their profile to an existing super-node on NEM. This enables ordinary node validators to finish blocks by using the processing capacity of super-nodes.

This is instead of them having to invest in hardware. Regular nodes may lend their PoI score to super-nodes, hence increasing the likelihood of their processing new blocks.

This collaboration has the potential to significantly cut energy usage since the job is performed exclusively by the super-nodes. Indeed, the computer of a node validator is not required to be active during the “harvesting” operation. Fees will be distributed evenly if they are linked to a super-node.

The primary benefit is that PoI can use the same scalability that Proof of Stake blockchains are known while ensuring high throughput and low fees, in addition to being extremely interoperable and resilient.

NIS1 was deployed in 2015, and to date, it has never had any downtime or malicious breach. Performance is a primary consideration, with each NIS1 block capable of processing up to 120 transactions per second and a total computing speed of far more than 4,000 requests per second (TPS).