NEM is an enterprise grade blockchain and Daaps development platform. It is an open source, P2P platform that provides services like payment, messaging, and asset making. The NEM.io foundation launched the project on May 31, 2015. The blockchain uses the XEM token to carry out all transactions. And like Ripple, it is semi-centralized, permissioned, blockchain that is not mineable. The development team decide to pre-mine all coins to make NEM more environmentally friendly. As a result, NEM is 100 times more energy efficient than Bitcoin. In addition, NEM is fast, cheap to use, and reliable which suits a lot of commercial needs.
NEM stands for New Economy Movement. The name infers one the projects’ principles, to empower individuals through decentralization, financial freedom, and equality of opportunity. Its aim was to allow for a more equal transactional participation. But the activist spirit diluted after NEM joined with the development of the business-oriented Mijin blockchain.
Mijin is a private, permissioned, corporate-oriented, blockchain platform that specifically tends to real-world businesses and financial uses. It is the business arm of the NEM platform. It is akin to the IBM’ Hyperledger in that it offers ready-made, customizable, networking and blockchain capabilities to clients that lack the expertise.
The leading team members are President Long Wong, VP Jeff McDonald, Council Stephen Chia, and Director Jason Lee. All former founders or tenured participants in Fintech companies.
NEM uses Java with a C++ version in the works. It uses SHA-3 hash algorithm with a block creation time of about six seconds, and an approximate speed of 4,000 tps. A principal component that differentiates NEM is the use of Multisig capabilities. This enables multiple users to share access to the variety of products offered. For example, a vending machine that accepts four different currencies or revising a smart contract by adding additional parties. Best of all, all changes can be made On-Chain without affecting speed.
In addition, NEM uses a consensus mechanism called Proof-of-Importance which differs from Proof-of-Stake by rewarding the use of tokens instead of holding them. Transactions are verified by “Harvesters;” designated individuals do so based on their holdings (10,000 XEM) and good reputation. The Eigentrust++ algortihm implements a Reputation system that monitors nodes performance assigning a grading scale.
Furthermore, NEM has a centralized component (NEM Community Client (NCC)) and a decentralized one (NEM infrastructure server (NIS)). The NCC controls the network while the NIS connects to the nodes. A gateway grants interface to builders of Daaps and separates private business networks so they can operate separately.
Lastly, NEM is a customizable blockchain that allows client developers to create “Mosaics” or transferable assets like currency, or a variety of data. Developers write and define addresses that contain these assets and upload them to the NEM blockchain through APIs. This way, the client company can create and integrate their product or services seamlessly with NEM.
The project is advancing steadily with its next upgrade “Catapult” expected this month. And Mijin is delivering as promised. According the NEM.io foundation “Mijin has been tested extensively as a high-throughput ledger engine in financial institutions, electronic money systems, user authentication, land and property registration, logistics tracking, and food traceability.”
NEM is a very dynamic but use specific blockchain. Not meant for everyday public transaction use, but more to develop, enhance or replace outaded institutional services. Its is a permissioned blockchain with commercial applications that seeks to resolve organizational innefeciencies within companies or other entities.
Finally, with a marketcap of $688 million, NEM is #15 on the top 20 cryptocurrncies and it is quickly gaining global adoption; most recently signing an MOU with the United Arab Emirates and Dubai to provide support on their roads to become a fully digital government by 2021. NEM is an promising project with long term value and limitless possibilities.