What is NEM Coin (XEM Cryptocurrency) | A Beginner's Guide

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What is NEM Coin - A Quick Overview

NEM (XEM Coin) is a cryptocurrency based on creating smart assets for tracking and management. Whether that be medical records, government records, or keeping track of keys.

NEM aims to deliver industry-leading speed, privacy for transactions, easy development, and customizable to the tee.

History Of XEM Coin and NEM

UtopianFuture inspired by the coin NXT (article coming soon) started NEM in a bitcointalk forum back on January 19th,2014.

They launched a call to help, at first fork NXT, but later built a ground-up blockchain protocol.

NEM Coins were then distributed to those who contributed to the project in the amount of 2.25 million XEM coin.

With the development of the project, those with the coins could reduce them for certain amounts.

Although, NEM was not registered as a legal entity and thus they had a deadline for eight months where all unclaimed funds were put aside for development of NEM.

On June 25th, 2014 the Alpha version of NEM was released. While the stable version was released on March 31st, 2015.

They are currently working on their Catapult upgrade originally set for Q1 2017 but has since been postponed.

NEM has also been developing partnerships with countries around the world.

What is NEM Coin’s Purpose

NEM was developed to be the world’s first smart asset blockchain.

It is built from the ground up with enterprise-grade performance, and a platform for management of any asset.

  • Currencies
  • Supply chains
  • Notarizations
  • Ownership Records
  • And a lot more…

It was designed to allow people to create their blockchain solution using a straightforward and secure developer interface.

Adding in domain-like namespaces and full-on blockchain multi-signature control.

Their public blockchain provides an open and self-scaling blockchain for developers.

Essentially NEM is a platform housing the XEM coin which allows people to create and track assets.

Anyone can use this enterprise-grade platform and then build on top of it, tracking their assets, even using the API to create a simple application.

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What Are Benefits and Features of NEM Cryptocurrency?

A Ground-Up Build For Performance With Unique Consensus

Nem was built from the ground-up.

And it was built for scaling performance that enterprises can use.

This means that NEM has a new code...

The New Code of NEM

XEM coin uses a code base written entirely in Java.

They use a client-server model where the NIS (NEM Infrastructure server) runs independently of the NEM Community Client.

That means light clients (for the lightning network) can run without running a full copy of the NEM blockchain.

Currently, the core team is rewriting it for an update called Catapult in C++ which will allow for Open-source code editing.

They use a unique consensus protocol to keep a high speed and ensure scaling.

Proof Of Importance (POI)

On NEM instead of proof-of-work or proof-of-stake, they use something called proof-of-importance.

What POI does is assign a rating to each account.

This makes it so whoever has the most money (POS) or the most power (POW) can’t be weighed on a biased fact.

POI Vested Stake Features (1):

  • Only counts coins in an account for some days
  • 10% of current unvested coins, vests each day.
  • The higher number of vested coins the higher the accounts ranking
  • It takes a minimum of 10,000 vested coins to start harvesting

Transaction Partners:

  • POI rewards users who make transactions with others in the network.
  • This is part of a network theory calculation that looks at transaction behavior to assign each node an importance score.
  • Users can’t gain an advantage by trading back and forth between a few accounts. The algorithm only counts net transfers over time.

Number and Size of Transactions in the Last 30 Days:

  • Each transaction (above a minimum size) contributes to your POI score and increases the chances of harvesting a block and collecting its rewards.
  • Larger and more frequent transactions have a greater impact on the POI score.
  • This provides an incentive to use XEM as a currency and offsets NEM’s already low transaction fees.

Using these variables, NEM coin helps to ensure that users are honest and participating in the ecosystem.

They claim this will help them scale and become quicker than most other blockchains out there.

Ease of Development

NEM has created a custom API that integrates with any programming languages.

This means there doesn’t have to be a specific programming language like Ethereum’s solidity.

And any code that currently is existing can be put into the NEM blockchain. This allows secure transactions and ledger keeping for the original system.

A Custom Namespace

Similar to the Internets ICANN domain naming system, NEM cryptocurrency has a similar domain naming system.

What is a Namespace?

In a domain, there are two different namespaces which occupy a higher level and lower level.

This allows anyone with a domain to create multiple subdomains under the main domain.

By holding NEM, a user can create as many namespaces and domains as they would like, creating both main domain names and subdomains if they have enough NEM in their account.

The sublevels of a namespace can act as the actual name of the asset, or in some cases can be a class of assets as it is itself a sub-domain with lots of assets under that sub-domain name. This means that last part of a string will always be the name of the individual asset on the NEM blockchain and the prior names will act as the domain and subdomain for that asset(1)

Mosaics

Mosaics are custom assets on the NEM blockchain. These can be hosted and given out on sub-domains.

These smart assets can be fixed in value or malleable, they can be transferred or not, they can have any description and purpose programmed, and they can be sent with encrypted messages in one transaction.

What Is The Messaging on XEM Coin?

When messaging on the NEM network, you can transfer coins in transactions.

They can be created in three forms:

  • Encrypted
  • Unencrypted
  • Hex messaging form

Despite that, you don’t have to send any xem coin on the NEM network to send a message.

It makes it possible for secure communication on the XEM blockchain.

Unencrypted messages do take 1 XEM token to send a 32-character message.

Harvesting and Supernodes

By harvesting one can form blocks on the NEM blockchain.

A harvester must have at least 10,000 XEM in their wallet while running a booted/synchronized node.

Once a block is formed from the 10,000 XEM staked, all the fees will be collected and delivered to the harvester’s account. One can also delegate harvesting.

This is done in a secure way which allows people to request a new block creation, for a fee, which goes to the activated delegating harvester.

Although, one can also create a supernode on the NEM blockchain.

What is a NEM Supernode and How Can You Get One?

For started you need at least 3 million staked XEM.

If one is running an active node with 3 million staked, then they will receive a 140,000 XEM divided by all supernodes/daily.

These supernodes help for light client use, 3rd party apps, mobile wallets, and allowing participants not to have to sync to a blockchain locally.

What Do We Think of XEM Coin?

NEM seems to be helping the ecosystem of cryptocurrency as a whole.

They are building a platform for others to build on, with a custom language and a whole new model called proof of importance.

As well, there is an incentive to hold XEM cryptocurrency through both Supernodes and Harvesting.

This is a cryptocurrency we will be watching closely in the future.

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March 6th 2018, 10:35