A Beginner’s Guide to NEM Cryptocurrency

By Swati Kishore

NEM or New Economy Movement aims to power the Blockchain economy of the future through an enterprise grade solution. If you want to understand the basics of NEM then this beginner’s guide to NEM cryptocurrency is the perfect place to start.

NEM was originally conceptualised to be a fork of NXT, the open source cryptocurrency network, however the community decided collectively to go with a new codebase. Hence, the alpha version was released on June 25, 2014, with the consequent release of the first stable dated March 31, 2015.

NEM cryptocurrency guide: Powering the Smart Asset System

The NEM Blockchain powers the Smart Asset System which is conceptualised as an open, customizable Blockchain solution for use cases built on API calls. The transactions on NEM are processed through worldwide network of nodes which are run on the core software of the Blockchain. The network itself is utilised as API Gateway Server. Thus, all of the NEM functionality can be accessed by API calls. Hence, there is a lot of flexibility when it comes to app development through the use of the NEM network.

NEM addresses are defined by developers. These addresses serve as containers for assets and they can be updated with time. An address could be used as a cryptocurrency wallet or it can even act like a document that requires signatures. Developers create Mosaics, which are transferable, identical assets that symbolize signatures, or coins that will be contained in a particular address. This entails a system which has customizable mosaics and flexible addresses which can be used for myriad use cases. The NEM Blockchain allows anyone to create any system and these systems can then be hooked onto the Blockchain with ease.

Harvesting and the Proof-of-Importance

NEM deploys a Proof-of-Importance algorithm (which is different from Bitcoin’s Proof-of-Work) in order to arrive at consensus through the process of incentivization of active participation in the Blockchain network. Hence, the result is an agile and decentralized network with nodes that are well-behaved. Each node is assigned a score of importance which consequently decided how frequently the node can harvest the XEM, which is the native token of NEM’s Blockchain.

Privacy of the NEM Blockchain

As described above, by using the API calls anyone can utilize the public NEM Blockchain. On the other hand for applications that need privacy, the NEM Blockchain has a private version available. It can be used to run on internal servers, and it only uses predefined nodes that are selected by the user.

Why should you use NEM Blockchain?

The NEM Blockchain offers an unparalleled ecosystem that promises to make it one of the major players in the future where economies will be run by the distributed ledger technology of Blockchain, in fact NEM Blockchains to be used In cryptocurrency settlement system by Ruden.

Flexibility, ease of development, as well as the unique Proof-of-Importance algorithm make NEM the perfect platform for any company or developer looking to build a Blockchain solution. To know about how NEM performed in the markets in the month of October, 2018, read our crypto market update: NEM on the rise news.