In this Article
At a Glance
Date of introduction: 29 March 2015
Genesis Block Production: Fixed 8,999,999,999 XEM total
Programming language: Java
Block Time: 1 minute
Definition of NEM
The New Economy Movement is a solution for impending blockchain technology. The New Economy Movement (NEM) is quite unique for a number of reasons. The primary reason is that it is the first cryptocurrency to design the code from scratch after the bitcoin. The other factors which make it unique and different and stand out from the other cryptocurrencies such as versatility, stability, and a consensus system.
The NEM was initially started as the fork of the NXT. But later it created its own code from the scratch and became NEM. It was launched with an aim to create a blockchain which is smarter and more technologically advanced in the month of January 2014. It is a cryptocurrency which is designed to provide an improved and enhanced platform and also a systematic method to maintain a ledger for transactions which is safe and secure. The New Economy Movement has made the cryptocurrency transactions more efficient and simple. This has been achieved by eliminating the mining process and the requirement for powerful and expensive hardware. It has also reduced the energy and time which is required to process the transactions.
Uses of NEM
- The NEM is a cryptocurrency which is centered around business. It aims to be a platform and a blockchain solution which can be easily customized for various application cases.
- The financial applications of NEM can include equity payments, financial payments and even creating a cryptocurrency.
- The application of NEM in business management can include KYC, automatic accounting, shipping, inspection, loyalty reward points, and even supply chain management.
- The NEM can also be used for keeping and securing records such as authentication, anti-counterfeiting, encrypted messages, and various others.
- Apart from the above-mentioned uses, since the NEM is a decentralized platform, it can also be used for stock ownership, ICOs and crowdfunding and even providing voting security.
How is NEM different from the other Cryptocurrencies?
- The primary reason which makes the NEM stands out among the other cryptocurrencies is that the code of NEM is entirely unique and original unlike the majority of the cryptocurrencies which have normally borrowed their codes or some part of it from some older cryptocurrency.
- The consensus system of NEM is also different from the traditional proof-of-stake and even proof-of-work. It is known as the proof-of-importance. It is an improvement over the proof-of-stake in terms that it not only considers the number of coins which is owned by the user but the activeness of the user during the distribution of the transaction fees and block rewards.
- If the individual price of the currency is considered, it has not experienced much change and the fact that it has a high market cap even if it has a low individual price also makes NEM quite popular among various inflated cryptocurrencies.
- The NEM platform can process over 4000 transactions every second which makes it more efficient and quicker than the various other cryptocurrencies.
Benefits of NEM
- The process which is involved in obtaining the NEM coins is known as harvesting. The NEM platform does not mine its coins unlike Bitcoin and various other cryptocurrencies. This system which is designed by the NEM will notify the users every time a transaction is processed on the network and generate a block. The transaction fees go to the user when someone generates a block with 10000 coins.
- The interface of NEM is quite adaptable and also compatible with various most popular programming languages such as C++ and Java.
- The adopted consensus system of NEM is different from that of the Bitcoin. This has been adopted with an aim to offer more benefits and block rewards to the users who own more NEM coins and are quite active on the NEM network as well. Therefore a NEM user who is active on the platform but owns less coin can also hope to earn some benefits on the network than those who own a lot of coins but does not contribute much to the NEM network.
- The NEM has also invited several new projects which are likely to increase the esteem and demand of the coin as well.
There are various other benefits which people can consider before making an investment. These benefits include it is easy to create different products with NEM platform, the tie-up of NEM with financial institutions and fast and reliable nature of the cryptocurrency. The payment system of the platform makes it very easy for the user to stay entirely anonymous.
Drawbacks of NEM
Some of the major drawbacks with every cryptocurrency remains the same. These include the danger of always losing the keys to the NEM wallet and getting involved some type of fraud. There is no consumer protection on the NEM network. The risk related to anonymity and high volatility cannot be overlooked as well.
Future of NEM
It is one of those currencies which have never experienced volatility. The changes in price have been minimal with its initial value of $0.0004 to $0.19 in the month of June 2018. The price of NEM has remained quite stable an even if its value is considered, it also does not seem to rise or decrease in the near future. However, this can make it an unattractive cryptocurrency to make an investment in. The low price of the cryptocurrency can also be a good reason for buying a large amount of the s. The consensus system of the cryptocurrency makes any person eligible who holds more than 10000 NEM coins for a reduction in the transaction fees and block rewards. Though the user cannot expect a large return every time it is a cryptocurrency with continuous returns nonetheless.