What would happen if some random crypto attempted to go beyond the conventional concepts of blockchain and mining? Well, seems like New Economy Movement (NEM) -– a technology platform — is about to answer this question.
NEM forked from NXT — a blockchain-based digital currency — in 2015. Nowadays, NEM is a blockchain with a native token called XEM. This crypto is a widely recognized asset, so you can easily trade XEM to BTC, or any other crypto, on the majority of crypto exchange platforms. Let’s dive deeper into the specificities of NEM to better understand the potential of its native token.
The Technicalities of the Blockchain
NEM positions itself as the smart asset blockchain or simply the platform seeking to manage assets and data effectively at a reasonable cost. It’s operated by a non-profit organization — the NEM Foundation. The developers attempted to make the blockchain more scalable and faster compared to competitors’ platforms.
The emerged blockchain is completely different from its predecessor — the original NXT, as well as from other blockchains. Let’s learn the actual reasons why it is so.
Mining vs Harvesting
For the sake of building a “better” blockchain platform, NEM considered using a proof-of-importance (POI) consensus mechanism and harvesting concept. POI gives more “importance” to how much a particular user invested into the system with consideration of a “vested” interest. So, both the number of tokens and the holding period contribute to measuring the “importance.”
The harvesting approach is an alternative to mining. Instead of combining the mining powers of different users (mining pool), each harvesting participant links their account to a supernode. This way, an account’s computing power is used to complete blocks.
NEM (XEM) Use Cases
The good thing about NEM is its ability to interact between public and private blockchains. So, it allows for easy transfer of any digital asset. These may include tokens, contracts, and even files.
The actual use case deriving from this is the creation of a privately held internal enterprise network. It can connect to another business’s private network via a public blockchain. This way, users can move finances between payment systems that do not support direct transactions by default.
The Problems NEM (XEM) Solves
NEM was developed with addressing other blockchains’ limitations in mind. One of the core missions of the platform is to enable data exchange between private blockchains. For now, these networks are just incapable of exchanging digital assets between each other.
Besides, NEM aims at enhancing the conventional supply chain management system. The platform is expected to make logistics more open, secure, and fast overall by making it more simple for companies to share validated data.
The multi-signature concept entails multiple keys for a transaction to be executed. Once again, NEM is focused on serving enterprises. The platform handles one side of the described interoperability issue by making it easier for firms to sign transactions as a group. For this purpose, smart contracts requiring multisig are conducted directly via the NEM platform.
NEM (XEM) Coin Benefits
XEM is the currency of the NEM blockchain. It is used for gaining voting rights, or as an alternative, blocking approval rights on the platform — internal network governance. Still, the main purpose of XEM is to facilitate smart contract execution. It does not serve as a payment method, though.
NEM (XEM) Price History
XEM started in September 2015 with a price of about $0.0001. It reached $1.84 — its all-time-high — in January 2018. The token has been fluctuating in the range of $0.03-0.07 for a long time, excluding the rise to about $0.79 in March 2021. The current price of XEM as of June 2022 is roughly $0.04.
NEM — a Promising Asset Worthy of Your Attention
If you intend to purchase XEM just for the sake of trading, the asset is already worth its salt. It’s volatile enough to bring profit if approached wisely. You may exchange your BTC to XEM as easily as BTC to DGB, just do not forget about the rules of money management.
But those who may really benefit from using the NEM platform and its tokens are enterprises. Private-owned companies have difficulties exchanging data between different networks. HEM is to address the issue effortlessly.