What is NEM digital currency and how is it monetized?
NEM digital currency (NEM) has one of the special and unique blockchains of the world of cryptocurrencies, which has added exciting features and characteristics to this space. This fork or modified network is no other blockchain and is completely customized with a specific approach and function. For this reason, this platform has chosen the name of the New Economy Movement and is trying to gain global acceptance.
The NEM blockchain has a native digital currency called ZEM (XEM). Unlike many other networks that use proof of work or stock proof for their network consensus algorithm. The NEM network uses a unique algorithm called Proof of Significance (PoI). Also, transaction verification operations in the NEM network are not mining; It is called Harvest, which we will explain its meaning in the following.
History NEM Origin
A person with the username UtopianFuture in the BitcoinTalk community wanted to improve the NXT digital currency network. But eventually, he and several other developers decided to create their blockchain and implement their ideas on it.
Fifteen developers and 30 marketers joined the project in March 2015. NEM finally launched a blockchain and the NEM digital currency (the ZEM currency). The leading developers of the NEM project have kept their identities secret and operate under a pseudonym but live in Singapore.
Is the algorithm used in NEM?
As mentioned, NEM Digital Currency uses the Proof of Importance algorithm to test its network consensus. There is no need for powerful hardware such as miners with high power consumption with this algorithm. Instead, people who own digital currency (XEM) and give their wallets to the network will verify transactions and get more XEM.
This algorithm is somewhat similar to the stock proof algorithm, but it also has several differences and advantages, which we will explain below.
Like the proof-of-importance algorithm, the stock-proof algorithm leaves the confirmation of transactions to people who have the token or coin, but in-stock proof, the more assets a user has in that network, the more revenue they will have. Others are not involved in his income.
In contrast, in a proof-of-importance algorithm, in addition to the number of assets, the amount of time that purchases remain in a wallet and the number of transactions in that wallet also affect the amount of revenue earned. In the NEM network, these people, who give their wallets to the network and participate in the process of approving transactions, are called Harvesters, and the operations they perform are called Harvesters.
The more transactions a Harvester makes with its wallet, and the more it considers these factors, the more revenue it will receive from Harvest.
What is Harvest, and who is Harvester?
As we have said, the transaction approval process is called mining in many blockchain networks, such as the Bitcoin network. Still, this process is called Harvest in the digital network, which means harvesting.
NM users must have at least 10,000 XEMs in their wallets to participate in transaction approval and become Harvester. Harvesters earn a commission on the transactions they approve by placing their wallets on the network.
Unlike the mining process, a harvester does not require high throughput and complex hardware; Because the processing power and hardware of the wet network will be provided by supernodes. The Harvester only needs to connect to the supernode and confirm transactions.
NEM network supernodes (similar to full bitcoin nodes ) are robust computer systems with high throughput, ping, almost unlimited internet volume, and at least 3 million XEM units and provide their resources to the network, which will benefit many network transactions.
digital currency capabilities NEM
The NEM network has several capabilities, which we will describe in the following.
Having two blockchains
The developers of NEM have created two different blockchains for this network. One of these blockchains is Nem Public Blockchain, which is open to all users. The other blockchain of this network is called Mijin and is designed for custom and private use by large companies. Unlike blockchain, transactions are not published on a blockchain, which is why more than 300 large companies use blockchain for their various applications, such as supply chain management.
Ability to create assets using the names of spaces and mosaics
An essential part of the wet ecosystem is the concept of names of spaces and mosaics in this network. The simplest way to explain these two concepts is to compare the name of a stretch (NameSpace) to a domain and a mosaic to hosts. Just like a domain, when you register a space name on a damp network, no one else will be able to write that space name. These names of spaces are used for commercial applications, and mosaics can be created in one name of the area.
Creating a mosaic is exactly like creating a digital token or currency on a network. ZEM is the first mosaic made on a wet grid, but other people can develop other mosaics for various purposes.
Of course, this has a relatively high fee, but it can be helpful for many large companies. For example, a particular business owner can create a mosaic called X in a damp network. Each X has a specific value in that business, and individuals with each X can receive a certain amount of services for that business. The characteristics of each mosaic, such as the number of tokens, etc., are also determined by its maker.
It is also possible to develop applications on the wet network, and even the Japanese Ministry of Agriculture uses wet blockchain to monitor the supply chain of livestock products.
The benefits of digital currency
The type of network and the unique way it works make this network have exciting advantages. These benefits include:
High speed of transactions
The developers of NEM claim that each transaction of this network is done in 20 seconds, and this network can confirm 3000 transactions per second. This is a very high number compared to many other blockchains.
Meager commission
The fee for wet network transactions is only 0.01% of the transaction amount, one of the lowest fee rates. This rate means you only have to pay a $ 0.1 fee to send $ 1,000, which is very small compared to traditional methods and even many other blockchains that do not use this algorithm.
Very high transparency
As we explained, the NEM network has two public and private blockchains. The public blockchain of this network is entirely open-source. And has the necessary transparency for the trust and cooperation of companies and traders.
NEM (Zem) Network Digital Currency
ZEM (XEM) is the native digital currency of NEM Network with a supply limit of 8,999,999,999 units. These units were released in 2015 and are available to major NEM developers, releasing them over time. This means that no new currency is created in the Harvest process, but only the commission for approved transactions reaches Harvester.
ZEM has made significant progress over the years. And the price of Zem has risen sharply since the beginning of 2017. At the height of the cryptocurrency market in 2018, the cost of Zem also reached $ 1.8, but then with the fall of the market, the price of this digital currency also decreased. A large amount of $ 500 million worth of digital currency (ZEM) was also stolen during the hacking of the Coincheck exchange, which also reduced the price of ZEM.
Wallets and exchange offices that support Zem
NEM Network has an official and unique wallet that you can download from NEM’s official site and use to keep track. Otherwise, wallets such as Trezor Wallet, ChronoMint, Abra, Satowallet Exchange, CoinSpot, Bitpanda, and digital support currency.
Online exchanges include Binance, Bittrex, Changelly, HitBeat, and Cracken. It has ZEM digital currency on its list, and you can trade this currency in them.
Concluding remarks
NEM blockchain (NEM) and its native digital currency. XEM (XEM) has brought tremendous capabilities and benefits to the world of cryptocurrencies. Numerous factors have prevented ZEM from further advancing over time. Still, suppose the network developers’ claims about its outstanding performance are accurate. In that case, we can expect blockchain and digital currency to be well-received. And see much more progress for the network in the future.
