NEM is a peer-to-peer platform for digital currencies and blockchains that was launched on 31.03.2015. The NEM blockchain software is used in a commercial version called “Mijin”, which is being tested by financial institutions and private companies in Japan and other countries.
In 2017, the NEM Foundation opened a Co-Working-Space in Kuala Lumpur, which will serve as an incubator and international meeting place.
Vision of the development team of NEM
The cryptocurrency goes back to the New Economy movement, which pursues a sustainable and economic order. All actors along the value chain are to be connected by a common technological system, the blockchain.
The developers of the project are mainly from Asia, many of them from Japan. The former plan was to carry out a fork from Nxt. However, this plan was rejected again and a code base based on Java and C++ was created.
The NEM blockchain software was programmed for high requirements in terms of scalability and speed. The NEM blockchain features accelerated block generation that enables high performance rates for the internal ledger.
A look into the blockchain
Furthermore, NEM relies on the proof-of-importance consensus mechanism instead of the already familiar proof-of-work. This technical feature, combined with an intelligent Supernode program, ensures that stability and speed are not compromised even under heavy load.
The blockchain of NEM provides its complex functionality via an API that can interact with other programming languages. According to the company, there should be no restrictions. Existing software or programs with huge amounts of source code can be used exactly where it is needed with the help of the NEM blockchain software. Every type of company should be able to use NEM’s technology without having to convert the existing infrastructure.
The Smart Asset System can be configured and used in a variety of ways. Possible locations are Fintech companies, the logistics industry to implement a complex tracking tool, the alignment of an initial coin offering or the creation of their own crypto currency. Customizable assets also allow asset titles, birth certificates, electronic elections or patents to be mapped to the blockchain.
Multisignature solutions allow users to link contract terms to their payments. By using Smart Contracts, payout conditions can be defined that release funds only after specific requirements have been met.
The NEM blockchain is secured by the use of self trust ++ and an incentive system for public nodes based on the second-layer architecture. If desired by companies, it is possible to create a private blockchain on the NEM software. This enables data protection and privacy requirements to be met in full. Furthermore, the NEM technology enables the existence of several ledgers within a block chain, so that the application possibilities increase considerably.
Harvesting instead of mining
The special thing about the NEM ecosystem is that there are no miners that create blocks and get a reward to drive the blockchain. NEM uses so-called harvesting. In simple terms, harvesting means that investors use their XEM Coins to confirm transactions.
The prerequisite for this, however, is that the investor has at least 10,000 XEM on his wallet (NanoWallet). If XEM is newly deposited on the wallet, the transaction should not take long, usually not even 15 seconds. Per day, 10% of the available sum, at 10,000 XEM it is 1000 XEM, at 30,000 correspondingly more, is activated and used for harvesting. According to NEM, even returns of 3 to 6% per year are possible.
Of course, the NEM price has a strong influence on the future return but also the actual use and adaptation of the NEM blockchain in practice. With harvesting, the investor does not receive any new coins, but only the transaction fees paid on his wallet.
Operating the NEM network requires about 100 times less energy than maintaining the Bitcoin network.
NEM as the basis for the crypto currency Petro?
The often hotly discussed state crypto currency Petro exists as an asset on the NEM blockchain. For a long time there was a lot of speculation whether Ethereum, NEO or NEM would be used for further development work and the orientation of the ICO. The Initial Coin Offering was based on the Ethereum platform, as it is also written in the white paper.
Nevertheless, NEM announced in an interview as well as on Twitter that the Venezuelan government intends to use the NEM blockchain. President Nicolas Maduro also made the following statement via Twitter (free translation):
Thanks to the trust of Zeus and NEM, we have signed two basic agreements for El Petro to be deployed on the most advanced platforms in the world.
In developing its platform, the NEM Foundation has consciously made sure that the creation of its own blockchain as well as digital currency is easy to handle and carry out.
Whether the actual use has taken place, however, has not yet been revealed or may be deliberately kept secret. As soon as further information in this matter leaks out, we will supplement it here.
Bottom line: Is NEM worth an investment?
NEM is one of the most complex projects on the crypto market, but it faces a lot of competition. The largest platform for decentralized applications is still Ethereum by far. NEO enjoys great popularity especially in the Asian region, but the adaptation has not progressed so far.
NEM is in direct competition with these two projects with its concept, making it difficult to bite through the shark tank. Trorzdem offers NEM through the Proof of Importance approach and the opportunity to earn a handsome return on interesting options that could justify an investment. Whether the project can assert itself in practice in the long term, however, cannot be foreseen at this point in time. The crypto market is simply still too young and the developments too unpredictable.
Last updated: 01/07/2019