NEM is of the quieter cryptocurrencies near the top of the market capitalization list is NEM, which stands for New Economy Movement.* Its token, XEM, is consistently a popular asset for ‘platform lovers’.
NEM itself is a blockchain technology, much like Ethereum, with its base token being XEM. XEM performs the same functions on the NEM blockchain as ETH does. Other tokens could potentially be launched on NEM and even have a higher value than it does, depending on their application.
Importantly, NEM introduces a new type of consensus. Where BTC uses Proof-of-Work (PoW) and others use Proof-of-Stake (PoS), NEM uses Proof-of-Importance, which is based on PoS. Proof-of-Importance asserts the idea that both the amount of network activity generated by a wallet and its balance of tokens should play a role in determining the “weight” wielded by that particular node.
Thus, while in a typical PoS system a user with more tokens would receive more of the block reward or transaction fees than others, in the NEM Proof-of-Importance system, it is possible for a more active user with a smaller balance to earn a larger share of such rewards or fees.
A prevalence of choices for blockchain technology can have two converse effects on the growth of cryptocurrencies as a whole. On the one hand, the more options that developers have, the more likely their skillsets are to match the demands of developing for the blockchain.
On the other hand, the greater separation in technology and network between decentralized applications, the less potential impact of the networks as a whole.
In any case, blockchain as a whole investment genre is relatively new and there are at least five base blockchains on which to build decentralized applications, with several subsistent ecosystems built on top of Ethereum in addition to Ethereum itself. NEM falls into the order of things by offering yet another option for developers in need of the efficiency and other benefits offered by the blockchain.
NEM Smart Assets
Like the NEO “Smart Economy,” NEM launched a few years ago with the goal of modernising Smart Assets. NEM makes the correct assessment that existing blockchain asset management amounts to one-time, fixed data, that cannot be altered or transferred in the future.
What Is XEM?
There are almost 9 billion XEM and they have been circulating since 2015. For most of their lifespan they held little value, but in more recent months there have been significant increases in demand due to important news of new applications being built with NEM technology.
XEM fees differ according to what is being done, and similar to the PoI scheme, multiple types of behavior are accounted for. A fee for every 10,000 XEM is assessed while at the same time a fee for the size of the transaction is also assessed. In Bitcoin and other cryptocurrencies, only the size of the transaction itself. But in the NEM system, it is important to have an incentivized, fee-based system in place in order to continually reach consensus.
- NEM is its own independent blockchain.
- XEM is the first, most important token issued on the NEM chain.
- Anyone can issue tokens as well as tokenise real world assets.
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