NEM is an established blockchain platform based on the Java programming language. Traders often compare it to Ethereum as both of the blockchains let users perform an ICO with its platforms. Its native coin is named XEM, which is mined with blockchain consensus algorithm Proof of Importance.
NEM was initially launched as a branch of another digital coin NXT before its makers changed their minds and decided to build it from scratch. The cryptocurrency was deliberately created to be a coin that targets the community.
When it was first launched, NEM airdropped 75% of nem coins (XEM) to nearly 3000 shareholders who wanted to participate in the airdrop. The even distribution of the coin helped the platform have a strong start, and none of the shareholders were at a disadvantage as every person managed a 0.025% of the platform.
NEM is built around a very effective Smart Asset System that makes the blockchain customizable. What this means is that this system allows users to use NEM as if it were a custom-made blockchain for their own assets and needs.
The Smart Asset System can be implemented into other apps via modern API interfaces. Instead of making customers write their own code from the ground up, the platform provides you with API access to a dedicated set of safe and proven on-blockchain services.
The Structure of the Platform
Essentially, the platform consists of a network of nodes which operate on the main node server software of the blockchain. In brief, this network of nodes creates a user-friendly, powerful, and safe platform where the transactions are carried out and unalterably recorded to the blockchain register.
Every node in the network has its own API gateway that the other software can use to enter the blockchain and use its services. To be more specific, users don’t have to install any other third-party node software as they can fully access the blockchain via the API interface on every node in the blockchain itself.
Nodes collaborate with each other, building a peer-to-peer blockchain network. In other words, this node structure forms the blockchain. This powerful structure completes many tasks such as transaction verification, database maintenance, and it also preserves balance and reliability, producing a strong and extendable network.
What is NEM Coin?
As we have said earlier, NEM’s own native coin is named XEM. While traders cannot use XEM as a payment method in the same manner as BTC, the cryptocurrency has an outstanding value and it’s currently positioned as the 26th largest cryptocurrency with a market cap of nearly $350 million.
Traders can buy XEM on several open exchanges in the United Kingdom. Due to the feature of XEM fees to finance real business transactions on the open blockchain, the coin gains an instinctive value. This points out that XEM can become a very powerful cryptocurrency, available to all users on the NEM blockchain to store value and perform transactions.
Another thing that distinguishes XEM from other cryptocurrencies is that it isn’t mined via PoW or PoS consensus algorithms. Alternatively, XEM is mined through PoI (Proof of Importance),
NEM’s own unique algorithm, utilizing a special method that stops different assaults on the platform’s reliability.
It meets similar objectives as the common Proof of Work (PoW) algorithms utilized by BTC and other digital coins, however, it’s more expandable and high-yield. This kind of system makes it easier for nodes to operate on almost any machine, without sabotaging the safety of the network. When it comes to safety, one of the greatest advantages of Monfex platform is the safety of funds.
Consumers are supposed to put a minimum of 10,000 XEM coins in the NEM NanoWallet to initiate the vesting process. After a certain amount of time of holding the required XEM value, the users’ significance to the network grows. Additionally, users also get awarded in the blockchain when they trade XEM with other users. This way, users are motivated to support the blockchain in more of a benefit-sharing fashion.
This type of design lets users act as a node, solving one of the great issues of the blockchain. The design also doesn’t let consumers gain control of the blockchain with funds, as time and involvement are the components that boost the importance of a consumer.
NEM utilizes a modified form of the Eigentrust++ reputation algorithm. Eigentrust++ lets nodes to reasonably evaluate the “reputation” of other nodes, and once a specific node brings in positive intel, its reputation in the network grows. On the other side, the reputation of the nodes that bring unsatisfactory information gets reduced.
Nodes move the transactions in the peer-to-peer network in a distributed fashion and this is one of the strong sides of the blockchain, as this type of model is much harder to jeopardize. The model lacks a focal point of failure and it would take an immense amount of time for attackers to gain control of the system.
However, as everything comes with its own risks, so does this system. Since the blockchain utilizes the peer-to-peer network, it makes its parties anonymous, making it easy for them to be a part of the attack. That is precisely why NEM implemented the Eigentrust++ algorithm to help supervise similar activities.
NEM Coin Review
Upon its launch in 2017, NEM started drawing attention worldwide, including the United Kingdom. Thanks to its versatility, the platform was suitable for both public and private businesses. A few startup crypto companies used it as a building platform, while some countries tested it for administration work.
Not long afterwards, the crypto market had suffered a big decline in 2018, and surely it affected NEM as well, causing it to lose its position in the top 10 on the Coinmarketcap list. The slump occurred due to several factors such as poor management, slow growth rate as well as one of the biggest cryptocurrency hacks on the Coincheck exchange when 523 million of XEM coins got stolen.
It is believed that NEM still hasn’t unleashed its full potential. On the other hand, NEM is facing some serious, well-established rivals in the crypto market and that’s why there are the ones who believe that the platform should think about a complete transformation of its structure and concentrate more on the growing adoption.
The platform made its way to the commercial crypto market via Mijin, a private blockchain solution developed by Tech Bureau. Mijin is already known for its work with Hitachi as well as other firms. The crypto market started to understand that businesses can benefit from enterprise blockchains and make commercial activities more productive.
The market intelligence firm Tractica released a report showing that boosting approval of enterprise blockchains could lift the global market cap from $4.6 billion to $20.3 billion by the year 2025.
Since it features a powerful Smart Assets System, the platform allows users to make custom tokens, which they can use in various ways based on what their needs are. They can also perform an ICO/STO on the platform. Even though the ICO market isn’t exactly flourishing lately, it is believed that the value of the STO market will jump to $2-$3 billion or more this year.
As already mentioned before, the company has to face big players in the crypto market as well as traditional organizations. Concerning the dApp (decentralized application) competition, its biggest peers are Ethereum and EOS, well-known and stable public platforms. The two companies own a great portion of shares in the dApp market. NEM has also been working on boosting its network outside the dApp space, but inside that market, it’s falling behind the two giants.
On one hand, many believe that NEM has a promising future, however, there are those who think that NEM is a dead cryptocurrency. The company announced its plan to roll out Catapult back in May 2018, but we’re still waiting on that. Over the first 6 months after the launch of NEM, the XEM rate chart rocketed but since then, there had been no major developments.
The NEM Foundation plans to invest more than $8 million on structural modifications. The company plans to dispense 210 million XEM coins (worth around $ 8.7 million) from its reserves to realize the project. A portion of 25 million XEM (a little higher than $ 1 million) will be spent on making structural transformations for the fresh NEM Foundation vision that will focus on products and profit. NEM plans to spend all of the 210 million XEM coins by February 2020.
The company also plans to reduce staff by removing some unnecessary positions. The plan is a result of economic problems the platform had due to overblown workforce and overlapping positions, numerous unsuccessful attempts to identify key performance indicators (KPI), poor bookkeeping and bad returns.