Did you know the users’ crypto currency that changed the view of blockchain’s consensus algorithms? Meet NEM Coin, The Sleeping Giant of Cryptocurrency
NEM Coin Introduction
NEM Alpha and Beta Testing
NEM has gone through an extensive open alpha testing started on June 25th, 2014, followed by a lengthy and comprehensive beta testing started on October 20th, 2014. NEM finally launched on March 31th, 2015. The next large update to the NEM ecosystem will be called Catapult and has an unknown launch date. It was originally estimated to be released in Q4 2016, but has since moved into the future with a 2017 announcement date.
NEM and Proof of Importance (POI)
NEM is based on Proof of Importance (POI) consensus algorithm. POI is used to determine who will calculate the next block. An account’s importance is determined by how many coins it contains, and the number of transactions made to and from that account. POI is different from other initiatives, which use a fee-sharing model that does not take into consideration one’s overall support of the network. In some Proof of Stake (POS) systems a person only needs to have large amounts of coins to form a block, however, in NEM the transaction amount as well as support of the network become a factor. This has been designed to encourage users of NEM not to simply hold NEM, but instead actively carry out transactions within the NEM ecosystem.
To be eligible for entering the importance calculation, an account must have at least 10,000 vested XEM (NEM crypto currency tokens’ name). All accounts owning more than 10,000 vested XEM have a non-zero importance score. With a supply of 9 Billion XEM, the theoretical maximum number of accounts with non-zero importance is 900,000. The actual number of accounts isn’t expected to approach the theoretical max due to inequalities in held XEM. If NEM becomes very popular, a threshold of 10,000 vested XEM could be undesirable. If necessary, this number could be updated in the future via a hard fork, which is similar to the procedure for adjusting transaction fees and other parameters related to harvesting.
Proof of Importance (POI) vs Proof Of Work (POW)
The development team differed POI from POW as the following:
POI has three parts:
An account’s vested stake. Stake is vested in at 10% per day;
With whom an account transacts;
The number and amounts of transactions in that account’s history.
POW has one part only and that is: the miners with the most computational power form the blocks.
POI uses, on average, 0.3% of the electrical power of POW per node.
POI is multi-faced as following:
It reflects an account’s history;
It can be used to prevent Sybil attacks as POI is a scarce resource and a zero sum game;
It can be used to weight votes in elections ensuring that fair elections take place.
While POW has no other services to the blockchain other than as a block making consensus mechanism.
Although the key figures leading the NEM foundation have a public identity, all the developers of NEM do not reveal their real identities. They are currently working on Mobile wallet for Android and iOS systems, which will be released soon. They published their roadmap so far and here is a quick glimpse of it:
- Completion of all the features in the existing wallet.
- Colored Coins.
- Business Rules (Known as Smart Contracts).
- Decentralized Asset Exchange.
- Integration of Multi-signature into the AE and Business Rules.
- Snapshot for quick synchronizing of nodes.
So what makes NEM that unique?
NEM was designed with all new code to be secure, scalable, fast, flexible and easy to build on utilizing a simple API. NEM features on-chain multi-signature and multi-user contracts with push notifications, a token feature called Mosaics, and namespaces. Together with Mijin, NEM is the first combination of public and private blockchains. At the initial stage, NEM has the following to offer:
- NEM is built 100% from scratch (not a fork of any existing project);
- NEM is built with test-driven development;
- NEM uses innovative Proof-of-Importance algorithm: first reputation based blockchain algorithm;
- NEM has customizable assets called Mosaics. Editable supply, levies, description, transferability and more;
- NEM has Namespaces to help maintain reputation of Mosaics;
- NEM improves different features of POW and POS coins, being more efficient and environmentally friendly;
- NEM one minute average block times;
- NEM is the first crypto with delegated harvesting;
- NEM is the first with localized spam protection;
- NEM is the first with Eigentrust++ peer reputation management;
- NEM is the first editable m-of-n multi-signature with blockchain based alerts;
- NEM is the first every P2P network with nodes time syncing in a decentralized manner;
- NEM offers encrypted, unencrypted and hex messaging;
- NEM is easy to install with a one click installer;
- NEM zero monetary inflation (fixed supply, all 9 billion coins released at launch);
- NEM relatively large egalitarian distribution;
- NEM will offer a mobile wallet for both iOS and Android.
Since there is no mining for XEM, you can get the coin by exchanging with BTC; it is being traded on the following exchanges:
For more information about NEM, you can visit the following sites:
NEM is set to change the preview of blockchains by implementing the amazing POI consensus algorithm, which is a great solution. 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, or trade assets and goods worldwide. In the future, there shall be more exciting features to come as well.