NEM: A Different and Better Currency
NEM (XEM) When a group of developers decided to develop a cryptocurrency that was community-oriented from the ground up, they couldn’t have envisioned the success that it would become. In two years, NEM has become one of the most traded cryptocurrencies. According to coinmarketcap.com, NEM is the 10th most valuable digital currency with its market capitalization currently standing at $1.8 billion.
NEM has set its eyes on becoming the most widely used currency and it’s on its way there. It introduced new features to the blockchain platform that was in use by major cryptocurrencies such as Bitcoin and Ethereum which enhance mass adoption and usage, the speed of transactions and security. It also makes use of a new algorithm that makes its platform spam-proof. The NEM blockchain is the basis of a private blockchain known as Mijin, which will reduce the institutional costs of banks by 90% and which is currently being used in Japan.
The features that make NEM stand out include:
1. New algorithm
While other digital currencies use a proof-of-work algorithm, NEM became the first digital currency to introduce a new algorithm known as proof-of-importance. This consensus protocol takes into consideration the following:
>The vested amount of coins
>The net amount transacted in the last 30 days
>Interlinked clusters which are known as cluster nodes
This protocol rewards the miners based not just on the number of coins one holds but also their ‘importance’ in the platform. Ultimately, this makes the ecosystem self-sustaining and in a way regulated.
2. Balanced Activity
With other currencies, user activity is largely unregulated which can sometimes lead to an overload of the system as the majority of users engage in either selling or buying. With NEM, this is not a possibility. Every user has a vested and an unvested balance. The importance of a user is based on the vested amount. However, any amount sent is deducted from both the vested and unvested amount. When one receives any amount, it arrives as the unvested amount. This system discourages users from hoarding through the proof-of-importance algorithm while at the same time it discourages rapid trading and rewards users for holding their coins. It creates a balance that is not found in any other digital currency.
3. Namespace and Mosaics
A namespace is akin to a domain name on the internet. If a user creates a namespace on the NEM ecosystem, it will remain unique to that user. A mosaic is an asset that is hosted on a namespace. While there can exist multiple mosaics sharing the same name, a combination of a namespace and a mosaic will remain unique in the ecosystem. Namespaces and mosaics are significant in that they have introduced a unique naming system in which the creation of assets is made possible.
4. Corporate Acceptance
As much as cryptocurrency is decentralized and not influenced by major corporations, an endorsement by these large corporations goes a long way in assuring the public. The acceptance of Bitcoin by the Japanese government and the adaption of Ethereum by global banking institutions have led to a sharp rise in their prices. NEM is bound to follow the same route as it has become accepted by many banks, led by the Japanese banks. The largest Japanese trust bank, SBI Sumishin Net Bank, has already implemented the private blockchain Mijin that is based on the NEM blockchain and it’s testing it for use on their online banking platforms. More banks are bound to follow soon and the demand and price of NEM will benefit from this corporate acceptance.
With a very eye-catching price currently of $0.204, NEM is a hidden treasure waiting to be discovered by investors and enthusiasts alike. Its adoption by banks and other major financial institutions will see it price steeply in the next few months and this is the best time to invest in NEM.