The NEM coin (XEM) is the cryptocurrency unit of its namesake platform. The platform aims to make the blockchain-based projects more flexible and easier to run by relying on its proof-of-importance algorithm and Smart Asset system.
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What Is NEM
NEM is the coin powering the New Economy Movement (NEM), a blockchain-based platform. It started as a pet project of the Bitcointalk forum user going under the name of “UtopianFuture”. Initially, it was supposed to be built upon the Nxt platform, yet it was eventually built from scratch and launched in 2015. At the heart of NEM lies the Smart Asset System whose blockchain is used to manage transactions and develop apps on the network with the focus on customizability. This is achieved by the lack of need to use NEM software to run apps, as the platform allows for customization via API (application programming interface) calls. Thus, it becomes possible to control its features using any programming language.
Unlike its competitor Ethereum which places focus on the decentralization and transparency, the NEM platform goes for partial centralization. This allows its users to run private and public blockchains, like it does in the case of the Mijin blockchain-building system. This way, the users have more control over who can see the stored data and assets on the network. In addition to Ethereum, NEM will have to compete with the likes of NEO and Lisk which also play the card of promoting blockchain solutions for business.
Regarding assets, NEM uses the system of so-called mosaics which stand for any type of assets such as currency, coin, vote or signature. The assets are stored in the addresses and can be transferred and configured based on the individual user’s needs.
The NEM platform uses the proof-of-importance (PoI) consensus mechanism. In this case, the consensus is checked against the importance score assigned to each node. This is done with the help of XEM coins. The coins the users hold in their wallets are vested and will add to the importance of their accounts over time. Once they gather at least 10,000 XEM coins, their importance score will rise. In addition, the more transaction one makes on the network, the more “important” a participant can become. Finally, the score will be checked by the system to determine if a user can add blocks to the blockchain in the process called “harvesting.”
As of today (November 2018), 8.9 billion coins were created, with the market cap valued at USD 821 million. The coin reached its all-time high in early 2018, with its market cap reaching the value of USD 17 billion.