NEM (XEM) The race to dethrone Bitcoin from its long-held throne becomes more heated every day, whether it’s by Ethereum with a focus on smart contracts; Ripple with its lightning speed of execution; or Monero with its insistence on privacy. Bitcoin has been the king of cryptocurrencies for a long time but it might soon be overthrown as it has failed to evolve and meet the changing needs of the consumers.
While the aforementioned currencies have their own pros, none has combined them as well as NEM has. NEM has brought together ease of use and customization, great sense of development and tight security together and offered the users a truly hybrid new-generation digital currencies. This has seen it grab a chunk of the market and rise to be in the top 15 currencies by market value in only two years.
So why should you care about this currency?
Image 1 – NEM (XEM) charts. Source: https://coinmarketcap.com
Proof of Importance
The battle of digital currencies requires that every currency that wants to ascend to the top have a unique characteristic that adds value to its users and that other currencies lack. For NEM (XEM), this is its consensus algorithm. While all other currencies use either a proof-of-work (PoW) algorithm or the proof-of-stake (PoS) algorithms, NEM sets itself apart by introducing an entirely new algorithm; proof of importance.
This consensus algorithm does not just reward miners based on their stake like PoS but also considers the net amount that a user transacted especially in the last 30 days. This protocol even considers the number of interlinked clusters. All these make the NEM platform regulated by that users don’t just hold their coins or just dump them as the rewards depend on the fine balance between the two. It is the first truly self-sustaining blockchain platform.
Quality is paramount
Unlike in the proof-of-work protocol where the ability of a node to protect the network is based on the amount of work a node does, NEM is different in that it is the quality of the work done by a node that counts. It achieves this through the use of Eigentrust++, a reputation management algorithm that assigns a global trust value to every user based on the quality of their activity. It gives the developers an enhanced ability to run the platform efficiently compared to other currencies.
The technology behind a currency means very little if the currency fails to garner support from users and institutions alike. NEM recognizes this and has sought strategic partnerships that will make it a global medium of exchange. One of this is with Uquid, a digital bank in Gibraltar which recently announced that it will be launching a NEM dedicated debit card.
This will enable more offline usability for NEM giving it an edge over other digital currencies. Another partnership is with Australia’s biggest exchange platform, ACX, which gives the NEM foundation a white-labeled software to start its own dedicated exchange, becoming only the second cryptocurrency after Bitcoin to achieve this. All these partnerships contribute greatly to the widespread use and trading of NEM which will push the demand for XEM, its native cryptocurrency higher.
NEM has leveraged on support from the Asian market which has given it a solid base. Cryptocurrency exchange in the Asian countries especially in Japanese and South Korean exchanges accounts for a huge portion of the global trade and NEM is one of the most popular currencies here. This has made the daily trading volumes of NEM rise every day and this trend is not going to change anytime soon.
Invest in NEM
NEM is still one of the most affordable currencies in the market currently. This makes it a lucrative investment especially given the distinct advantages it has over its peers. More and more people are beginning to realize the extra value NEM offers and this will keep pushing its demand and price higher. Its current market capitalization stands at $2.4 billion.