NEM Cryptocurrency: The Future of Smart Assets and Blockchain Solutions

NEM: Everything You Need to Know

NEM is a cryptocurrency that powers an open-source platform for creating and managing smart assets and services on the blockchain. NEM stands for New Economy Movement, and it aims to provide a fast, secure, and scalable solution for various use cases, such as payments, tokenization, identity management, voting, and more. NEM uses a unique consensus mechanism called proof-of-importance (POI) and a feature called harvesting to reward users for their participation in the network.

What is NEM?

NEM was launched in March 2015 as a fork of NXT, another blockchain-based platform. However, NEM decided to develop its own codebase and features to improve on the limitations of NXT. NEM has its own native currency, called XEM, which is used to pay for transactions and services on the platform. XEM has a fixed supply of 8.999 billion coins, which were distributed to the initial stakeholders through a crowdfunding process.

NEM’s main innovation is the concept of smart assets, which are digital representations of any asset or service that can be created, transferred, and managed on the blockchain. Smart assets can be anything from cryptocurrencies, tokens, certificates, contracts, identities, votes, and more. NEM allows users to create their own smart assets using a simple and user-friendly interface, without requiring any coding skills. Users can also customize their smart assets with various properties and rules, such as names, descriptions, fees, supply, transferability, divisibility, mutability, and multisignature.

NEM’s platform consists of two layers: the NEM Infrastructure Server (NIS) and the NEM Application Programming Interface (API). The NIS is the core of the platform that runs the network and maintains the ledger. The API is the interface that allows users and developers to interact with the NIS and access its features and functions. The API can be used to create applications and services that utilize the NEM platform and its smart assets.

How does NEM work?

NEM works by using a hybrid model that combines on-chain and off-chain processes to achieve high performance and low cost. NEM uses a proof-of-importance (POI) consensus mechanism to secure the network and validate transactions. POI is a variant of proof-of-stake (POS) that assigns an importance score to each account based on its stake (the amount of XEM held), activity (the number of transactions made), and network (the quality of connections with other accounts). The higher the importance score, the higher the chance of being selected to create a new block and earn rewards.

NEM also uses a feature called harvesting to distribute rewards to users who contribute to the network. Harvesting is similar to mining in other cryptocurrencies, but it does not require intensive computation or energy consumption. Instead, harvesting allows users to delegate their importance score and stake to a node that creates blocks on their behalf. Users can also join a harvesting pool that shares rewards among its members. Harvesting rewards consist of transaction fees collected from the blocks created by the harvester or the pool.

NEM also uses a feature called namespaces to organize smart assets on the platform. Namespaces are similar to domain names on the internet that allow users to register unique names for their smart assets. Namespaces can also have sub-namespaces that create a hierarchy of smart assets. For example, a user can register a namespace called “alice” and create sub-namespaces called “alice.tokens”, “alice.certificates”, “alice.votes”, etc.

NEM also uses a feature called mosaics to define smart assets on the platform. Mosaics are similar to tokens or coins on other platforms that represent any asset or service that can be traded or exchanged. Mosaics can have various properties and rules that determine their behavior and functionality. For example, a mosaic can have a name, description, supply, divisibility, transferability, mutability, levy, etc.

Who is behind NEM?

NEM was founded by a group of anonymous developers who go by the pseudonym “UtopianFuture”. They were inspired by NXT and wanted to create a more advanced and accessible platform for smart assets and services. They launched NEM in March 2015 after raising funds from an initial stake offering (ISO) that distributed 8.999 billion XEM coins to around 3,000 investors.

NEM is now operated by a non-profit organization called the NEM Foundation, which is based in Singapore. The NEM Foundation consists of various teams and departments that are responsible for different aspects of the project, such as development, marketing, education, community management, business development, etc. The NEM Foundation also has regional offices and representatives in various countries around the world.

Some of the key members of the NEM Foundation include:

Kristof Van de Reck: President of NEM Foundation

Jeff McDonald: Vice President of NEM Foundation

Lon Wong: Founder and Advisor of NEM Foundation

Nelson Valero: Council Member and Regional Head of Australia and New Zealand

Pedro Gutierrez: Council Member and Regional Head of Latin America

Stephen Chia: Council Member and Regional Head of Southeast Asia

Jason Lee: Expansion Director of NEM Foundation

The NEM Foundation is also supported by a network of partners, investors, advisors, and community members who share the vision of creating a more open, fair, and efficient platform for smart assets and services.

What are the use cases for NEM?

NEM has various use cases for different industries and sectors, such as:

Finance: NEM can be used to create and manage various financial assets and services on the blockchain, such as cryptocurrencies, tokens, stablecoins, digital currencies, remittances, payments, crowdfunding, etc. NEM can also be used to create and execute smart contracts that automate transactions and agreements between parties.

Business: NEM can be used to create and manage various business assets and services on the blockchain, such as certificates, contracts, invoices, receipts, loyalty programs, rewards, coupons, etc. NEM can also be used to create and verify digital identities that authenticate users and entities on the platform.

Government: NEM can be used to create and manage various government assets and services on the blockchain, such as votes, elections, public records, land titles, licenses, permits, etc. NEM can also be used to create and enforce digital laws and regulations that govern the platform and its users.

Education: NEM can be used to create and manage various education assets and services on the blockchain, such as diplomas, certificates, transcripts, courses, lessons, quizzes, etc. NEM can also be used to create and reward digital achievements and badges that recognize users’ skills and knowledge.

Healthcare: NEM can be used to create and manage various healthcare assets and services on the blockchain, such as medical records, prescriptions, test results, diagnoses, treatments, etc. NEM can also be used to create and protect digital privacy and consent that secure users’ data and preferences.