NEM. It’s the platform you never hear about, never think about, but quietly holds it’s top 20 spot by value. So what is NEM and what makes this platform unique from the others? Xx delves into it and answers the question, “What is NEM (XEM)? Here’s Everything you Need to Know”
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What is NEM (XEM)? Here’s Everything you Need to Know
One of the most frequently asked questions by those who are just dipping their toes in the sea of cryptocurrency is, “Should I invest in Bitcoin?”
Savvy digital currency investors believe that the ship has sailed when it comes to BTC (Bitcoin) investments. They urge new investors to take a look at other cryptocurrencies like Ripple (XRP), Ethereum (ETH), Monero (XMR), NEM (XEM), Litecoin (LTC), etc. The list of alternatives to BTC keeps on growing.
While it may sound difficult to believe, several of these are in fact superior to BTC. These alternative cryptocurrencies took the best of BTC, tweaked what didn’t work, to end up with a currency that’s better than the original digital currency.
NEM for Beginners: A Step-by-step Guide to XEM
In fact, today’s post will explore all that you need to know about NEM (XEM), an underappreciated digital currency. Though, NEM is the seventh-largest cryptocurrency of today, not many are aware of it. In fact, it’s considered one of the best-kept secrets of the digital currency world.
Though, the currency is named as NEM, it trades under the symbol XEM. And what makes it attractive and a great investment opportunity for amateur investors? According to Coinmarketcap.com, its current price is just around $0.25.
Before, you get to the official XEM price prediction for 2018, let’s take a look at the basics like, “What is NEM?”, “What makes it better than BTC?” and so on.
Introduction to NEM (XEM) : The Proof of Importance Coin
Definition:
NEM is the acronym for New Economic Movement. The aim of this currency is to create an open digital economy that is beyond the control of authorities. The NEM coin aims to build a new economy based on solidarity, financial freedom, equality and decentralization.
It’s emerging as one of the biggest alternate digital currencies. Some of the outstanding features of NEM include multi-signature accounts, proof-of-importance (POI) algorithms, Eigentrust++ reputation system and encrypted messaging.
History of the NEM
Launched in March 2015, NEM is the brainchild of UtopianFuture that was inspired by NXT coin. The initial plan was to create a fork of NXT, but later on the founder (s) decided to start NEM from a new codebase.
The first stable version of NEM was released in 31st March 2015.
Development and the Team
Right now, there are three developers behind the code source of NEM, and there is no marketing and sales staff. Lon Wong leads the team, but there are no published details about the other members of the team. Additionally, the group is not active on social media or blogs, making it challenging to keep progress of their latest work.
Mining of NEM
The mining of NEM is done with an improved consensus method that is termed as Proof of Intelligence (POI). The POI algorithm protocol is energy efficient and ultra-light, when compared to other cryptocurrencies that run on POW (Proof of Work) or POS (Proof of Stake).
One of the biggest differences between POI and other algorithms is that POI doesn’t just reward those who have a large account, but also considers how they transact with others.
This ensures active users who contribute to the economy derive higher benefits from NEM. Every user in the community has a trust score. Higher the rating, the better are the chances of being rewarded. This ensures equal distribution of wealth. Anyone who contributes more gains extra NEM. The main aim of NEM to empower the right people is thus fulfilled.
The Difference between PoW, PoS and PoI Algorithms
POI is the algorithm which NEM uses to time-stamp transactions. In coins that use PoS, stakeholders are able to secure the network, while with PoW miners can secure the network. In PoI, a user’s importance is determined by how many coins they control on the network and the value of the transactions they make.
PoI rewards users based on their overall contribution and support to the network. Unlike PoS, where a person just has to have a large number of coins to form a block, PoI ensures that the transaction amount as well support provided to the network is considered.
This ensures that NEM users don’t just idly hoard the currency. Instead, they are encouraged to transact with it actively.
NEM (XEM) is already ahead of Ethereum (ETH) and Bitcoin (BTC) – Here’s why
- PoI
It is energy efficient and can run even on simple machines like a Raspberry Pi and doesn’t require much electricity or power. It additionally encourages people to use the currency, instead of just hoarding it.
- EigenTrust++
NEM offers better security. It’s the first digital currency to use EigenTrust++ for nodes, thereby strengthening the overall security of the network. It allows localized spam protection by keeping spammers out of the network.
- Two-tier Design
If you want to own a NEM wallet, you don’t require a full node and the copy of the entire blockchain. Instead, you can just connect to any node and access all the features, even if you don’t trust it. Additionally, no malicious node can access your fund.
- Multi-signature Accounts
Unlike BTC, you don’t need the support of third-parties to operate a multi-signature account. While it’s true that ETH has smart contracts, they have to be written by the end-users. This makes it difficult for anyone apart from programmers to create smart contracts.
NEM has something called as “smart assets.” To use these, you don’t have to replace your existing technological infrastructure. It works with C++, Java and any other programming languages.
Some of the potential uses of these smart assets include:
- Stock ownership
- Health records
- Notarizations
- Legal Records
- Inspections
- Loans
- Royalty Payments
- Supply chains, etc
- Mosaics
This is similar to the custom currencies (colored coins) feature of BTC, but it works completely on the blockchain, instead of relying on the trusts of third-parties. The names of these mosaics (namespaces) operate just like a domain name. Once a person has created a namespace, no one else can claim it and the owner can create unlimited subcategories of this namespace.
- Encrypted Messaging
No cryptocurrency platform is complete without the ability to message. NEM allows unencrypted and encrypted messaging between nodes and addresses via the network. It even supports hex messaging facility for developers.
- Supernodes
NEM supports something called as supernodes. This feature offers incentives to users to run high-powered nodes. These rewards were generated during the creation of the first block in the NEM blockchain. It’s planned to last for several years.
Even if the funds of this node run out, NEM offers other incentives for users to maintain the network. Anyone who owns 10k XEM or more can create a harvesting node and collect transaction fees from other users based on their PoI score.
- Easy for third-party developers to Build an Eco-system on the Blockchain
Other platforms like BTC lock third-party developers in one centralized service like BitPay or Coinbase to build the ecosystem. This means, developers have no other choice but to rely on these services to build, maintain and update their APIs.
NEM, on the other hand, offers a comprehensive range of easy to use APIs that work across the network on any node and can support all transactions.
NEM Price Fluctuations
Though NEM is just over three years old, it has emerged as a highly profitable investment. For example, the price of XEM increased by 5950% in 2017.
In the first quarter of 2017, the price of XEM reached to $0.29, followed by a stumble down to $0.09. This was followed by another sharp incline up to $0.349 followed by another drop. Today, NEM hovers around $0.25.
From this investors, can see that the ride with NEM is expected to be turbulent, just like all other cryptocurrencies. And, the price variation is expected to be around 10 to 15% on most days, either upwards or downwards.
However, if you’re patient enough to wait during the rough periods, industry analysts believe that you can make handsome returns with XEM.
Coming to the big question, Should you invest in NEM (XEM)?
While there’s no definite answer to that, here are a few factors to consider while making your decision:
- NEM has seen several investors strike rich.
- It’s 10x more efficient than BTC.
- It offers scope for plenty of use-cases.
- It’s highly user-friendly even for non-programmers.
- It’s relatively unknown, meaning the prices are affordable right now.
There are some significant downsides too – it faces contagion from other popular digital currencies, regulatory uncertainty and difficulties in liquidation. However, all these drawbacks appear temporary.
Evaluate these factors, and consider a portfolio to make the right decision.
How to Buy NEM?
Buying XEM takes a bit of time and work. Unlike BTC and ETH which can be easily purchased with US dollars, get XEM is a bit trickier, but worth the effort.
There are a few fiat-to-XEM exchanges, but they suffer from low trading volumes. Since, it’s difficult to liquidate on these exchanges; you can either buy ETH or BTC first, and then trade it for XEM. Some of the popular crypto-to-XEM trade exchanges with high volumes include Bittrex, Poloniex, and HitBTC.
Before you do anything, remember that you have to download a XEM wallet first. Click here to go to the most popular one.
NEM Price Predictions 2018
According to cryptocurrency analysts, NEM could easily bag one spot in the top five cryptocurrencies of 2018. This is one of the main reasons why more and more investors are buying XEM.
Even with the meltdown happening in the world of cryptocurrency, NEM hasn’t fallen too much down from its peak price in last October and November. This is the reason, why despite its fall from its peak, NEM investors are optimistic about this currency.
Latest Developments on NEM
NEM is currently working on building its own exchange to provide added security. Once this becomes available, investors can conveniently trade XEM coins on it without worries about thefts and other hacks.
Final Take
One of the biggest draws of NEM is that it has emerged as a close competitor or even the better alternative to ETH. Just like the massive following of ETH, experts predict that NEM is sure to emerge as a popular and successful investment.
And, if the rumor mills are to be trusted, Biance is all set to add NEM to its platform, which will shoot up XEM prices. Regardless of what happens in this, analysts believe that NEM is all set to reach the $1.00 mark by the end of this year.
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