Digital coins are not only mined using mining equipment, but also baked in a baking or harvesting process. Harvesting refers to the harvesting, which is the name given to the method of rewarding the nodes involved in the NEM blockchain network.
The NEM (New Economy Movement) cryptocurrency uses a unique consensus algorithm, namespace system, mosaic and Catapult technology. This blockchain project combines the strengths of Bitcoin, Ethereum and Ripple cryptocurrencies. It is a robust and secure ecosystem that is 10 times faster than Bitcoin, supports smart contracts, and is predominantly focused on the banking sector.
Let’s take a closer look at the unusual NEM coin, which is popular in its home country, the Land of the Rising Sun, and is actively traded on leading cryptocurrency exchanges.
The main characteristics of NEM (XEM)
NEM uses a system of accounts. These are a pair of cryptographic keys (private + public key Ed25519). Each account is identified by a NEM address, which is derived from the Ed25519 public key.
The address is base-323 encoded and includes:
- The network byte;
- The hash of the public key;
- A checksum.
The checksum is used to verify if the address is filled in correctly. A transaction in the NEM network can be sent to any address, even if it has never been used before. But if no one owns the private key of that account the funds will be lost forever.
Each account has the following characteristics:
- Wallet balance;
- Number of blocks created;
- First transaction number;
- Multisignature information;
- Delegated harvesting status information;
- Account rating.
The balance of each account is divided into:
- Active (“matured”);
- Passive (“immature”).
The money coming into the account belongs to the passive part of the balance. After every 1440 blocks, 10% of the immature portion is transferred to the active balance. When an outgoing transaction is executed, money is debited evenly from both lobes of the balance, the size of the active portion being primarily important for harvesting.
New NEM blocks are created on the Proof-of-Importance (POI) algorithm. The Proof-of-Importance algorithm is a modification of PoS, but unlike traditional wallet mining, in harvesting the account’s ability to create new coins is calculated according to three criteria:
- The amount of money in the wallet;
- The node’s activity in the network;
- Time of account creation.
Of course, the main role is played by the number of coins on your balance, there are supernodes in the network, which receive 140,000 XEM every day. Supernode status is obtained by the owner of the node that meets the minimum technical parameters of the NEM Foundation, with a wallet balance of at least 3,000,000 XEM. As of 27.07.2021, the value of the cryptocurrency NEM is $0.1595.
An encrypted messaging system is built into the NEM blockchain, multi-signature accounts can be created and Eigentrust++ is used as a node reputation management algorithm.
NEM offers the possibility of direct interaction between public and private blockchains. This makes it easy to transfer any digital assets (tokens, contracts, files) from a private internal corporate network routed through a public blockchain to the private network of another business company. NEM private to public blockchain interfacing can make such transfers possible, provided all parties involved agree. The NEM network is powered by the open-source payment application NEMPay.
In March 2021, the NEM project launched the NEM symbol public blockchain. Symbol’s blockchain connects corporate clients, developers and individual entrepreneurs by opening up limitless possibilities. Symbol reduces the cost and complexity of existing business processes, thereby providing a platform for innovation. Symbol from NEM, is the core technology powering the ecosystem along with NEM Group, NEM Ventures and NEM Trading.
A retail chain that uses blockchain to maintain and track its loyalty rewards programme and a shipping company that uses it to store shipping and handling data as an open, secure, end-to-end logistics management system are working with the NEM startup.
NEM also makes it easy to create, distribute and exchange cryptocurrencies compatible with wallets and other trading applications running in the NEM ecosystem. It can even be used to conduct initial coin offerings (ICOs). API support allows any global applications on the NEM platform to be linked and used by the API Gateway server.
The NEM cryptosystem software runs on the public network Mainet and the closed business network Mijin. The Catapult system software update is used to synchronise the NEM cryptocurrency’s public and commercial blockchain. The open blockchain is needed for XEM transactions and harvesting and is used by individuals.
A closed blockchain is for banks, government agencies and commercial enterprises. A company wishing to use distributed ledger technology in its business gets a ‘personal’ NEM and, if necessary, its own token to solve internal business tasks without synchronisation with the public NEM layer.
The client-server scheme enables networking without loading the entire blockchain, the NIS infrastructure server is independent of the NCC community client.
NEM name spaces are similar to ICANN’s Internet domain name system. The owner of one domain name can use an unlimited number of subdomains in different projects and business accounts. The client participates in the creation and maintenance of the reputation system for Mosaic.
Mosaic is the users’ assets in the blockchain. It is set up through a NEM wallet. A mosaic is either transactional or non-transactional, shareable or non-shareable. Each mosaic is given a name in the NEM Namespaces structure.
NEM Development Team (XEM)
The developers of the cryptocurrency NEM wished to keep their privacy known only to their pseudonyms on the Bitcointalk forum.
NEM.io Foundation, which is registered as a non-profit entity in Singapore, coordinates the project. NEM Foundation is headed by Alexandra Tinsman and Jason L. The board of directors of NEM Foundation includes Jeff MacDonald and Klim Gueran, the head of the Russian branch of NEM.
NEM’s private and public blockchain structure is based on the same programming code and is fully compatible with the API, allowing for multi-functionality and security.
If speed and privacy are your priorities, use the NEM core blockchain technology on your own server. The NEM server software allows you to deploy your own configuration of trusted nodes. This way, you get high speed (thousands of transactions per second) and reliability without losing the basic benefits of the blockchain. With the NEM API, you can access the network you have created using any platform and programming language.
The decentralised, public NEM blockchain network, can be used by anyone. Running applications on the public network, is very easy, by connecting to the node, through an API in the programming language you want. The public NEM blockchain can be used as a secure database for mobile applications, reward systems or property management without the use of escrow accounts.
You can view the data on the coin network by going to: https://explorer.nemtool.com/#/blocklist.
The blockchain browser stores information about all events in the ecosystem. Including blocks created, transaction status, payments to harvesters and supernodes.
NEM Coin Mining (XEM)
All 9,000,000,000 coins are issued and no new coins are created. Nodes in the network are remunerated for processing transactions and creating blocks through commissions.
The NEM blockchain uses a proof-of-value algorithm (as opposed to proof-of-work or proof-of-ownership) to achieve consensus through a process that encourages participant activity. Each node has its own importance score, which determines how often it can harvest.
This one is similar to the validator rates in PoS algorithms, but collecting a certain amount is only half the battle. Not only the wallet balance is taken into account, but also the number of transactions. The more you use the network, the more important it becomes. You can run full nodes on almost any desktop PC, regardless of power, which prevents the harvesting process from becoming centralised.
To participate in block generation, a harvester must download and synchronise a full node, and deposit a minimum of XEM 10,000 on the account balance. Once the “harvester” finds a block he will receive a reward. Harvesting comes in two types.
The local one requires a constant connection to the network of the NEM client. A private account key is needed to find the blocks.
Delegated runs on a remote server. When launched in delegated mode, an empty balance is created and the intermediary key is activated, the private key of the primary client is kept safe and a fee is charged for the block.
The calculation of the transaction processing fee takes into account the amount of money in the wallet balance, both parties to the transaction, their online activity and the level of security of the transaction.
For a while, only delegated harvesting was possible. Each node must first be activated, it is done directly from the main client. The option is paid, costs 6 NEM and takes about 6 hours. However, in May this year, the developers relaunched the NEM Hub social mining program. Now everyone will be able to participate in the network, being rewarded with NEM symbol tokens (XYM).
Where and how to buy NEM (XEM) coins?
XEM cryptocurrency is quite popular and with good liquidity. The project is listed on 60 exchanges, the largest ones are:
- Huobi Global;
XEM coins can be bought for Bitcoin or Etherium, as well as for traditional money. For example, the Binance exchange supports pairs of:
To buy XEM cryptocurrency for rubles on Binance, identity verification is required, such is the specifics of this site. Create an account and start trading. This platform is considered to be the best in CIS countries with high level of funds protection.
Full list of trading platforms is available at https://www.coingecko.com/
Wallets for storing NEM (XEM)
NEM NanoWallet is an officially supported client for Windows, Mac and Linux.
Sending XEM, mosiacs (assets,) and messages to any address or namespace;
Fast creation of namespaces, subdomains and mosaics;
Apostille and notarisation;
Instant Changelly exchange is integrated;
Voting participation customisation.
The latest version is available on Github, link https://github.com/NemProject/NanoWallet/releases
There is also a mobile NEM wallet for Agdroid and iOS. Users of the Chinese messenger WeChat can link NEM addresses to an account in the app and make transactions through the NEM WeChat Wallet.
Possible prospects for the NEM (XEM) project
So, let’s try to figure out how comforting the NEM project’s outlook is. The unique harvesting method and high bandwidth of the network are the strengths of the ecosystem. But, a weak marketing policy and a prolonged downtrend in the altcoin market have stalled the project’s development. Therefore, NEM cryptocurrency is poorly known outside of Japan despite its fairly high ranking in Coinmarketcap.
Having demonstrated a high growth rate at the start, the network struggled to survive the crypto-zima. In early 2019, the NEM Foundation’s management announced the risk of bankruptcy of the project and sought help from community members. The foundation’s administration, and personally its head Alexandra Tinsman, asked for approval to launch an additional token issuance needed to close the budget gap. To avoid prolonged stagnation, the developers must actively develop the infrastructure of the system, while keeping their business strategy clearly planned and executed.
The situation in the crypto industry is gradually improving and coins are increasing in value. If the development team conducts business competently and informs the global blockchain community about its achievements, NEM cryptocurrency will attract new investors and become more competitive in the international market. The project has a chance to become the backbone of the economy of the future, but the competition is stiff. The developers of NEM have challenged three leading projects at once and who knows if they will be able to implement their plans. For now, NEM is keeping a low profile and is not popular outside of Japan.