NEM Price Forecast: NEM has gained even more limelight after the recent hacking of tether. The entire world is shocked by the hacking of that particular cryptocurrency. Owing to this very reason, the cryptocurrencies which are related to the security of files and folders, as well as the security of users, are gaining prominence. One such cryptocurrency is NEM.
In the last 14 to 16 months, it has increased significantly in value and is appreciated by more than 1000%. This is another reason why this cryptocurrency is on the radar of investors.
What is NEM?
NEM provides security to the cryptocurrency assets as well as making the algorithm much more scalable as well. Moreover, whenever there is a spammer who intrudes into the network, the spammer is shut down as well. Also, instead of focusing on the smart contracts, NEM took a step further and created the concept of smart assets. These assets actually had a high amount of security as well as scalability.
Moreover, this cryptocurrency can also process hundreds of transactions in a single second. This ensures that greater amount of scalability is provided as well.
NEM Price Forecast 2018:
According to some of the analysts, it can easily bag its spot into the top 5 most valued cryptocurrencies in 2018. This leaves a significant room for upside even after the recent run-up as well. This is one of the main reasons why more and more investors are actually looking out for this particular cryptocurrency.
In the current meltdown as well, the crypto currency has not slighted a significant amount from the peak. When you take into account that it has risen by 1000%, you still have hefty amount of returns when you compare it with the levels at which it was in last October or November. This is the reason why that even after a fall from the peak, investors are not actually worried about this crypto currency losing value.
Diversify your cryptocurrency portfolio
If you’re looking to diversify your cryptocurrency portfolio, it is the time that you look at this particular cryptocurrency. Moreover, as the emphasis on security increases in the cryptocurrency world, you can be sure that such cryptocurrencies would be able to gain more prominence as well. This is one of the main reasons why NEM would gain even more prominence in the future as well. Also, if it is indeed able to make it spot in the top 5 most valued cryptocurrencies, you can be sure that it would continuously increase in order to retain that spot as well.
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Official NEM BLOG: What’s the difference between XEM, BTC, and ETH?
Ever since the dawn of currency, currency was controlled by a central entity. This central entity could decide to do whatever it wanted with its currency. It could weaken it, strengthen it, take it away from you, anything. The money was only valuable because this central entity said it was. The sad part is, we’re still using this form of currency today – in the form of your dollars, euros, yen, or anything of that sort.
In 2008 a man calling himself Satoshi Nakamoto decided he wanted to fix all this, and created the original cryptocurrency – Bitcoin. Bitcoin was a great and innovative idea, and it created the idea of the blockchain. The blockchain is a public ledger of every transaction that ever occurred, and as such could be verified by anyone.
Now it’s 2016, and there are hundreds of other cryptocurrencies out there, so I’m going to explain to you the pros and cons of the larger ones, and why XEM is really the way to go.
Bitcoin was the original. As we have seen, the original is not always best – but it still was innovative. It uses a public ledger called a blockchain for security, but that’s about the only security measure added.
The ideas in Bitcoin are applied to both Ethereum and NEM, and a simple rundown of all of this can be found in this video, created around the time bitcoin started becoming popular.
The ideas behind bitcoin have been used in every cryptocurrency since, so it’s important to understand how a transaction in Bitcoin works.
As far as all the advantages of Bitcoin, NEM and Ethereum both do whatever Bitcoin can, but better.
If you want to know how a transaction works in Ethereum, look at the infographic about Bitcoin, it works the exact same way.
Ethereum is really big right now because it includes two main features over Bitcoin.
Smart Contracts allow you to write applications in the blockchain that usually run as programmed.
‘ASIC-proof’ algorithm makes it profitable to mine for people without expensive hardware.
The asic-proof algorithm is still proof-of-work however, and so it suffers from the same exact pitfalls that Bitcoin suffers from.
The cryptocurrency community really loved smart contracts for a while. The way it was advertised was absolutely brilliant. “World Computer.” “Applications that run as programmed with no possibility of downtime.” Except, maybe it works a little too well.
Recently the largest smart contract in Ethereum was hacked, due to a fatal flaw with Solidity and how smart contracts work. This guy explains it well, which notes that if there is a smart contract vulnerability (which we just saw happen in an audited smart contract) – the hacker can legally take off with the funds. This is absolute heaven for a hacker.
NEM uses PoI, also known as proof-of-importance. This means that (unlike Bitcoin and Ethereum), NEM is environmentally friendly, and more secure. Unlike mining Bitcoin and Ethereum, network upkeep does not require hundreds and thousands of electricity hogging mining machines. A NEM node can be run on a computer as simple and cheap as a Raspberry Pi, which is only $35 and takes up very little electricity. PoI also encourages people to actually use NEM, rather than just hoard it. For a more detailed explanation, check out the previous article comparing PoW, PoS, and PoI.
NEM is also superior in security. It uses EigenTrust++ for node reputation, which is not used in any other cryptocurrency, and strengthens the security of the network considerably. It also uses localized spam protection, which shuts down spammers, and only the spammers, when the network is at full capacity. Both are only found in NEM.
NEM was built with a two tier design in mind as well. If you want a wallet, you don’t need a full node and a copy of the blockchain. Instead, you can just connect to any node, and have access to all the same features without trusting it. Even a malicious node has no access to your funds, and the worst it can do is just not work. In order to make sure that nodes continue to operate, the developers created a supernode program, which gives a greater incentive for people to maintain the network for years to come.
NEM isn’t only better in the security aspect, however. It also brings a lot of new or improved features to the table. Unlike Bitcoin, multi-signature accounts are on the blockchain, and do not require trusting a third party in order to have a multi-signature account. Ethereum does have contracts, but you need to write it yourself, which means that pretty much only developers can do it. As mentioned in the Ethereum section, this can be very, very hard to do right due to the language in which smart contracts are written. NEM has made making or editing multi-signature contracts as easy as a few clicks.
Another advanced feature is mosaics. This works similar to colored coins (custom currencies) in bitcoin, but is done completely on chain, rather than requiring the trust of a third party. The names of these colored coins are based off of namespaces, which are similar to how domain names work on the internet. Once a namespace is created, no one can claim the same one, and the owner can make unlimited subdomains.
A platform is never complete without messaging, however, and NEM includes either encrypted or unencrypted messaging between addresses, completely through the network. There’s even hex messaging for developers.
While Ethereum and Bitcoin are rewarding miners for making blocks, they aren’t giving incentives for running full nodes and supporting network throughput. NEM has a program called Supernodes that rewards people for running high powered nodes that serve light wallets with data quickly and securely. These rewards were set aside during the first block of the NEM network and are planned to last for years. In the event that the supernode funds do run out, there is always incentive to maintain the network. Anyone with 10,000 XEM can make a harvesting node, and collect transaction fees based on their PoI score. And instead of having to buy powerful and expensive mining equipment that uses high amounts of electricity, NEM harvesters can run a node on a computer as simple as a Raspberry Pi.
We are the first private/public blockchain, which is the same system that was used to create Linux, widely accepted as the most secure OS in the business world. NEM was built by experienced developers and was built for scalability and stability from day one. We are also currently the only platform that has been stress tested by banks and approved for financial use. Other currencies have been tested, but haven’t shared any proof, but all of our tests are open for anyone to see the results for.
NEM also has tried to make it as easy as possible for third parties to build on the blockchain. In platforms like Bitcoin most third party developers are locked into using one centralized service like Coinbase or Bitpay to build their ecosystem. This means that they rely on these services to build, update, and maintain APIs. And at Ethereum each developer will write their own code for contracts, which is much more versatile and flexible but as mentioned before comes with a risk that the developer must know exactly what they are doing. NEM on the other hand offers a full set of rich and easy to use JSON/restful APIs that work across the entire network with any node, and work with a large variety of calls including all transaction types.
All of this was built from 100% new code, and as such does not hit any of the pitfalls of the other two platforms. However, it can still benefit from the advantages of the other platforms, as it also uses the blockchain.
If you skipped all of that because you don’t like giant walls of text, here’s an easier to digest infographic.
NEM is a blockchain platform and cryptocurrency launched in 2015. Find out everything you need to know about NEM today in our review.
NEM, or New Economy Movement?
NEM, or New Economy Movement, is a community-oriented cryptocurrency that goes by the symbol XEM. NEM originally launched as a fork of Nxt, but its creators eventually coded an entirely new platform from the ground up. The alpha version of NEM launched on June 25, 2014, while the first stable release took place on March 31, 2015.
NEM is unique for its 1 minute block time, its proof-of-importance (POI) algorithm, and its multisignature accounts, among other unique innovations.
Today, the NEM blockchain software has been implemented in uses beyond cryptocurrency. It’s best known for being used in a commercial blockchain called Mijin, for example, which is currently being used by financial organizations in Japan and around the world.
The words “New Economy Movement”, by the way, have fallen out of fashion, and the organization only ever refers to itself as NEM.
How Does NEM Work?
NEM has a unique design architecture consisting of two components: the node (also known as the NEM infrastructure server or NIS), and the client (which interacts with the nodes).
To use NEM, you originally needed to download the NEM Community Client, or NCC. The NIS is connected to the P2P network and acts as a gateway for the NCC. The NCC comes bundled with a wallet. Today, however, most NEM users just download the NanoWallet.
Both the NCC and NanoWallet can be run away from the internet. Many users take advantage of this to provide enhanced security using an airgap system.
Another advantage of NEM is that it provides rock solid protection from external attacks. If the wallet is only connected to the NIS through a firewall, then it’s practically impossible to break in. Furthermore, wallets can be used on any computer, while the NIS represents a node on the NEM network and can be hosted from remote locations. So even if you have a cheap, low-power computer or mobile device, you can still interact with the NEM blockchain if you have internet. Furthermore, if the public-facing NIS is hacked, the attacker does not have a direct line of attack into the NEM wallet software from the NIS, which gives the platform an extra layer of security.
Some of the key features of NEM include:
New Codebase: NEM was originally designed as a fork of Nxt, similar to other blockchains and cryptocurrencies. However, the creators eventually decided to create an entirely new codebase.
Proof of Importance: Instead of using a proof of work (POW) algorithm, NEM uses a proof of importance POI) algorithm. NEM uses a client-server model where the NIS (NEM Infrastructure Server) runs independent of the NCC (NEM Community Client), allowing light clients (i.e. clients with low-power computers or cheap smartphones) to operate without running a full copy of the NEM blockchain. Proof of importance is used in NEM to time stamp transactions, and each user’s “importance” is determined by the number of coins they have and the number of transactions going to and from their wallets.
Open Source and Closed Source: The NEM client is open source and available on GitHub. However, the NEM server-based component (the NIS) is closed source and has an obfuscated binary. This is done to prevent decompilers from determining how it works. The soon-to-be released Catapult update, however (scheduled for 2017) will be open source.
Namespaces: NEM has a domain naming system called Namespaces. The Namespaces system is similar to the internet’s centralized ICANN domain name system. Users can register higher level domains and subdomains, which allows one person with one domain to create many different subdomains for their different projects or outside business accounts. If you have enough XEM in your account, there’s no real limit to how many domains and subdomains you can create.
Mosaics: NEM has a unique system called mosaics, which are custom assets on the NEM blockchain. Mosaics can be customized to be transferable or non-transferable, divisible or non-divisible, and have personalized descriptions. Mosaics can also be customized by amount in either a fixed capped or mutable quantity. Mosaics get a name under the NEM Namespaces system, where they’re labeled as subdomain.domain:mosaic.
Node Reputation System: NEM uses the Eigentrust++ reputation system to ensure the health of the blockchain. This ensures that nodes aren’t just measured by the amount of work they do – they’re measured by the quality of work they do as well. This is done to protect the network, and it’s one of the reasons why NEM is different from proof of work systems.
Harvesting: The act of forming blocks is called “harvesting”. A harvester needs to have at least 10,000 vested XEM in an account and be running a booted and synchronized node. This ensures the quality and security of the network. After a harvester forms a block, a new block is added to the chain. Fees are delivered to the harvester’s account. Interestingly, NEM has a feature called Delegated Harvesting where users can request others to form blocks and process fees on their behalf.
Supernodes: Supernodes are NEM’s built-in rewards program designed to reward those who contribute processing power to the platform. Through this system, the NEM Foundation can reward people who run very active nodes. Users with a minimum of 3 million XEM get paid 140,000 XEM (recently doubled from 70,000 XEM) divided by the total number of supernodes every day for running a supernode, provided the user’s supernode meets the NEM Foundation’s minimum technological requirements. This supernode system is the reason NEM can support light wallets, mobile wallets, and third party apps.
Messaging: Users can include messages in NEM transactions in three different forms: encrypted, unencrypted, or hex messages. You do not need to transfer any XEM to the recipient in order to send a message on the XEM network, although you do need to pay a fee. Right now, that fee is 1 XEM for every 32 characters, while encrypted message rates vary.
Multisig: Multisignature transactions are available on NEM. Like other multisig-enabled platforms, NEM require multiple users to sign a transaction before it can be broadcast onto the blockchain. This is important in the case where wallets get lost through a hack: in that case, no money can be spent unless another wallet signs the transaction. A multisig account prevents community-held funds from being abused. This security is particularly important on NEM, where approximately one third of all XEM in circulation is held in community accounts.
What is Mijin?
Mijin is a private blockchain built using the NEM software. The blockchain is being explored for use in a number of areas of the fintech industry, where companies claim it will reduce the costs of banking by up to 90% while making banking more secure.
Mijin is being tested worldwide, but it has a relatively large presence in Japan. Multiple financial institutions have added Mijin to their online banking services.
All of the features available with NEM are also available with Mijin. However, Mijin has the additional advantage of smart contract support.
The biggest advantage Mijin has over NEM is the transaction speed. Soon after launching in 2015, Mijin achieved 25 transactions per second on a global network. By 2016, it had achieved 5000 transactions per second. By the end of 2014, Mijin had achieved 10,000 transactions per second (local network) and 100 transactions per second (global network).
Mijin has made it a goal to reduce the cost of banking infrastructure by 90% by Q4 2018.
About the NEM Foundation
The NEM Foundation, or NEM.io Foundation, is in charge of the NEM project. The company is registered as a non-profit organization in Singapore. The official goal of the company is to promote the NEM blockchain technology globally. Today, NEM is one of the most funded and successful blockchain technology projects in the cryptocurrency industry.
The first stable build of NEM was launched in March 2015. The Foundation is preparing to release its next Catapult update sometime in 2017 (it was originally scheduled for launch in 2016).
Stay tuned for more information about NEM and their distributed ledger technology as the company continues to roll out its blockchain and expand the use of XEM.