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Introduction to NEM (XEM): New Economy Movement

UTC by John Caroline · 6 min read
Introduction to NEM (XEM): New Economy Movement
Photo: Shutterstock

With efforts to bring crypto enthusiasts closer to being more familiar with the industry, here is a guide on one of the industry’s smart asset blockchains, the New Economy Movement (NEM).

The evolution of cryptocurrencies and blockchain technology was not only birthed from the aim to rival money. The industry also focuses on helping businesses as well as individuals to attain financial breakthroughs. As such, many blockchain projects have designed their platforms to work specifically towards that aim. New Economy Movement or NEM (XEM) network is a blockchain project that leverages blockchain solutions to help businesses and individuals.

What is NEM (XEM)?

NEM is a distributed ecosystem written in Java. It supports the value transfer of smart assets among businesses and individuals. The platform seeks to build a technologically equipped and enhanced community-driven blockchain system where users can buy and sell digital representations of real-world assets and have intangible ownership.

The NEM ecosystem is more utilized by businesses around the world as it allows them to easily send data from one enterprise network to another. Internal or external enterprises can easily send data among themselves.

The platform operates a double-layer blockchain network similar to Ethereum. It works in a way that allows easy flow of networks while preventing them from heaping up through its smart operations.

History of NEM

NEM was founded by a team of developers in mid-2014 as a personal project. This team comprised programmers from the Bitcointalk forum Erik Van Himbergen, Jeff McDonald, Leon Yeoh, and Lon Wong.

The project further grew to become a community-driven ecosystem with developed infrastructures. It officially launched in early 2015.

After an extent of impressive development on the ecosystem,  the management of the platform was then taken over by a parent company, the NEM group. The NEM group comprises experienced enterprise veterans and NEM representatives. They understand the necessary infrastructures and upgrades deployable to keep the ecosystem developing.

NEM software, NEM ventures, and NEM trading make up the NEM group. The first entity is responsible for managing the development of the brand. The next entity, NEM ventures, is in charge of all capital and investment affairs running on the platform. Hence, the last entity manages the finance of the platform.

The intervention of the NEM group has brought massive developments to the platform. It was initially regarded as a fork from the DApp platform NXT, but it later progressed better than NXT.

NEM’s Smart Asset System

The digital representations of real-world assets or intangible ownership traded on NEM are the system’s smart assets.

The project’s Smart Asset System builds the possibilities for creating improved and advanced blockchain systems to a very wide range. The Smart Asset System enables the NEM platform to tackle the problem of long processing duration and congested networks that other blockchain projects face.

Besides, Smart Asset System provides developers with the necessary infrastructures necessary to design their smart asset exchange with mosaics and namespaces. These namespaces and mosaics represent addresses and virtual assets respectively. The addresses are used to tag and identify the assets. Meanwhile, they are easily readable.

The smart assets tradeable on the network can be virtual commodities or equity shares.

Proof of Importance (PoI)

NEM adopts a Proof of Importance mechanism (POI) on its system. This implies that more relevance is given to vested tokens. Users earn the chances of receiving the blockchain rewards through the degree of investments they make on the platform.

The importance depends on the amount of XEM tokens a user holds as well as the duration of the period the holding lasted.

The system requires its investors to be able to attain up to 10,000 vested XEM tokens before they can earn and generate new blocks. This way, they also get the privilege to get discounted fees.

Delegated Harvesting

Alongside Proof of Importance (POI), another mechanism the NEM system adopts is its Delegated Harvesting mechanism.

This tool allows users to validate transactions with no complex process while getting rewards in return. The Delegated Harvesting tool represents the mining activities conducted on other blockchains. As such, NEM generates its XEM tokens through the process of Delegated Harvesting.

Holders who have at least 10,000 XEM tokens can participate in harvesting.

NEM’s harvesting process operates in a different way from mining. It simply requires users who wish to generate or earn new blocks to link their account to an existing supernode and use that account’s computing power to complete blocks on their behalf.

When transactions take place on the network, a node receives and verifies them. Thus, the first node that receives the transaction notifies other users, hence alerting and offering a wave of information which in turn increases the chances of block generation. This process is done automatically by the system, thus it does not require the user’s computer to run all day.

NEM Symbol

NEM Symbol is the network’s public blockchain which has its main focus on enterprises launched in early 2021. It is the next-generation blockchain for businesses and individuals that has an advanced and improved mode of operation.

This blockchain is customizable and it scrutinizes the kind of user who can access it. In other words, it is not fully accessible by everyone.

The Symbol blockchain native token is XRM. XEM holders got equal XRM tokens after migration.

XEM Token

NEM’s proprietary and native token is XEM. A very large number of activities on the network depend on the XEM token. It has a maximum circulating supply of over 8 billion tokens as of mid-2021.

It is basically used for carrying out transactions as well as the governance processes on NEM. Validated transactions also bring rewards in XEM tokens.

The token is available for trade at any of the top cryptocurrency exchanges.

NEM Usage

NEM (XEM) is basically used to easily conduct the transfer of digital assets like files, tokens, and contracts. It allows interactions between private and public blockchains. Private businesses can send and receive data through the public blockchain.

It is popular among businesses because of its ability to handle financial assets, contracts, files, and a number of various digitizer assets. Members of the ecosystem use the platform to easily design, create, and trade crypto assets that are compatible with the wallets on the network.

NEM is also used for some social services like keeping records, registration, securing voting activities as well as access control.

Benefits of NEM (XEM)

One notable benefit NEM offers to the members of its ecosystem is the easy transfer of smart assets. More interestingly, the platform allows this activity at a considerably low cost. It allows internal enterprises to send and receive digital assets with no complex processes.

Moreso, it offers an easy governance process. Users are free to customize their assets in their own way, which allows them to innovate designs suitable for their businesses.

Besides, the system accommodates any new or existing application on the platform while securing the interactions between them. In other words, the network guarantees security for transactions performed on it.

Conclusion

NEM (XEM) appears to be making reasonable efforts to become as technologically efficient as it aims. The platform has proven successful in its journey so far and has ranked as the 60th top cryptocurrencies as of mid-2021 according to Coinmarketcap.

The platform has been efficient in its system of managing assets. Therefore, it has gained the interest of a large number of users and investors since its evolution.

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FAQ

What is NEM (XEM)?

NEM is a distributed ecosystem written in Java, which supports the value transfer of smart assets among businesses and individuals.

Who created NEM?

NEM was founded by a team of developers in mid-2014 as a personal project. This team comprised programmers from the Bitcointalk forum Erik Van Himbergen, Jeff McDonald, Leon Yeoh, and Lon Wong.

What is Proof of Importance Consensus?

Proof of Importance Consensus is a mechanism that implies that more relevance is given to vested tokens, where users earn the chances of receiving the blockchain rewards through the degree of investments they make on the platform.

What is the NEM Symbol project?

The NEM Symbol project is the next-generation blockchain offered to businesses and individuals from the NEM ecosystem with an advanced and improved mode of operation.

What are the best use cases of NEM?

Nem is basically used to manage and transfer digital assets among business enterprises. 

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