Cryptocurrency NEM (XEM) - what it is and why is it needed in simple words

Today, there are more than two thousand varieties of coins in the world of cryptocurrencies. They all have their own characteristics, advantages and disadvantages. While Bitcoin has been the industry leader for many years, there are other very progressive forms of altcoins out there.

One of the most popular digital currencies in the stock market right now is Him. This asset is a completely new type of blockchain designed to implement a large number of projects at the same time. This peer-to-peer platform provides for the presence of many functions, which developers plan to supplement with modern system solutions as the platform develops.

According to the forecasts of specialists in the cryptocurrency business, high performance is expected in comparison with other active coins of the market. Therefore, it is advisable to consider in more detail all the characteristics and nuances of this cryptocurrency.

What is NEM (XEM)?

Most novice users of exchange platforms often wonder what Nem is and how the coin functions. The very abbreviation of the name stands for "New Economy Movement" or translated from English "new economic movement". The resource is a blockchain platform that has been completely and independently formed, that is, from scratch. Coins are traded under the abbreviation XEM. The resource was created as a corporate solution for the blockchain revolution taking place in the economy of the whole world.

Touching on the brief technical parameters, it is worth mentioning that this platform is a peer-to-peer cryptocurrency asset. The resource uses completely original code in its work. The system was built on the basis of Java and JavaScript.

The private informative blockchain of this digital currency is called Mijin. This system was formed with the participation of the site software. All the functionality that is on the platform is also available on the blockchain. However, the latter is also modernized with an additional function of supporting smart contracts (agreements, the conclusion and observance of which is controlled according to a pre-written computer program).

This resource improves the design features of the blockchain system. For this, a special algorithm for regulating importance is used, or as it is also called Proof-of-Importance. The system of confirmation of importance implies that the main decisive position in the network is available only to those nodes, including a larger number of tokens and to those who more quickly and efficiently conduct monetary transactions. That is, in fact, the position of a node in the cryptocurrency hierarchy directly depends on the degree of its active work. Also, this algorithm takes into account how actively the trader enters into contracts with other market participants.

In addition, Nem offers users a built-in peer-to-peer message forwarding system protected by encryption. They also have multi-signature accounts and the Eigentrust ++ system, which is involved in regulating the reputation of nodes. This process is based on sending transactions through highly reputable channels without resorting to nodes with a low degree of reputation. This indicator is calculated based on the number of successful transactions.

Thanks to the platform, clients can create secure and easy-to-use digital wallets, as well as send P2P messages. Also, on the basis of this site, the first active blockchain of notary services was developed, which includes the possibility of using a digital signature to regulate property rights. Thanks to open source, it is possible to create other types of commercial projects, including the formation of tokens and the like. Financial technologies of banking transactions are developed at a sufficient level, since informative blocks are generated promptly in just one minute. Therefore, this site is considered one of the fastest financial messengers.

But why is New Economy Movement even necessary if there is a time-tested and popular Bitcoin? The answer is simple enough. The worlds first cryptocurrency is a coin where all the elements of the cryptographic system are directly enclosed in it. That is, the direct goal of creating Bitcoin is the formation of an alternative format of real money and nothing more significant. Altcoins like Nema are formed for more specific purposes. This is their main difference from standard digital currencies. Also, the asset in question is a platform that provides traders with a wide range of opportunities. Likewise with standard coins, a node does not require a lot of computing power to activate. The creators and developers of the coin themselves are convinced that the main goal of their project is to resolve the issue of property inequality between participants in the blockchain system of ordinary digital currencies.

In addition, the capitalization level of the coin is more than $ 8 billion. It deservedly leads the Japanese market and is actively sold on almost all major exchanges of the network.

History of cryptocurrency

Before proceeding to study the more detailed technical characteristics of the virtual coin, it is advisable to find out what the history of Nem is.

For the first time, mentions of the idea of creating a cryptocurrency were published on the BitcoinTalk forum. The record belonged to a user named Utopian Future. The first version consisted in the formation of the NXT block, but in the process of work the author decided to apply a progressive and completely new code system. So on June 25, 2014, the initial alpha model was introduced to the market, which was based on Java provisioning. On October 20, 2014, the developers tried to improve the initial product, and implemented the beta model of the digital currency project.

But for a full-fledged activity in the field of cryptocurrency business, a more stable version of the resource was required. This version was launched almost a year later on March 31, 2015. The release took place at "Consensus 2018" and the project was referred to as "Catapult".

The second modernized and more modern coin performed more efficiently and quickly, which also added aggregated financial transactions and tiered accounts. But the innovations did not end there. In a more progressive version, new functions were provided that had not previously been introduced into blockchain blocks.

As for the personality of the creator, he preferred to remain in the shadows. On the Internet, he is known under a pseudonym, so its hard to say that one individual or a whole team of specialists is behind the development. It is reliably known that the headquarters are located in Singapore. The main developers and investors of the project are EEC citizens. The platforms activity is most active in the cryptographic sphere of Japan, where it honorably occupies the second leading place on digital coin platforms, second only to the sensational Bitcoin.

New updates are made available to traders almost every few months. This guarantees not only stable operation, but also the elimination of minor flaws, minuses and errors. Therefore, programmers develop a product in several directions at once. This allows you to increase the bandwidth of the site and improve the program code.

At such a pace of development in 2017, the authors of the project presented a currency exchange with a new useful function. In the AppStore and Play Market applications, the mobile virtual wallet Nem has become available for download to all interested users. This capability has been integrated to improve platform performance.

All the work done on this project brought a high-quality result to its authors. Today, coins can be bought, sold or exchanged on all large and popular resources (exchange-traded funds, exchangers).

Looking at the development of the resource and its quality, experts give positive feedback and promising forecasts. Indeed, in their opinion, the future of the cryptographic market lies precisely in projects such as Nem, modernized for the novelties of technological progress. Even the name of the site speaks of the direction of the currency and its goals for the next years.

Distinctive features of NEM from other cryptocurrencies

According to the technical parameters laid down by the developers, XEM differs significantly from other currencies already existing on the cryptographic market. This is because the system-integrated features and modern advantages have not been applied in any other project in the area. Among the most unique factors, experts identify the following nuances:

1. Information block chain is a self-produced and stable system. It provides automatic generation of blockchain elements. It is worth considering that one block is formed very quickly, namely in 60 seconds. This is by far the highest existing indicator among all assets on the market.
2. The most convenient operation algorithm - the integrated software of the resource for working with coins can be downloaded from reliable channels. For example, from the official site of the project. And the installation does not require special computer software or digital power, since product activation is available on an ordinary average computer. The software is designed in such a way that it can be combined with all existing operating systems, including mobile devices. The resource can even be used by novice traders with no experience in stock exchanges, because the interface is designed in the most convenient way.
3. Catapult is a system that is characterized by a high level of protection against attempts at crypto theft (account hacking, leaking valuable data, cyber attacks by hackers and similar actions of intruders). The whole chain of blocks is systematically scanned in automatic mode, so it checks itself.

Also, among such technical nuances, it is worth mentioning the speed of financial transactions. Cryptocurrency transactions are carried out instantly, that is, it takes only a few seconds to wait for the transfer result. Thus, the resources throughput is at its maximum today. It is 4 thousand money transfers simultaneously, that is, in one second. This is the highest existing figure on the market at the moment.   

Among the key characteristic features of Nem (NEM, XEM), the developers highlight the following several parameters:

1. A completely new codebase - initially the site was formed by the authors as the Nxt direction. It was planned that it would be identical to other block-type chains and already existing digital coins. But the developers themselves, assessing the situation on the stock market, realized that this would not be enough for stable operation, so in the end they decided to form the code base from scratch. That is, they independently created a completely new platform foundation.   
2. Proof of Importance - instead of using a proof of work algorithm (as is the case with ordinary virtual coins), this cryptocurrency project uses the regulation of the importance of the POI algorithm. In this case, the resource uses the client-server format. It is characterized by the fact that the infrastructure server functions separately and independently of the user of the site community. This will allow clients with low computing power computers or simple smartphones to work on the platform without a full copy of the Nem blockchain. Proof of importance is used in a coin for financial transactions with a time stamp. The very parameter of "importance" of each participant is calculated by counting the assets that he has, the number of transfers credited to and from their wallets.
3. Accessible Source and Closed Source - The user of a resource is the available source code that is open on the GitHub hosting web service. But at the same time, the NIS server element acts as a closed resource and has complex encryption. This prevents the program translating the executable from determining how it functions. But the 2017 update of the Catapult system made the source code open source.
4. Namespaces - the site provides for the “Namespaces” domain name system. It is analogous to ICANNs centralized domain name system on the web. Clients of the site have the ability to register domains with a higher level, and this allows one user with one domain to form several subnames for different processes. If the number of coins in the account is sufficient, then the client has no restrictions on the number of domains created and its branches.
5. Mosaic - this cryptographic resource has a unique system. It is a standard asset in the currency block chain. Mosaics can be customized according to different descriptions (portable, non-transferable, divisible, non-shared, personalized). It is also possible to regulate according to the number in a fixed and variable amount. Each of them gets a name that is entered into the base of namespaces.
6. Node reputation system - the Eigentrust ++ system is integrated on the site. It is intended to ensure the stable operation of the blockchain chain. This ensures that the nodes are measured not only by the volume of tasks performed, but also by the quality of the work performed. This system is designed to provide network security. It also differentiates the platform from other evidence of system work.
7. Harvesting is the process of creating new blocks. In this case, the harvester must have at least 10 thousand trusted in the account, a loaded and stably synchronized node. This ensures not only the quality of the network, but also its security. After the process of forming one block, a new element is integrated into the system. This assembly is carried out thanks to the harvester. It is also worth mentioning that the developers have also provided for other functionality of the delegated assembly. Due to it, traders can ask other participants to form new blocks on their behalf, while commissions are being charged.
8. Supernodes is an embedded platform rewards software. It is necessary to encourage those users who develop and invest in their site. So, due to the program, the cryptocurrency fund has the opportunity to reward persons who have launched high activity nodes. So a client with 3 million assets receives 140 thousand coins, divided by the total number of supernova. But this is possible only if the node meets all the technological parameters of the fund. Thanks to this integrated system, the site has the ability to contain wallets of "light" users (that is, those who do not have powerful computers, or owners of a mobile version), as well as other useful applications.
9. Messages - service clients have the right to activate messages in financial transfers in several formats (encrypted, unencrypted or hexadecimal). That is, the client does not need to transfer coins to the addressee to send SMS in the sites network. But it is worth noting that the function provides for a commission fee. He makes one Him for every 32 characters.
10. Multisig - these multifunctional transactions are available on the resource. As well as at similar sites with the integration of several language settings, this project requires several users to sign a financial transaction before sending it to the blockchain chain. This is a rather important nuance, since in a situation of loss of a wallet due to hacking by hackers, the assets on the deposit can be irretrievably lost if another wallet does not sign the transfer. Multi-session cash vault prevents the abuse of shared resources, which is very important for the site. This is because a third of all assets are in circulation and are stored in the wallets of society.  

It is also worth noting several important systems at the disposal of the platform. They are unique developments that significantly improve the functionality of the site and increase the comfort of work in the system.

Smart Asset System

This function gives users the ability to customize the use of the blockchain blockchain of the site. This is how the namespace defines the clients domain in the chain, where the trader himself can name his own mosaics and convey easy-to-remember names for custom addresses and more.

The mosaic elements themselves are the main building blocks of the Smart Assets system. Clients can use them in their work to implement simple tasks (coins, signatures, updates, and the like).

Exchange

This system is intended to form intelligently developed digital assets when working on the site. This allows users to create addresses that act as repositories for mosaics. They can be linked to Multisig rules. It is also worth noting that the address can simply represent the customer, for example, as the account and account owner. Or, on the contrary, play the role of a unique asset for individual use (text file, audio file, and the like). After that, the user can update this package through custom transactions. 

Mijin

This resource is a private type of informative blockchain that was created using the software of the site itself. Blockchain is being researched for use in many financial technology industries, where services aim to reduce banking costs by up to 90%. This step improves the banking system, making it more secure and secure.

Such a system is being actively studied all over the world, but it is most widespread in Japan. In this country, even several financial organizations have already integrated the system into their online banking services.

It is also worth mentioning that all the functionality of the cryptocurrency platform is available in the network of this system. But in addition to the standard similar set of functions, Mijin has support for smart agreements.

Catapult technology

In 2016, the blockchain project of the Japanese operator of one of the largest and most widespread exchange services Zaif signed a cooperation agreement with the Nem cryptocurrency platform. As a result of this contract, the Midgin corporate network introduced a new software update called "NEM Catapult".

This version has been under active development since the moment it entered the stock market. It is a modernized version of the previous platform format. Such an improved site was created to increase the bandwidth of the resource, improve and tune the network connection and its scalability. And of course the development meant the expansion of the already outdated system functionality.   

Other important platform features

This is not the end of the unique features and distinctive parameters of the Nem site. Another unusual algorithm in operation is Eigentrust ++. It is necessary to form a network catch reputation system. In such a provision, each node monitors and verifies the information that comes from other similar elements (financial transactions, the creation of new blocks in the blockchain chain, etc.). In cases where the received data is genuine, then the node receives grounds to improve its reputation. But otherwise, if the information is erroneous, then the resource is subject to a decrease in the indicator.

Also, experts assure that the reputation is promptly sent across all blocks of the network, which guarantees a constant update of each participating node. This is not designed in vain. Indeed, by means of exchange, an even distribution of loads in the system is guaranteed and a reliable mechanism is created to eliminate unreliable elements. That is, due to such a device, the entire network functions with maximum efficiency and effectiveness.

Also, other functional features include:

• integrated spam filters (prevent network reboots and blocking by residual files);
• P2P time synchronization device (helps the system to keep accurate time without using other servers to reconcile data);
• encryption of blockchain messages during exchange (carried out without transferring transaction data);
• multi-signature accounts (needed to summarize general accounts and control assets).

In addition to the distinctive features and characteristic parameters, it is advisable for traders to understand the principles of the crypto platform. That is how the coin works by Him.

How NEM Works

The cryptocurrency considered in the material has a unique design architecture that consists of two component parts. The first of them is a node, or as it is also called an infrastructure server. The second detail is the user himself interacting with the very nodes.

To date, the most optimal and supported wallet by the system is NanoWallet. It is a complete cryptocurrency storage based on HTML and JavaScript principles. With the use of these coding languages, the application has a special advantage - the ability to successfully operate on any site using only one browser.

In order to start using the resource, the client needs to download the site community client or NCC for short. The infrastructure server connects to the P2P network and begins to act as a link between the two elements.

The community client is offered to users in a package with a wallet. However, many members of the resource prefer to simply download NanoWallet. This is due to the desire to increase the level of security through the use of the airgap algorithm.

Also, the important principles of the sites operation include the fact that the development provides good protection against unauthorized intrusions into the network. So if the wallet is activated to the infrastructure server through a firewall, then there is practically no possibility to open it. In addition, the asset repository is available on any PC, and the site node can be located separately in remote resources. That is, if the user uses a low-power computer with low power consumption or a smartphone, then he still has access to the chain of resource blocks. But this is possible if you have an Internet connection.

It is worth noting that if the public infrastructure server is compromised, then the hacker does not have a direct line of attack in the NIS cryptocurrency wallet security system. And this betrays the project special protection against attempts at theft by intruders.

Advantages and disadvantages

The indisputable advantages of this cryptocurrency include the following characteristics:

1. Very fast transaction processing - on average, one request takes 20 seconds. This significantly distinguishes the coin from other alts and even Bitcoin itself . After all, the worlds first cryptocurrency is still eliminating scaling problems. Meanwhile, several Japanese banking organizations have already signed a contract with NEM to form a banking payment infrastructure.
2. Low commission fees - commission is from 0.001% of the total amount of money transferred.
3. Testing of the platforms technologies by independent specialists led to the conclusion that the resource supports more than 3 thousand translations per second. And this is a very impressive indicator.
4. Neutral attitude of state authorities to the work of the platform. This is due to de-anonymized and transparent financial transactions.
5. The contact with the resource blockchain is carried out through the IP address, therefore the informative blockchain is independent of the programming language. Also, thanks to this, cooperation with any other program or project is available. 
6. Blockchain is used as a multi-system solution.
7. Encryption of messages according to the progressive method.
8. Harvesting integration that does not require an online mode of operation of the deposit.
9. Availability of mobile wallets for Android and iOS, as well as a version for ordinary computers of average power.
10. The presence of a namespace that expands opportunities on the site, increases the level of value of projects through brand formation.
11. A reliable system of protection against external and internal attacks on the network. This item can also include filtering of spam information.

In addition to these advantages, experts say that this cryptocurrency is one of the five most popular and used on the market. This means that it is highly appreciated by users, traders and investors themselves. Another positive feature of the platform is the nuance that it is the foundation of the worlds first non-commercial resource through which digital assets are generated.

But despite the impressive list of advantages of cryptocurrency, there are several disadvantages of the coin. Nemas disadvantages include the following factors:

1. The digital asset is not as accessible as some other coins. In addition, it can be stored either on exchanges, which is not very profitable, or in a single integrated wallet.
2. Relative novelty - the stable version of the resource entered the market not so long ago as some time-tested cryptocurrencies, so many participants in the sphere have not yet had time or risked testing the site.

Judging by the pace of development of the platform, very soon these disadvantages will be reduced to a minimum. After all, the constant modernization of the project and its innovative orientation give their positive results. 

Does NEM mining exist?

All NEM assets issued in the first block were not provided for their further issue. It is simply not included in the protocol. In fact, it is not possible to mine a coin. But the developers have envisioned a similar process implemented in providing the site. On the network, the analogy of mining is called harvest, which in English means harvest, and those who are engaged in this type of activity are called harvesters.

In fact, it turns out that all the coins have already been mined, therefore this type of cryptocurrency "harvesting" means the process of recording the transactions carried out in the information block chain. In such a situation, tokens are awarded not for the formation of the blockchain, but as a reward for contributing to the development of the network. That is, the production of this cryptocurrency occurs by charging commission fees to the nodes participating in the block assembly procedure. Commissions are calculated for transfers included in the blockchain element.

There are several types of harvesting:

• local;
• delegated.

The first differs from the second in that the local mode is based on an online client of the platform. In this case, the user is provided with a private key in order to sign the generated block.

Delegated mining is activated remotely and gives the private key of the intermediary account with a zero deposit, which is generated after the launch of that very mode. By publishing the intermediary key, the security of the master account is ensured. Today, this type of harvesting is usually used in a larger number of wallets.

In order to enable this mode, it is necessary to carry out the activation process from the official website of the wallet. Its confirmation takes a lot of time (up to 6 hours) and costs 6 coins. But if the procedure is successfully completed, the resource will work even when the PC is turned off from the power supply.

But it is important to remember that you can start the process of mining cryptocurrency only if you have at least 10 thousand coins on the deposit in the active part of the balance (accumulates from the moment digital money is transferred to the passive part of the wallet). That is, the more currency a user has on his account, the faster he can start acting as a harvester.

There are several ways to mine coins like this:

1. Purchase of powerful equipment to form a system, that is, a farm. This method is quite effective, but its main disadvantage is the high cost of equipment and the complexity of its connection.
2. Cloud mining is based on the use of one individual computer, which is already equipped with a progressive video card. To begin with, the user connects to the network, downloads and configures specialized software, and only then starts harvesting.

The second technique is in great demand among customers, since it does not require large investments.

How do I buy or sell NEM?

You can buy or sell cryptocurrency on almost all major exchanges. For example:

• Binance;
• Bittrex;
• Upbit;
• HitBTC;
• Huobi;
• Poloniex.

You can also buy tokens or exchange NEM, available in exchange offices of the network . However, it is worth considering that such services often have a very impressive commission fee. Therefore, it is advisable to choose only reliable exchangers.

How has the price of cryptocurrency changed?

Over the entire period of its existence on the stock market, the value of NEM has shown itself to be a steadily growing indicator. At the time of its release in circulation in 2015, 1 coin was valued at 5 cents, but after a few months of generation it began to rise in price.

The first significant price increase was recorded in July 2016. He justified himself by the fact that Japanese banks were interested in the currency. Therefore, the rate has doubled. At the end of the summer of the same year, one could be purchased for 29 cents.

In the following year, the cost was stable and did not grow. This is due to the fact that the project developers have been working on new updates. But when the upgraded version hit the market, the Trust Bank of Japan decided to test the site. As soon as they received positive results, a cooperation contract was signed, and the price per coin exceeded $ 1.

You can find out how much this cryptocurrency costs in relation to the US dollar, ruble and euro below. 

NEM to ruble rate

The NEM rate to the ruble today is 4.1906 RUB per coin.

NEM to dollar rate

NEM to the dollar at the moment is $ 0.0651 per coin.

NEM to EUR rate

The current exchange rate of NEM to the euro on the market today is 0.0584 € per coin.

Where to store NEM?

In order to store NEM and operate funds, you need to use a specialized storage - a wallet. To download the resource, it is advisable to give preference to only verified and official sites.    

Such sources contain reliable information and all the necessary data about the product. On the official cryptocurrency portal, you can find information about several types of coin wallets. Also, the user has the right to independently choose one of them, guided by the device used for work. Therefore, the surest option is to register the Nano Wallet crypto wallet. To do this, you will need to follow the instructions:

• go to the official web portal Hem;
• go to the "Wallet" section and click on the "Download" button;
• select the operating system in the offered menu and load its file;
• open on the device and launch it;
• for convenience, in the "Language" section, you can set the desired language;
• compose data for creating a new account and register a wallet.

After the client downloads and installs the application on the device, the system will require registration. This is the only way to get a personal unique address in the platform system. As soon as the client makes at least one transaction through the system, the wallet is activated.

How many NEM coins are there in nature?

Some industry participants are interested in the question of how much NEM is there in the stock market? After all, there is no way to mine them, since they were issued in a limited number in the first block. So in total there are about 9 billion coins of this cryptocurrency in the world. And they are all actively used in the industry.   

Cryptocurrency emission

Issuing NEM is a centralized process of issuing new coins into circulation. This is one of the differences between the currency and others on the market. As a rule, the rest of the sites are characterized by decentralized execution of the process, that is, due to mining. But for Him there is only harvesting.  

Therefore, issuing coins in a centralized way does not imply the extraction of assets. The currency is formed by one single center and is a so-called by-product of the payment platform. That is, the platform intends to introduce new modern technologies into the banking system, and the coin itself will play the role of a payment link at this time.

But, despite this, the coin is issued by thousands of users and has a single control lever in the form of an encryption algorithm. Thanks to this, the protection of the payment system from unlawful interference and uncontrolled release of digital assets is guaranteed. This provides security against inflation.  

NEM provision

Harvesting itself is a bit like standard digital money mining, but the main difference lies in the use of unique methods, which are called proof of importance or POI for short. This nuance is one of the most progressive innovations implemented on the site and throughout the blockchain industry as a whole.  

This algorithm applies network theory to indicate the importance level of each node of an account in the network. That is, if others use proof of work or share of ownership to distribute rewards, then it is based on POI integration.

By following the proof of work, users with the highest compute power scores have an advantage over the sites regular customers. This algorithm is not only very expensive, but also to some extent unfair. Also in this category is proof of ownership, which gives rewards to the customers with the most coins. That is, the more funds on their deposit, the more they receive. In fact, the rich get even better off. But the proof-of-importance algorithm eliminates all the shortcomings of the above systems. 

POI is based on counting only those coins that have been deposited within a certain time. And 10% of the current unallocated capital is accrued every day. And the greater the number of accrued bonuses, the higher the indicator.

The future of NEM cryptocurrency

According to analysts, the future of NEM is quite promising. The site is developing rapidly and at the same time the authors have chosen the most win-win course of modernization. Algorithms like Smart Asset System and Catapult technologies represent a fundamentally new technical solution of a new generation. The ease and accessibility of the functional base attracts not only private users, but also state investors.  

Of course, to get a more detailed idea of how the project will develop in the future, you need to follow the platform roadmap. After all, updates to the synchronization of the private and public blockchain are released regularly. That is, developers are striving to introduce more and more progressive solutions that will help create a base of a new level.