NEM: A Different and Better Cryptocurrency
Cryptocurrency has gone a long way. With many established and emerging cryptocurrencies, it’s hard to choose where to invest.
There is, however, an emerging star in cryptocurrency: NEM (XEM). NEM developed a digital currency that is community-oriented and easy to use with its POI (Proof-of-Importance) algorithm. For the past 2 years, it has surpassed expectations and has become one of the most traded currencies.
According to coinmarketcap.com, NEM is the 10th most valuable digital currency and stands at $1.8 billion.
First seen on Oracle Times
NEM has developed new features on the blockchain that are also used by other cryptos such as Bitcoin and Ethereum, enhancing its usage, mass adoption, speed, and security. Mijin, a platform that lets anyone create blockchain easily on a peer-to-peer network, is based on the NEM Private Blockchain. It is set to reduce institutional bank costs by 90% and is currently used in Japan.
Best features of NEM Blockchain
- New Algorithm
While other cryptocurrencies use Proof-of-Work (POW) algorithm, NEM is the first digital currency to use Proof-of-Importance (POI). This consensus protocol considers:
- The vested amount of coins
- The net amount transacted in the last 30 days
- Interlinked clusters are known as cluster nodes
This protocol rewards miners based not just on the number of coins one holds but also their ‘importance’ in the platform. Ultimately, this makes the ecosystem self-sustaining and, in a way, regulated.
- Balanced Activity
Other cryptocurrencies are unregulated and prone to system overload. With NEM, this is out of the question. The importance is based on the vested amount. However, any amount being sent is deducted to both vested and unvested balance, while the received amount will be held under the unvested amount. The system discourages hoarding of POI and rapid trading, and users are rewarded for holding their coins. With this, there is a balance that is not present in other digital currencies.
- Namespace and Mosaics
A namespace is similar to a domain name. A user-created namespace in the NEM ecosystem is unique to that user. A mosaic, on the other hand, is an asset hosted on a namespace created on the blockchain. Even when multiple mosaics are shared under the same name, the combination of namespace and mosaics remains unique. Namespaces and mosaics are important because they introduce a unique naming system where one can create assets.
- Corporate Acceptance
The support by major corporations of cryptocurrency, despite it being decentralized, has gone a long way in assuring the public. Japan’s acceptance of Bitcoin and global banking institutions’ adoption of Ethereum have helped them raise their prices significantly. SBI Sumishin Net Bank, Japan’s largest trust bank, is already using Mijin, the private blockchain based on NEM, and testing it for its online banking platforms.
NEM is a hidden treasure waiting to be discovered by investors and enthusiasts. And as its demand and price are expected to grow in the coming months as banks and major financial institutions adopt it, now is the best time to invest in NEM.
Reference: Oracle Times
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