Many people are interested in altcoins nowadays because many believe Bitcoin to be ‘done’. However, there are many options available when it comes to altcoins which makes it hard to pick a currency to invest in. Ethereum, Litecoin, and Ripple are the names that pop up frequently when altcoins are mentioned. NEM is one of the most underrated cryptocurrencies out there and it definitely has all the tools required to be a top cryptocurrency.
What is NEM?
NEM is a blockchain based cryptocurrency which tries to take the positive aspects of Bitcoin and applies it to all technological infrastructure. The NEM blockchain network powers what it likes to call the “Smart Asset System”. These Smart assets work similar to Ethereum’s smart contracts.
The smart asset system is an open, customizable blockchain solution for a number of practical use cases. Some of the use cases could be Health records, Supply chains, Legal records, Loans and much more. The blockchain network is secure which already makes it one of the more safer options out there.
It’s also easy for developers to make blockchain powered apps using NEM’s technology because they don’t need to use any specific NEM software because all of NEM’s functionality is available through API calls. This allows for a lot of flexibility when designing applications and how an app uses the NEM network. Since NEM uses API calls, it also makes developing much easier as NEM allows you to code in any language.
What NEM has to offer
Proof-of-importance and Harvesting
Bitcoin uses a Proof of work algorithm, however, NEM uses something different. It uses a Proof-of-importance algorithm which gives incentives to users to actively participate on the network. This helps give each node some level of importance (an importance score) which determines how many times it can harvest (or mine in simple terms) NEM’s crypto coin.
The system also vests your coins, your purchased coins start out as unvested coins. Over time, coins will begin to ‘vest’ and once you have at least 10,000 vested XEM (NEM) then they’ll start counting towards the importance score for your account. The importance score can also be affected through tracking transactions.
Each transaction is tracked and analyzed. The more a user takes part in transactions i.e. more frequently using the NEM network, the more ‘important’ that user becomes. These importance scores help scale the likelihood of your node harvesting XEM.
Another great thing about Proof-of-importance (POI) is that it’s not hardware intensive. Therefore, coins can be harvested (or mined) on any machine which gives each user an equal chance to mine coins. Coin harvesting thus solely depends on the importance score which one can improve by being active on the network. The vesting process takes time as well which allows for a fairer means to making a profit.
In NEM, the same software is used to run a node as well as to harvest coins. Therefore, it gives the incentive to run a full node as over time, harvesting will become more profitable due to the importance score. Thus, the POI system introduces its own unique way to handle mining compared to the traditional system which has its strengths and weaknesses.
The reputation system
NEM implements this system using a customized version of the Eigentrust++ algorithm for its nodes on the network. Each node keeps track of the information received and sent out and then tries to validate/verify this information. Thus, if the information received is verified as valid, then the reputation of the node that provided the information will increase and vice versa.
This system helps remove bad nodes from the network. It helps the network run smoothly and efficiently as well. The reputation system also has built-in spam filters that take care of any spam or unnecessary transactions that would clog up the network. It also has its own system that the network uses to maintain timestamps which means that the network doesn’t need any third party servers to check the time.
All of their technological features described in detail can be found here.
Public and Private
NEM’s blockchain network is public, which means that all transactions are traceable. If you want more privacy then a private version of NEM also exists. This version runs on its internal servers, and only makes use of nodes which the user chooses to use. In this private network, features that are available in the public version of the network can be used or even removed which allows for faster transactions.
The private network has many real-life applications such as shipping fleet logistics or loyalty points programs. The applications built on the private network will run with great speed and security without ever releasing any transaction data. This allows for companies to choose between which network they would like to use especially if they want to exclude some features of the public network they feel they don’t need.
Is it worth investing in?
The currency has seen a constant rise in its value till the start of 2018. It was once ranked amongst the top 10 cryptocurrencies in the world as well. However, with the recent crypto decline, the currency has suffered massively coming down to a value of $0.54. This price is still a profit for those who invested in the currency early.
Every currency has its ups and downs. Even after facing massive losses, NEM is still the 11th largest cryptocurrency in the world. Many people don’t know about the currency which is another reason for the fluctuation of the currency’s price. Moreover, this is not a currency that will make you rich in a short span of time, patience is required with this cryptocurrency.
If you’re patient enough to stick with the currency through rough periods like the current one, then XEM (NEM) is the coin for you. It has several benefits and more use cases than other cryptocurrencies. It also has a low mining and maintenance cost. It’s also more user-friendly for non-crypto programmers as it allows them to use any language of their choosing.
Furthermore, the price of the currency is currently really cheap. At the time of writing, NEM is valued at a mere $0.54. A significant amount of NEM tokens can be purchased for the same amount of money that would get a decent mining rig for any other cryptocurrency.
Of course, the cryptocurrency market comes with a lot of uncertainty. Therefore, one must always do their own research and consider the risks before investing. NEM has superior technology to popular currencies like Bitcoin and an impressive POI system that makes it one of the favorites going forward.
The ease of development also makes NEM an attractive option for many, especially large firms. Therefore, NEM is certainly a currency one should keep an eye out for.