NEM: The biggest cryptocurrency you haven’t heard of

EVERYONE has heard of Bitcoin, even if they don’t understand how it works. COOL people have heard of Ethereum. Fintechnos-in-the-know understand Ripple.

But what about NEM?

NEM is a top 10 cryptocurrency by market cap, but receives relatively little attention in news dominated by the “Big 3.”

This makes sense, of course, when we consider the following data (as of June 18th, 2017):

  • Crypto Name: Market Cap (USD)
  • Bitcoin: $42,322,544,191
  • Ethereum: $35,010,176,812
  • Ripple: $10,236,138,243
  • Litecoin: $2,230,736,584
  • Ethereum Classic: $2,104,447,627
  • NEM: $1,787,148,000

As you can see, NEM has a market cap that pales in comparison to the majors. That doesn’t mean NEM is valueless, though. Just like in the Forex markets, different cryptocurrencies have different values that fluctuate against each other based on macroeconomics and technical (or in this case, technological) events.

But what is NEM’s value? The cryptos that lead the pack by market cap are special in some way… unique with clear uses cases. Is NEM just a copycat coin, or is it built to last?

Let’s explore some NEM fact and DYK:

  • NEM is designed to be secure, scalable, fast, flexible, and easy to build on utilizing a simple API.
  • NEM was built from scratch and has been tested by many banks and big corporations. With extensive enterprise developing experience under their belts, several full-time NEM developers write and execute thousands of tests before every development cycle and release, and this gives NEM a very secure core.
  • NEM features on-chain multisig and multi-user  contracts with push notifications , a token feature called Mosaics, and namespaces.
  • NEM’s approach is to let developers use a wide range of functionalities which let them build powerful applications based on a closed set of atomic operations, and opens the network to almost any technological combination thanks to its REST API.
  • Together with Mijin, NEM is the first public/private blockchain combination.
  • NEM’s architecture makes it very simple for developers to build blockchain applications in almost every device with the same degree of decentralization and security.
  • NEM can scale to hundreds of transactions per second, and has already been tested privately and independently to scale to thousands of transactions per second in the Catapult release.
  • Proof of Importance Is the Cornerstone of NEM.
  • Every account on the NEM blockchain is assigned an importance score. This score will influence how individual users can “harvest” the blockchain.
  • NEM: For a permissioned blockchain solution, there is no need to compete in order to mine a block. NEM’s approach has been a simple and yet very powerful way of securing the blockchain, requiring much less computing and energy resources to manage and maintain it than Bitcoin and competing cryptocurrencies.
  • NEM, like many other crypto currencies, is using cryptography based on Elliptic Curve Cryptography. The choice of the underlying curve is important in order to guarantee security and speed. NEM has chosen to use the Twisted Edwards curve.
  • As of June 26th, 2017, NEM has 647 full nodes online.
  • NEM block height on 6/26/17: 1171145
  • NEM is not just a crypto currency: NEM is a solution platform.
  • NEM’s native currency tokens: “XEM.”
  • NEM is a peer-to-peer platform.
  • NEM advocates low entry barrier with Proof of Importance (POI).
  • In NEM, mining is called “harvesting.”
  • “As an evolving solution, NEM is setting the stage for better things to come.”
  • NEM: First block chain based multisig solution.
  • NEM: An encrypted messaging solution that also allows unencrypted and hex messaging.
  • Mosaics are NEM’s asset feature.
  • Mosaics allow assets to be created to be mutable, immutable, capped, not capped, divisible, not divisible, ability to be bagged with other tokens, and levied. They come with discriptions and are a part of Namespaces.
  • NEM’s naming service, Namespaces, allows organizations to build a brand or brands that can be known and identified helping to increase their projects’ reputation.
  • With NEM, you can send and receive payments and messages quickly, securely and at low cost on a global scale without the need for a bank account. You can make/buy/sell/trade assets and goods worldwide.
  • NEM developers have written an in depth Technical Reference as a guide to understanding how the new technology in NEM works.
  • With 64 bit Java as runtime enviroment, it is possible to run the NEM software on all the popular operating systems that support Java. These include Windows, Mac OSX, and Linux.
  • You can get XEM at the following exchanges with BTC:
  • NCC stands for NEM Community Client. It is the wallet in short.
  • NIS is Network Infrastructure Server. An NIS exist in the NEM space as nodes in a P2P network. It forms the core to making sure and keeping the network plus the block chain validated all the time. NIS is the Web and application server in a Web Architecture. It is a powerful and yet a lightweight server. Any NCC can make use of a NIS to transact. To harvest (see harvest) one can assign or proxy a NIS to harvest for it through the NCC without exposing oneself.
  • NEM has recently introduced a new type of wallet: the lightwallet. It allows users to make transactions just like what one can do with the NCC, but it uses a browser webpage written in javascript. So now, one can have just one html file to send XEM in a public network using any NIS without risking the safety of the account.
  • Through the NIS web server, the NIS is essentially acting as a lightwallet service provider. While a trusted NIS can be accessed via a web browser without any additional add-ins or programs running, the most secure way to use the lightwallet is to run it locally on any device that supports js/html. To do this the all new lightwallet has been released as a stand alone version without the need to boot up a NIS.
  • The lightwallet enables any novice or beginner to access the NEM platform without much knowledge of the technical intricacies of the blockchain technology, securely and easily to transact.
  • POI is short for “Proof-of-Importance”. It is a consensus algorithm at the core of the NEM software. The higher your importance, the higher your chance to be allowed to calculate a block (and harvest the fees inside that block). POI adjusts your importance depending on how many transactions you make, with whom you make them and a number of other factors. If you don’t do any transactions POI will set your importance based on your balance only (it is then similar to proof-of-stake).
  • NEM’s multisig was planned out carefully and is a contract on the chain.
  • NEM’s multisig is true M of N, meaning any number of signers less than or equal to N maybe be set up in the contract.
  • In NEM there are parent accounts and a child account. When you make a multisig account in NEM, you are making a parent account have control and power over a child account. You may also edit this contract at any time adding or removing signers. You can even remove the contract and turn the child account into a regular account again.
  • The NEM network sends notifications to users when they need to sign a transaction.
  • In addition to using NEM’s multisig as a way to protect funds, split signing power over accounts, share accounts, or create a 2FA, NEM’s multisig can be used as the foundation for distributed autonomous organizations.
  • Mosaics can be considered to be assets on the NEM blockchain, but they are much more. They are customizable which allows them to be used for a wide variety of uses including shares, bonds, digital commodities, securities, currencies, company bonus points, miles, video game currencies, stocks, precious metals ETFs, coupons, and so on.
  • Uses for mosaics can be expanded to birth certificate, death certificate, marriage certificate, highschool/university diploma, car/house/property titles, contracts, IDs, attendance/criminal/honor records, votes in elections, tickets, grades, financial reports, copyrights, patents and so on.
  • NEM’s initial release is a mosaic that has the following properties:
    • description: Free-text description of the mosaic up to 128 characters, changeable by the owner.
    • divisibility: Adding this makes a quantity divisible, up to 6 decimal places. A divisibility of 2 means 2 decimal places.
    • information: Arbitrary byte array that can be in the property, with a size limit; this is the same as “messages” in NEM.
    • domain name or namespace (required): Globally unique fully qualified domain name that is registered and owned by the mosaic creator. A top level namespace has a size limit of 16 characters, sub-namespaces have a limit of 64 characters.
    • name (required): Name of the mosaic, up to a size limit of 32 characters; must be unique under the domain name.
    • mutable quantity: The amount of mosaic in circulation. If immutable, it is fixed, otherwise it is dynamic, i.e., more can be created or destroyed later.
    • transferability: If no, it means it can only be transferred between user and creator. Otherwise, it is freely transferable between third parties.
    • levy: A levy allows the creator of a mosaic to set a tax on any subsequent transactions of that mosaic. This levy is sent to an account of the creators choosing. Any mosaic or XEM may be used as a levy.
  • Namespaces gives rise to a unique naming convention. They give authority and reputability to the people that own them and the mosaics and projects they are associated with. If one creates a namespace, that namespace will appear unique in the NEM ecosystem. For example, if one were to create a namespace called “foo” that namespace cannot be created by a second person. Just like on the internet, a domain can have a sub-domain, namespaces can have sub-namespaces. And it is possible to create multiple sub-namespaces with the same name (example: “foo.bar” and “foo2.bar”, “bar” is the sub-namespace/sub-domain). Namespaces can have up to 3 levels, a namespace and its two levels of sub-namespace domains.
  • Harvesting is a process whereby a node will calculate blocks and add them to the blockchain.
  • The harvesting requirement: The user account needs a vested balance of at least 10,000 XEM.
  • Delegated harvesting is a security feature in NEM that allows a person to safely harvest using a proxy private key. This proxy private key is created by transferring the POI score of a primary account to an empty delegated account. That private key can now safely be shared with others as it doesn’t actually contain any of the funds in the primary account. This allows a person with delegated harvesting activated to give their private key of the delegated account to third parties so that they can harvest with it. All funds earned from harvesting are then automatically sent back to the primary account.
  • In NEM, coins are aged-in at 10% per day of the remaining unvested XEM in an account. This is explained in detail in section 2.1 of the Technical Reference.
  • How was NEM distributed initially? 8,999,999,999 XEM were distributed to 1,500 initial stakeholders and to several multi-signature secured funds for marketing, distribution to late redeemers, operational costs, development, node rewards etc.
  • What is Mijin? And how is it different from NEM? Mijin is a licensed version of NEM for Private block chain roll out. The difference between Mijin and NEM is as follows:
    • Higher throughput up to 100 Tx/s and more as it is being developed further
    • Nodes are in a private cloud/VPN
    • Accounts are permissioned, i.e, they are only visible to the user
    • Mijin accounts are not connected to NEM and work separately
    • APIs and functions found in NEM are also found in Mijin
    • Business entities can make use of it to develop their own applications and provide services to their users, independent of NEM
    • Mijin is centrally controlled and therefore is more suitable for centralised initiatives.
  • How many XEM are in circulation? The total amount is 8,999,999,999 XEM.
  • NEM ‘s loyalty points come in the form of harvesting. These are rewards for using NEM as a platform to perform your transactions. The more you transact and the greater your balance is, the more frequent will be your reward. Rewards are random. Sometimes you get more and sometimes less, depending on the block that you harvest.
  • Does NEM have a faucet? Yes, new users can recieve 100 XEM by visiting http://faucet.nem.io/.
  • Via NEM, wide range of applications are currently under development including apps for transmitting financial value, notarizations, tracking and logistics, voting, land management, ID management, and more.
  • The NEM NanoWallet can run on a desktop and smartphone without any problem, and can be used as a boilerplate to build more complicated applications, making customized apps accessible on Windows, Mac, Linux, iOS, and Android.
  • NEM has never had a serious security issue. The commitment of the NEM Foundation and the core developers with regards to the security and the availability of the network is of utmost importance, and this gives to the community, third-party developers, and investors a guarantee which is hard to equalize.
  • “NEM seems to be a more stable choice for building new applications which have to support real business models.”
  • The NEM learning curve is far and away smoother than the Ethereum.
  • Proof of importance is a critical aspect of NEM and how the system ensures all computers in the network form a consensus.
  • In order to be eligible for the “importance calculation,” users need to have at least 10,000 XEM in their balance. This method ensures people who are passionate about NEM will keep funds locked up in what could be seen as a “masternode”.
  • Similar to other cryptocurrency blockchains, all NEM transactions are public domain.
  • The NEM white paper.
  • NEM’s proof-of-importance is resistant to arbitrary manipulation.
  • In NEM, Sybil attacks and loop attacks are mitigated thanks to some of the underlying technology.
  • June 14 ~ 15 2017, During the Global Blockchain Conference in Chengdu, the NEMChina group came to the center of the stage for the first time.
  • The NEM Blockchain’s focus is to unleash the power of the blockchain technology to build real world applications on top of it.
  • NEM comes with a rich API that makes it easy to integrate the new and existing software with itself. Furthermore, the API is a needed layer of abstraction that allows every software solution to use it independently.
  • NEM Authenticator is a mobile application, for Android & iOS, where the user can confirm their transactions securely.
  • The 2-Factor Confirmation Process is a way to secure your money/assets and still be able to use third-party software without the fear of losing all the XEM (XEM is the NEM’s blockchain coin) you own.
  • Namespaces on the NEM system is a domain naming system, but one both like and unlike that of the internet. There are unique root-level domains and non-unique subdomains, typically used to classify fully qualified unique assets or naming systems. This allows one person with one unique root domain to create many different subdomains for their various projects or outside business accounts. It also helps to build and maintain a reputation system for services built on registered names.
  • Accounts on the NEM blockchain are designed by default to hold messages, hold mosaics (digital assets), and are designed to have control transferable from person to person via multisig contracts. They were built from the ground up to be much more than just an address.
  • A blockchain platform like NEM with acount states and customizable namespaces, mosaic assets, multisig contracts, and messaging options allows for a wide variety of application framework conventions to take place
  • NEM has a sister blockchain technology, the private blockchain Mijin run by Tech Bureau.
  • The NanoWallet is open-sourced, written in Javascript, and connects to NEM with easy to use APIs so other parties looking to build specific business apps can make a new application framework convention for their app that interprets the rules for multisignature contracts, namespaces, mosaic assets, and messages with differently defined rules to meet their organizational needs.
  • Under the Apostille service, accounts in NEM can now be thought of as states representing objects.
  • Catapult2 is a second iteration and an extension of the NEM blockchain technology that was launched in March 2015.
  • Mijin and Catapult are permissible blockchains.
  • The end result of the Catapult solution is a strong and highly customizable blockchain solution.
  • NEM is a movement that aims to empower individuals by creating a new economy based on the principles of decentralization, financial freedom, and equality of opportunity.
  • NEM’s primary contribution to the crypto currency landscape is a new consensus mechanism called Proof of Importance (PoI). Unlike Proof of Work (PoW), it is environmentally sustainable and does not require large scale computing resources in perpetuity. PoI is similar to Proof of Stake (PoS) except that it is not solely derived from the size of an account’s balance. It incorporates other behaviors that are believed to be positive for the holistic economy. In this way, it attempts to reward active economy participants at the expense of inactive ones and dampens the rich getting richer effect that is inherent to PoS.
  • NEM’s vision is to be the foundation of a vibrant crypto currency ecosystem that emphasizes security and trustless computing.
  • The peer-to-peer (P2P) NEM network implements a modified version of Eigentrust++ to identify and minimize the impact of malicious nodes.
  • NEM uses elliptic curve cryptography to ensure confidentiality, authenticity and non-repudiability of all transactions. Each account is a private+public Ed25519 keypair and is associated with a mutable state that is updated when transactions are accepted by the network. Accounts are identified by NEM addresses, which are derived in part from one way mutations of Ed25519 public keys.
  • NEM uses Bouncy Castle’s AES block cipher implementation in CBC mode4 to encrypt and decrypt messages.
  • NEM allows an account to lease its harvesting power to another account through an importance transfer transaction. This is known as delegated harvesting.
  • Each NEM block can contain up to 120 transactions.
  • NEM calls the first block in the chain the nemesis block.
  • The NEM blockchain platform allows all transactions to be transparently viewed.
  • In NEM, the cost of creating a block is negligible. To mitigate the nothing-at-stake problem, NEM caps the change in block difficulty and also limits the length of the chain that can be unwound during fork resolution.
  • As of April 29, 2015, the NEM transaction graph had 1,456 harvesting-eligible accounts.
  • The NEM network is comprised of NIS nodes. Each node is associated with a single primary account, which is used to authenticate responses by that node. This prevents an attacker from impersonating a node without having its private key even if he can spoof the node’s IP address.
  • “We present the NEM blockchain technology as a suitable core component to re-design the equity market ecosystem and save the industry billions of dollars a year in operational expenses.”
  • The NEM blockchain solution is a purpose built solution.
  • The NEM Supernode’s program is funded with XEM set aside during the Nemesis block. These awards are then given to high performance nodes for helping to secure the network. These nodes form a backbone of support for light wallets, mobile wallets, and 3rd party apps so that users of these services might have access to the network that is easy, fast, and reliable without having to sync a blockchain by themselves or use untrustworthy centralized services.
  • NEM was started by a Bitcoin Talk forum user called UtopianFuture who was inspired by Nxt.
  • The initial plan for NEM was to create a fork of NXT, but this was eventually dismissed in favor of a completely new codebase.
  • The Alpha version of NEM was released on June 25, 2014.
  • The Beta production version of NEM was launched on October, 2014.
  • NEM launched its first stable release version on March 31, 2015.

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