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What is NEM? All you need to know about XEM and its blockchain

What is NEM?

NEM stands for New Economic Movement, which has integrated features from bitcoin, ripple and Ethereum. NEM is written in Java, and its mainnet launch was on March 31, 2015. The proprietary crypto coin for NEM is XEM that can be obtained using the proof-of-importance algorithm in mining.

New Economic Movement (NEM) platform was funded through an ICO which helped to attract investments for the project.

NEM also works with financial institutions such as banks so that it can be made accessible for all users in an economy. The most notable example where it exceeded cryptocurrency limits is its role in the Mijin project for banking operations that are currently used by many organisations across the globe.

NEM is made so powerful by its Smart Asset system where nodes present on the blockchain process API calls making it easier for developers to develop dApp either through a server or in the background.

NEM experienced its fair share of trouble in the cryptocurrency world when it got hacked in 2018 from Coincheck exchange. During the hack, 523 million XEM coins went missing that could be valued at over $500 million.

How XEM distinguishes itself from other cryptocurrencies

  1. Work speed: A blockchain on the NEM network can be created in a few minutes making it much faster than most currently available blockchains.
  2. Instant transactions: Any transaction carried out on the NEM blockchain is usually completed in seconds making it possible for it to complete up to 4000 transactions at a time.
  3. High security: It uses the Eigentrust++ alongside a Public Node Network on Two-Tier Architecture.
  4. Transparency: It has put its source code for its client platforms open to boost security, and this code can be obtained from GitHub. Additionally, the transactions carried out with XEM do not rely on any other payment systems.
  5. Easy to use: Investors can easily download and use any needed tool for use from its official website. You can find different versions of the same tool made to work with different operating systems. Investors can also get NEM’s white paper from its website; this document contains the coin’s goals, team and plans, otherwise known as a roadmap in most currencies.
  6. XEM coins won’t inflate: Since it has already released 9 billion coins, which is its cap in the market, it is assumed that there would be no other re-emissions of other currencies.
  7. A low commission of 0.01% is charged when using XEM: The percentage rate does not change regardless of the amount an investor wishes to transact. In other coins, you will notice that the prices vary with the amount being transacted making it most appropriate to use XEM.
  8. NEM has a Supernodes program: The Supernodes program’s primary objective is to reward stakeholders that own active nodes on the network. The Supernodes protect the NEM network, so they have to meet specific requirements in terms of od bandwidth, chain height, and speed.
  9. Proof of importance: this feature is the core of NEM. Proof-of-importance is a modification of the proof-of-stake principle used in cryptography. PoS was first brought into blockchain by NEM before other coins started using it. 

How to invest in NEM

Investors can buy XEM by exchanging it with other cryptocurrencies or by buying it directly using US dollars.

Purchasing XEM using USD:

It is important to note that only a few exchanges allow investors to buy XEM using USD. Examples of such exchanges include Livecoin, YoBit and Exrates. For you to use this method, you will have to verify your identity before you are allowed to make purchases.

Purchase XEM by exchanging with BTC or ETH:

If you already own Bitcoin or Ethereum, you can trade them for XEM on exchanges such as Bittrex, Upbit, HitBTC, COSS and Livecoin.

However, of all the exchanges listed, it is more convenient to use Livecoin because it allows you to use USD to purchase Bitcoin and then exchange for XEM directly. For the rest of the exchanges, you will be forced to buy BTC and ETH from other platforms before exchanging them for NEM.

How to store XEM. Best XEM wallets

NEM

Having decided to invest in NEM, you should also consider having a secure wallet to hold your cryptocurrencies. There are three types of wallets used to store XEM coins namely hardware wallets, mobile and online wallets.

It is not advisable to use online wallets or exchange platforms to store coins because they are usually highly susceptible to hacks. Additionally, it’s the vendor who controls and stores the coins for you, limiting the degree of control you have on your coins.

In a situation where the vendor decides to close down operations, you will lose all your coins, and there is no way you can recover them.

Recommended offline wallets available for storing NEM include the NEM Nano Wallet and the NEM Mobile Wallet. The two wallets give investors full control over their coin, and it is possible to recover the coins if you lose the device or damage it.

NEM Nano Wallet; NEM Nano wallet is a desktop wallet compatible with Mac, Windows and Linux operating systems.

NEM mobile wallet; NEM mobile wallet is available for smartphones running on Android or iPhone’s operating system.

Though it is convenient to use the mobile wallet, it safer to use the desktop wallet especially with Mac and Linux operating systems and for those investing huge amounts into NEM, hardware wallets are the best options in the market.

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coinmag

Daniel is an experienced writer with a keen eye on emerging technologies. He aims at educating the crypto community on the developments within the space.

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