XEM exchange rate chart
The graph reflects the situation on Bittrex.
What is NEM?
NEM (New Economy Movement) is a cryptocurrency and blockchain platform. It originated in the Bitcointalk forums, where a user called UtopianFuture was inspired by another blockchain project Nxt. Initially planned as a fork of Nxt, NEM grew into a separate project. In January 2014, NEM started looking for contributors in the Bitcointalk forums, with the goal of creating a community-oriented cryptocurrency. A lot has changed since then, with NEM adopting many new features like 1 minute block times, proof-of-importance (POI) algorithms, multisignature accounts, encrypted messaging and an Eigentrust++ reputation system.
NEM is operated by the NEM.io Foundation, a Singaporean entity that has the goal of introducing NEM blockchain technology across various industries. NEM blockchain is already used commercially by Mijin, which is being tested by banks and private companies in Japan. The cryptocurrency uses the XEM ticker. There is a fixed supply of 8,999,999,999 XEM.
NEM is currently written in Java, but the long-awaited update Catapult promises to rewrite the platform on C++. Catapult is being developed by Japanese blockchain start-up Zaif. The new update will improve scalability and add new functions to the NEM blockchain.
- Proof-of-importance algorithm
NEM’s trademark feature is its POI algorithm. A user’s importance is determined by the amount of coins held in his/her wallet and the number of incoming and outgoing transactions made. There is no mining involved (like in proof-of-work algorithms). Moreover, POI is inherently different from proof-of-stake (POS) as well. In POS, your amount of coins is needed to form a block, but in POI it is secondary to volume (although coin amount does play a part).
By design, this encourages users to not only hold XEM coins, but also carry out transactions. To be eligible for accumulating importance, you must have at least 10,000 XEM. As the project grows, this number can be changed in the future via a hard fork. The act of forming blocks via the POI algorithm is called harvesting. Once a user has the required 10,000 XEM in his/her account, a new block is added to the chain and all the fees collected from that block are sent to the harvester’s account. This incentivizes users to help develop the network. Harvesters are sometimes referred to as supernodes.
- Node reputation system
NEM uses Eigentrust++ as a reputation system. The past behavior of nodes is monitored in the system. This is done to prevent bad actors from abusing the blockchain. If in proof-of-work systems only the nodes activity is measured, Eigentrust++ also analyzes the quality of the node, ensuring a stable network.
Namespaces is NEM’s domain naming system. There are different tiers of domains and subdomains for people to use for their projects. Namespaces help build and maintain a reputation system for Mosaics, which are essentially assets on the NEM blockchain. Mosaics are highly customizeable and personalized.
A cool little feature of NEM is a ability to include messages in transactions. These can take the forms of encrypted, unencrypted or hex. The fee for sending unencrypted messages is currently 1 XEM for every 32 characters.
- Multisignature transactions
NEM also implements multisignature technology in its network. This means that a certain amount of signatures is required in order for the transaction to be broadcast to the blockchain. For example, if one person loses his/her wallet, no money can be sent out unless another wallet (or wallets) signs off on the transaction. This makes NEM ideal for use in community-held wallets, ensuring no funds are spent without approval from the majority.
NEM.io Foundation Team
Lon Wong – President
Jeff McDonald – Vice President
Ronel Li – Secretary
Ken Chan – Treasurer
NEM Nano Wallet