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What is NEM?
NEM, originally New Economy Movement, is blockchain cryptocurrency whose ticker symbol is XEM.
The NEM cryptocurrency initially planned to be a fork of the NXT cryptocurrency, launched the alpha version on 25 June 2014. The NEM creators then embarked on an ambitious project of creating it from scratch, coding it on an entirely new blockchain platform.
Finally, the NEM crypto as we know it now launched on 31 March 2015.
What are NEM’s Special Features?
The NEM platform has some very key features that make it stand out from the other cryptocurrencies. These special features are:
Proof-of-Importance (PoI): This NEM transaction algorithm is designed to run on a client-server base where the importance of each user is a result of the total coins in their wallet and the total number of transactions completed.
There are two POI models employed:
- The NIS and the NCC.
- NIS (NEM Infrastructure) and NCC (NEM Community Client) operate independently.
- Allows users with low power PCs and Smartphone to participate in the block building without a complete copy of NEM
Namespaces: This is NEM’s domain naming system.
- The Namespaces works similarly to the ICANN system that runs the domain name protocol for the internet.
- A User can register several domains and sub-domains for different projects
- The number of domains you can create depends on the number of XEM coins in your account.
Mosaics: These are part of the NEM crypto ‘smart assets’ system.
- You can customize Mosaics to make them either transferable or non-transferable.
- You can choose to make them divisible or non-divisible.
- It is possible to give them personalized descriptions.
- Furthermore, the Mosaics system allows you to design the domains in a fixed cap or leave them mutable.
NEM Crypto Node Reputation System: This unique system by NEM incorporates the Eigentrust++ reputation mechanism to ensure that the blockchain is secure and unhampered with from outside.
- The system works to ensure that nodes are measured by the quality and amount of work they deliver.
- The NRS does this to protect the NEM network making it different from the blockchain systems that use proof-of-work consensus.
Harvesting: The term harvesting refers to the completion of transactions on the NEM network to form blocks that are added to the blockchain.
- The NEM system also has what is called Delegated Harvesting.
- This is where a user can find help from others who would then form blocks in the chain and execute fee operations on their behalf.
Supernodes: The Supernodes are NEM’s rewards system that recognizes and rewards users who contribute to the processing power used on the network to complete transactions.
Messaging: NEM provides users with three forms of including messages in the transactions they undertake.
- It can be in encrypted form, unencrypted type, or hex messages.
- A user does not need to transfer XEM to send out a message while on the NEM Cryptocurrency network, however, you will have to pay a small fee for that service.
- At the moment, sending the message will cost you 1 XEM which is the fee paid per unencrypted 32 character message.
Multisig: This feature is available on the NEM network. Just like on any other multisig-enabled platforms, the NEM system has a requirement that multiple users sign every transaction before that said transaction is broadcast onto the cryptocurrency blockchain. This becomes vital when wallets get lost or get hacked.
- A multisig account also is critical in preventing abuse of community-held funds.
- This security measure is crucially important on NEM network because nearly a third of the NEM crypto coins are in community-based accounts.
What is Proof of Importance (POI)?
Proof of Importance refers to the process of verifying transactions. It uses a client-server model where the importance of each user is a result of whether they can actively engage in transactions. It all depends on the total coins in their wallet and the total number of transactions completed.
We will look at how this works when discussing NEM harvesting below.
NEM Market Value
It is without a doubt that cryptocurrency trendsetters like Bitcoin and Ethereum lead the crypto market when it comes to market share capitalization. But it’s also true that NEM cryptocurrency through its XEM coin is one to watch as it gains in value.
NEM cryptocurrency has an estimated market cap of $12-13 billion and currently ranks as one of the top cryptocurrencies with a surging price value.
A quick glance at the price charts shows that the NEM coin has a very clear uptrend coming up into play. For instance, on January 11thNEM prices gained a remarkably from $1.137 to $1.5754 a 24hour low and high respectively.
The cryptocurrency has been making great gains to a point investors are beginning to notice it and the interest may continue to manifest long term.
Another level of comparison between NEM and ETH indicate that while Ethereum may be seen to be doing very well, a look at the charts again show that XEM had a price jump of a massive 5600% in 2018 compared to Ethereum’s 2018 gain at 3400%.
Daily trading volumes are also on the upward trend and with all the 9billion coins supplied, NEM can only get up the charts.
NEM vs. Ethereum
Although Ethereum is more popular, NEM is touted to be superior, cheaper, more convenient for developers and more scalable. NEM’s architecture is built for ease of use. The NEM foundation has dedicated developers who handle the technicalities side to allow developers to create decentralized apps easily without worrying about technicalities. It has never experienced any major security issues and has multiple tools for developers. Ethereum while good is, however, suited for developers with specialized knowledge in solidity. The ethereum learning curve is more difficult and exposes developers to make lots of errors. If NEM continues to grow fast, the ethereum vs. NEM debate will soon be closed.
Can NEM be Mined?
What do we mean when we talk about NEM mining? NEM blocks cannot be mined like what happens with Bitcoin or Ethereum. Instead, the crypto uses the term harvesting.
The NEM blockchain uses the proof-of-importance system to verify transactions. It is the same algorithm that is used to reward active users on the blockchain.
Every node on the system has a score allocated to it which determines how regularly it should harvest.
This is how NEM harvesting works;
- It begins with a node vesting coins- NEM coins in a user’s wallet are said to unvested.
- With time, the unvested coins become vested after the user has accumulated at least 10000 coins.
- Vested coins are then used to find and verify transactions on the NEM blockchain. The node that finds the block secures it and then informs the other nodes.
- The winning node is then rewarded with XEM.
- A user becomes more important depending on how often they use the network to complete a transaction.
- Combining vesting and transaction details helps the system to determine whether a given node can participate in harvesting.
XEM is usually vested at a fixed rate of 10% of all the unvested coins in your wallet. The determination is done on a daily basis. For example, a user with about 20000 XEM will wait for about seven days to accumulate enough to begin harvesting.
How to Buy NEM?
Buying NEM using fiat money is not possible on many exchanges. An investor will need to first buy other cryptocurrency and then exchange that to the desired XEM.
However, as people begin to trade in NEM, more sites will take it up and trading in fiat will be a much easier experience.
For now, these are some of the established exchange sites that support NEM:
The spectrocoin exchange has gained reputation as a reliable and secure cryptocurrency exchange.
Spectrocoinis the only exchange site so far to accept USD when buying XEM. The site also accepts other payment methods including BTC and ETH. Fees per transaction range between 2.0% and 5.50% depending on payment method.
To buy XEM on Spectrocoin, follow the steps below.
- Create account and complete the registration
- Login to your account
- Select ‘exchange’
- Enter payment method and key in amount in USD or BTC/ETH
- Click exchange
- Confirm to buy XEM
Poloniex is a cryptocurrency exchange based in the US that is known to offer reliable trading with maximum security options. The site has a friendly UI and provides advanced features for trading.
Poloniex provides fast services and the fees charged are reasonable.
To buy XEM on Poloniex;
- Create an account following given prompts
- Sign in with login information
- Deposit bitcoin
- Send BTC to buy address as shown to facilitate exchange
- Click exchange
- On BTC market-select XEM
- Enter amount to spend followed by the amount of XEM you wish to buy
- Click ‘BUY’
Bittrex is another site that allows you to buy NEM using other cryptocurrencies, especially BTC and ETH. The site is supported worldwide and offers transactions at very low fees.
In order to buy XEM on Bittrex, do the following:
- Sign up for an account with email address
- Verify the new account and login with the password you created
- Deposit funds into your account(BTC/ETH)
- Find pair(XEM/BTC)
- Place order
- Enter price and click ‘BUY’
Shapeshift is an exchange site that offers safer and faster ways to trade cryptocurrency. A user does not need to have an account to transact on Shapeshift.
To get NEM;
- Navigate to the Shapeshift site
- Deposit BTC/ETH into your wallet
- Go to buy page and choose XEM/BTC
- Enter the amount to buy
- Click and proceed to the next page
- Select ‘exchange’
- Click on ‘Buy’
- Confirm to complete purchase of XEM
A wallet is a device or software that allows you to receive, store or send XEM. There are different types of wallets.
These are desktop wallet, hardware wallets, mobile and paper wallets. For some reason or the other, there aren’t many wallet options out there when it comes to NEM. In fact, there are no hardware wallets that support NEM for now.
However, it is possible we will see the development of more wallets for the NEM cryptocurrency as many people begin to see it as an investment opportunity.
NEM is currently supported by two wallets:
- NEM Nano wallet
- NEM mobile wallet
What Parameters Should You Have in Mind Before Choosing a Wallet?
Wallets are very important when it comes to cryptocurrency storage and use. Here is a list of the things to look out for before acquiring the wallet.
- Safety– check on security features- encryption the wallet use, privacy.
- Ratings- find out how the wallet rates in the crypto community.
- Reliability- how reliable is it? Can you be assured to store your coins in it?
- Fees (also called gas)- very important you know what it will cost you to use the wallet.
- Ease of use- it should be easy enough to operate.
It is a desktop wallet designed for compatibility with Linux, Mac, and windows.
Here is a guide to how you can set up your NEM Nano Wallet.
- Search NEM and navigate to the downloads page
- Select wallet version: (Windows, Mac, or Linux.)
- Download the relevant wallet then open
- Click ‘Sign Up.’ And choose either: Simple, Brain, or Private Key Wallet.
- Select a Network’ as default.
- Then enter your password and Click ‘Create’
- Great compatibility
- Easy to use interface
- Improved security
- Vulnerable to hacking threats
The other option is NEM mobile wallet
Download it on Android and iOS following the prompts on the NEM site. It is not popular due to numerous issues with stability.
What’s the Bottom Line?
We have reason to believe NEM coin is going to be a valuable investment this year. 2018 looks great for NEM and its price will gain even further. This is due to NEM cryptocurrency’s uptake by institutions around the world.
Go ahead and learn more about this coin; it may have real potential.
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