NEM

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Discover NEM's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is NEM?

NEM (XEM) is a blockchain-based technology platform designed to manage assets and data efficiently and inexpensively. It aims to provide a scalable and fast blockchain, positioning itself as a "smart asset blockchain" that can be used for various industries, governments, and academia. The platform uses a unique consensus protocol called Proof-of-Importance (POI), which rewards users for their vested interest in the network and their transaction history. NEM's native cryptocurrency is XEM, which is traded but not used as a means of payment. The platform supports multiple wallets, including the official Nano wallet, and has a focus on energy efficiency and transparency.

How is NEM used?

NEM (XEM) is a blockchain platform designed for integration with commercial and government enterprises. It offers a range of features and applications that make it versatile and efficient. Here are some ways NEM is used:

  1. Asset Management: NEM enables the seamless transfer of digital assets, including tokens, contracts, and files, between private and public blockchains. This facilitates easy management and tracking of assets within and across organizations.

  2. Supply Chain Management: NEM's blockchain technology can be used to create an open, secure, and efficient supply chain management system. This allows companies to manage, access, and share validated data via various access controls, making logistics more streamlined.

  3. Cryptocurrency Trading: XEM, the native cryptocurrency of NEM, can be traded on exchanges. Users can buy and sell XEM, and it can be stored in various wallets, including the NEM Nano Wallet and mobile apps.

  1. Smart Contracts: NEM supports the creation and execution of smart contracts, enabling secure and automated transactions. This feature is particularly useful for businesses and organizations that require complex agreements and transactions.

  2. Private to Public Blockchain Interfacing: NEM allows for easy interfacing between private and public blockchains, making it possible to transfer assets and data securely between different networks.

  3. Harvesting: NEM's unique proof-of-importance system allows users to participate in the validation process by "harvesting" blocks. This process rewards users with XEM for their participation, making it a decentralized and incentivized validation mechanism.

  1. Customizable Applications: NEM's API-based architecture allows developers to create customized applications and integrate them with the NEM blockchain. This enables a wide range of use cases, from payment systems to supply chain management tools.

Overall, NEM's flexibility and scalability make it an attractive solution for various industries and use cases, particularly those requiring secure and efficient management of digital assets.

How do I store NEM?

To store NEM (XEM) tokens, you can use various wallet options:

  1. NEM Nano Wallet:

    • Download the NEM Nano Wallet from its website.
    • You can use the Universal Client (with Trezor Support) if you have a Trezor hardware wallet.
    • The wallet interface allows you to create a new wallet, login, and manage your XEM and Mosaic tokens securely.
  2. Ledger Wallet:

    • Install the NEM app on your Ledger device.
    • Connect and unlock your Ledger device.
    • Use the Ledger Live application to manage your XEM assets securely.
  3. Guarda Wallet:

  • Download the Guarda wallet app for desktop or mobile.
  • Create an account and set a strong password.
  • Add your XEM to the wallet and manage it securely. Guarda is a non-custodial wallet, ensuring you have full control over your funds.
  1. Atomic Wallet:
    • Download the Atomic Wallet app for desktop or mobile.
    • Create an account and set a password.
    • Manage your XEM and other cryptocurrencies securely. Atomic Wallet stores private keys encrypted on your device, ensuring your privacy and security.

How to buy NEM?

To buy NEM (XEM) tokens, follow these steps:

  1. Choose a Cryptocurrency Exchange: Select a reputable exchange that supports NEM (XEM) trading. Some popular options include Uphold, KuCoin, Binance, SpectroCoin, and Kriptomat.

  2. Create an Account: Sign up for an account on the chosen exchange. This typically involves providing an email address, mobile number, and a strong password. Ensure you follow the exchange's security guidelines to protect your account.

  3. Verify Your Identity: Complete the verification process by uploading a valid photo ID and providing personal information. This step is crucial for complying with regulations and securing your account.

  1. Add a Payment Method: Link a payment method such as a credit/debit card, bank account, or existing cryptocurrency holdings to your exchange account. The specific payment options may vary depending on the exchange and your region.

  2. Buy NEM (XEM): Navigate to the NEM (XEM) trading page and select your preferred payment method. Enter the desired amount, review the transaction details, and confirm your purchase. The exchange will then execute the trade and update your account balance accordingly.

  3. Store Your NEM (XEM): Once you have purchased NEM (XEM), you can store it in your exchange account or transfer it to a personal cryptocurrency wallet for added security and control.

Remember to always follow the specific guidelines and instructions provided by the exchange you choose, as the exact steps may differ slightly. Additionally, be aware of the fees and risks associated with cryptocurrency trading.

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History of NEM

The history of NEM (XEM) began in 2015 when a Bitcoin Talk forum user named UtopianFuture explained how the cryptocurrency NXT inspired him to build a new project. By March 2015, a forked version of NXT called NEM went live. However, developers soon decided to rebuild NEM from the ground up, and by the end of 2015, NEM received its own codebase, making the platform more scalable and faster than NXT.

The project continued to gain momentum until 2016, when the NEM Foundation entered the sector. This non-profit focused on increasing NEM adoption through brand awareness, marketing, training, and partnerships. In January 2018, the popular cryptocurrency exchange Coincheck was hacked, resulting in the theft of 523 million XEM coins, valued at around $400 million at the time. Although the funds were never recovered, NEM spent two years monitoring and flagging every account that handled the stolen crypto, providing this information to the authorities.

In 2018, NEM saw its first real-world application when it was chosen by the Ukraine Central Election Commission for a pilot program to test the feasibility of blockchain-based voting systems. The same year, NEM secured an agreement with Malaysia’s Ministry of Education to test a system that authenticates academic certificates.

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How NEM works

NEM (XEM) is a peer-to-peer cryptocurrency and development platform that operates using a unique consensus mechanism called Proof of Importance (PoI). This mechanism differs from traditional Proof of Work (PoW) and Proof of Stake (PoS) systems. Here's how it works:

Proof of Importance (PoI)
  • Vesting: Users need to hold at least 10,000 XEM coins in their wallet to participate in the PoI process. These coins are vested over time, with 10% of the holdings becoming vested each day. Once the vested amount reaches 10,000 XEM, the user can generate new blocks and earn transaction fees.
  • POI Score: The PoI score is calculated based on the vested XEM and the number of transactions made within the network. This score determines the likelihood of a user generating new blocks.
Harvesting
  • Supernodes: Harvesting allows users to link their account to a supernode, which is a powerful node that helps secure the network. By linking to a supernode, users can increase their chances of generating new blocks without needing significant computational power.
  • Energy Efficiency: Harvesting is more energy-efficient compared to traditional mining methods, making it a more sustainable option.
Network Operations
  • Block Generation: Users with a high PoI score can generate new blocks, which are then added to the blockchain.
  • Transaction Fees: Users who generate new blocks receive a portion of the transaction fees associated with the transactions in that block.
Security Features
  • Multisignature Accounts: NEM supports multisignature accounts, which provide an additional layer of security by requiring multiple signatures to authorize transactions.
  • Encrypted Messaging: NEM offers encrypted messaging, ensuring secure communication within the network.
  • Eigentrust++ Reputation System: This system helps maintain the integrity of the network by evaluating user behavior and reputation.
Applications and Interoperability
  • Interoperability: NEM enables seamless interactions between public and private blockchains, making it suitable for various applications such as supply chain management, financial transactions, and document storage.
  • Custom Applications: NEM's API compatibility allows for easy integration with different applications, making it a versatile platform.

Overall, NEM's unique PoI mechanism and harvesting process provide a secure, efficient, and scalable blockchain solution with a wide range of applications.

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NEM's strengths

NEM (XEM) has several strengths that make it a unique and attractive cryptocurrency:

  1. Efficient Blockchain Management: NEM is designed to manage assets and data efficiently, making it an important tool for large businesses and organizations. It connects private and public blockchains, expanding their usability and enabling the easy transfer of digital assets.

  2. Scalability and Speed: NEM's blockchain technology allows for fast transaction speeds, with an average of 30 seconds per transaction. This scalability makes it suitable for widespread adoption.

  3. Security: NEM's blockchain has implemented multisignature accounts, encrypted messaging, and an Eigentrust++ reputation system, ensuring a high level of protection and reliability. The Catapult algorithm used by NEM also excludes the possibility of system errors or double debits.

  1. Energy Efficiency: Unlike traditional mining processes, NEM's harvesting mechanism is energy-efficient and does not require specialized hardware. This makes it a more environmentally friendly option.

  2. No Inflation: All XEM coins have already been created, which means there is no risk of inflation. This fixed supply helps maintain the value of the currency.

  3. Low Transaction Fees: NEM's transaction fees are fixed and relatively low, at 0.1% of the transaction volume. This makes it an attractive option for users who need to perform frequent transactions.

  1. Ease of Use: Running a NEM node requires minimal electricity and can be done on an ordinary computer, making it accessible to a wide range of users.

  2. Unique Consensus Algorithm: NEM's Proof-of-Importance (POI) algorithm rewards users based on their involvement and commitment to the ecosystem, encouraging active participation and discouraging malicious activities.

These strengths position NEM as a robust and efficient blockchain platform with a unique approach to consensus and governance.

NEM's risks

NEM (XEM) is associated with several risks that investors should be aware of before investing. These risks include:

  1. Volatility and Liquidity Risks: NEM's value can fluctuate significantly, and liquidity issues may make it difficult to buy or sell the cryptocurrency quickly enough to respond to market changes.

  2. Short History Risk: NEM has a relatively short history, which can make it harder to predict its long-term performance and stability.

  3. Demand Risk: The success of NEM depends on its rate of adoption, which is uncertain and can be influenced by various factors, including competition from other blockchain projects.

  1. Forking Risk: NEM is susceptible to forking, which can lead to the creation of new versions of the blockchain, potentially affecting the value and stability of the original chain.

  2. Code Defects and Security Breaches: Like any blockchain, NEM is vulnerable to code defects and security breaches, which can compromise the integrity of the network and the value of XEM.

  3. Regulatory Risks: Changes in laws and regulations can negatively impact the use, transfer, exchange, or value of NEM, and such changes can be sudden and without notice.

  1. Mismanagement Risks: The NEM Foundation has faced financial difficulties and mismanagement issues in the past, which can erode investor confidence and affect the project's overall viability.

  2. Competition from New Projects: The launch of new blockchain projects, such as Symbol (XYM), can divert attention and resources away from NEM, potentially impacting its adoption and value.

  3. General Risks: NEM is also subject to general risks associated with crypto assets, including electronic trading risks and cyber security risks.

These risks highlight the importance of thorough research and risk assessment before investing in NEM or any other cryptocurrency.

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Did NEM raise funds?

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NEM’s team

  • UtopianFuture: The pseudonymous founder of NEM, who initially wanted to improve NXT but eventually decided to build NEM from scratch.
  • Lon Wong: The President of the NEM.io Foundation and the founder and CEO of Dragonfly Fintech Pte Ltd.
  • David Shaw: The current CEO of the NEM Group, based in Maryland, US.
  • Alexandra Tinsman: The former President of the NEM Foundation, who led the organization through a challenging period and implemented significant management changes.
  • Takao Asayama: The director of NEM Japan and CEO of Zaif.
  • Jeff McDonald: The VP of the NEM.io Foundation.
  • Jaguar0625, BloodyRookie, and gimre: The three developers who created NEM as a hard fork of the NXT blockchain platform.

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